Features
Overworked underpaid Britons migrating in numbers
by Eir Nolsoe
Feelings of being overworked and underpaid prompted Rachel James, 29, and her partner to leave their jobs as doctors in the NHS to move to Australia. Two years later, the couple have no plans of returning.
“The pay is between double and triple what we would get in the UK,” Rachel (not her real name) says. She lives in Cooktown, a coastal town a four-hour drive north of Cairns. They enjoy free accommodation because the Australian health service offers incentives to people to work in rural areas.
The biggest difference is in the quality of life. Unlike in the British health service, the couple’s work rotas are linked so they can have days off together.
“In the UK, when I was working as a doctor I struggled a lot in my foundation years with anxiety. I did mindfulness. I did exercise. I saw my GP. Nothing has ever done more for my mental health than having money left over in my bank account at the end of the month and being able to spend time with my partner,” she says.
Rachel and her partner are among thousands of UK medical graduates who leave to go abroad every year. While this type of brain drain has typically been limited to specific occupations, life in the UK is about to get tougher for young people across the board.Real incomes are falling, taxes are rising and buying a home or starting a family is getting increasingly unaffordable. Scores of highly skilled workers – many of whom are already working remotely – may soon wonder whether they too would be better off somewhere else.
The political and economic turmoil of the past months has filled newspaper columns with comparisons of the UK and Italy.The Economist magazine controversially ran a front page saying “Welcome to Britaly” with short-lived prime minister Liz Truss pictured as a British-Italian mash-up of the Statue of Liberty. The magazine said that both countries shared “terminable political drama, economic stagnation and nervous bond markets”.
But one feature of countries such as Italy, Spain and Greece, whose economies were badly wounded after the financial crisis, is just how many of their young can be found in Britain and elsewhere. The number of Italians and Spaniards in the UK more than trebled in the decade or so after the financial crisis, while Greeks more than doubled.
The UK is expected to suffer the highest inflation and the deepest recession among the G7 countries, according to the OECD. Real incomes are predicted to fall by a record 7pc over the next two years, according to the Office for Budget Responsibility. Pensioners will however not feel the same hit, as the Government has decided to honour the triple lock and uprate state pensions in line with double-digit inflation.
In many ways, life in Britain will likely get more difficult. Working people will have to pay higher taxes to fund services for a growing elderly population, as the labour force is shrinking. But young people were already dealt a bad hand, with low growth and high house prices putting milestones such as owning a home and starting a family out of reach.But will it get bad enough to send Britain’s best and brightest abroad in search of a better life?
A mass exodus
The answer is not straightforward – and there’s little consensus among experts. In certain industries, the UK is already experiencing a brain drain. Some analysts say that global labour shortages and the rise of remote working mean that this phenomenon could spread more widely among highly skilled workers.
The trend has so far been most pronounced in healthcare, which is known to have a highly mobile workforce. Falling real pay and worse working conditions than in other wealthy countries mean it has been an issue for several years, according to experts.
Figures from the General Medical Council show that nearly 10,000 doctors left the UK medical workforce last year. Previous analysis indicates that around half plan to move overseas, the GMC said.
“Brain drain is a nice term but it’s more than that. It’s an exodus, a mass exodus of not just doctors but healthcare professionals,” says Dr Latifa Patel, representative body chair of the British Medical Association and a junior doctor herself.
“If you put it in the context of what we’re lacking in the NHS at the moment, it’s even more worrying. NHS England alone has 132,000 unfilled vacancies. Between 10 and 15,000 of those are doctors,” she says.
According to Patel, doctors typically emigrate to other English-speaking countries such as Australia, New Zealand, the US and Canada. Their pay has fallen by 30pc in real terms since the financial crisis, she says.It’s not just about money though, she says. The workload and quality of life are possibly even more important. This is echoed by Rachel James’ experience who left for Australia.
“If I had thought [the NHS] would change in any reasonable time frame, we wouldn’t have made the decision to be here,” she says.
There is a lot of research on immigrants to the UK but what do we know about the ones who leave? “Not a huge amount to be honest,” says Madeleine Sumption, director of the Migration Observatory.
“We don’t know that much about who they are or what they’re doing when they’re overseas. We have some figures from the US and Australian visa data, for example, showing that a fair number go to other English-speaking countries,” she says.
