Features
Role of Domestic Aviation in Sri Lankan tourism
report by the Organisation of Professional Associations. Resource personnel on Panel were Capt. Amal Wahid, General Manager, Air Senok/Senok Aviation (Pvt) Ltd., Capt. Lasantha Dahanayake, Director Flight Operations, Saffron Aviation (Pvt) Ltd, parent company of Cinnamon Air Asitha Ranaweera, Accountable Manager and Deputy Chief Executive FITS (Pvt) Ltd (Friends In The Sky), Kasun Abeynayaka, Senior Lecturer/Assistant Director Industry Engagement, Events, Travel and Tourism, William Angliss Institute@SLIIT. Moderator was Capt. G.A. Fernando, Member, Executive Council of Organisation of Professional Associations (OPA) & Member, Association of Airline Pilots.
Executive Summary
During deliberations it was evident that in the early 1950s when Australian National Airways (ANA) bought into Air Ceylon with the introduction of two Douglas DC-4 aircraft for the latter carrier’s international routes, two de Havilland D. H.89 Dragon Rapide aircraft were separately acquired by the Ceylon Government for domestic flights on secondary routes. This eight-seat, twin engine, single-pilot biplane was operated by the Ceylon Air Academy, a flying school which was involved in training Ceylonese pilots, engineers and others for the nation’s fledgling aviation industry.
The Dragon Rapides provided connectivity to most of the World War 2-vintage airports scattered across the island, in addition to airstrips at Anuradhapura and Ampara (Gal Oya) airports which were built post-war by the Government of Ceylon.
Unfortunately, with the departure of ANA and the advent of KLM-Royal Dutch Airlines to the Air Ceylon partnership, the scheduled domestic aviation plan ended. All the Ceylon Air Academy light aircraft were handed over to Air Ceylon Limited. However, in 1964, during the tenure of Minister E.L.B. Hurulle, the Civil Aviation Department Flying Training School at Ratmalana was inaugurated using the same light aircraft that had been taken over by Air Ceylon.
By then, domestic scheduled flights to most destinations had come to a halt, except for Ratmalana, Kankesanturai (KKS), China Bay (Trincomalee) and Ampara, which were serviced by Air Ceylon’s Douglas DC-3 Dakotas, Hawker Siddeley (Avro) 748, and Nord 262 aircraft. Regional services were also operated to Malé (Maldive Islands) and Trichinopoly (Tiruchirappalli; a.k.a. ‘Trichy’) in South India. Sadly, the domestic flights were earning revenue in rupees but spending in dollars for fuel and maintenance spares. Adding insult to injury, aviation came under the purview of the Ministry of Communications, which enabled government servants to exchange their ‘complimentary’ railway travel warrants for air tickets.
Meanwhile, tourism was not yet recognised as a potentially large source of foreign income. Those were the days of railways and rest houses. Domestic airports were maintained by the Civil Aviation Department at tremendous cost, until the commencement of the civil war in 1983, when they were handed over to the Sri Lanka Air Force (SLAF).
After 1977 civil flying operations were privatised and aerial links with Jaffna maintained by private operators. At one time that was a thriving business. After 2009, domestic aviation gradually became dormant with the availability of better roads and expressways. The number of private helicopter operators reduced from seven to three. The Government expected the SLAF to fill the gap with their fixed- and rotary-wing aircraft, although it is strictly not legal for the military to operate civil passenger services under the Air Force Act. Accordingly, the SLAF accepted bookings on the basis of a ‘letter of indemnity’ signed by individual passengers in lieu of regular insurance.
Then in June 2016, at the behest of the Government, a comprehensive World Bank Study was promulgated. The final report was critical of the SLAF operations. In Page 8 – ES2.1 it said…
“On the supply side a key observation is that the GoSL (Govt of Sri Lanka) subsidises the market through the SLAF’s involvement in the management of domestic airports and in the provision of commercial air services.
“Helitours plays a relevant role in the market as it contributes to serve and to generate demand for air services which might not be available otherwise. It must be noted though that the price distortion created by the subsidised fares makes it harder for private sector operators to enter the market and to compete effectively, and therefore retards the development of the domestic aviation industry.
“In order to prepare the market for a level playing field and more open competition, it is recommended to clarify the role of the SLAF as operator of domestic airports and of air services and to address market distortions created by Helitours’ business model.”
Consequently, in 2017 a Civil Aviation Policy was publicised to facilitate aviation, including aviation-related clubs and aerial adventure sports. Although passed in Parliament, that policy has largely not been implemented. Realising the potential for Sri Lankan domestic aviation in 2018, a company in the USA offered to establish and facilitate automatic weather observation and refuelling facilities. Sadly, they did not even receive an acknowledgement of their proposal from the Sri Lankan authorities.
Recently, when Sri Lanka declared bankruptcy, it was suggested at the National Issues Committee (NIC) of the Organisation of Professional Associations (OPA) that tourism could generate vitally needed US Dollars quickly, as the tourism infrastructure is already in place. The resource personnel at the panel discussion were from the frontline of the struggling domestic aviation industry. They, and others, suggested that domestic aviation could help to promote high end ‘luxury tourists’ who preferred to go from their departure point to their final destination in minimum time. The Minister of Tourism Harin Fernando also went on record saying that it should happen.
The question today is why we cannot ‘jump start’ the domestic aviation industry to capture the high-end tourist market while making intra-island air travel affordable and popular for local passengers too.
During the discussions fingers were pointed at the Regulator, Civil Aviation Authority Sri Lanka (CAASL), Airport and Aviation Sri Lanka (AASL), and the Sri Lanka Air Force (SLAF) for being more obstructive than facilitative as a direct result of their employment of personnel who are unprofessional, inefficient and unqualified. The overarching message was that domestic aviation and the tourism industry do not seem to work together as a team.
