Features
Imagining Minister Basil Rajapaksa in India
By Austin Fernando
Former High Commissioner of Sri Lanka in India
When Minister Basil Rajapaksa’s visit to Delhi was announced, my imagination ran riot. What I imagine here is based on the behaviour of Sri Lankan governments and how they have related to Indian leaders. I imagine the following scenes and conversations between Minister Rajapaksa and the Indian leaders:
“Namaskar, Good Morning Your Excellency” is the friendly greeting from Minister Basil Rajapaksa to Madam Nirmala Sitharaman, Indian Minister of Finance.
“Ayu-bo-wan! Good morning Your Excellency” is the reciprocation from Minister Sitharaman. High Commissioner Gopal Baglay has briefed her on Sri Lankan traditions. (Minister Rajapaksa thinks that hailing from Karnataka she knows our traditions.)
The purpose of the ministerial meeting is predictable. HC Baglay’s brief to the South Block on the Sri Lankan economic crisis has reached Minister Sitharaman. It is not confidential since, in the Parliament, the former Prime Minister Ranil Wickremesinghe and economist turned parliamentarian Eran Wickramaratna have let the cat out of the bag.
HC Baglay’s messages are easily understood, both politically and technically, by Minister Sitharaman. Her capacity to understand such has developed over time by representing India at international economic fora, pushing agreements on trade, commerce between India and other nations, attending World Trade Organization meetings, inter-country business conclaves, participating in India-EU summits and bilateral meetings in African, Asian, European countries, meetings of G-20, BRICS Summit, etc. Knowing her wide international exposure, Minister Basil Rajapaksa, with less exposure on these areas, attempts to match them with his strategising prowess.
“Excellency, we understand you are facing a grave crisis at present?” The discussion commences after the exchange of pleasantries. She can be informal, and tough, too, as I have personally observed previously, in her office, and at Lok Sabha.
Minister Rajapaksa replies: “Madam Minister, you will understand the difficulties caused by COVID-19 and its impact on our economy.”
“Yes, true. But our situation was far worse. We had about 467,000 deaths due to the pandemic.” (This is straight-nosed Minister Sitharaman’s equally straight-nosed response, diplomatic but sternly brushing away the Covid argument.)
“Covid hit us severely and our exports were affected, tourists did not arrive, foreign remittances shrunk, creating an extremely serious foreign exchange crisis,” says Minister Rajapaksa, getting to the point.
“Yes, I hear of it. My information is that former PM Ranil Wickremesinghe has said in Parliament that foreign reserves have dwindled to 1.5 billion dollars and the net is 1.2 billion when gold reserve value is deducted. It is precarious and dangerous, I presume.”
(A bell rings in Minister Rajapaksa about Ranil Wickremesinghe’s utterance, and the further capacity reduction quoted by Eran Wickramaratna, i.e., “to less than one month’s worth of imports, which is the “lowest in history.”) “Madam Minister, it is true, and the forex crisis may worsen the shortage of essential food items, medicines, aside from being expensive. It will create a shortage of fuel and may lead to power cuts. Industry and businesses will face difficulties. Our foreign debt burden is exceedingly high. In that light, we have to request India’s assistance.” (He downplays the resultant political crisis.)
Assuming a confrontational mood, Minister Sitharaman says: “Chinese debt? (Laughs!) Or international sovereign bond debt? We were lucky because we managed the economy efficiently, and thus our foreign exchange reserves position is comfortable in terms of import cover of more than 18 months and provides a cushion against unforeseen external shocks. Yours is only a one-month import cover? Our foreign exchange reserves have been increasing from 370 billion dollars in 2016-2017 to 478 billion in 2019-2020 and this year to 577 amidst the pandemic.”
Minister Rajapaksa wonders, “Why cannot India help us with a billion dollars to purchase fuel, on a long-term credit basis? Indian reserve performance is a one hundred billion dollars increase in one year with Covid ravaging the whole country. India can well afford to assist.” (He is happy that credit ratings are not mentioned.)
“We sought relief from several donors. In January we must pay USD 500 mn as debt repayment. Another installment will have to be paid towards mid-2022, amounting to one billion dollars. My government has advised me to seek India’s help and initiate negotiations on terms for an immediate response. It is not financial assistance alone we need; we require trade and investment for which we offer incentives.”
