Features
Jaffna Revisited- Some Quick Impressions On Post-War Development
by C. Narayanasuwami
(Formerly of the Ceylon Civil Service and Retired Senior Professional of the Asian Development Bank)
My recent visit to Jaffna after several years of forbidden travel due to the pandemic provided an opportunity to revisit areas of interest and observe the changes, including positive and negative developments, in both the economic and social fronts. It was a quick visit and unexpectedly its timing coincided with the visit of the President who declared open the Jaffna Cultural Centre on February 11. The festive atmosphere that prevailed on that day was combined with a subdued celebration of the 75th anniversary of Sri Lanka’s Independence. The atmosphere signified that Jaffna is slowly emerging from the isolation that kept its charms hidden.
Economic Activities
The war-torn city of Jaffna is coming back to life after almost three decades and three years of the pandemic while struggling to cope with day-to-day cost of living pressures and erosion of well entrenched societal values. One could witness the disappearance of bullet marked buildings which are being renovated with remittances received from overseas.
The end of the war saw significant road development initiatives sponsored by the central government. This resulted in paved roads including the major A-9 artery and other pivotal highways that connect Kankesanthurai, Palaly and Point Pedro. Unfortunately, some areas did not benefit from this uneven development. For example, the road leading to some of the main Islands like Velanai, Pungudutivu and Nainathivu is in a dire state requiring immediate attention. There could be similar situations elsewhere not traversed by this writer.
Renovation of old houses and temples, and establishment of small businesses appear to have occurred during the pandemic. The emergence of supermarkets combined with a surfeit of wedding halls give the impression that there was money circulating in the community despite lack of evidence of enhanced economic activity -remittances from abroad have been used to reconstruct damaged houses and buildings as well as invest in some less productive ventures. Anecdotal evidence suggests that most of the wedding halls will soon be white elephants!
While construction activities proceeded on a small scale with private funding, public places like the Jaffna market and Tinnevely market areas remained largely untouched. Except for the cleaning up and beautification of Aryakulam and its environs with a benefactor’s contribution, the Jaffna Municipal Council does not appear to have initiated any significant renovation and refurbishment work in public areas. The development of the Aryakulam area into a place of both historical and touristic attraction is a welcome move but may require further investments to enhance its potential.
In a city where the primary mode of transport was bicycles, the growth in the number of scooters signified that overseas remittances were occasionally put to good use despite contradictions in the way funds were invested. The Jaffna youth considered the possession of scooters as a status symbol in addition to its practical value as a transportation mode. This has also helped older adults to be less dependent on public transport to get to work and attend to household activities.
In anticipation of an influx of tourists, increased number of medium sized hotels and resorts and a plethora of guesthouses have sprung up in the last few years. Many of the guesthouses remain empty although hotel occupancy rates are improving with south-north traffic and a sprinkling of overseas tourists.
An interesting development is taking place consequent to the removal of border controls. The movement of Sinhalese from the south has increased considerably and their involvement in some economic activities has created an opportunity for increased social interaction with the Tamils. Substantial number of people travel from the south to visit religious places in Nagadeepa/Nainatheevu and other areas of social interest.
The number of visitors from the south outnumbered those from within Jaffna on the day the author visited Keerimalai Springs, a place noted for its religious significance and healing properties. Another event comes to mind-the author witnessed a busload of visitors from the south entering the Jaffna market after visiting Sri Naga Vihara and negotiating prices for products in Sinhala. It was interesting to observe that proficiency in the Sinhala language among Tamil traders was even better than their counterparts in Colombo. This situation raises hopes that movement of people irrespective of their race, religion or caste will now promote unity in diversity and greater interaction among the country’s diverse population.
Social Development
The social structure is reported to be crumbling. The social stratification that encompassed caste-based divisions which continued to survive the onslaught of the civil war is now co-existing with clan- based divisions resulting in sharp deterioration in the social order. The emergence of gangs engaged in criminal activities using swords as weapons combined with indiscriminate use of drugs among the youth have created a divisive population.
In contrast to this development however, a substantial number of youth pursuing higher studies have shown keenness in their studies. What was gratifying were the scenes witnessed in many roadside areas where queues of students on bicycles were waiting for their turn to attend tuition classes. The difference was that such students were always accompanied by one of their parents compared to what prevailed a decade or two ago when the same practice of attending tuition classes rested entirely with the students themselves. This sharp difference has apparently arisen due to the fear that unaccompanied students would fall a prey to drug use and other socially disruptive practices.
