Features
Healing the nation – A question of leadership
Deshamanya Dr P.R. Anthonis Memorial Oration
by Dr Nihal Jayawickrama
I am deeply honoured by the invitation of the Lanka-Japan Friendship Society to deliver the Deshamanya Dr P.R. Anthonis Memorial Lecture this evening. I was intrigued by the subject that was assigned to me, since a surgeon’s approach to healing a patient is usually to cut and remove a part of his or her anatomy. I wondered whether I was expected to advocate the same approach to healing the nation.
Coming, as I do, from a family of lawyers, with only one doctor of medicine produced in several generations, it was my brother who knew and worked with Dr Anthonis over many years. Dr Anthonis was one of a small group of brilliant surgeons of the 20th century that included Dr Noel Bartholomeusz and Dr M.V.P. Peries. I have had the good fortune never to have been subjected to Dr Anthonis’s scalpel, but I have had the privilege of meeting him socially, and he always treated me with the utmost kindness. To the memory of that remarkable surgeon, I dedicate my own thoughts on the subject I propose to address, with respect and affection.
‘Healing the Nation – A question of leadership’ immediately raises the question: what is expected of a political leader in a democratic society? Should the leader reflect the views, the fears and the prejudices of the electorate to which he has to return for re-election; or should he determine a path according to his own vision, his own values and his own judgment, and endeavour to lead his electorate along that path? President Jayewardene ruminated on this issue some years after he had left office and wondered how long one could go along with the wishes of the electorate.
A military leader does not have to worry about that, but a democratic leader must because the electors are his main and only support. It was difficult to be re-elected unless the leader continued to enjoy the support of those who had placed him in that position. However, he was willing to make an exception in regard to economic matters where external factors often determined what could or could not be done, however much that might displease the electorate. Incidentally, he had some sound advice for those aspiring to be leaders. Politics, he said, was a “stayers’ race”; a race where a man or woman who does not try to kick his neighbour or jump over him, but stays on till all the others disappear, wins the race. Therefore, he advised aspirants for political leadership that good health was vital: “look after your kidney, nurse your heart, eat little, don’t exercise too much, and in the end, you win the stayer’s race and you become the leader”.
Not being a politician, and not intending to be one at this stage of my life, I am free to disagree with President Jayewardene. I believe that a leader must possess a vision that he pursues with wisdom and integrity, and it is his responsibility to convince his electorate that he is on the right path. At the height of the American civil war, when things were not going well for the North, Abraham Lincoln was advised that he might need to compromise on slavery. Lincoln held firm on the issue of abolition. More recently, Nelson Mandela’s decision to be magnanimous in victory must have enraged tens of thousands of black Africans who had been subjected to oppression and brutality at the hands of the previous white apartheid regime. Yet, both Lincoln and Mandela achieved peace in their respective countries. That, in my view, was the result of leadership.
To establish the parameters for my presentation, I need to define the expression “healing the nation”. To heal is to mend, to reconcile, to rectify, or to restore. It presupposes that the nation is wounded, hurt, or broken. In this context, “the nation” must mean Ceylon or Sri Lanka. However, about a 100 years ago, Anagarika Dharmapala began writing aggressively of the “Sinhala nation”, and in course of time “Sinhala” became the equivalent of “jathiya” or “Lankika”. In 1944, the Communist Party made the first reference to the “Tamil nation”, a term that was finally affirmed in the Vaddukoddai Resolution of 1976.
In the contemporary world, this is not a matter for any real concern. For over several centuries “English” was synonymous with “British”, but today, the nation known as “Great Britain” comprises at least three nations: the English nation, the Scottish nation, and the Welsh nation. Each has a distinct language, religion and a proud culture. Scotland and Wales have their own legislative assemblies and are represented in Westminster in both the Parliament and the Cabinet. Together with Northern Ireland, these three nations constitute the United Kingdom. Similarly, the nation of Sri Lanka includes the Sinhala nation and the Tamil nation and several other communities, and it is to the break-up of that nation that I now turn.
THE BREAK-UP OF THE NATION
When did the break-up of the Sri Lankan nation occur? I would submit that it was not a single event, but a series of events that led to the nation being wounded, hurt or broken. In the first quarter of the 20th century, all the different ethnic communities stood together as Ceylonese in agitating for constitutional reform. However, with the introduction in 1931 of universal adult franchise, and with impending self-government, it was natural that minority communities would become apprehensive of majority rule. There was cause for this. The Sinhala Maha Sabha, established by S.W.R.D. Bandaranaike in 1937, was already engaged in creating a national consciousness among the Sinhalese. Meanwhile, following the election of the second State Council in 1936, the Sinhalese members, together with the European members, succeeded in electing a Board of Ministers that was exclusively Sinhalese – the so-called “Pan-Sinhalese Board of Ministers”.
