Features
Moving up the Colonial civil services ladder in the Caribbean and Africa
by Sir. Henry Monck-Mason Moore
Last British Governor of then Ceylon
The writer outlines his career prior to his return to Ceylon
Towards the end of 1921 1 went on leave when I met Miss Benson again in London and we became engaged. She was at the time a very brilliant student at the Royal Academy schools to which she had gone after working in the Slade School. Her marriage to me in December of that year put an end to what might have been a great career as a painter. Since my retirement she had done some serious painting again.
We had to cut our honeymoon short, as I was unexpectedly offered the post of Colonial Secretary, Bermuda. It represented promotion only in status, as the salary attached was less than I was drawing in Ceylon, no official house was provided and no passage allowance. After some 18 months I applied for a transfer, regardless of status, to an appointment in some other Colony where we could live on our pay, and in 1924 I was offered the post of Principal Assistant Secretary, Nigeria, which I accepted.
Though ruinously expensive, our time in Bermuda had its compensations. Prohibition had not been rescinded in America, and three ships a week from New York brought shiploads of its thirsty citizens to the hotels and bars of this popular tourist resort. Among them we met many charming people, though it was impossible to return their hospitality in the sort of boarding house in which we were reduced to live. The old Bermudian families lived in a select social circle of their own. Many of them let their charming old colonial type houses for the American season at highly inflated rentals on which they were able to live in great comfort for the rest of the year.
The Chief Justice, the Colonial Secretary and the Chief of Police were the only three imported officials, and it was difficult, if not impossible to get the House of Assembly to improve their conditions of service. The executive had no representation in the lower house – even the Attorney-General, a Bermudian and member of the Executive Council, had to secure a seat in some constituency, before he could sit and introduce Government bills.
The Legislative Council, the upper house, consisted of the Chief Justice as President, the Colonial Secretary and Receiver-General (Treasury and Customs) as official members with two unofficial members who had won their spurs in the lower house. The Governor was always a soldier and commander of the local garrison. He presided over the Executive Council, but took no part in the debates of either house, his proposals being forwarded to the Legislature by way of “message,” and had no powers, other than those of persuasion, of securing his policy being adopted. Any idea of Colonial Office control was bitterly resented and the Assembly has succeeded in maintaining its virtual independence up to the present day.
For me it was a novel and somewhat exasperating experience to have to plunge so abruptly into the whirlpool of local politics in an island where, because of its very smallness, party feelings were easily aroused and personal rivalries were rampant. In retrospect it was no doubt a useful experience for the more controversial political crises in which I was destined to be involved in Kenya and still later in Ceylon.
In Bermuda the franchise was dependent on a property qualification which was jealously guarded by the old Bermudian families. As a result there was in my time only one coloured member of the House of Assembly, and socially the colour bar was complete. Immigration from the West Indies was closely controlled, and the Bermudian Negroes, mostly descendants of emancipated slaves, were generally employed as domestic servants, carriage drivers – no motor cars were allowed in the island – and dock labourers. The growing of fresh vegetables and the Bermuda Lily was in the hands of specially imported Portuguese, who were skilled market gardeners. The colour question, therefore, in my day had not assumed serious proportions.
Nigeria
In 1924, I accepted the post of Principal Assistant Secretary in the Lagos Secretariat, Nigeria, having refused the appointment of Colonial Secretary, Bahamas, where I knew the conditions were much the same as in Bermuda and the cost of living equally expensive. On arrival, as I have already recorded, I found Sir Hugh Clifford was Governor and Sir Donald Cameron Chief Secretary. When Northern and Southern Nigeria were united in a single administration by Lord Lugard, Sir Donald had been responsible for much of the detailed work behind the scene. He was primarily an office man with Southern Nigerian experience and was not persona grata to the Lieutenant-Governors of the North.
Whether for this or for reasons of economy he was not given the status or salary which his duties and responsibilities deserved. Sir Hugh Clifford on his arrival immediately set up a well-staffed and organized Central Secretariat in Lagos, made Sir Donald Chief Secretary, and gave him equivalent status and salary with the Lieutenant-Governors of Northern and Southern Nigeria. As a result Sir Hugh and Sir Donald worked together in great harmony, and were a formidable team.
Sir Donald absorbed much of Sir Hugh’s administrative experience, but at the same time brought his acid intelligence to bear on Sir Hugh’s more exuberant proposals. Before long Sir Donald was promoted to the Governorship of Tanganyika, and was, succeeded by Sir F. M. Baddeley from Malaya.On the announcement that the Prince of Wales was to visit Nigeria and the West Coast Colonies en route to Cape Town, Sir Hugh entered enthusiastically into the preparation of somewhat grandiose plans for his reception. A reception committee was set up of which I became the secretary, while Lady Clifford, who was in London, kept in touch with the Prince’s staff, at St. James’ Palace.