Possible Solutions and the way ahead
· Third level domestic airlines could be established to train and develop personnel for the international airlines, regional airlines and domestic aviation industry.
· Air travel facilities available for tourists should be publicised abroad through our embassies/High Commissions.
· Domestic aviation must be subsidised by the government, perhaps using the Tourism Development Fund. This Tourism Development Levy (TDL) should include a component for aviation or domestic aviation strategies, which is a lengthy process which takes time to begin functioning.
· Utilise all 16 domestic airports available in Sri Lanka.
· Domestic scheduled aviation successfully operated out by the Australians (ANA) in Ceylon in early Fifties. (Today only two operators exist.)
· CAASL must liberalise and not use international standards (SARPS’s) rigidly on domestic services (alternative means of compliance could achieve equal or better safety standards).
· The Government must not encourage subsidised airlines to distort the fair prices of domestic air travel. For example, the SLAF-operated Helitours model.
· Encourage private investment.
· Realistic CAASL security oversight (to facilitate and not to obstruct).
· Keep in mind that it is always ‘Safety First.’
· Available national industrial experts to be utilised.
· Healthy competition to be established in a level playing field.
· Domestic air service orientated and fully integrated with road and rail as suggested by the Aviation Policy of 2017.
· Last but not least it was suggested that to move forward, Domestic aviation Industry should work closely with SLAITO (Sri Lanka Association for Inbound Tourist Operators) who has a seat in almost all the Tourist Development Forums.
The ‘National Issues Committee’ (NIC) of the Organisations of Professional Associations (OPA) handing over their report on the ‘Role of Domestic Aviation in SriLankan Tourism’ to the OPA President Attorney at Law Ms Ruchira Gunasekara, to be forwarded to President Ranil Wickremasinghe. From left: Chairman of the NIC Dr Sanath Hettige, NIC Member Capt. Gihan A Fernando, OPA President Attorney at Law Ms Ruchira Gunasekara, OPA President Elect Sarath Gamage and OPA General Secretary Attorney-at-Law Sujeewa Lal Dahanayake at the ceremony at the OPA Professional Centre.
The Present Situation
It was highlighted that after 1990 the industry was thriving. The nation had high hopes after the war. From 2016 to 2017 the market was not saturated; there was plenty of scope for expansion. Everyone wanted a piece of the pie. Until the 2019 Easter Sunday terrorist attacks, closely followed by the COVID-19 pandemic, changed the ‘landscape’. While the tourism industry was eligible for some concessions, they were not extended to the domestic aviation industry. It was then that it was realised that domestic aviation was not even considered under the auspices of tourism, and the Civil Aviation Authority Sri Lanka (CAASL) could not or did not help. Not being considered by the tourism industry as an important stake-holder was most disheartening.
In any aviation operation there must be a balance between safety, security and profitability. CAASL does not facilitate all this but blindly regulates (‘copy and paste’) to international SARP’s, with which domestic operators are expected to comply. It was a case of over-regulation. No opportunity is given to carry out alternative means of compliance which may result in equal or better safety standards. This also applied to Security oversight. Although CAASL should benchmark the requirement for domestic security, most security tasks within the island are still handled by the SLAF outside military airbases, resulting in unrealistic over-regulation.
It is also a well-known fact that insurance companies still do not encourage high-end ‘luxury tourists’ to travel in single-engine fixed- and rotary-wing aircraft. They seem to be frozen in a 1950s time warp, although in reality modern engines are much more reliable and rigorously tested.
Medical facilities available for tourists are also not yet on par with international standards, notably with no medical evacuation facilities available from hotels within Sri Lanka. Ideally there must be helipads at hotels and at regular intervals on expressways, to enable the airlift of accident victims to major hospitals.
There is little or no advertising abroad of domestic aviation facilities available in Sri Lanka for foreign tourists. Here it is believed that the Sri Lankan diplomatic services in other countries should spearhead the advertising campaigns. It was also revealed that in the years 2018 to 2019 Cinnamon Air carried 12,000 passengers annually, of whom 90% were tourists. The World Bank Report projects a passenger growth in 2035 of 30,000 to 37,000 passengers annually. Available seat capacity must grow proportionately. Certainly, according to the World Bank study there is great potential in domestic aviation.
The Civil Aviation Policy based on the World Bank study also acknowledged that fact. Unfortunately, everyone was expecting the operators to deliver singlehandedly. In reality, other stake-holders in tourism and domestic aviation could complement each other in the industry. At present the two components are working independently. An air operator needs about 3 to 4 years to break even.
Today’s pressing need is a platform such as the OPA to appeal to higher authorities. At present, domestic aviation is in tatters, facing huge challenges. One operator declared that it had two aircraft on ground. An aircraft on ground is a loss. Instead of all stake-holders pulling in different directions, everyone must come together and work as a team. The Aircraft Owners’ and Operators’ Association (AOAOA) is attempting to do just that. Next to nuclear energy operations, aviation is the highest regulated industry. It cannot be over-emphasised that sometimes it is over-regulated.
Another important need is a different set of rules for Sri Lankan domestic aviation. Tourist traffic dwindled in the recent past, but fortunately arrivals are now picking up. Heavy investment is needed by operators. There must be a return on the investment for the sake of sustainability.
Tourism is not in the primary stage; it has been in existence for more than 60 years. This is a timeline comparable with Singapore and the Maldives who are, instead, far ahead of Sri Lanka in that respect.
(To be concluded)
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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