Madam Sitharaman inquires about such repayments without naming countries:
“I think when you meet Prime Minister Modi, please discuss with him this request formally. I will discuss with my officials and colleagues, especially with Foreign Minister Dr. Jaishankar, and brief the PM. You can request Minister Jaishankar, too.”
And, she continues, “Incidentally, I remember meeting Minister Malik Samarawickrama as a representative of President Sirisena’s government in 2019. He promised positive actions but did not follow up. He discussed the Economic and Technology Co-operation Agreement (ETCA). Minister Piyush Goyal told me that he promised to follow up on ETCA with him, too. Nothing has happened. He mentioned the LNG project, and now It has gone to an American company. No consistency. Delays. The PM may express his concerns over and above financial and economic matters. By the way, I would like to know your stance on approaching the International Monetary Fund, which most countries turn to in such eventualities.”
“Excellency, the IMF solution is being considered by us. Yet, we have not finally decided on it. We have differing views on the subject. I am aware that accessing the IMF eases the problem.”
Minister Rajapaksa retreats thanking her for all courtesies and support extended (though nothing concrete has emerged from their discussion!) with a passing comment regarding his kinship with Indians through the marriage of a sibling.
Madam Sitharaman grasps the point on the ‘extended family connection’ and says, “Yes, I heard about it. Now, we are not only friends, neighbours, and relations, as your brother President Mahinda Rajapaksa said earlier, but moreover true relations!” A hearty loud laugh from both sides.
Minister Rajapaksa retreats, thinking of Minister Sitharaman’s camouflaged advice and issues that may be raised by PM Modi. He knows that PM Modi could be blunt at times. The Minister discusses details with his officials and the new High Commissioner of Sri Lanka, Milinda Moragoda, who has prepared a roadmap, which concentrates on benefits to Sri Lanka, as it ought to be, but the Minister knows what PM Modi will want to know how it will serve India’s interests.
Minister Basil Rajapaksa meets PM Modi with High Commissioner Moragoda and Secretary SR Attygalle.
Prime Minister Modi in his usual friendly manner greets the delegation. Making the meeting informal PM Modi inquires, “I heard that you met Minister Sitharaman already?”
“Yes, Your Excellency, it was a fruitful meeting,” says Minister Rajapaksa, though she did not offer to help sort out Sri Lanka’s foreign reserve crisis. However, knowing the toughness of PM Modi’s approaches he waits to hear his “demands.” He knows that there is no such thing as free lunch diplomacy or international relations. He has learned it even from the Chinese.
The PM gets to the point straight away:
“Minister Sitharaman indicated to me that you have a serious foreign exchange crisis, and you face an extremely serious economic and political crises as well, and you expect our assistance, too. Of course, we have accommodated your requests earlier, too, by way of assistance, swaps and investments.”
Though Minister Rajapaksa did not explicitly mention a political fallout, Minister Sitharaman has understood it and briefed Prime Minister thereon. “Yes, we are faced with economic and political crises” replies Minister Rajapaksa. (He does not say it is ‘grave,’ though it is so.) As a strategist, he knows that if he shows weakness, Indians will take the upper hand, as happened to President JR Jayewardene during PM Rajiv Gandhi’s tenure in 1986-1987.
“I understand it well. We were faced with extensive problems with a larger pandemic impact on our society. Still, we have enhanced our foreign reserves irrespectively. Even Bangladesh has achieved success in it. I know you had issues with trade unions and farmers. It is common to us, too. We had farmers on the roads for months. Still, we have propped up our foreign reserves. Of course, you have just taken over the finance portfolio. But you are a seasoned politician, I know. Still, you must look at bilateral, multilateral, and regional policies and issues as a continuum.”
“Yes, Your Excellency. We should.”
“I am happy that you endorse continuing with already followed policies and issues. I need not mention to you about the LNG Project at Kera-wala-piti-ya. It was to be taken along with Japanese participation and now that is gone to a US firm, I am told. It may be a new development after you became the Minister of Finance.”
Minister Rajapaksa worries: “Was it a reference to the Minister’s dual citizenship, as alleged in Colombo?”
“Future projects I believe are on the cards. For instance, gas exploration in the Mannar Basin. One of your Tamil MPs – I think Mr. Adaikkalanathan has told Parliament that the project to collect natural gas in Mannar should be granted to India. It is not we who say it.”