An Assessment
Is Jaffna booming, blooming or busting is the question that arises in the minds of those familiar with Jaffna’s heritage, historical background, culture and socioeconomic development patterns. Jaffna is going through a process of transformation which displays both positive and negative features. The author, in his book entitled, ‘Managing Development: People, Policies, and Institutions’ launched in Colombo under the auspices of the current President (then Prime Minister) in August 2019 and later in Sydney, Australia in September 2019, and in Manila, Philippines in November 2019 had this to say about development,
“Development is about people. People are both partners and beneficiaries of change. Good policies and effective institutions provide the basis for sound development management. Successful institutions derive their power from competent leaders and good management practices. The pace and process of development are determined by good governance and strengthened capacity to implement and manage projects”.
Viewed from this perspective there are shortfalls and issues relating to policies, appropriate institutional structure and oversight and sound governance, including dynamic leadership and management, providing form and content to structured development at the local level.
Positive developments
Regaining confidence in the stability of life which had been badly battered during the civil war and subsequent post-war period could be considered a significant positive feature. Although the pandemic had an adverse impact on agricultural activities there was progressive participation in pursuits that kept people engaged in productive occupations. At present farming activities are slowly building up though not to the levels of the pre-war situation.
Non-farm activities comprised opening of small-scale grocery stores, supermarkets, fisheries and general business ventures and mixed trading enterprises, including tourism related ventures. Supermarkets and agro-industrial enterprises such as mills, and packaging industries have generated some employment among the youth. Infrastructure development, one of the key features of post war development, has had both positive and negative impacts due to uneven spread and lack of adoption of a strategic planning approach.
Education has been identified as an industry in the Jaffna peninsula from the time of the British and continues to be so even now although standardisation of university admissions in the 1970s caused a substantial setback. However, the level of interest in pursuing higher studies is evident in the keenness shown by students to follow tuition classes despite obstacles.
The participation of people from the south in economic activities has brought the Sinhala-Tamil communities together and with or without their knowledge they are promoting inter-communal harmony and social integration.
Limiting Factors
The primary limiting factor is the lack of a planned investment pattern, both public and private, that has resulted in uneven and lopsided development which has contributed to unproductive ventures mushrooming in several parts of the city. This was confirmed by many, including legislators who understand the pulse of the people better. Some of the supermarkets located in distant areas were reported to be on the verge of closing due to lack of business. The practicality and sustainability of these ventures were not subjected to critical examination at the planning stage. The same applies to guesthouses many of which have had no guests for months.
Another limiting factor is the drug menace which seems to attract the marginalised youth who, having suffered from the trauma, loss of life and poverty during and after the war, found an escape route provided by unscrupulous and influential drug traffickers.
Conclusions
Jaffna is moving forward and is witnessing a positive transformation, albeit with limitations arising from ill-planned, adhoc and disjointed interventions spanning the entire development domain. The absence of investments in any major industrial venture suggests that long-term investment planning has been missing. A distinguishing feature of the development pattern is that investment funds came largely from overseas remittances with no significant inputs from successful local entrepreneurs or from local government institutions.
This needs to be reversed and funds should be generated within the country at central and local levels if the pattern of investment is to be directed at ventures that will have a durable impact on the society with their economic and social viability assessed and analysed critically at the planning stage. This however does not preclude external financing provided it is channelled appropriately.
There needs to be a centrally located planning entity or a technically competent approval body which could coordinate the approval, supervision and monitoring of new ventures based on their relevance and economic value. An overarching body of this nature could possibly fall under varying authority levels depending on the scope, nature, and size of the investment portfolio; under the district secretariat, the Governor or the Jaffna Municipal Council, as appropriate.
The social issues, including drug trafficking, need to be tackled with appropriate intervention, supervision and funding from both central and local government levels. The establishment of an effective, high level task force comprising representatives from civil, military, police and NGO’s to handle crime and drug use could play a pivotal role to apprehend offenders, seek appropriate punishments, and enforce rehabilitation activities endorsed by medical and social welfare institutions.
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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