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Ministry of Industries: Working with Mr. Cyril Mathew

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(Excerpted from the Memoirs of Chandra Wickremasinghe, Retd. Additional Secretary to the President)

In the National Housing Authority where I worked after returning from Canberra, I received the complete support of my friend Dunstan Jayawardena who was Chairman of the Authority, to effect an organizational restructuring of the Authority, recruit new technical personnel and revise the existing salary structure. The reorganization enabled officers who had come on secondment to the Authority from the Housing Dept., to exercise the option of staying on in the Authority as permanent employees of that organization. They benefited substantially by being placed at higher levels in the organizational hierarchy as well as receiving much higher salaries. With time, I was happy to note many of these officers, coming to occupy the highest management positions including those of Chairman, General Manager and Deputy General Manager.

The Authority was indeed a hive of activity with Minister Mr. Premadasa in his characteristic manner, pushing the implementation of the numerous housing projects he commenced throughout the island. He worked with incredible energy and commitment, virtually driving all officials to follow suit. However, following certain differences I had with the Secretary to the Ministry over the appointment of Managers to the Authority, I thought it best to leave the set up. Fortunately for me, Mr. Premadasa happened to be out of the island at the time which facilitated my exit without much fuss.

There were two positions available to me to move into viz. Deputy Commissioner of Food and Director /Corporations in the Ministry of Industries. I opted for the latter position where I had to work with Minister Mr. Cyril Mathew.

The Ministry of Industries, Science and Technology

The Ministry had at the time, 47 Corporations and Statutory Boards coming under its purview. These included, certain giant Corporations such as Petroleum, Steel, Ceramics, Paper, Salt, Fertilizer, Tyre etc. I got down to work straight away and got involved in the nitty gritty of things. Mr. Mathew who had a sharp mind, had the not too uncommon weakness of surrounding himself with party loyalists, the more qualified of whom were selected fortunately, as Chairmen of the many Corporations coming under the Ministry while the brawny types who had their own uses, were given the post conveniently designated ‘Working Director’. This latter category had confabulations with the Minister when certain disruptive activities had to be planned and carried out like breaking up rival party rallies, street marches etc.

I must however say that Mr. Mathew never interfered with the work assigned to me. Through the grape vine he may have learnt perhaps, that I was attending to my work conscientiously. Within one year he promoted me as Additional Secretary in the Ministry much to the chagrin of certain senior colleagues in the Service, some of whom, I learnt later, had even taken the matter up with Mr. DBIPS Siriwardhana, Secy. Public Aministration at the time. Mr. Siriwardhana, I was told, had made it clear to them that the appointment of Additional Secretaries was a matter for the Minister concerned.

Chairing Tender Boards

I found the work in the new Ministry quite challenging, having to Chair Tender Boards of about 15 Corporations on an on –going basis. Additionally, I was appointed to Chair the standing Tender Board in Agro-Chemicals of the Petroleum Corporation which work alone, was quite a handful. I must say that the Minister had complete faith and trust in my integrity and aptitude in handling all these Tender Boards. I must also reiterate here for the record that Minister Cyril Mathew never interfered with any of my ‘tender’ work. I must however, further state here with much regret, that certain friends of mine (outside the Ministry) did try to influence me on tender matters, going to the extent of asking me to remain silent during certain Tender Board meetings. This I vehemently declined to do, stating categorically that as Chairman of a Tender Board, it was clearly my duty to ensure that a poor country like ours, should get the best supplies on offer and also ensure that we get our money’s worth. Happily for me, word spread around quickly and I was never bothered thereafter with such unfortunate requests. What I would like to stress here is that once people realize that you cannot be bought over, you are seldom approached by these wheeler –dealer types with their sly requests.

As a Director of the Central Environmental Authority, I had the benefit of attending a Seminar at D.S.E. Berlin in June-July 1982, on Industrial Pollution and Abatement. The CEA also sponsored my participation at a seminar on the pollution of lakes and reservoirs in Tokyo, Japan in September 1984.

Most of the 47 Corporations and Statutory Bodies coming under the Ministry had professionals as their Chairmen who for the most part, discharged their duties with due diligence and competence. However, there were a few Heads of Corporations who abused their positions and tried to make a fast buck. The Minister who had his own unofficial grapevine in this regard, was kept well informed by his many informants, of any irregularities in the numerous Depts. and Corporations coming within his purview.

I recall the Minister summoning me to his room one day to say that he was not at all happy with some of the untoward goings on in the Ceramic Corporation as he had received many complaints from customers about commodes and bathroom fittings cracking up within an year or so of their purchase. He instructed me to visit the Ceramic Factory in Piliyandala with Deputy Chief Accountant Sivaguru and check on the procedures followed and report to him. Siva and I accordingly, decided to visit the factory the following day. Interestingly, on the morning of our scheduled visit to the factory, I received an anonymous telephone call enquiring from me whether I was going to inspect the factory that day. On my replying in the affirmative, the caller who refused to identify himself, said in a matter of fact tone ‘We are having the kiln ready for you and the Accountant when you visit us’.

