Features
Maldives – Nation of 1.190 islands
by ACB Pethiyagoda
(This article was written after a visit to the Maldives in the early nineties)
The beauty and splendor of these islands have been written of during the past several centuries by well known travellers. Marco Polo described them as “Flowers of the Indies”, Ibin Batuta said these were ‘One of the Wonders of the World,” Fah Hsien, the Chinese, Papas of Alexandria, Scholastics of Thebes and H.C.P. Bell of the Ceylon Civil Services are other notables who have written about this archipelagic nation.
It was Ibn Batuta, the Moroccan traveller, who remained in the Maldives for only about 18 months and lost no time in marrying four noble women of the Court of Kadihah, daughter of Sultan Ahbendjaly whose husband was her Chief Vizar. Unfortunately for Batuta, who having won the confidence of some members of the Royal family and having been offered the post of Kazi, was compelled to flee the country (with or without his wives it is not known) in about 1345 due to the apparent jealousy of the Chief Vizar who was himself the second husband of the lady Sultan Kadihah.
H.C.P. Bell, the first Commissioner of Archaeology of the Government of Ceylon, in Sessional Papers of 1881 which were laid before the Legislative Council of Ceylon wrote that the “Early history of these islands is buried in obscurity — the natural result of their complete isolation and comparative insignificance. Indeed, except for scant glimpses afforded by the accounts of a few causal travellers, whom accident has taken them there from time to time, the world in the later half of the 19th century knows little or nothing of the whole or part of the history of the Maldives.
“The Maldivians themselves possess no known historical records of any antiquity and would seem to be utterly ignorant of their antecedents beyond such vague and unreliable shreds of information as may have been handed down by traditions.” That is quite a mouthful, but it was Bell’s usual style.
From the earliest of times, trading contacts with the Arabs, Persians, Malaysians, Indians, Indonesians, Sinhalese and with even some African countries have certainly left their influence on the people and culture of the Maldivians. Their language itself, known as Dhivehi is derived from Sanskrit, with both Arabic and Hindi influence which is unmistakable to linguists.
After the Malabar raiders were got rid of the Maldivians formed a closer association, with strengthened diplomatic representations with Ceylon, a relationship which has existed from as far back as 1645. Thereafter, in 1887 the Maldivians accepted British Suzerainty for the benefit of military protection from them and this arrangement ended in 1965. The British did not station their representative in the islands nor did they interfere in their administration.
It is to the credit of the Maldivians that such a small nation was able to remain independent for so long with several powerful nations around them. This is on account of their farsighted diplomacy and on account of the country not being rich in natural resources except fish, which in those times was not as valuable as it is now because it could not be preserved for transport over long distances.
The period of British Suzerainty covered the years of the Second World War and Gan and Cocoa islands were important British bases with large numbers of Ceylonese serving in them with distinction and a few who were said to have not been amenable to discipline. That however, is another story.
Archaeological findings bear ample evidence of the prevalence and practise of Buddhism in the country prior to 1153 AD. In that year, Shaikh Yusuf ud-din of Tabriz, a pious Saint introduced Islam to the country during the rule of King Komala who changed his name to Mohommed Ibin Abdulla and assumed the Islamic title of Sultan after his conversion to Islam.
Ibn Batuta wrote of this conversion to Islam giving credit to Abdul Barakath Yusuf but that version does not appear to be accepted. It could be that Yusuf accompanied the Saint and remained in the islands to spread the religion. What is important is, historically, socially culturally and since 1153 AD the Maldivians have been true followers of Islam and that there is no other religion practised in the republic.
“Islam is the strength and backbone of Maldivians society permeating as it does the entire educational system….” It is the State Religion but there is, a “delicate blend of tradition and modernity.” Women are not in purdah and have equal opportunities with men in regard to education and employment. Hence, their contribution to the economic and social development of their country is no less than that of the contribution made by their men. They are seen and heard and listened to all over the republic.”
As mentioned earlier the country gained independence in 1965. This was during the tenure of office of the President, Ibrahim Nasir who was the Prime Minister under the titular Sultan. It became a Republic in 1968 with an elected President and a national Assembly. The current President, His Excellency Maumoon Abdul Gayoom assumed office on November 11, 1978, having polled 92.9% of the votes at a referendum. He is a Master of Arts in Islamic Studies from Alazhar University and lectured in Islamic Law and Philosophy at Ahmadu Bello University in Nigeria.
In his own country he held several high positions in Government since 1971 and was his country’s permanent representative at the United Nations in 1976 and 1977. He is a true friend of Sri Lanka and once said “Sri Lanka and the Maldives have embraced warm friendly relations for centuries. Our countries bondage of friendship stretches beyond geographical proximity.” President Gayoom’s administration is committed to an open Government ensuring the observance of the principles of democracy.
