Features
Overcoming economic crisis and rebuilding economy: A clarion call
By the National Science Foundation
(Continued from yesterday)
1. Circumventing and managing anarchical conditions
If addressing the immediate issues of reduced/non-availability of gas, fuel, food, medicines and other essential items is not done immediately, an anarchical situation could engulf the whole country. Symptoms of such a situation are already manifesting itself with an increase in violent and aggressive conduct and a break down in law and order. If the situation persists, a state of anarchy could erupt. It can be unintended and spontaneous or preplanned and organized.
Therefore, we strongly recommend immediate discussion with mainstream print and electronic media and those who create and manage social media content and delivery to deliver non-sensational information. They should provide balanced coverage including some of the positive developments and innovative solutions.They should also contain a sociological content to help people manage emotions and interpersonal relationships. Support mechanisms via social institutions such as Sarvodaya, SANASA and other community-based organizations should be used, and their experience and standing utilised. However, this should in no way be used as a pretext to curtail the freedom of expression and to have political control over free media.
(B). Sectoral recommendations
2. Immediate addressal of power and energy availability
Consumption and efficient use of energy will remain central to future efforts to promote economic and social growth in developing countries.
i. Holding direct negotiations with oil-producing countries by a high-powered competent negotiating team
ii Fast tracking solar, wind, bio-energy and mini-hydro projects in the pipeline and new projects with credible private sector institutions to promote and produce green energy
iii. Transport of fuel and other cargo must be done by railway at night instead of by bowsers and lorries, to save fuel and reduce distribution cost.
iv. Quickly develop a supply chain for charcoal, pellets, briquettes and such value-added products as well as for bio-ethanol, bio-diesel and biogas through focused R&D for use as an alternative to LPG and petroleum fuel. Use of wood charcoal in place of coconut shell charcoal should be promoted, since the latter is a foreign exchange spinner.
v. Establish energy plantations (4th plantation crop), particularly in degraded land for production of dendro-thermal energy, using fast-growing tree species such as Gliricidia and early successional species which can also serve as Lungs of the Earth in order to gain carbon credit.
vi. Promote the use of biogas, making use of household and municipal waste, as is done at the Kaduwela Municipal Council. Other MCs can embark upon similar projects to generate electricity from municipal waste. This, besides offering a sustainable and rewarding solution to municipal waste management, will earn carbon credit, and hence Dollars, for the country.
3. Immediate and short term interventions for improved food and nutrition security
Sri Lanka has around two million farmers comprising mainly small holders who contribute about 80% of the food production. Agriculture accounts for 25% of the workforce of the country, yet contributes only about 6% of the GDP due to its low productivity and poor value addition. Hence, ensuring food security under the present circumstances is a formidable challenge. Adoption of the following will mitigate the impact of the current crisis on food and nutrition security.
i. Determination of food and feed requirements, food production and food deficit/surplus in respect of the major food crops at district and national levels. This is required to understand the magnitude and gravity of food and nutritional insecurity and its spatial variation and to ensure equitable food distribution. (For instance, only about 10% of the food requirement of the Western Province is produced within the Province and the deficit, i.e. 90%, is met by food produced in other areas and imports.)
ii. Identification of food crops and their varieties, i.e. cereals, pulses, yams, vegetables and fruits, that are most essential to food and nutritional security and import substitution.
iii. Determination of the agro-climatically and edaphically most suitable areas/fields for cultivation of the crops and their varieties identified under (ii), to enable matching of crop and land for optimum yield.
iv. A rapid multiplication programme of high-quality planting material to meet the increased demand. This is extremely important for paddy and due attention should be paid to collect adequate seed paddy from this year’s Yala season harvest to meet the need in the coming Maha season which is about 80,000 metric tons.
v. Identification of outstanding enterprising farmers in each AGA division who have consistently produced relatively high yields, particularly those who adopt good agricultural practices (GAPs), including integrated farming and integrated nutrient management with the support of relevant institutions and promoting outgrower schemes
vi. Making available expensive limited inputs, e.g. chemical fertilisers, pesticides, weedicides, fuel for machinery, etc., on a priority basis to the most outstanding selected farmers in areas with high agricultural potential for the crops/varieties in each district. This will ensure maximum return on investment (ROI) and minimize unregulated, uncoordinated, ad hoc crop production for commercial purposes under sub-optimal and marginal conditions.