In the midst of all these preparations Sir Hugh had something in the nature of a nervous breakdown and for six weeks retired up country for a rest to await the arrival of Lady Clifford. At the last moment, owing to an outbreak of smallpox in Lagos, the visit was almost abandoned altogether, but eventually this difficulty was overcome by re-arranging the itinerary so that the visit to Lagos was made after the quarantine period had expired.
As a result Sir Hugh alternated between periods of deep depression and high exaltation, and it was on the latter note that eventually he accompanied the Prince throughout his visit. A contributory factor was that he knew by this time that he was to become Governor of Ceylon, a stepping-stone to the Governorship of Malaya, which had been his life long ambition.During the last few weeks, between the departure of the Prince of Wales and Sir Hugh’s own departure on leave prior to taking up the Ceylon appointment, his behaviour became suggestive of some form of mental instability, and it was reported by some of his friends to the medical authorities that they were apprehensive that he was suffering from delusions.
What steps, if any, were taken to report this to the Colonial Office officially I do not know. In view of the tragic end to his brilliant career when Governor of Malaya, one is left wondering whether this could have been in any way avoided.In 1927 I was promoted to Deputy Chief Secretary in succession to Sir Shenton Thomas, who was appointed Colonial Secretary in the Gold Coast from which he went later to Singapore as Governor and became a Japanese prisoner of war on the fall of Singapore. By that time Sir Graeme Thomson had succeeded Sir Hugh Clifford as Governor of Nigeria, and my wife and I were naturally delighted at again serving under him and Lady Thomson, whom we had known so well in Ceylon.
They had had, I believe, a difficult time in British Guiana, where Sir Graeme had introduced some constitutional reforms in the teeth of much local unofficial opposition. As a result he seemed to have lost some of his early vigour, though he early initiated a new housing scheme for Government servants, which was long overdue. He appointed two committees for Northern and Southern Nigeria and I was fortunate in being appointed Secretary to both. He also took the revolutionary step in those days of appointing a woman member to each. This was a wise move as by that time more and more wives were coming out to join their husbands during their tours of service, which had been prohibited or greatly restricted in the past.
As a result my wife and I had the opportunity of making, extensive tours in the two provinces and seeing something of out-station life, which was a welcome change from the somewhat suburban atmosphere of Lagos. Later Sir Graeme fell seriously ill with an internal haemorrhage, and when I left in 1929 to take up the appointment of Colonial Secretary, Kenya, he was lying in bed in Government House on the danger list. He subsequently recovered but I don’t think he was ever quite the same man again.
Kenya
In 1929 we arrived in Nairobi to find the Governor Sir Edward Grigg in London and my predecessor Sir Edward Denham on leave preparatory to taking up the appointment of Governor of Jamaica. So the Chief Justice, Sir Jacob Bath, was acting as Governor and continued to do so till the return of Sir Edward Grigg. Kenya was in the throes of much political agitation owing to the demand of the Indians to be put on a common roll with the European elected members instead of an Indian communal roll. At the same time the European elected members were pressing for closer union between the territories of Kenya, Uganda, and Tanganyika.
Mr. Amery, the Secretary of State for the Colonies in the Conservative Government, was a strong advocate of such a policy, and had privately instructed Sir Edward Grigg to prepare the ground for it. With the support of Lord Delamere, the leader of the Settlers, an imposing new Government House, designed by Sir Herbert Baker, had been built on lines suitable for the accommodation of a Governor-General of the three territories.
Neither Uganda nor Tanganyika were enthusiastic over this proposal, as they were apprehensive of domination by White Settler opinion. The controversy was referred to London where an Inter-Parliamentary Committee advised against any immediate action without, closing the door to its further consideration in the future. By this time the world economic depression was threatening and Lord Delamere himself realized that the scheme must be put into cold storage till economic conditions were more favourable. With the advent of Lord Passfield as Secretary for the Colonies under the Labour Government, a White Paper was issued which gave the agitation its quietus.
The Indians at first boycotted both the Municipal and Legislative Council elections but eventually accepted a communal role, which enabled them to take their part in municipal and legislative activities. It was in this super-charged atmosphere that I found myself, as, Colonial Secretary, Leader of the Official majority in the Legislative Council, in which I made my first appearance with some trepidation, as neither in Bermuda nor Nigeria did I have any experience of the rough and tumble of parliamentary debate.
Eventually I found my feet and was able to establish friendly relations with all sides of the House despite verbal encounters in the debating chamber. But by this time constitutional controversies were temporarily forgotten in the attempt to grapple with the serious financial position of the Colony owing to the world depression.It was at this time that I first met General Smuts when I sat next to him at a dinner given in his honour on his way to attend the World Economic Conference. Speaking from a few notes scribbled on the back of his menu card, he adroitly side-stepped any local controversial issues and won general applause for his statesmanlike and noncommittal appreciation of the situation. I little thought that I was later to be brought into so much closer association with him during World War II.
Owing to the collapse of world prices the European farmers were in serious straits with the banks calling in mortgages and declining to make advances to meet current expenditure. Some relief was afforded by the Government’s establishment of a Land Bank, and by the discovery of alluvial gold in the Kakamega area; many farmers left their wives to run the farms and went to pan gold themselves. But no substantial gold mining materialized, and this proved only a temporary expedient.
