Features
Impact of America’s Indo-Pacific strategy on Sri Lanka
by Neville Ladduwahetty
A document on the United States Indo-Pacific Strategy issued by the White House, in February 2022 states: “The United States will pursue five objectives in the Indo-Pacific – each in concert with our allies and partners, as well as with regional institutions”. “We will:
* ADVANCE A FREE AND OPEN INDO-PACIFIC
* BUILD CONNECTIONS WITHIN AND BEYOND THE REGION.
* DRIVE REGIONAL PROSPERITY.
* BOLSTER INDO-PACIFIC SECURITY
* BUILD REGIONAL RESILIENCE TO TRANSNATIONAL THREATS”.
Continuing, the document states “Our collective efforts over the next decade will determine whether the PRC (Peoples Republic of China) succeeds in transforming the rules and norms that have benefitted the Indo-Pacific and the world. For our part, the United States is investing in the foundations of our strengths at home, aligning our approach with those of our allies and partners abroad, and competing with the PRC (Peoples Republic of China) to defend the interests and vision for the future that we share with others … Our objective is not to change the PRC but to shape the strategic environment in which it operates, building a balance of influence in the world that is maximally favourable to the United States our allies and partners, and the interests and values we share”.
As far as the Pacific is concerned, with the conclusion of World War II the US has been developing, what the document describes as “ironclad treaty alliances with Australia, Japan, the Republic of Korea, the Philippines and Thailand”. Treaty arrangements of a similar order do not exist with countries in and around the Indian Ocean. Consequently, it is in the interest of the US to “support a strong India as a partner” to “Bolster Indo-Pacific stability”. In such a context the US strategy is to “strengthen the Quad as a premier regional grouping and ensure it delivers on issues that matter to the Indo-Pacific”. With the US, India, Japan and Australia making up the Quad and Japan and Australia being in the Pacific, it remains for India to be the “premier” member of the Quad to deliver on matters of interest to the Quad in and around the Indian Ocean.
IMPLICATIONS of ‘A STRONG
INDIA’ on SRI LANKA
Since the stated strategy of the US is to build influences that would be ‘maximally favourable to the US, and if India is to be the ‘premier’ partner in the equation there is no doubt that Sri Lanka would not be able to escape unscathed. It is in such a background that the report in The Island titled “India, SL close to sealing three defence-related pacts to boost maritime security” (February 25, 2022), should be treated with extreme caution. Continuing the HT report cited in The Island states: “While a USD 1 billion line of credit to be provided by India to Sri Lanka to purchase food, medicine and essential items will be the focus of Minister Rajapaksa’s visit, the two sides are close to finalising three defence-related agreements and arrangements that will bolster the capabilities the capabilities of Sri Lanka’s armed forces and boost corporation for maritime security”.
“In addition to arrangements for the purchase of two Dornier aircraft and the acquisition of a 4,000 tonne naval floating dock by Sri Lanka, Colombo has agreed to post a naval liaison officer at the Indian Navy’s Information Fusion Centre-Indian Ocean Region (IFC-IOR) in Gurugram … The centre tracks merchant shipping and monitors threats such as maritime terrorism and piracy in regional waters. The Sri Lankan liaison officer will join counterparts from 10 of India’s partner nations, including Australia, France, Japan the Maldives, Singapore, the UK and the US. The naval floating dock is a facility equipped with automated systems for the quality and swift repairs of warships. Such docks have the capability to lift large ships such as frigates and destroyers, and are designed to be berthed alongside a jetty or moored in calm waters to carryout planned or emergency repairs of ships”.
“Another potential area for defence corporation is the expansion of training for Sri Lankan military personnel in Indian facilities and institutions. Along with the erstwhile Afghan national security forces, Sri Lanka has been one of the biggest beneficiaries of military training programmes offered by India”.
“Over the past few months, India has extended financial assistance to Sri Lanka as part of a four pillar package decided during Minister Rajapaksa’s las visit to New Delhi in December. The Indian side has provided a USD 500 million line of credit for purchasing fuel and a currency swap of USD 400 million under Saarc facility. It has also deferred the payment of USD 515 million due to the Asian Clearing Union”.
“The finalization of the long-gestating project to refurbish and develop the British era Trincomalee oil farm, and 850-acre storage facility with a capacity of almost one million tonnes, has also given a boost to bilateral corporation”.
MEASURES ADOPTED TO MAKE “A STRONG INDIA”
The Trinco Oil Tank Farm deal that was signed on 06 January 2022 is claimed as a major achievement by Energy Minister Minister Gammanpila. Such a claim could be justified considering that all 99 tanks had been leased for 99 years according to the agreement signed in 2017 by the former government, and the current agreement reclaims 24 tanks to be developed and operated exclusively be Sri Lanka, and the remaining 61 tanks are to be developed and operated jointly by India and Sri Lanka.
However, it cannot be overlooked that the timing for the deal is such that it favours India’s strategic interests as the “premier’ member of the Quad in and around the Indian Ocean, more than Sri Lanka’s economic interests. Since the scope of the three defence-related agreements are not in the public domain, it is not possible to ascertain the extent to which these defence-related agreements would favour India’s strategic interests and whether they are at the expense of Sri Lanka’s interests or not.
A clear example of this is in the HT report cited above that refers to “agreements for the purchase of two Donier aircraft and the acquisition of a 4,000 tonne naval floating dock by Sri Lanka”. The question is, whose interests would be served by these assets? Since Sri Lanka already handles all repairs to naval vessels in existing dry dock facilities at the Colombo Port, why should Sri Lanka acquire a floating dock?