I replied that we were coming in any case, as it was our duty to inspect the factory and report to the Minister. Siva and I had our suspicions as to who the anonymous caller was as we had been forewarned that there was a supervisor with political backing who was ruling the roost there. We were not going to be cowed down by any threats and just laughed the whole thing off saying that ‘we would face things as they come’! We were also told that this unsavoury character was in the habit of even assaulting employees who did not do his bidding and was virtually terrorizing the entire place. When we visited the Piliyandala Factory as scheduled, we were met by the General Manger who though a nice person, looked a rather docile individual. We were thereafter, taken round the factory and shown the different stages of the entire production process.

At this stage, I requested specifically that we be taken to the kiln and the supervisor concerned promptly led us there. Siva and I deliberately got close to the kiln and peered into it’s blazing interior. Siva, who was a qualified Chartered Accountant, questioned the supervisor closely on the duration of time assigned for each stage of the production process etc. Having collected all the required detailed information both from the GM and the Supervisor concerned ,we retired to the GM’S office and obtained whatever further information we deemed necessary for our investigation and left the factory.

On our return to the Ministry, Siva and I pored over the notes and the relevant information we had taken down on our visit. It became clear to us that the problem of breakages lay in the deliberate acceleration of the production process particularly at the stage of firing of the ceramic ware in the kiln. By such deliberate acceleration, the culprits had ensured an output higher than what was reflected in the production statistics, enabling them to divert the created excess clandestinely, out of the factory to be sold to shops outside.

The following day we gave our report to the Minister explaining in detail what we had discovered. The Minister told us that his suspicions about the people behind the racket, had been confirmed by our findings. Late that evening, the Minister telephoned me and said that he had shown our report to a certain gentleman who was he said, with him at the time. I was aware that this gentleman was an influential person in the political set up at the time. The Minister then said that the particular gentleman would like to speak to me regarding the concerned subject. I recall clearly overhearing certain audible protests made by the gentleman concerned at the other end. Eventually, this gentleman came on line and spoke to me apologetically saying that although he had had suspicions about this particular supervisor, he had not till the time the irregularities had been revealed by our inspection, been able to confirm his suspicions. He further assured me that he would initiate an inquiry against him and see that he was disciplinarily dealt with. He further said that he had assured the Minister that he would guarantee that no irregularities would be permitted to occur in the factory in the future. The Minister came on line again and thanked me and Siva for giving him the report while apologizing, in his characteristically gentlemanly manner, for having disturbed me at that late hour.

Poverty the biggest polluter in developing countries

This was also the time when developed countries were obsessed with the spectre of a rapidly depleting ozone layer and were frantically adopting sophisticated pollution prevention measures in their industrial production processes. This was the run up to the Kyoto Protocols. They were equally anxious to impose these high standards in the running of ‘struggling’ industries in developing countries which were trying desperately to break free of the poverty trap. While having a conversation with the Minister on the subject, I casually expressed the view that it was grossly unfair of developed countries to badger developing countries to conform to these high standards of pollution prevention, as these highly industrialized, affluent countries had built up their economic and material prosperity on decades of indiscriminate abuse of the environment and on the worst forms of exploitation of women and children.

Developing countries on the other hand, which suffered from widespread poverty and were struggling to industrialize, could not possibly think of maintaining pristine environments by investing in costly additional facilities to minimize environmental pollution, which meant burdening the end product by the additional cost that had to be incurred thereby, which clearly meant eroding the competitive edge our exports enjoyed. Furthermore, I said that China, was the least concerned, despite the pressures brought to bear on them by the West, about maintaining pollution standards, in their determined drive towards rapid industrialization, which was accorded the highest priority in their single minded endeavour to reduce mass poverty in that country. I also said that our major concern should be the alleviation of poverty through a sustained developmental thrust ,as poverty was our biggest polluter.

The Minister who had listened carefully to what I said, wanted me to prepare a brief note incorporating these points and hand it over to Sarath Perera who was the Additional Secretary handling the subject. This was accordingly done by me. To my surprise a major headline carried in the following day’s newspapers read – ” The Ministry of Industries takes the view that the strict industrial pollution standards followed in the developed Western countries need not be adopted here.” It should be remembered that these decisions were taken more than 30 years ago when more than 60% of the population of this country was living at subsistence level, occupying substandard housing with no proper facilities for sewage and waste disposal.

Poverty alleviation was hence, a major policy imperative we had to pursue relentlessly. There was no gainsaying that there was widespread environmental pollution stemming from widespread poverty. But the hard logic that had to be underscored was that, poverty was indeed, irrefutably, the biggest polluter in poor developing countries. This was why they were according the highest priority to poverty alleviation and were trying frantically to break loose of what seemed an inexorable poverty cycle, through rapid industrilisation.

