Features
Poverty, Aswesuma and food security
By Dr. C. S. Weeraratna (csweera@sltnet.lk)
Poverty is a condition characterized by severe deprivation of basic human needs, such as food, shelter, safe drinking water, sanitation facilities, health, and education. Various criteria are used to measure poverty. The most commonly used is based on incomes. A person is considered poor if his or her income level falls below a minimum level necessary to meet basic needs. This minimum level is called the “poverty line”. What is necessary to satisfy the basic needs varies across countries, and societies. Therefore, the poverty line varies in time and place, and each country uses poverty lines which are appropriate to its level of development, societal norms and values. According to the Department of Census and Statistics, the poverty line in Sri Lanka, in 2016, was 6,177. It increased to 7,913 in 2021 and to 13,777 in 2022. According to World Bank data, Sri Lanka’s poverty rate almost doubled from 13.1 to 25 percent between 2021 and 2022, This increase has added an additional 2.5 million people into poverty in 2022. Poverty is projected to remain around 25 percent in the next few years due to the multiple risks to households’ livelihoods. The negative economic outlook for 2023 and 2024 and adverse effects of revenue-mobilizing reforms could worsen poverty projections. A recovery and expansion of wage employment in the services and industry sectors will be the key to shift employment from lower-paying agricultural jobs and make a dent on poverty.
Since independence, various programmes to assist the poor have been implemented in Sri Lanka. The Food Ration scheme, which provided rice at a subsidized price, the Janasaviya programme, and the Samurdhi programme, etc., implemented by the government at different times, and numerous projects carried out by other organizations, such as the World Food Programme, were to alleviate poverty/reduce food insecurity among the poor. In these programmes/projects, households receiving low incomes were provided cash/food to increase their food supply. The latest poverty alleviation programme is Aswesuma which is to be implemented shortly. Under this programme, cash is to be distributed among four social categories, namely transitional, vulnerable, poor, and extremely poor. Additionally, the usual allowances for the differently-abled, elderly, and kidney patients will also be provided. Around 400,000 transitional beneficiaries will receive Rs.2,500.00 per month, until 31 December, 2023, 400,000 vulnerable beneficiaries will receive Rs.5,000.00 per month, until 31 March, 2024, 800,000 poor beneficiaries will receive Rs.8,500.00 per month, for three years and extremely poor beneficiaries will receive Rs.15,000.00 per month for three years, beginning 01 July, 2023. The criteria used to classify the poor into the four categories and the allowances to be paid are not known. However, some Samurdhi beneficiaries are reported to be left out from the Aswesuma programme.
Food Security
Startling revelations have emerged, indicating that approximately 7.5 million people in Sri Lanka are currently grappling with a severe food crisis, according to a study conducted by the Food and Agriculture Organization of the United Nations. The study has disclosed that among the 5.7 million families, residing in Sri Lanka, a staggering 33% are facing food insecurity. Consequently, this translates to approximately 7.5 million individuals across the country being directly impacted by this crisis. According to a special report of the Food and Agriculture Organization of the United Nations and the World Food Programme’s crop and food security assessment mission to Sri Lanka, 17% of the population is in moderate acute food insecurity in Sri Lanka, especially in the Northern, Eastern and Central Provinces.
It is likely that the people affected by poverty are forced to face the consequences of food insecurity. Those in poor families are reducing their spending on health and education which have many undesirable repercussions. Rising food insecurity will also lead to increases in malnutrition and stunting among children, in addition to the undesirable effects on socioeconomic factors. According to the World Food Programme, 6.3 million people, or nearly 30 percent of Sri Lanka’s population, are “food insecure” and require humanitarian assistance. Of these, around 5.3 million people are either reducing meals or skipping meals, and at least 65,600 people are severely food insecure. This situation is likely to worsen due to high food prices, acute shortage of essential food, weak purchasing power, etc. Those who have been selected to receive Aswesuma payments are poor, or extremely poor, and they are likely to be not taking enough food in sufficient amounts to meet the daily energy requirement (2000-2500 Cal) which depends on age, level of physical activit, etc,
As defined in the World Food Summit, food security exists when all people, at all times, have physical and economic access to safe and nutritious food to meet their dietary needs for an active and healthy life. When people do not have enough financial resources, they and their families are unable to meet the nutrients requirement for an active and healthy life.
