Features
Implications of India – Sri Lanka connectivity
By Neville Ladduwahetty
During President Ranil Wickremesinghe’s India visit in July 2023, five Memorandums of Understanding (MOU) were signed by India and Sri Lanka to establish physical connections between the two countries. This was followed more recently by the launch of the Unified Payments Interface (UPI) – a mechanism that claims to reduce the cost of financial transactions between the two countries. It is now reported that India is exploring the possibility of Indian Rupee investments in Sri Lanka (Ceylon Today, February 28, 2024).
IMPACT of UNIFIED PAYMENT INITIATIVE (UPI)
It is reported that during the course of an interview with WION’s diplomatic correspondent, a State Minister is reported to have stated: “The UPI is beneficial to both countries. If you look at the events in Sri Lanka and what took place one and a half years ago, it mainly started out as a foreign exchange crisis, mainly a lack of dollars. So, we have to ensure that our dollar dependency is reduced. Now for example, our biggest tourist market is India and if we can collect the tourist remittances from India and we import about $ 5.5 billion worth of goods from India and we use those … pay in Indian rupees for the Indian imports, then we will reduce our dollar dependence. And it also becomes very flexible and very easy for the Indians to travel to Sri Lanka and then they pay in Indian rupees”. (Sunday Island, February 25, 2024).
COMMENT
Out of a total of 1.48 million tourists who arrived in 2023, the number from Indian tourists amounted to only 302844. This represents 20 % of the total. The revenue from tourism for the year 2023 was USD 2.1 billion. Therefore, on an average, earnings from Indian tourists would be 20% of USD 2.1 billion. This amounts to USD 420000. This represents only 7.6 % of the USD 5.5 billion needed for imports from India, meaning that Sri Lanka would need to acquire an additional Indian rupee equivalent of USD 5.08 billion to meet the cost of imports (ECONOMYNEXT, January 1, 2024 & January 5, 2024).
The net effect of this is that Indian rupees earned from Indian tourists would not be able to even make a dent to pay for imports even though tourist arrivals in 2023 were double the number in 2022. Under the circumstances, even if the number of Indian tourists were to significantly increase further, the benefits to India under UPI would far outweigh benefits to Sri Lanka because Sri Lanka would still have to find nearly 92% of the USD 5.5 billion needed for imports from India.
IMPACT of INDIAN RUPEE INVESTMENTS
It is reported that the Indian government is actively exploring the possibility of facilitating Indian Rupee investments for Indian Companies in Sri Lanka. The report states:
“In the fiscal year 2023, the Reserve Bank of India (RBI)granted permission for international trade for invoicing and payments to be conducted in Indian Rupees. This move allowed for exports and imports to be denominated and invoiced in Rupees, with trade transactions settled in the currency. The RBI’s decision aims to stimulate global trade growth, particularly Indian exports, while also working towards the internationalization of the Indian Rupee” (Ceylon Today, February 28, 2024).
“Last year, Sri Lanka officially recognized the Indian Rupee as a designated currency, ending trade settlements between the two countries to be conducted in Rupees” (Ibid).
“Currently, Indian Investors typically engage in investments in Sri Lanka using international currencies like the US Dollar, which involves additional complexities and conversion costs. The transition to Rupee investments is expected to streamline market entry for Indian companies, with the Ministry of External Affairs reportedly advocating for this transition” (Ibid).
The report finally states: “The push for Rupee investments aligns with India’s broader vision to elevate its currency to the status of hard currency in the future, potentially leading to inclusion in the IMF’s SDR basket and bolstering its foreign exchange reserves. This move is anticipated to benefit Indian firms with significant investments in Sri Lanka, such as the Adani Group’s development projects in the country’s port and power sector” (Ibid).
COMMENT
When Sri Lanka calls for competitive bids for Projects it is understood that bids would be based on international currencies so that all bids are evaluated on a level playing field. If Indian investors such as Adani or any other, are given a special privilege and permitted to submit proposals based on Indian Rupees which is still not recognised as an internationally recognised currency, it would amount to an act of discrimination. Furthermore, it would amount to an unsolicited offer that puts other bidders at a disadvantage.
In addition, any Dollar inflows into Sri Lanka would add to the reserves of Sri Lanka and could be used for debt payments. On the other hand, any Indian Rupee inflows, even if considered to be part of Sri Lanka’s reserves, would serve little or no purpose for international transactions.
Therefore, if Sri Lanka fails to recognize these implications and caves under Indian pressure to recognise Indian Rupees for investments in Sri Lanka for the sake of connectivity, it would be a grave injustice to the sovereign rights and independence of the People of Sri Lanka with consequences not only to Sri Lanka’s relations with other countries, but also the start of an ever widening process for India to financially colonise Sri Lanka.
PHYSICAL CONNECTIVITY
Of the five MOUs signed in July 2023 between the President of Sri Lanka and Prime Minister of India, those relating to establishing physical connectivity are:
(1) Establishing a multi-product pipeline; (2) Establishing a high capacity power grid (3); Establishing a road connection between the two countries to develop access to ports of Trincomalee and Colombo. While connectivity in respect of energy has benefits during times of relative peace, there is no denying that it exposes Sri Lanka and its People to vulnerabilities at times of geopolitical tensions.
