Features
Shared prosperity: A vision for South Asia
The Lakshman Kadirgamar Memorial Lecture 2023, delivered by Dr. A.K. Abdul Momen, MP
Hon’ble Foreign Minister of Bangladesh
on 03 Feb., 2023.
The event was hosted by the Lakshman Kdirgamar Institute
Of International Relations and Strategic StudiesColombo, Sri Lanka
I am profoundly honoured to have the opportunity to deliver this prestigious Lakshman Kadirgamar Memorial Lecture 2023. I thank the Foreign Minister of Sri Lanka, Mr. Ali Sabry, for this honour.
As an academician, it is my immense pleasure to share my thoughts with the esteemed audience of our close neighbour, Sri Lanka. I am also happy to return to this beautiful island, in less than a year, after the BIMSTEC Summit, held in Colombo.
At the outset, let me pay my homage to late Mr Lakshman Kadirgamar, one of Sri Lanka’s finest sons. He was Foreign Minister during some of the most challenging times in your recent history. Still, he steadily moved towards achieving his dream to build a multi-religious and multi-ethnic united Sri Lanka where all communities could live in harmony. He was a legal scholar and a leader, par excellence. He served to raise the level of the political discourse of Sri Lanka, both at home and abroad. His assassination was one of the most tragic losses for the country. However, we are confident that Lakshman Kadirgamar will be remembered by future generations of Sri Lankans for the values and principles he lived and died for which are even more relevant in present-day Sri Lanka.
I am aware of the regard the late Lakshman Kadirgamar held for Bangladesh. I am also aware that my Prime Minister Sheikh Hasina knew him well. Let me share an anecdote. During one of his visits to Bangladesh, after meeting my Prime Minister, on the way out, she impromptu took him to the stage of her political, public meeting and introduced him to the audience. He even spoke there for a few minutes. Mrs. Kadirgamar who is present here today, was a witness to that episode. That was an indication of how highly the late Kadirgamar was regarded by my Prime Minister. Perhaps all these prompted Mrs Suganthie Kadirgamar to think of hearing from Bangladesh at this year’s Memorial Lecture. I am deeply touched by this gesture. Thank you, Madam.
We see this as an extension of collaboration between LKI and our think tank BIISS.
Today I would like to share my thoughts on the theme “Shared Prosperity: A Vision for South Asia” which we hold very dearly to our heart.
It cannot begin without recalling our Father of the Nation Bangabandhu Sheikh Mujibur Rahman who provided our foreign policy dictum “Friendship to all, Malice to None” which he later focused more on promoting relations with neighbours first. His able daughter, Hon’ble Prime Minister Sheikh Hasina, aptly picked up the philosophy and extended it and went for its implementation.
Before I delve into the theme, it would be pertinent to put Bangladesh-Sri Lanka bilateral relations in perspective. The relationship is based on multitude of commonalities and close people-to-people contacts. Last year, we celebrated the 50th anniversary of the establishment of our diplomatic ties. We regularly exchange high level visits, are engaged in bilateral discussions on sectoral cooperation, including shipping, trade and commerce, education, agriculture, youth development, connectivity and so on. Our relationship is all about friendship, goodwill and good neighbourliness. Therefore, it is comfortable for me to speak before you in a broader perspective involving the entire region’s development aspect.
Now, why do we think of a holistic approach to prosperity? It is firstly due to the compulsion of the contemporary evolution of global order. We are now going through one of the most significant phases of human history, having already experienced an unprecedented Covid-19 pandemic. Just as we showed our capacity to tame the pandemic, another challenge came in our way – armed conflict in Europe. This has not only slowed down our recovery from the havoc done by the pandemic but also caused a global economic recession due to increase in energy and food prices and, more importantly, disruption of supply chain and financial transaction mechanism, owing to sanctions. Besides, we are also victims of rivalry between big and emerging economies and their strategic power play. All these necessitate the developing countries to get together.