The strangest aspect of this arrangement would be if Sri Lanka acquires these assets through the Lines of Credit generously offered by India. Under such circumstances, why should Sri Lanka be grateful because Sri Lanka would be acquiring assets beneficial to India’s interests with money that has to be paid back to India by Sri Lanka. On the other hand, are these Lines of Credit in exchange for the West Container Terminal, in which case should Sri Lanka be grateful because it is a case of pure balancing. Instead, if Sri Lanka acquires the aircraft and floating dock and grants the West Container Terminal to India as well, Sri Lanka would be a big-time loser and it will be a win-win for India.
As far as Lines of Credit (LoC) arrangements go, a reported experience with India was the delivery of items for the Sri Lanka Railway. According to media reports the carriages were not only made of inferior material but also that they cannot run on the existing tracks. This means Sri Lanka has decided to accept substandard goods from India without a murmur unlike its response to China for the delivery of sub-standard fertilizer.
LoCs are essentially arrangements where a loan is advanced to a country to facilitate the sale of goods of the lender that cannot face competition in the open market. In short, it is a loan given to advance the lender’s products and self-interest. In such a context, acquisition of a floating dock by Sri Lanka and mooring it the Trinco harbour to service the ships that serve the restored oil tank farm would serve the interests not only of India but also the wider interests of the Quad – all provided by the Credit Line offered to Sri Lanka by India.
Although the Oil Tanks at Trincomalee by themselves do not have a utilitarian value, they are transformed into a valuable asset when they are coupled with a functioning harbour. Since it is the harbour coupled with the tanks that make the Tanks a vital asset, assigning 49% shares to an Indian Oil Company is totally disproportionate. This makes the agreement of 06 January 2022 unacceptable and therefore grounds for rejection. The tanks should operate under the full control of Sri Lanka and servicing any naval vessels would then be a commercial undertaking without any strategic overtones.
If instead, the tanks and the harbour operate under the terms of the current agreement, where an Indian Company owns 49% of the shares, Sri Lanka would inadvertently be sucked into the vortex of India’s role as a “premier” partner of the Quad. How such a perception would be viewed by China is an unknown. Whatever it may be, such a perception would compromise Sri Lanka’s stated position of neutrality, because the measures that must necessarily be adopted under these agreements and arrangements would be seen as leaning towards India and away from relationships that exist between China and Sri Lanka.
Notwithstanding the exuberance of Minister Gammanpila, if he understands that the utilitarian value of the Tanks depends on the services that the Trinco Harbour is able to offer, not only in terms of direct costs associated with them but also with the cost to relations with China, he as a nationalist, should explore a different track so that the tanks could be developed without having to balance the strategic interests of major powers. That track would be to cancel the agreement of 06 January 2022 and retake all 99 tanks and develop a few tanks at a time as a national venture in keeping with the pace of development to improve the service at the Trinco harbour.
CONCLUSION
The intent of the US, declared in a document issued by the White House dated February 2022 titled Indo-Pacific Strategy states: “Our collective effort over the next decade … is not to change the PRC (People’s Republic of China) but to shape the strategic environment in which it operates, building a balance of influence in a world that is maximally favorable to the United States”. To achieve this objective, the US is prepared to “support a strong India as a partner in this positive regional vision” as a premier partner of the Quad, the others being the US, Australian and Japan. The Maldives has already signed defence-related agreements with the US and India. According to a report in The Hindustan Times cited by The Island of February 25, 2022, India and Sri Lanka “are close to finalizing three defence-related agreements and arrangements that are expected to boost corporation for maritime security”. The scope of these agreements is not known to the public. The public is also not aware whether there are similar defence-related agreements with the US and China. The concern of the public however is what kind of impact these and other agreements would have on Sri Lanka’s sovereignty and independence, and to what degree all of this would compromise its stated policy of neutrality.
If the purchase of aircraft and the acquisition of a 4000 tonne floating dock is to support a strong India and assigning the West Container Terminal also to India is an attempt at strategic balancing, China is likely to perceive such developments as leaning towards India and the Quad. Such perceptions would have serious consequences on China-Sri Lanka relations. Furthermore, while China’s relations with Sri Lanka are mainly driven by strategic issues relating to its Belt and Road Initiative, in the case of India, the relationship goes beyond strategic issues because it is compounded by Sri Lanka’s nagging national question that impacts on India’s internal stability. Therefore, there cannot be strategic balancing as far as Sri Lanka’s relations are concerned with India and China. Consequently, Sri Lanka has no alternative but to stay free of being dragged into the vortex of a strong India supported by the Quad. One clear signal of staying free is to disengage from the agreements signed on January 6, 2022, and restore a few of the tanks at a time as a national venture and rent them for the storage of petroleum products.
The understanding under the Indo-Sri Lanka Accord was that the tanks should be developed and operated jointly with India. However, with Quad supporting a strong India the strategic environment has changed substantially from what existed at the time of the Accord. Consequently, in today’s context agreements that favour India would be perceived as leaning towards India and the Quad. Such a perception is not in the interest of Sri Lanka because it contradicts its policy of Neutrality. Therefore, Sri Lanka should stay clear of defence-related agreements with any power block, as it did with the MCC, if Sri Lanka is to be independent and to stay true to its principles and protect the sovereign rights of its people.
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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