Features
Responsible investment of borrowed money
Could this be a way forward?
by Dr. Upatissa Pethiyagoda
Recent financial distress and the promise of financial help by the IMF, opens up a healthy opportunity to consider the manner in which we use the granted relief. Any lender must be convinced that there is a near certainty, that the borrower would exercise prudence in using such monies. Thus the finance should be used in projects where there is more than a fair chance of being successful enough to enable the beneficiary to pay back monies due.
It is reasonable to expect a certain degree of involvement (interference?) by lenders, in coaxing the recipient in such manner as to help avoid repetition of mistakes that have been responsible for the present distress. Unfortunately, cutting back the expenses incurred in providing some seemingly extravagant social or relief measures, can be highly sensitive politically. Our politics have sadly, helped to establish a “dependency syndrome,” reflected in the demonstration placards often voiced as “Diyaw, diyaw”!
Much of the “opposition” to IMF relief, can perhaps be because of denial of the “freedom of the wild ass,” or blunting the slimy skills of the pick-pocket. Better, let us invest the relief intelligently. The discourse can be logical, purposeful and impersonal.
The expected conflict is whether we should use these funds in such a manner as ushered in the fueling of the “Industrial Revolution” of a century or two ago, or seek fresh alternatives.
The fueling of the industrial revolution, is generally regarded historically as a four-step process. Several advances are recognized as having been pivotal. These included – invention of the steam engine, setting up of factories, tapping oil and coal reserves and colonialism to provide necessary raw materials to support manufacture of goods. Thus arose urbanization, exploitation of labour, class distinctions and a host of other new problems.
Popular convention recognizes four sequential steps, vaguely recognized as beginning with the invention of the steam engine and passing through construction of factories especially for textile manufacture, through coal and oil extraction, and colonialism to access sources of raw material and labour.
Chemical developments of new materials especially plastics, Semi-conductors, and computers, advance of fast communications, telephones, fast trains and aircraft plus much besides that are now taken for granted. Some have involved decades of diligent development by thousands of inventors, and millions of workers to turn out the articles and processes developed by researchers.
While these are obviously positive developments, they have at the same time also delivered ruinous environmental pollutants, nuclear weapons of mass destructive potential and of course an exponentially growing population, resulting in crime, inequity, depletion and destruction of natural resources. These have become the major considerations worldwide.
Unquestionably, industrialization has greater expansion potential than agriculture, forestry and fisheries. In our case there is a compelling host of social deficits that should be accommodated. Inexpensive and reliable power is a pre-requisite. This is clearly not there for us. When I look back on my personal experience, of something like 14 years,
I did not experience a single power interruption! This included four years in Iraq, then at war with Iran. The rest were in the “industrialized” West (including UK. USA and Italy) and short stays in Germany, Denmark, Switzerland, Israel etc. Not a single blackout! Unreliable power supply is a serious negative for industrialization..
The position of industrial development is much about “factory” technology. Maximum outputs from machinery, requiring the least input of labour. Cheap availability of power and machinery to manufacture are indispensable. Colonialism had much to do with procuring cheap raw material.
Labour in their home countries, was expensive and had to do with high wages and welfare facilities. It is interesting to note that countries in Temperate regions, that require fuel for warming, were still able to easily outstrip Tropical ones, exempt from this enormous burden. Success was achieved by coupling cheap labour with lesser need of expensive raw material.
Does this inversion of requisites for progress, (labour and raw material) create doubts on the applicability of formulae successful in the industrial West against those of the agrarian Tropics? Can we harness the benefits of both worlds and how?
Few would disagree that in our present state, with a long tradition of agriculture, it is natural that this is the sector most likely to respond to change and reform. This broadly speaking, could focus on:-
Protected Cultivation
Protected cultivation, mainly for high value market garden crops such as tomato, capsicum, lettuce and brinjal is no stranger for Up- Country vegetable farmers.A great opportunity exists for utilizing this empirically acquired knowledge, to cultivate the not inconsiderable extents of uncultivated land within a triangle roughly circumscribed by Kalutara, Gampaha and Negombo. It is most likely that improper drainage have rendered these extents unsuitable for paddy.