The 1946 Constitution
The fears of the minority communities were set at rest by the Soulbury Commission which recommended the inclusion in the constitution of a package of safeguards. These were:Multi-member constituencies in those areas in which a substantial racial or religious minority lived.Six nominated members of the House of Representatives to represent any inadequately represented interests.
The Senate, which would serve the minorities as an instrument for impeding precipitate legislation, as well as a forum for handling inflammatory issues in a cooler atmosphere.An independent Public Service Commission which would guarantee strict impartiality in public appointments.A prohibition on Parliament from enacting any law which seeks to make persons of any community or religion liable to disabilities or restrictions to which persons of other communities or religions were not made liable, or to confer on persons of any community or religion any privilege or advantage which was not conferred on persons of other communities or religions.
The Privy Council observed that these safeguards in the 1946 Constitution represented “the solemn balance of rights between the citizens of Sri Lanka, the fundamental conditions on which they accepted the Constitution; and these are therefore unalterable”.
At the conclusion of the first general election of October 1947, D.S. Senanayake, the leader of the newly formed United National Party which secured 42 of the 95 seats, formed a 14-member Cabinet in which he included two independent Tamils elected from the northern province: C. Sittampalam from Mannar, and C. Suntheralingam from Vavuniya, and one Malay, T.B. Jayah, from Colombo. Was the formation of this multi-ethnic Cabinet an act of leadership on the part of D.S. Senanayake, designed to consolidate the multi-ethnic, multi-religious and multi-linguistic nation of Ceylon? Or was it an act of political expediency to convince the British Government that the fear that the minorities entertained of majority rule no longer existed, and that Ceylon was ready and equipped for independence? I am inclined to the view that Senanayake, during whose tenure our national flag was designed and adopted, and who steered clear of language and religious issues, truly desired to maintain the equilibrium of a multi-ethnic state.
On February 10, 1948, Sir Oliver Goonetilleke, presenting an Address of Thanks on behalf of the Senate to the Duke of Gloucester who had opened the first Parliament of Independent Ceylon, exclaimed:
“We are of many races – Europeans, Indians, Burghers, Malays, Moors, Tamils, and Sinhalese. We are of different religions – Muslims, Christians, Hindus, Buddhists. We have majorities and minorities. We have, however, been in the past, and we shall be in the future, one nation”.
As a 10-year-old Royal College scout “on duty” outside the specially constructed Assembly Hall, and where the Independence Hall now stands, I was present and saw and heard Sir Oliver express that optimistic hope, although I may not have understood much of what he said.
However, on that February day, I returned home and did two things. I made a replica of the Assembly Hall using cardboard strips and colourful chocolate paper as a substitute for the ralipallan. I also began maintaining scrap books in which I pasted the newspaper reports of that event, and thereafter of all the significant events in the country, including the regular Miss Ceylon contests.
Unfortunately, in that “one nation”, the critical events that followed Independence were often determined by political expediency. This was in sharp contrast to the policies of Lee Kuan Yew who created one of Asia’s most peaceful and prosperous nations out of what he described as “a polyglot collection of migrants from China, India, Malaysia, Indonesia and several other parts of Asia”. In barely 30 years, Sri Lanka’s political leaders caused the disintegration of a nation which at Independence had solid foundations of freedom, perhaps more than any other British colony.
Citizenship and Franchise
The new nation’s first target was 211,915 registered Indian Tamil voters. As British subjects who had been continuously resident in Ceylon for at least five years, they were eligible to vote. At the 1947 general election, apart from electing seven candidates of the Ceylon Indian Congress, they had helped to secure the victory of 15 1eft-wing opposition candidates as well. It became a matter of priority for the Government to disenfranchise the Indian Tamil population. Accordingly, Parliament enacted a package of laws which had a profoundly debilitating effect on that community.
The Citizenship Act 1948 established the principle of citizenship by descent, and not by birth, by requiring proof of birth in Ceylon of one’s father, or paternal grandfather and great-grandfather. It thereby deprived the plantation Tamils, 12 per cent or an eighth of the country’s population, of their citizenship. The Indian and Pakistani Residents (Citizenship) Act 1949 made it virtually impossible for them to obtain citizenship by registration since it required proof of uninterrupted residence in Ceylon in the previous 13 years. The Ceylon Parliamentary Elections (Amendment) Act 1949 deprived those who were not citizens of their right to vote, thereby ensuring that by the time of the next general election of 1952, the number of Indian Tamil voters in the seven plantation area constituencies was reduced from 162,212 to a mere 3,191. It became impossible for that community to secure even a single seat in Parliament.