By this time Sir Edward Grigg’s term of office was expiring, and I acted as Governor till the arrival of his successor, Sir Joseph Byrne. His relations with Lord Delamere were strained from the first, and the situation was not made easier by the fact that, although a levy on salaries had been imposed on all Government officers and Government expenditure reduced to a minimum, the financial position of the Colony was still very bad.
Accordingly Lord Moyne was sent out by the Secretary of State to report on the situation. His original term of reference was to review the revenue position and its allocation between European, Indian and native services. The natives paid hut and poll tax but non-natives paid no direct taxation other than certain charges for schools and hospitals. Lord Moyne was later instructed to make recommendations for balancing the Budget and recommended the introduction of income tax for all non-natives.
This gave rise to one of the most heated controversies in Kenya’s history. After the Bill had passed its Second Reading by use of the Official majority, Lord Francis Scott and Col Grogan flew to London to see the Secretary of State, Sir Philip Cunliffe Lister, to gain support to alternative proposals proposed by the European elected members.
They were able to induce the Secretary of State to give their proposals a trial, and the Income Tax Bill was dropped. In the event, as the local government had foreseen, some of their proposals proved unworkable and the remainder failed miserably to produce the revenue required. Eventually, after long delay, agreement was reached to the introduction of Income Tax as an emergency measure. It is still on the statute book !
On Lord Delamere’s death, Lord Francis Scott had become leader of the European elected members. As explained above he had in London secured the last minute approval of the Secretary of State to the shelving of the Income Tax Bill. This was hailed with delight as a defeat of the local government. At this awkward moment Sir Joseph Byrne had to go on leave for health reasons and I was left to carry the baby.It was a highly controversial period and later, after Sir Joseph’s return, Cunliffe-Lister flew out himself to visit Kakamega and meet a deputation of the elected members. Unfortunately he was taken seriously ill and lay for days in Government House before he was out of danger. His visit, therefore, did little to remove the tension, particularly as he was unwilling to provide the financial aid on the lines recommended by the elected members.
By 1934 when I left to become Governor of Sierra Leone, Kenya was slowly emerging from the depression. I was first offered the Governorship of British Guiana. But this I refused on the advice once given to me by Sir Graeme Thomson. He had accepted it himself with enthusiasm as he had had high hopes of developing its largely unexplored interior. But he left it disillusioned, and as my experience in Bermuda, though not in the West Indies, had given me some insight into West Indian conditions, I remembered his advice and declined. Soon after Sierra Leone fell vacant, of which Sir Joseph Byrne had previously been Governor. He advised me to accept, which I did.
It was a difficult choice, as it involved leaving our two young daughters in England. For my wife it meant breaking up our home again, and repeating the experience in Nigeria of spending part of the time with me and part with the children. It is the hard price that the Colonial Servant has to pay, but it is the wife who has to pay the hardest price.
In the event unexpected relief came in 1937 by my appointment as an Under Secretary of State in the Colonial Office. Mr. Ormsby-Gore, later Lord Harlech, initiated the idea of bringing in temporarily a junior Governor into the higher echelons of the Home Civil Service instead of bringing in junior officers – known as “Beachcombers” – to work in the lower ranks. It represented a very considerable financial loss and in our case was only rendered possible by the generosity of my wife’s parents.
During my comparatively brief period in Sierra Leone I was able to lay the foundations of a closer administration of the Protectorate, which was somewhat haphazardly administered through a host of minor chiefs. I sent Mr. Fenton – a most efficient officer – to study the local native administration being set up, particularly among the Ondos in southern Nigeria. He prepared a most useful report and its recommendations were being implemented when I left.
In the past most emphasis had been laid on Freetown itself, where the educated “creoles” – descendants of the original ex slave settlements – held a monopoly of clerical appointments and trading interests in the West Coast. With the spread of education in the Gold Coast and Nigeria local men were taking their place, while the Syrian traders were successfully ousting them. White collared unemployment was becoming a problem in Freetown, and the interests of the Protectorate natives were of secondary importance to the unofficial members of the Legislative Council.
The development of iron ore at Marampa and the discovery of diamonds and some alluvial gold had revolutionary results, as it became clear that on the development of the mineral resources of the Protectorate depended the prosperity of Sierra Leone, rather, than on the precarious export of palm kernels and palm oil. I also with the aid of the Colonial Development Fund had a circular road driven round the Peninsula which proved to be of great value during the war.
Representatives of the Army, Navy and Air Force, arrived to study sites for aerodromes, flying boat bases, and battery extensions and boom-harbour defences, but little progress had been made by the time I left. I appointed Mr. Beoku Betts, the first Creole to become a member of the local legal department. He became, I believe, a good Government servant despite his having previously graced the Opposition benches in the Legislative Council.
Features
The heart-friendly health minister
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.
Features
A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY
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.
Features
A fairy tale, success or debacle
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 . )