If so, it becomes an engineering problem, to arrange for proper drainage of these swamps and to enable intensive protected farming. In fact, it may make it feasible for freshwater fish production as well. The proximity of Colombo and the proposed Port City Project, tourist hotels, promise a large high-end and growing market.
Abundant sunlight, water and land are resources, seldom found together: in this sense this offers a huge potential.
Cage fisheries, mangroves and marine culture
Hundreds of kilometers of concrete-lined distribution channels lie within the Mahaweli Development areas. These constitute a vast potential for “cage fisheries”. These simply, are water-resistant meshes, fixed to a frame of width slightly more than that of the channel. The mesh is of a dimension to confine the introduced fingerlings in a system of constant water flow.
Feeding the fish would be supplemented with kitchen and other digestible domestic waste. Harvesting the fish is by simply lifting up the cage. Fast- growing fish like carp and tilapia should be ideal for such production. An added advantage is that the closest settler population, who directly need an assured source of animal protein, are thus served.
Much of a rich mangrove vegetation that has been degraded, is being helped to restore itself by large-scale planting up with nursery-produced indigenous species. This is presently managed by the Ministries of Environment, Fisheries and the Navy, assisted by volunteers from environment-conscious Associations. This is an important innovative project deserving to be supported.
It is designed to restore the vital breeding areas for crabs, lobsters, brackish-water fish and prawns. A complementary activity is to provide for algae and shellfish like oysters and clams. The value of mangroves in coastal protection was graphically evident when the last tsunami hit us.
” Agro-forestry”.
This is a terminology that has appeared relatively recently to describe a long existent system. Significantly, even in the much maligned “chena system” of shifting cultivation, the preparatory activity is described as “eli peheli kireema,” thus implying that the clearing was restricted, to allow sufficient light penetration required by the intended crop. Similarly, the traditional so called “Kandyan forest garden” is a semi-urban agroforest.
“Agro-forestry” implies a realization of the potential for reclaiming forest habitats, that have been degraded by human activity, with tree species of direct utility. Examples (from a virtually limitless number of options), would include jak, breadfruit, cacao, durian, mango, cotton, coffee, cloves, mangosteen, gamboge (goraka), nutmeg and several species of bamboo.
This would be an excellent opportunity to include jak (largest tree fruit up to 55 kilos and trees that can yield about 200 fruits per year).The choice of species, will mainly be dictated by considerations of canopy heights and spread, to accord with prevailing on site circumstances. Jak seeds (generally wasted) can rival chestnuts as a roadside snack. Utilization of “cashew apple” of which thousands of tons are wasted annually, also merits consideration.
Agroforestry is a departure from the earlier concept that forests were a sanctuary for trees, inviolate by human entry. This has been upturned by regarding forests as a “common good” belonging to and protected from, unlawful trespass, enforced by neighborhood beneficiaries.
The relatively recent and internationally recognized “carbon credits” scheme, is intended to encourage expansion of forests to ensure sustainability, and more urgently, as a means of combating “global warming” which is now accepted as a demonstrable threat to all humanity.
Several actions are designed, as in the case of “carbon credits” and conservation, to encourage countries to expand forest cover. (Incidentally, in Bhutan, noted for its exceptional environment, the existing forest cover of about 70% is declared as mandatory in the Constitution: and this is honoured).
Sri Lanka should position itself to draw maximum benefit from these existing global initiatives.
Crops of doubtful economic value
Red lentil or “Massoor dhal” (Lens esculenta) of which a considerable quantity is imported, will not perform here – simply because of our latitude, (closeness to the Equator). Curiously, some species of lentils require short days, while others need long days: we offer neither. Hence, lentils thrive even in the driest areas of Syria, Iran and Northern Pakistan, as a relatively poorly cared for crop.
Potato too performs poorly at our latitude. In comparison for instance with Bangladesh, notwithstanding climatic problems which abound, farmers are still able to sell their crop for a few cents per kilogram at harvest time. In Temperate countries, yields are about 20 to 30-fold. In Sri Lanka, it is barely six to 10-fold (at best).
It survives only because consumers are compelled to pay a very high price. In fact, the cost of fertilizer alone (at the rate of nearly a kilogram per meter of planted furrow), could hardly be covered from crop sales. In addition, a ton of sprouted “seed” potato is required per acre. The combined cost of seed and fertilizer is well above the means of farmers.