The image of UK emigration mainly being made up of retirees swapping Manchester for Mallorca is incorrect, according to Sumption. It’s much more likely to be young people with few responsibilities and ties going elsewhere. While there are some visa schemes for unskilled labour, many leaving are likely to be highly skilled to qualify for immigration rights.
Overseas opportunities
UK emigres show up in immigration data in other countries but research on them is sparse and little is known about their overall skill level. Figures from the Office for National Statistics show that some 90,000 Brits left the country in the year ending in June 2022. There is no information about how many of them leave for job opportunities.Separate data going back to the start of the 90s shows that every year more Britons leave than come back. Figures from the last three months of 2019 – meaning the latest available data not potentially distorted by pandemic trends – shows that 138,000 UK nationals left while 78,000 arrived. This is common according to Sumption – most countries see a net outward flow of their own citizens.
The UK experienced a period of almost continuous net emigration between 1964 and 1983. But rising flows of arrivals from other countries mean the UK has since benefitted from brain gain rather than drain. The limited data means that it’s difficult to know how many highly skilled workers leave.Neil Carberry, chief executive of the Recruitment & Employment Confederation, says in his experience the flight of young people abroad has not yet become a big trend but warns that working from home has made many more conscious of overseas opportunities.
“The nature of the labour market has become much more global post-pandemic,” he says, “because when everybody was locked down it didn’t matter if you were in Manchester or Malaga – it was still possible to do many jobs from anywhere.
“So I do think it’s really important to remember… that the world is not going to wait for Britain to sort itself out. The UK has great strengths but we need to be aware that skills shortages are a global issue and other countries are looking at our talent as well.”
This has been the case for freelance designer Elise, who decided to pack up her life in London this summer to move to Lisbon. At the age of 32, felt she was done with living in shared flats but couldn’t afford other options. Despite having a successful career, homeownership was still firmly out of reach.
“I have come to terms with the fact that I don’t feel like I’ve ever really be able to buy my own house. I’m also at a point where I don’t really want to do like shared living anymore and rent is going up. So I felt like I might as well move somewhere else,” Elise, who prefers not to use her full name, says.
After testing it out for a few months, she is now back in the UK while waiting for a two-year visa so she can move permanently. She was already working remotely in the UK.
“There’s no time difference so I didn’t have to tell my clients or change anything about the way I worked. I can just transport it over there quite smoothly. Obviously with the visa comes a whole other kind of tax that I need to look into as I’ll be living there. But from what I’ve heard, it’s fairly straightforward,” she says.During her first months in Lisbon, she was staying in co-living spaces where digital nomads like her have access to a workspace and can socialise together.
“It’s really great because you just meet lots of people who are doing the exact same thing. Everyone was pretty much around the same age group. It was a good way to meet people and feel a little bit of a sense of community with it,” she says.
Sluggish growth
Experts disagree on how likely the UK is to suffer a brain drain of highly skilled workers. Many say people tempted to leave face too many obstacles for a large-scale exodus to happen.
“If you want to go let’s say to another English-speaking country, the US or Canada or Australia, you have to get a visa. You can’t just say oh, I’d like to move. You’d have to get a job offer, for example. Those are quite considerable barriers,” says Alan Manning, an economist specialising in migration.
While the UK is expected to experience a deeper recession than its peers, vacancies are still near record levels. Research on emigration is sparse, but a report by the Home Office from 2012 found that there is an “inverse association” between British emigration and unemployment.
“In general, as UK unemployment falls, more British people emigrate and when unemployment in the UK is high, fewer British people emigrate,” it says. The report’s authors suggested that while it might sound counter-intuitive it was because employed people have more resources to move abroad.
This is particularly pertinent for this downturn, which is characterised by a highly unusual combination of labour shortages and recession. Many other wealthy countries are also experiencing worker shortages. This means that people in the UK are in a better position to leave than during previous recessions. This will particularly benefit people with good skills. Brexit has made it more difficult to emigrate without a job offer or a particular skill set.
“I think there are two conflicting things. One is the economic fundamentals of the UK as a place to be a highly skilled worker are very strong. So particularly in London, but also Manchester and Birmingham,” says Adam Hawksbee, director of centre-right think tank Onward. On the other hand, he says, the failure to build more houses and lab space around cities means many workers and entrepreneurs are priced out.