The government, perhaps, having realized the repercussions of food insecurity, initiated a programme to ensure that no citizen of the country should starve due to lack of food and no child should be a victim of malnutrition. The relevant mechanism is to be implemented through seven committees while the National Food Security and Nutrition Council will function under the chairmanship of the President. Food security in Sri Lanka has improved, marginally, according to the Crop and Food Security Assessment Mission (CFSAM) report jointly carried out in February/March 2023 by the Food and Agriculture Organization of the United Nations (FAO) and the United Nations World Food Programme (WFP). Despite this positive trend, food insecurity remains high in certain districts, especially in Kilinochchi, Nuwara Eliya, Mannar, Batticaloa, Vavuniya, and Jaffna. The highest level of acute food insecurity (67%) is reported within the tea plantation communities in the estate sector and among daily wage labourers. However, in spite of several committees, there appears to be no substantial increase in food production in the country.
The Aswesuma programme which is expected to dole out Rs. 15,000 per month per family to extremely poor families, over a period of three years, will not make them escape from the undesirable effects of food insecurity, Hence, it is necessary that appropriate programmes are implemented to increase food supply, the earning capacity of the poor and also to reduce their expenditure on food so that they will not have to face the consequences of inadequate food intake.
Increasing food security
Food security is a major issue in Sri Lanka, where the government is trying to provide food for its people in the face of shortages, natural disasters and increasing prices of food commodities in the market due to many reasons. The problems become greater in areas with degraded lands. Recognizing that the relative income of farmers has been sliding down consistently, production, processing and distribution of foods should be encouraged. Off-farm rural employment, and essential facilities and infrastructure for primary health and education should be created with due emphasis on streamlining of input-output markets, agro-processing and value addition, particularly in horticulture and livestock sub-sector, and services geared towards the resource-poor farmers, including the landless, and women.
Promoting cultivation of home gardens is one of the strategies to increase food security. Sri Lanka is a land of villages. There are around 14,000 of them. The total area under home gardens, in Sri Lanka, is around 300,00 hectares, representing about 25% of the total agricultural area operated by peasants. Appropriate programmes need to be implemented to increase the productivity of the home gardens. Numerous crops which supply carbohydrates, proteins, vitamins and minerals can be grown in home gardens which will have a positive impact on food security.
Most home gardens remain unproductive mainly due to the difficulty of obtaining suitable high yielding planting materials. Therefore, the development of plant nurseries, in areas easily accessible to the farmer, and provision of seeds, seedlings and other planting materials of vegetables, fruits, etc., will motivate householders to cultivate better high yielding crop varieties. Increasing the productivity of home gardens will have a considerable positive impact on food security. Various pests and diseases are likely to attack the crops cultivated in the home garden. In the attempts to achieve a high level of food security, it is necessary that these pests and diseases are controlled, using chemical, or biological pesticides. It is also necessary that fertilisers, such as compost, urea, potassium chloride and TSP, are applied at correct times. The cultivators need to be assisted by relevant authorities to obtain necessary inputs, such as seeds/planting material, fertilisers, etc. Prevention of post-harvest losses and efficient agro processing interventions should be emphasized so as to add value to the products that are grown/raised locally and link them with both domestic and international markets
Food Security is at maximum level when all people, at all times, have physical and economic access to food. As indicated earlier, the local production of carbohydrates (rice and sugar), proteins (fish and milk) and fats and oils (edible oil, margarine and butter) is inadequate to meet the demand. Hence, these food items and several others are imported. The expenditure on food imports has increased considerably, during the present decade, and annually around Rs. 40 billion is spent on food imports. According to the Household Food Security Survey, conducted by the World Food Programme, in 2023, 67 percent of households in the estate sector are food insecure; The corresponding values for rural and urban areas are 53 and 43 percent, respectively.
Household food security depends mainly on their ability to secure enough food to ensure an adequate dietary intake for all of its members, at all times, for a healthy and an active life. Poverty and high food prices have reduced the food security at household level, especially in those where the incomes are low.
Hence, implementation of economically viable programmes to increase the level of local food production is essential, in addition to doling out cash among the poor for three years. Such programmes would provide employment to thousands of rural people and increase their incomes. Even if 50% of the present expenditure on food is spent locally, it would increase the rural income by nearly Rs. 20 billion, and significantly increase the purchasing power of the rural sector, thereby increasing food security, It will result in a considerable increase in the demand for high-elastic consumer items, thus generating further employment. The impact of it on the rural population and their poverty would be considerable.
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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