Did the Citizenship Act discriminate against the Indian Tamil community? In my view it did. However, when section 29 of the Constitution was invoked, both the Supreme Court and the Privy Council retreated. In what bore the stamp of classic political judgments they upheld the Act on the ground that it was “a perfectly natural and legitimate function of the legislature to determine the composition of its nationals.” While that may well be so, our Constitution provided that in performing that function, Parliament must not discriminate against a particular community already resident in the country. A million people were thereby rendered stateless.
The problems created by the presence of the Indian Tamils were, of course, sensitive and emotional. Even almost 30 years later, Hector Kobbekaduwa would exclaim, with reference to the 1947 general election:
With universal franchise, the constitution makers thought that the inarticulate peasantry should have their own representatives. But unfortunately, in the hill country, the change was from clay to fire. The Peri Sunderams, the Vythialingams, Natesa Iyers and Fellows-Gordons, and later the Thondamans and Jesudasans and other political adventurers, were swept into power in our areas through the Indian votes. It was a hopeless situation for us. We screamed for justice.
Marginalizing the Tamil community
The substantial disintegration of the nation, however, occurred with a series of politically expedient measures taken by successive governments which were directed at, or had the effect of, marginalizing the Tamil community. These were political decisions that were thought to appeal to the majority of the Sinhalese electorate who believed, as the Mahawamsa claims, that the passing away of the Buddha synchronized with the founding of the Sinhala race; that Sri Lanka was a “Dhamma-dweepa”, a nation brought into being for the specific purpose of keeping alive the message of the Buddha; and had for centuries harboured a historical, yet often dormant, grievance against the Tamils for having settled in a part of this “Dhamma-dweepa”.
One of the earliest of such measures were the government initiated and funded colonization schemes, which at the time appeared to be both timely and desirable. However, they resulted in Sinhalese families from the south being settled in the sparsely populated dry zone in the eastern, north-central and northern provinces. This was viewed by the Tamil community as a diabolical attempt to dilute the Tamil presence and seriously alter the ethnic composition in those provinces. It was argued by Tamil politicians that the government should have first invited the people of the provinces where lands were being distributed to come forward as recipients. Thereafter, people from the other areas would have had their share if there was sufficient land to distribute. This policy, which altered the demographical pattern that existed at the time of Independence, was to lead to violent ethnic conflicts in the colonized areas in later years.
The division of the Sinhalese from the Tamils, commencing at a very young age, began with the implementation of the policy to replace English with Sinhala and Tamil as the medium of instruction in schools. I was fortunate to have entered the primary school before this policy was introduced, and to have had the opportunity to go through school life in the company of fellow students from all the communities and to understand and appreciate their cultures, their strengths, their weaknesses, and their idiosyncrasies. To segregate children from a very young age based on their language was to ensure a permanent division between the two communities through life, with little or no opportunity to interact and understand each other.
That division was compounded when the SLFP and the UNP changed their language policies to that of Sinhala Only as the official language, repudiating one important element of the 1946 constitutional settlement on the basis of which the minorities had agreed to subject themselves to majority rule. For generations, the government clerical service had been a popular outlet for the educated Tamil youth who did not aspire to a university education but sought a habitation and a source of income away from the arid soil of his northern home. He or she was now required to qualify in Sinhala to enter, and thereafter to progress in, the public service.
Between 1977 and 1981, Tamils secured only 4.9 per cent of the vacancies in the government clerical service as against 93.6 per cent for the Sinhalese. The plight they now faced became evident from the case of Kodeeswaran, a Tamil who had been appointed to the General Clerical Service in 1952. He had successfully moved up the salary scale from Rs.1600 to Rs.3780 per annum by regularly passing proficiency tests in Tamil. In 1962, he was denied his increment because he did not present himself for the proficiency test which was now conducted in Sinhala. Many hundreds of Tamil public servants almost certainly found themselves in the same predicament as Kodeeswaran.Kodeeswaran challenged the Official Language Act in the District Court of Colombo. Mr O.L.de Kretser, District Judge, in a carefully considered judgment observed that:
If the members of each community were able to speak, read and write the language of each of the other communities, then it is obvious that the selection of the language of one community as the Official Language could not cause any handicap to the members of the communities whose language was not chosen, however much they resented the fact that their own language was not given pride of place. But every community in Ceylon is not literate in the language of the other communities, and the selection of the language of one community must cause at least inconvenience, if not disability, to the communities who are not literate in that language.