The key physiological issue here, is that tuber formation requires cool nights. By this token, potato should yield higher in the Jaffna area. Yields would thus be best when tuber formation and filling coincide with the cooler months.
The case of tea is also worrisome, if one takes into account the sunken “capital cost” and the devastating impact on soil fertility, of previously prime land. An unpleasant reality may eventually dawn.As with the case of potato farming, socio-economic considerations, prevail and over-shadow agronomic reality. There is need for dispassionate review. The prognosis is dire and cannot justify continued inaction.
Root crops
One generally associates “dietary carbohydrates” with cereals. However, in several countries the main sources are non-cereal. Cassava and plantain are more common in Africa, while yams (taro and dasheen) are important in South Pacific states. There is enormous untapped potential in root crops for providing dietary carbohydrates. Cassava as a staple and sweet potato (incidentally the second most popular crop in parts of the US), have received some recognition.
Sri Lanka has a great variety of root crops belonging to several genera. Alocasia and Colocasia, (Dasheen/Taro), Diascorea (wel ala) Amorphophallus (kidaran), Croton (innala), Canna (arrowroot) are among the better .known. Ginger and turmeric are the non-food, seasoning and culinary crops of importance.
Spices
The priority need, especially for export, is to maintain quality. In general, Sri Lankan spices are valued for their superior quality. Cinnamon, cardamom, cloves, pepper and nutmeg (mace), are valued in markets abroad. This has to be ensured, and warrants the establishment of a strong monitoring force to retain our leadership position. Cinnamon is perhaps a model success story, where in the face of strong competition from the less expensive “Cassia bark cinnamon,” the authentic form, has still held its own. Incidentally, Sri Lanka at one time had a 100% monopoly of the world market for this spice. Likewise, our pepper outdoes the Indonesian competition, although our position for cloves and cardamom is not quite the best.
Going organic
It is widely known that raising crops organically is preferable to relying on artificial nutrient fertilizers and agrochemicals. The ideal of course is a balance as the best mix.
The tragic misapplication of organic methods of farming especially among our paddy farmers, has driven them to pitiable desperation. This should not have been, and it was unpardonable folly that triumphed. While the hasty, ill-placed amateurism of persons /charlatans was proceeded with, ignoring the cautions of knowledgeable scientists, the proponents of this monstrous folly have conveniently disappeared, unpunished.
How many of these so-called advisors have heard of “biodynamic farming” or the names Rudolf Steiner or Podlinsky – main promoters of perhaps the most radical of organic methodologies. Their concepts, reliant on lunar and planetary positions, tradition, sentiment and mysticism, have drawn much criticism and doubt. The theoretical presumptions and practices are beyond conventional systematic science.
Meanwhile, adherents, farming thousands of hectares, predominantly in Australia, vouch for the success and efficacy of the prescribed methodologies. The claimed economic advantages are unbelievable. Nevertheless, our voluble and enthusiastic promoters, could do no harm by studying the impacts of this seemingly incredible system.
Whatever the impressions are, our previous methods included the conscious adoption of tradition – most importantly, the cultivation of trees for composting. Species like “wild sunflower,” dadap and glyricidia have all but disappeared. If we are serious, these species should be cultivated and not merely gathered. This also applies to claims for biofilm biofertilizer (BFBF), nitrogen fixing legumes, free- living nitrogen fixing bacteria and algae, crop rotations and “Liming”. Maybe the claims for biodynamic farming are unsubstantiated, but this need not deter fair investigation. Financial support for such is compelling.
Agro-exhibitions and Competitions
Such events present a fine opportunity as prompts for use by extension services. Tracking winners for improved methods useful for wider adoption, and no less importantly, sourcing planting materials that can be multiplied rapidly (if necessary by tissue culture) for release. This is most useful for tree fruits, particularly those appropriate for grafting.
The current enthusiasm for home gardening also richly deserves support. Many innovations and potentials ae evident.
The above thoughts are intended as a stimulus to be translated into specific projects that will have significant impacts. If nothing else, it is hoped that at least some may be usefully developed into “bankable” form.
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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