The vision of shared prosperity becomes more relevant when we compare the development trajectory of South Asian countries. Indeed, we have made substantial progress. Some South Asian countries have already graduated to middle income status while others are making their way. Yet, poverty is still high in the region.
One predominant characteristic is that our economies display greater interest in integrating with the global economy than with each other. Regional cooperation, within the existing frameworks, has made only limited progress, being hostage to political and security considerations. The problems have their roots in the historical baggage, as well as the existing disparity in the regional structure. In addition, there are a number of outstanding issues and bilateral discords.
All these realities have left us a message that for survival, we need closer collaboration among neighbours, setting aside our differences; we must have concerted efforts through sharing of experiences and learning from each other.
In this backdrop, Bangladesh has been following a policy of shared prosperity, as a vision for the friendly neighbours of South Asia. Guided by Prime Minister Sheikh Hasina, we are advocating for inclusive development in the region. Our development trajectory and ideological stance dovetail our vision of shared prosperity for South Asia. Let me tell how we are doing it.
In Bangladesh, human development is the pillar of sustainable development. Our Father of the Nation, Bangabandhu Sheikh Mujibur Rahman, in his maiden speech, at the UNGA, in 1974, said, and I quote, “there is an international responsibility … to ensuring everyone the right to a standard living adequate for the health and the well-being of himself and his family”. Unquote.
This vision remains relevant even today. In that spirit, we are pursuing inclusive and people-centric development in association with regional and global efforts.
In the last decade, we have achieved rapid economic growth, ensuring social justice for all. Today, Bangladesh is acknowledged as one of the fastest growing economies in the world. We have reduced poverty from 41.5% to 20% in the last 14 years. Our per capita income has tripled in just a decade. Bangladesh has fulfilled all criterions for graduating from LDC to a developing country. Bangladesh is ranked as world’s 5th best COVID resilient country, and South Asia’s best performer.
Last year, we inaugurated the self-funded ‘Padma Multi-purpose Bridge”. A few days ago, we started the first ever Metro Rail service in our capital. Soon, we shall complete the 3.2 kilometer Bangabandhu Sheikh Mujibur Rahman Tunnel under the river Karnaphuli in Chattogram, the first in South Asia. Several other mega-projects are in the pipeline which will bring about significant economic upliftment.
Our aspiration is to transform Bangladesh into a knowledge-based ‘Smart Bangladesh” by 2041 and a prosperous and climate-resilient delta by 2100. We hope to attain these goals by way of ensuring women empowerment, sustainable economic growth and creating opportunities for all.
The priorities of Sheikh Hasina Government are the following:
First, provide food, Second, provide cloths, Third, shelter and accommodation to all and no one should be left behind, Fourth, Education, and Fifth, Healthcare to all. To achieve these goals, she promoted vehicles like Digital Bangladesh, innovation, foreign entrepreneurs and private initiatives in an atmosphere of regional peace, stability and security, and through connectivity. Bangladesh has become a hub of connectivity and looking forward to become a ‘Smart Bangladesh’.
When it comes to foreign policy, we have been pursuing neighbourhood diplomacy for amiable political relations with the South Asian neighbours alongside conducting a balancing act on strategic issues based on the philosophy of “shared prosperity”. I can name a few initiatives which speak of our commitment to the fulfilment of the philosophy.
Bangladesh, within its limited resources, is always ready to stand by her neighbours in times of emergency – be it natural calamity, or pandemic or economic crisis. We despatched essential medicines, medical equipment and technical assistance to the Maldives, Nepal, Bhutan and India during the peak period of the Covid-19 pandemic.
We had readily extended humanitarian assistance to Nepal when they faced the deadly earthquake, back in 2015. Last year, we helped the earthquake victims of Afghanistan. Prior to that, we contributed to the fund raised by the United Nations for the people of Afghanistan.