While observing that it was a legitimate function for Parliament to decide in what language official business should be carried on, he concluded that the Act nevertheless gave advantage to one community which the other did not have. Accordingly, he held the Official Language Act to be an infringement of section 29 of the Constitution, and therefore void. Once more, the Supreme Court retreated. Chief Justice H.N.G. Fernando avoided the substantive issue and held instead that a public servant in Ceylon had no right to sue the Crown for the recovery of his wages. On appeal to the Privy Council, the Chief Justice’s judgment was declared to be wrong, and the case was returned to the Supreme Court to address the substantive issue. For some inexplicable reason, the appeal was not listed for hearing until the Official Language Act was incorporated in the 1972 Constitution.
The 1972 Constitution marked the crucial decisive stage in the disintegration of the nation. The 1946 constitutional settlement was unilaterally abrogated. The Senate, the nominated members in the House of Representatives, the Public Service Commission, and the section 29 prohibition of discriminatory legislation were all omitted in the new Constitution, along with the judicial review of legislation. Sinhala was granted constitutional status, and Tamil was described as the language of translation. The issue of federalism was not even allowed to be raised. The Federal Party withdrew from the Constituent Assembly because they believed that they were unable to influence in any effective manner the course of its proceedings.
The 1972 Constitution marked the crucial decisive stage in the disintegration of the nation. The 1946 constitutional settlement was unilaterally abrogated. The Senate, the nominated members in the House of Representatives, the Public Service Commission, and the section 29 prohibition of discriminatory legislation were all omitted in the new Constitution, along with the judicial review of legislation. Sinhala was granted constitutional status, and Tamil was described as the language of translation. The issue of federalism was not even allowed to be raised. The Federal Party withdrew from the Constituent Assembly because they believed that they were unable to influence in any effective manner the course of its proceedings.
The most untimely introduction in the 1970s of a policy of standardization in respect of university admission was perhaps the final straw. Intended to secure a more equitable distribution, language and district-wise, of the limited number of places available in universities, it resulted in a large number of Tamil students being denied admission to the universities. The effect of this policy, and the enormity of the injustice it caused to the Tamil community, raised this issue to the level of a major human rights problem.
For instance, in 1975, the admissions on a district basis into the medical faculty were 29 from Galle and 29 from Jaffna, whereas on the basis of merit only 18 had qualified from Galle as against 61 from Jaffna. Similarly, on a district basis, Galle and Jaffna each secured 20 places in the science and engineering faculties, while on the basis of merit, 24 should have entered from Galle and 56 from Jaffna. Nothing could have been more frustrating to the educated Tamil youth than his inability to enter the stream of higher education owing to standardization and be diverted away from the mainstream of life in the country. This feeling of despair and non-fulfilment contributed immensely to the emergence of a militant youth movement. The drift to separation was now both rapid and intense, and accompanied by increasing violence. On 27 July 1975, masked gunmen shot and killed 48-year-old Alfred Duraiyappah, the SLFP Mayor of Jaffna.
The Vaddukkodai Declaration
One year later, at Vaddukkodai, on 14th May 1976, the Tamil United Front, together with the Muslim United Front, declared that:
The Tamils of Ceylon, by virtue of their great language, their religion, their separate culture and heritage, their history of independent existence as a separate state over a distinct territory for several centuries until they were conquered by the armed might of the European invaders, and above all, by their will to exist as a separate entity ruling themselves in their own territory, are a nation distinct and apart from the Sinhalese.
It was indeed ironic that Dr Colvin R. de Silva, the architect of the Constitution that abrogated the 1947 constitutional settlement, should have anticipated that this would happen. Addressing Parliament twenty years earlier this is what he predicted:
Do we, does this House, do our people want two nations? Do we want a single State, or do we want two? Do we want one Ceylon, or do we want two? And above all, do we want an independent Ceylon which must necessarily be a united and single Ceylon, or two bleeding halves of Ceylon which can be gobbled up by every ravaging imperialist monster that may happen to range the Indian Ocean? If we come to the stage where, instead of parity, we, through needless insularity, get into the position of suppressing the Tamil people from the federal demand which seems to be popular amongst them at present – if we are to judge by electoral results – there may emerge separatism.
(To be continued next week)
(This is a slightly condensed version of a speech delivered in Colombo in May 2016)
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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