“We need to see more from the Government on what their offer is to young people and young families. Because unless they’re very clear that they want them to stay in the UK to engage in the workforce, they’ll be looking elsewhere for other countries which are much more positive about the contribution they can provide.”
The UK’s weak productivity and sluggish growth mean young people have enjoyed much less prosperity than their parents did at the same age. From the mid-1950s until before the financial crisis, real incomes grew by 2pc a year on average. The recession is expected to cause a 7pc fall over the next two years, effectively wiping out 10 years of growth and bringing incomes back to 2013 levels. If the forecasts are correct, incomes will only have grown by 0.5pc annually in the two decades to 2028.
“Pay progression among cohorts has stalled for those born after 1980. So each five-year birth cohort before 1980 earned more than the cohort that came before them. There’s not been very much pay progression at all for those born after 1980, which are the millennials,” says Molly Broome, an economist at the Resolution Foundation.
The stagnation in incomes and growth has not been reflected in house prices. As successive governments have failed to ensure enough homes were built and central banks have inflated asset prices through quantitative easing, prices have soared.
Close to half of 25- to 34-year-olds owned their own home in the late 1970s to early 1990s. Today this figure has dropped below 30pc. This does not reflect a change in preference: around 80pc of young renters say they want to own a home, a figure which has remained stable over many years. First-time buyers today face property prices 5.9 times their annual salary, Nationwide data shows. This is up from 2.7 in 1983. In London, the ratio is even higher at 9.6, rising from 3.7.
Punishing tax burden
Liz Truss’ fateful mini-Budget also pulled the housing ladder further out of reach for many young people, after mortgage rates soared. As a result, thousands of people have been locked into renting for longer, while demand was already well above last year’s levels in every region and country of Great Britain. Rents for new tenancies are at record highs, increasing 16pc in London in the year to October and 3.2pc in the rest of the country, Rightmove data shows.
“The base of voters [for the Conservative Party] is elderly homeowners who have very few incentives to be compassionate to the young wanting new homes built near them. This is extra central for the Tories. If they don’t create homeowners there isn’t really much of a party left,” says Robert Colvile, the director of right-leaning think tank CPS.
While he believes that the UK still has a lot to offer highly skilled workers, Colvile worries that over time highly skilled young people will be tempted to look elsewhere if things don’t improve.
“Longer term there is obviously a danger that the harder it gets to afford a home, the higher your marginal tax rates get, the more expensive childcare becomes and the more people will vote with their feet. I mean, people respond to incentives,” he says.
Parents in the UK also face the third highest childcare costs relative to their income among rich countries. There’s little hope of respite, as services are expected to face a near double-digit real terms cut over the next few years.
“Every marginal pound that the government spends seems to go towards supporting old people. The base of tax-paying younger workers who are having to pay for this whole thing is getting squeezed and squeezed,” Colvile says.
The measures announced by Chancellor Jeremy Hunt in the Autumn Statement mean the UK will have the highest tax burden since the Second World War.
Bloomberg analysis has found that the marginal tax rate – meaning how much you get taxed for every extra pound you earn – is 42pc for people earning over £50,270 and 62pc for those earning over £100,000.
Having to pay more to the public coffers makes life in the UK less attractive according to David Smith, 33, who works in financial services. He moved to Hong Kong in 2018 with his company. He planned to stay for two years – it has now been four and a half, although he will soon have to come home because of family ties.Including bonuses, David earns £90,000 a year. In Britain, he would pay 40pc tax. In Hong Kong, the top rate is 17pc.
“To me, it feels like if you work hard in the UK and earn a good salary you are punished with extortionate taxes which makes earning over £50,000 a year pointless. I’d rather work fewer days a week and keep under £50,000 salary in the UK,” David says.
In Hong Kong, he has been able to save £40,000 every year. He is also able to take his pension as a lump sum there. From his stint abroad, David will be coming back to Britain with a £340,000 savings pot to spend on his first home.
“The higher taxes you pay in the UK are extortionate. I grew up around Blackpool stacking shelves on minimum wage and then I have moved up the salary brackets. In Hong Kong, I can literally put away £40,000 a year because of the low taxes.”
Growing unease
All of these things – rising taxes, falling living standards and the unaffordability of buying a home or starting a family – are ammunition for the Labour Party, which is closer than at any point in the past 12 years to getting back in power.
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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