9. Develop a roadmap for critical export-oriented manufacturing
Sri Lanka is endowed with valuable natural resources including Graphite, Ilmenite, Rutile, Zircon, Quartz, Feldspar, Clay, Kaolin, Apatite, Silica Sand, Garnet, Mica, Calcite and Dolomite. However, presently, large quantities of these minerals are exported with hardly any value addition, thereby country loses a great opportunity to earn considerable amount of foreign exchange; therefore, setting up a basic chemical process industry (CPI) in Sri Lanka is a high priority concern. Two of the on-going industrial revolutions in the world are presently on our soil, namely Biotechnology and Nanotechnology, thanks to some strategic investments. These two investments can significantly add value to our minerals as well as bio resources. With a concerted policy drive, it is feasible for those industries to contribute about 5% to the GDP in the medium term.
The recommendations and observations above are derived from our deep concern over the unprecedented nature of the crisis and existential issues involved. The recommendations are science-based, data driven and above all, politically neutral and objective. They do not seek to supplant inputs by other professional sources, but rather to add to and complement them.
Given the dire situation and the urgency of its resolution, it is imperative that the political authorities, both the Government as well as the Opposition, shed partisan postures and cooperate towards adopting the above recommendations and other desired public policy decisions through an all-party consensual approach involving consultation and compromise including, but not limited to, the Parliamentary Consultative Committee System.
This consensual approach is not some idealistic dream, but a hard-nosed imperative of the hour and for two reasons. It is needed to restore confidence among a skeptical public that those responsible for the crisis are now contemplating serious steps towards reform, normalcy and a road map to growth. Equally, it will demonstrate to our foreign interlocutors, whose tax payers are asked to remit their hard earned money to help Sri Lanka out of this self-made crisis, that our commitment to recovery and reform is backed by a national consensus, and is therefore sustainable. Such a process of confidence building will ideally begin with a truly representative multi-party, if not all party, interim governance arrangement based on consensual decision making as articulated by many segments of society, especially religious leaders, minority parties, the youth, civil society, professionals etc.
Everyone agrees that external assistance is a sine qua non for our recovery, especially in the short term. Those willing to consider assisting the country must, therefore, have the assurance that the succeeding Government will not renege on the agreed programmes of reform and recovery. Such confidence building, derived from a national consensus, is a must if negotiations with our bilateral and multilateral interlocutors are to be concluded successfully.
Finally, we must emphasize that there is no quick fix available to resolve the problems in a modern economy in a fast developing world. A programme of development and renewal will involve unremitting hard work, consistency and early responses based on proper analysis and evaluation of emerging problems. To our knowledge, no country in the world has developed without sustained hard work over an extended period of time. It is imperative therefore, that we get away from politics and devote our sustained attention to governance. Politics could be conducted within parties. But, it has to be always remembered, that parties are elected by the people to govern, not to pursue party politics, the pursuit of which has brought the country to present state.
Prof. Ranjith Senaratne, Chairman, National Science Foundation and former Vice-Chancellor, University of Ruhuna
Dr. Sepalika Sudasinghe, Director General, National Science Foundation and Visiting Professor in Management, Management and Science University of Malaysia
Desamanya M.D.D. Pieris, former Secretary to the Prime Minister and several ministries and currently serving on some professional bodies and committees
C. Maliyadde, Vice President, Sri Lanka Economic Association and former Secretary to several ministries
H.M.G.S. Palihakkara, former Foreign Secretary, Ambassador and former Governor, Northern Province.
Dr. Chandra Embuldeniya, Chairman, Technology Development and Innovations Arm of the NSF, Founder, Vice-Chancellor, Uva Wellassa University, and Past President, The National Chamber of Commerce of Sri Lanka
Prof. A.K.W. Jayawardane, Senior Professor in Civil Engineering, University of Moratuwa, Chairman, Commercial Bank of Ceylon PLC and former Vice-Chancellor, University of Moratuwa
D.K RAJAPAKSA BSc (Hons) Ceylon, Emeritus Managing Director DSI Samson Group (Pvt.) Ltd
Dr. P.A. Kiriwandeniya, Founder of SANASA Movement
Rizvi Zaheed, BA Hons. MBA, Chairman, Sri Lanka Agripreneurs’ Forum
Professor Saroj Jayasinghe, Professor Emeritus of Medicine, University of Colombo
Prof. Ajith de Alwis, Senior Professor of Chemical and Process Engineering, University of Moratuwa and Chief Innovation Officer (Actg.), National Innovation Agency
Concluded
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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