The first written Constitution of the Maldives was proclaimed in 1982 but is is said that there is evidence of the system of Government and administration accepting traditional principles of democracy as time honoured customs. The present constitution is that of a sovereign and independent Republic with Islam as its State Religion and Dhivehi as the State Language. However, English is widely used in Government’s administration and in the private sector.
The Maldive islands are on the equator in the Indian Ocean consisting of 26 atoll formations, the word atoll being derived from the word `atholu’ in Dhevehi. These atolls are groups of islands of varying numbers in each, all making a total of 1,190 islands. Of these, only 199 are inhabited and 74 others are set apart exclusively as tourist resorts.
The republic is some 720 km. South West of Sri Lanka and cover a total area of about 90,000 Square km. measuring 820 km. from North to South and 120 km. East to West at the longest and broadest points. The islands which consist of only about 1% of the total area are formed from layers of coral and none are more than six feet above sea level at the highest point. Gan with several garment factories, the longest island was developed by the British when they closed their base in Ceylon in 1956 by mutual agreement with the government of Ceylon which came into power that year. The British left Gan 20 years later leaving a fully developed island with roads and infrastructure which the Maldivians took over and set up industries with foreign investors.
The soils of the islands are poor and are alkaline due to their derivation from coral rock. There are no rivers or springs and all crops are dependent on the rains from the South West Monsoon. Hence the only crops grown are on a ‘chena’ or shifting agriculture basis in some of the inhabited islands and consist of various kinds of millets, tubers such as manioc, chillies, onions, cabbage, beans, brinjals, various gourds etc. and fruits such as watermelon, banana, papaw, mango and lemon. Coconut is an important crop and is found on many of the islands including the resorts.
To the tourist fishing is an important sport as diving. Fishing trips both by day and night are organized for modest fees for a few hours by local motorized Dhonis or baththal the traditional boat, or for very high fees in modern yachts and speed boats with sophisticated gear. The sportsmen and women bring in skipjack, groupers, snappers and other reef fish. Big game fish outside the atoll enclosures consist of marlin, barracuda, yellow fin tuna etc.
There are no indigenous animals but the islands area haven for large numbers and species of seabirds.Conservation of its wealth in its waters is important to the Maldivians. ‘Hence the use of harpoons and catching dolphins, whales, whale shark etc. is strictly prohibited and observed.
The most spectacular floral and fauna are found from just below the surface of the sea to hundreds of feet below. Fish with all the colours of the rainbow in their thousands, corals, crustaceans, turtles etc. and numerous varieties of sea weed make a world of psychedelic colour which defy description. Fishing accounts for about 40% of those in gainful employment with a catch of some 99,000 metric tons in 1993. This was for home consumption, local sale and for export, canned or frozen.
The per capita consumption of fish in the Maldives is about the highest in the world and is about the only form of animal protein consumed by its people. Skipjack is the main catch and upto about 1972, it was the main export product, in the form of Maldive Fish after a process of boiling, salting, smoking and sun drying. The sole buyer of the product was Sri Lanka and on account of our foreign exchange problems and restrictions on imports of all but essentials the Maldivians were forced to find other markets for their foreign exchange earnings from fish. They were thus compelled to freeze or can their exportable fish.
The climate in the Maldives is humid and hot (average 86 degrees Fahrenheit) in spite of the influence of the cool sea breeze. The South West Monsoon from April to November brings about 84 inches of rain while the North – East Monsoon from December to March is a dry period in most years.With little or no resources for significant industrial or agricultural development and to support a growing population with its increasing needs from outside the country, the Maldivians turned to tourism for its foreign exchange earnings.
Hence, from an almost non-existent industry in 1972 with just a handful of tourists 1993 recorded 241,000 arrivals, in 1994 it rose to 279,600 and in 1995 to 300,000 arrivals. The main reasons for this rapid growth is of course on account of ‘the gem like islands depict the rare vision of a tropical paradise. Palm fringed islands with sparkling white beaches, turquoise lagoons, clear warm waters and coral reefs teeming with abundant varieties of marine flora and fauna.” Apart from these, there are no ogling oafs and gawking peddlers of bead chains, cheap clothing or even other wares as in some Sri Lankan sea side holiday resorts.
This makes the Maldives an ideal destination for the holiday maker in search only of, and with no interest other than in tranquillity and peace with sunshine and warm clear waters to laze in. Other reasons for this phenomenal growth is the opening of the Male International Airport in late 1981 to receive wide bodied jets from Colombo, Singapore and Trivandrum; a Cabinet Minister solely in charge of the subject and more than likely the comparatively slower growth of the industry in Sri Lanka since about 1978. About 85% of the visitors are from Western Europe with West Germany and Italy forming the majority and with smaller numbers from France, Sweden etc.