“I will make note of Your Excellency’s concern” replied Minister Rajapaksa.
PM Modi goes on: “The former government agreed with us in 2003, I presume, to settle the Trincomalee petroleum tanks issue. Later in 2017, a project was considered for Mattala Airport, which I understand the government wishes to develop now. In 2017, Foreign Minister Madam Sushma Swaraj signed an MOU with Sri Lanka. The progress was extremely slow. Eastern Container Terminal agreement was scrapped. However, I am aware the West Container Terminal matter is progressing, and happy, although some trade unions are opposed to it. I sense there is some dialogue on the Trincomalee oil tank project with slow movement. I think you can solve your foreign exchange and oil supply issues if Sri Lanka correctly plans out the Trincomalee- oil tanks, port, industries in the hinterland, beaches, Ramayana Yatra tourism, fisheries, agriculture, etc. Don’t you think so?”
“Your Excellency, all these are negotiable. To negotiate this government should be in office sans financial and economic problems” responds Minister Rajapaksa. The foundation for financial assistance is slowly ‘pushed in.’
“Since you were willing to follow through earlier bi-lateral relationships I may mention economic and political issues that have been carried over for decades. One is the ETCA which was also mentioned by Minister Sitharaman. How many rounds of talks were held? More than ten? No finalisation.
The second economic issue is the fishing in Palk Bay, which is a humanitarian issue too. There too there is a Joint Working Group, which has met about three or four rounds but without solving problems.
“There are two political issues. One is the repatriation of refugees for which our foreign affairs officials should work together. The second is more important. It is the devolution of power. You will recall President Mahinda Rajapaksa was ready to go even to the 13th Amendment plus. He told this to former Minister of External Affairs SM Krishna. Your present Foreign Minister repeated in support of devolution, I remember.
“When I was following through, I found in a statement, even you have said that the Indian side called for the implementation of the 13A and greater devolution of powers to the provinces and that you emphasised that the President of Sri Lanka and his government were committed to a political process that should lead to a sustainable solution. Don’t you think that it is time to carry out that pledge?
“Minister, please keep in mind that this request had been made by all Indian governments, irrespective of Congress or Bharatiya Janata Party. It is meant for the Tamil people to feel that they are equal citizens of Sri Lanka, and they could lead a life of dignity and self-respect. Your brother Mahinda Rajapaksa said in 2009 that he was willing to do so. President Sirisena’s government promised it in 2015 at the UNHRC. A domestic issue that became bilateral with us was internationalised by them. These go along with human and fundamental rights. We had to deviate from your stances at the UNHRC twice and abstain once in recent times. We did so with a heavy heart. Sri Lanka should act to make its friends stay forever. With the promulgation of the new Constitution, isn’t it fair to emphasise devolution?”
Minister Rajapaksa says, “I agree with you on power-sharing and qualitative upliftment of minorities. I will bring this to the notice of our government.”
“Finally, I have to say something about the Indian Ocean’s security, peace, and free movement. As you are aware the Asian seas are affected by the intrusion of some nations. I believe you too would appreciate that the Indian Ocean should remain as the Indian Ocean and not by some other name!”
“I understand what Your Excellency explains. Of course, bi-laterally we have already taken some economic measures. We are misunderstood due to such relationships. President Gotabaya Rajapaksa said in Delhi during his maiden state visit that Sri Lanka would not do anything detrimental to India’s interests; he has repeatedly said India should put behind them the misunderstandings and move ahead. He told this to Foreign Secretary Shringla when he met him in Colombo. Excellency, please note that the President’s commitment will stand firm and solid. Hence, your assistance at this difficult juncture will reinforce that firm, solid, longstanding unwavering friendship. We will not forget it.”
The dialogue seems extremely productive.
“Thank you, Minister. I made note of your statement. I will advise my Ministers External Affairs and Finance to look at your request very positively, and further influence the private and state sector agencies to promote and encourage investment and trading opportunities in Sri Lanka. I wish that your government will speedily ease systems and approaches to support such investors. I think the Minister of Finance will keep you happy. I wish you well in the new portfolio”
The Minister bids adieu with a sigh of relief. The results will be known soon. (I think it will be positive. If negative, we will be done for. Best wishes Mr. Minister!)
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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