Further, our assistance for the people of Sri Lanka, with emergency medicines, during the moment of crisis, last year, or the currency SWAP arrangement, is the reflection of our commitment to our philosophy. These symbolic gestures were not about our capacity, pride or mere demonstration, rather it was purely about our sense of obligation to our neighbours. We strongly believe that shared prosperity comes with shared responsibility and development in a single country of a particular region may not sustain if others are not taken along.
In addition, we have resolved most of our critical issues with our neighbours, peacefully, through dialogue and discussion. For example, we have resolved our border demarcation problem with India, our maritime boundary with India and Myanmar, and also our water sharing with India, peacefully, through dialogue and discussion.
For an emerging region, like South Asia, we need to devise certain policies and implement those in a sustainable manner. I would like to share some of my thoughts which could be explored in quest for our shared prosperity and inclusive development:
First of all
, without regional peace and stability we would not be able to grow as aspired for. To that effect, our leaders in the region have to work closely on priority basis. We may have issues between neighbours but we have to transcend that to leave a legacy of harmony for our future generation so that a culture of peace and stability prevails in the region. We can vouch for it from our own experience. In Bangladesh, we are sheltering 1.1 million forcibly displaced Myanmar nationals. If remains unresolved, it has the potential to jeopardise the entire security architecture of South Asia. So, here the neighbourhood should support us for their own interests.
Second
, we need to revitalize our regional platforms and properly implement our initiatives taken under BIMSTEC and IORA. We are happy that BIMSTEC is progressing better, but we should endeavour to make it move always like a rolling machine.
Third
, we need to focus on regional trade and investment. Countries in South Asia had implemented trade liberalization within the framework of SAFTA but in a limited scale. Bangladesh is in the process of concluding Preferential Trade Agreement/Free Trade Agreement with several of its South Asian peers. We have already concluded PTA with Bhutan; are at an advanced stage of negotiations for PTA with Sri Lanka and discussions for PTA with Nepal are on. In the same spirit, Bangladesh is about to start negotiations on Comprehensive Economic Partnership Agreement (CEPA) with India.
Fourth,
a well-connected region brings immense economic benefits and leads to greater regional integration. To maximize our intra- and extra-regional trade potentials and enhance people-to-people contacts, Bangladesh is committed to regional and sub regional connectivity initiatives. Bangladesh’s geostrategic location is a big leverage which was rightly picked up by our Hon’ble Prime Minister. She benevolently offered connectivity in the form of transit and trans-shipment to our friendly neighbours for sustainable growth and collective prosperity of the region. As for Sri Lanka, if we can establish better shipping connectivity which our two countries are working on, the overall regional connectivity would be more robust.
Fifth
, We live in a globalized world, highly interconnected and interdependent. Our region has gone through similar experience and history. Bangladesh believes and promotes religious harmony. We have been promoting “Culture of Peace” across nations. The basic element of “Culture of Peace” is to inculcate a mindset of tolerance, a mind set of respect towards others, irrespective of religion, ethnicity, colour, background or race. If we can develop such mindset by stopping venom of hatred towards others, we can hope to have sustainable peace and stability across nations, leading to end of violence, wars, and terrorism in nations and regions. There won’t be millions of refugees or persecuted Rohingyas. Bangladesh takes special pride in it as even before Renaissance was started in Europe in the 17th century, even before America was discovered in 1492, in Bengal a campaign was started by Chandi Das as early as 1408 that says “সবার উপরে মানুষ সত্য; তাহার উপরে নাই”- humanity is above all and we still try to promote it.
Sixth
, we have to look beyond a traditional approach of development and challenges and revisit the non-traditional global crises of the recent time. We are experiencing food, fuel, fertiliser and energy shortages due to global politics and disruption of supply chain; as littoral and island countries, we face similar challenges of natural disasters; we have vast maritime area which needs effective maritime governance; we need to curb marine pollution and ensure responsible use of marine resources. Our collective, sincere and bold efforts are required to minimize the impacts of climate change as well.