A typical visit to the Maldives is one in which the visitor arrives at Hulule Airport and goes through immigration with little bother except that the odd official may want to know, particularly from dark skinned people, whether they have a minimum of US$ 25 for each day of stay. The Customs check is quick if one does not carry alcohol or firearms both of which are strictly taboo. After awhile, the Tour Guide with whose Company one has booked escorts him to a Dhoni many of which are now powered by 15 or 20 HP Honda or Yamaha diesel engines.
The journey starts with leaping from one Dhoni to another (if his particular boat is some distance away) with plenty of willing hands to ensure that he does not end up squashed between two boats in the lapping waters below!
Ziaraarafushi in Kaafu Atoll the destination in this case is two and half hour journey with the first hour or so on the open top deck on foam rubber cushions admiring the beauty of the changing colours of the waters from clear light blue to shades of green and finally to deep blue as the depth of the water increases. Fish, corals and other islands and their beaches in the distance add to the beauty of the view. Retirement to the enclosed lower deck becomes necessary as the sea gets rough and waves hit the upper deck. It is hot and humid down there and exhaust fumes from the engine somehow find their way adding to the discomfort.
The Captain of the boat has three helpers who once the going is steady hasten to the lower deck and promptly fall fast asleep on the cushioned benches. Fishing is second nature to the Maldivians hence on these trips too they throw a few lines and haul a skipjack or two every now and then; a bonus payment or a bigger fish curry for dinner!
The Captain stands with his back to the starpole and guides the boat with his bare foot or even his shoulder blades without the aid of a compass, and in total dependence on his experienced eye, never flinching even when accepting one of the many lighted cigarettes his assistants, when they are awake, pass on to him throughout the journey.
Ziaraarafushi is one of the 74 resort islands, leased to foreign developers and has some one hundred chalets. Visitors are met at the jetty by the staff with wheel barrows marked ‘Luggage’ in bold red letters. The complex consists of the single and double room chalets, large dining hall, a reception area with a shop displaying beach wear, toiletries, handicrafts made from bones of large fish, picture post cards etc.; the main indoor recreational area is a large hall with the bar at one end. Liquor is expensive, a can of beer is sold at US$ 3.5 to 4 with a peg of Sri Lankan Gin selling at about the same price. In these circumstances, the price of Scotch is prohibitive.
Floors of all common areas are sand covered with half walls all round. Roofs are covered with woven coconut palm fronds with wire mesh spread over as a protection against strong winds. The chalets have cement floors which are sometimes covered with linoleum and consist of a shower and toilet and sit-out. The furniture and linen are simple and adequate but the charges are about double or a little more for more comfortable accommodation and very much better food at Sri Lankan three or four star hotels in the coast.
The food is simple, consisting of baked or boiled fish with cabbage, beans, tomatoes and cucumber for both main meals and an egg with limited quantities toast for breakfast. The meals are bland and monotonous and the food served to the staff is more appetising to the Sri Lankan pallet as it consists of rice and hot fish curry with grated coconut. Talking about food, an European woman said “As long as I don’t have to cook and wash I don’t care as the sun, sea and sand are there for my annual holiday.” Perhaps she speaks for large numbers of the tourists who come to the Maldives. There are, however, some resorts which boast of several coffee shops and restaurants in each offering varied and excellent cuisine at relatively higher prices.
There are no Maldivians permanently resident on Ziaraarafushi just as in all the other resort islands as the Government wishes to preserve the culture of its people uninfluenced by foreign habits and customs. Likewise inhabited islands have no hotels and visits to them by tourists are allowed only with guides for a few hours in the day in what is described as ‘proper attire’. This is a most laudable practice.
The staff at all levels consist mostly of Sri Lankans, Indians and Pakistanis and they like the visitors are birds of passage leaving the unspoilt Maldivians to their traditions and religion uninterfered with.Those resorts in the islands, hotels and guest houses in Male, had a bed strength of just under 10,000 in 1993 with about 65% utilization bringing the Government about three fifths of its ‘visible export receipts.”
To service the tourists and the local population with their requirements of internal transport by sea, there were 1,434 mechanised Dhonis, a few luxury yachts and 313 trolling vessels in 1993. A mere 15 sailing Dhonis and 22 rowing boats were available mostly for pleasure rides.Male, the capital and Seat of Government and main commercial centre is entirely different from the resort islands “for, if the islands depend on Male for all their trading and administration, Male depends on the islands for its livelihood.” It is busy town with Government Offices, Schools, Shops of all grades and sizes, Hospitals and residences of all the important officials and the not so important with a population of around 60,000 out of a total of just over 238,000 in the Republic in 1993.
In that year, Male, Hulule and Gan had most of the 5,330 bicycles, 3,466 motor cycles and 454 cars, vans and trucks. The authorized vehicles, more often than not are driven on low gear most of the time due to the crowded and narrow roads.The President’s residence or Mulee Aage, the Grand Friday Mosque which can accommodate 5,000 worshipers at a time, National Museum in the Sultan Park, marine drive, docks and fish markets are important land marks in clean, tidy and bustling Male.
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 . )