Establishing physical connections in respect of a pipeline for petroleum products and a power grid between India and Sri Lanka could be disrupted at any time as experienced by Europe. For instance, the pipelines that had delivered natural gas and petroleum products from Russia were sabotaged through a series of clandestine bombings that resulted in subsequent underwater gas leaks on the Nord Stream 1 and Nord Stream 2. Following the sabotage, “the European Commission has unveiled an ambitious and far-reaching plan, aptly coined “REPower EU”, to achieve full energy independence from Russia by 2027″ (euronews). Earlier, the pipeline had delivered 45% of natural gas from Russia to Europe; a dependence that the US had perceived as being hostage to Russia”.
Having learnt the cost of dependence for its energy needs, Europe is now scrambling to become independent. Sri Lanka on the other hand, is opting for the opposite for its energy needs because an underwater multi-product pipeline and a power grid connection from India to Sri Lanka would amount not only to dependence but also to vulnerabilities similar to what Europe experienced. Furthermore, it would give India opportunities to exercise control over Sri Lankan strategic interests and internal affairs in respect to India’s geostrategic interests.
Although access to ports of Trincomalee and Colombo through a land bridge connecting India and Sri Lanka is reported to have been initiated by Sri Lanka, it is pertinent to revisit its practicality in the light of India’s future development plans. Currently, the majority of exports from the West Coast of India are containerised and have ready access to Colombo by sea. In contrast, containerized exports from the East Coast are limited mainly to Chennai in the East Coast. The rest is mainly bulk cargo. Therefore, the need for access to Colombo and Trincomalee must be considered from the context presented in the ADB Report cited below.
According to an ADB South Asia Working Paper, India is seriously considering the “Development of its East Coast Economic Corridor (ECEC) and Vizag – Chennai Industrial Corridor (VCIC): Critical Issues of Connectivity and Logistics” (2017).
Its Introduction states: “ECEC is an example of an integrated economic development initiative. The key idea behind the corridor is port-based industrial development along the eastern coastal belt of India, in alignment with the goals of the Sagarmala initiative and integration of India’s industrial clusters with value chains extending to Southeast Asia and East Asia”
Paragraph 27 states: “While textiles and automobiles and automotive part require containerized solutions, these industries are clustered around Chennai, which is the only port in ECEC that handles a significant number of containers. The logical outcome of such an industrial orientation is that, with the exception of Chennai and Kattupali, the main focus of ECEC ports is break-bulk and raw materials such as petroleum, oil and lubricant, coal, iron ore, fertiliser and agricultural raw materials”.
Paragraph 29 states: “The VCIC final report predicts an expansion in industrial output of approximately 3.to 7.5times over the next 25 years under different scenarios. Such expansion will create significant additional demand for containerized cargo solutions in the corridor’s ports …” (ibid).
COMMENT
Even with projected expansion of containerised cargo from the VCIC in the East Coast of India, since sea transport by feeder ships is cheaper than road transport, the tendency would to be seek access to Hambantota as at present and to Trincomalee in the future, thus making a bridge across the Palk Strait a ridiculous symbol of connectivity other than for human traffic with all its attendant threats arising from drug trafficking and other hazards associated with human activity.
CONCLUSION
The President of Sri Lanka, political leaders and now the leaders of the JVP/NPP have, whenever the opportunity presented itself, consistently assured India that Sri Lanka would not undertake any measures that would threaten India’s security. On the other hand, the clear evidence is that Sri Lanka is prepared to go to any extent, even at the cost to its own interests, its independence and its universal right of self-determination, to fulfil this assurance. Furthermore, are the expressions of appreciation for the financial aid granted to Sri Lanka, not realising that at the end of the day, foreign relations are most often influenced by self-interest and not by sentiment.
For instance, starting with the 13th Amendment, that continues to be, a dead weight to Sri Lanka’s development and now to Financial and Physical Connectivity which are expressions of how far Sri Lanka is prepared to commit to becoming a part of India’s economically expanding bandwagon with no regard or concern for the dignity and independence of the People of Sri Lanka. The latest is the attempt by India’s Ministry of Mines to strengthen India’s critical minerals supply chain through the acquisition of mineral assets in Sri Lanka.
A report by The Indian Express cited by The Island states: “India’s interest in Sri Lanka’s graphite coincides with the Sri Lankan Government’s active pursuit of Indian companies for graphite mining in the country”. Quoting a Member of the Sri Lankan Government, the report states: “We have the best graphite in the world. Now Indian companies will be manufacturing electric vehicles. One of the large components for electric batteries is graphite. We used to have about 30,000 graphite mines. So, there are a lot of opportunities with the expertise and technology these Indian Companies have, I think they should seriously look at Sri Lanka” (March 5, 2024).
In view of the enthusiasm expressed by India to acquire mineral rights to mine graphite in Sri Lanka, it would be prudent for the Member of Parliament who is supportive of the prospect to be aware of the Supreme Court Judgment on the Eppawala Phosphate Extraction Case.
There is no denying that the warm cultural connectivity that Sri Lanka shares with India is buried in the mists of time. Although there have been threats to Sri Lanka’s interests, its independence and territorial integrity throughout its history, the cultural connectivity has persisted undisturbed. Despite this, the ongoing attempts at connectivity has to be viewed in the same vein as past threats which were to contain and colonise Sri Lanka. However, unlike in the past, today’s attempts to control and colonise Sri Lanka are based on modern techniques of Financial Control and Physical Connectivity that decidedly are to India’s advantage. It is therefore imperative that Governments of Sri Lanka exercise extreme caution in its Financial and Economic relations with India if it holds in trust the best interests 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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