I also benefitted by attending a workshop on “Modern Management Techniques” at the D.S.E. Berlin in June – July 1983. I had to leave the Ministry of Industries under somewhat distressing circumstances. Mahinda Bandusena who was Senior Asst. Secy. of the Ministry at the time, and I were entrusted by the Minister the rather unenviable task of handling disciplinary inquiries against certain errant Heads of Corporations coming under the Ministry. It was a painful task given to us as some of the Corporation Heads were our close friends. But the Minister did not seem to be affected by these sensitivities and insisted that we carry on with these Inquiries.

I remember one particular case where I conducted an inquiry against a Chairman of a Corporation who had defalcated a substantial amount of money. There was enough evidence to conclude that the said Chairman had defrauded the Corporation and my report was submitted to the Minister along with my findings. The Minister summoned me the next morning and I found the Chairman seated before the Minister with his head bowed. The Minister at that stage gave me the file containing my report asking me to read the section on my findings. At the end of it, the Minister asked the Chairman what he had to say. As the Chairman remained silent, the Minister berated him saying that he was being badly let down by the Chairman and wanted the latter to pay back the full amount of money he had misappropriated immediately. The said Chairman I was told, had post haste paid back the full amount of money and had thereafter got himself warded, purportedly seeking treatment for high blood pressure. He had remained in hospital for a week and on his return to office, had been given another severe tongue lashing by the Minister who I was told, had felt sorry for him and accommodated him in another Statutory Board in the Ministry.

I still recall vividly an incident which happened when the Ministry Votes were being debated in Parliament with myself, Bandu and other Ministry official looking on from the Officials’

Box. We were embarrassed no end when Mr. Jeyaraj Fernandopulle who was at the time in the Opposition, pointed to us and said in Sinhala –”There you can see the Minister’s Supreme Court, Mr. Chandra Wickramasinghe and Mr. Mahinda Bandusena. They are the two who sit in judgment over Chairmen of Corporations”. (Recorded in Hansard.)

All this was in addition to the normal duties I was saddled with. Mahinda Bandusena too was similarly burdened with this additional workload. The Minister who was however, impatient to have these inquiries finalized in double quick time (which would have been most unfair by the accused persons most of whom happened to be our friends), summoned the two of us to his office at Flower Road and berated us for ‘delaying’ these inquiries. We both thought that the Minister was being unfair by us and tried to explain to him why we could not possibly accelerate these inquiries. However, the Minister was in no mood to hear us out. As we left the Minister’s office I told Bandu that I was leaving the Ministry and would look for a suitable place immediately.

I telephoned Mr. DBIPS Siriwardhana that afternoon and conveyed my intention of leaving the Ministry. I remember distinctly his cynical laugh while asking me “Do you take these characters seriously? They are just birds of passage and you should not get emotionally affected by what they say”. However, as I was insistent on leaving, he asked for two days for him to try and do something. However, within half an hour, he rang back and asked me whether I was interested in the post of Additional Secy. in the new Ministry of National Security where he had just been appointed Secretary. I promptly said that I would be privileged to serve under him but at the same time expressed certain doubts about my being able to secure my release from the Industries Ministry. Mr. Siriwardhana laughed and said that Minister Mathew should be happy to see me leave, having given me a blackguarding!

The next morning Mr. Mathew called me to the Ministry and was very sweet to me. I was with him for a good two hours and in between consultations he had with officials, he asked me what I thought about some new projects that came up for discussion and also sought my opinion about certain officers who visited him that morning. I however, was discreetly reticent particularly in expressing my personal views on certain officers most of whom were known to me well. When he was about to leave office I thought it was time for me to inform him that I would be leaving the Ministry. From the manner he reacted, it was clear that it came as a shock to him.

He asked me where I was going and the Minister in charge of the Ministry concerned. When I informed him that it was the new Ministry of National Security which had been created by the President, he realized that he would not be able to block my release. He then asked me who would succeed me and when I suggested a few names he did not seem happy with them and said that he would find a suitable successor. I liked Mr. Mathew despite the reputation he had for using strong arm tactics. Apart from the last episode which he obviously regretted, going by the manner he treated me the following day, I must say that he was extremely good to me during my stay of four years in that Ministry.

However, when I was leaving the Ministry to take up the appointment as Additional Secy. in the newly created Ministry of National Security, I was somewhat amused when a member who regularly served on these Tender Boards, told me that he was happy to see me leave, as I did not make money for myself nor did I allow others to do so! Although I was momentarily taken aback by what the person said, I knew again that it was indeed, a grudging compliment paid to me.



Features

The heart-friendly health minister

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Dr. Ramesh Pathirana

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.

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A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY

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Fr. Aloysius Pieris, SJ 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 on Nov. 23, 2019.

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.

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A fairy tale, success or debacle

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Ministers S. Iswaran and Malik Samarawickrama signing the joint statement to launch FTA negotiations. (Picture courtesy IPS)

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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