In this context, I would like to share Bangladesh’s understanding and position.
Ocean Governance:
· Blue Economy:
Bangladesh is an avid proponent of Blue Economy and responsible use of marine resources for the benefit of the entire region. We are keen to utilize the full potential of our marine resources and have developed an integrated maritime policy, drawing on the inter-linkages between the different domains and functions of our seas, oceans and coastal areas. Bangladesh also values the importance of sound science, innovative management, effective enforcement, meaningful partnerships, and robust public participation as essential elements of Blue Economy. At this stage, we need support, technical expertise and investment for sustainable exploration and exploitation of marine resources. As the past and present chairs of IORA, Bangladesh and Sri Lanka should find out ways of bilateral collaboration particularly in Blue Economy in the Bay of Bengal.
· Controlling of Illegal, Unregulated and Unreported (IUU) fishing:
IUU fishing in the maritime territory of Bangladesh needs to be monitored and controlled. Our present capability of marine law enforcement in this regard is limited. Here regional collaboration would be very useful.
· Marine Pollution: Marine pollution is a major concern for all littoral countries. Micro-plastic contamination poses serious threat to marine eco system. Responsible tourism and appropriate legal framework, underpinned by regional collaboration, would greatly help.
Climate Change and Climate Security in the Bay of Bengal:
We have taken a whole-of-government and whole-of-society approach to make the country climate-resilient. Our Climate Change Strategy and Action Plan was formulated in 2009. Bangladesh has pioneered in establishing a climate fund, entirely from our own resources, in 2009. Nearly $443 million has been allocated to this fund since then.
Moreover, we are going to implement the ‘Mujib Climate Prosperity Plan’ to achieve low carbon economic growth for optimised prosperity and partnership. Green growth, resilient infrastructure and renewable energy are key pillars of this prosperity plan. This is a paradigm shift from vulnerability to resilience and now from resilience to prosperity.
As the immediate past Chair of the Climate Vulnerable Forum, we had promoted the interests of the climate vulnerable countries, including Sri Lanka, in the international platforms. Bangladesh is globally acclaimed for its remarkable success in climate adaptation, in particular in locally-led adaptation efforts. The Global Centre on Adaptation (GCA) South Asia regional office in Dhaka is disseminating local based innovative adaptation strategies to other climate vulnerable countries.
To rehabilitate the climate displaced people, we have undertaken one of the world’s largest housing projects which can shelter 4,500 climate displaced families. Under the “Ashrayan” project, a landmark initiative for the landless and homeless people, 450,000 families have been provided with houses. Keeping disaster resilience in mind, the project focuses on mitigation through afforestation, rainwater harvesting, solar home systems and improved cook stoves. In addition, the government has implemented river-bank protection, river excavation and dredging, building of embankment, excavation of irrigation canals and drainage canals in last 10 years at a massive scale. We feel, our national efforts need to be complemented by regional assistance.
As the chair of CVF and as a climate vulnerable country, our priority is to save this planet earth for our future generations. In order to save it, we need all countries, specially those that are major polluters, to come up with aggressive NDCs, so that global temperature remains below 1.5 degree Celsius, they should allocate more funds to climate change, they should share the burden of rehabilitation of ‘climate migrants’ that are uprooted from their sweet homes and traditional jobs due to erratic climatic changes, river erosion and additional salinity. We are happy that “loss and damage” has been introduced in COP-27.
Seventh
, South Asia needs a collective voice in the international forum for optimizing their own interests.
Finally,
and most importantly, South Asian leaders need similar political will for a better and prosperous region.
We hope that Bangladesh and its neighbours in South Asia would be able to tap the potentials of each other’s complementarities to further consolidate our relations to rise and shine as a region. May I conclude by reminding ourselves what a Bengali poet has said, and I quote,
Don’t be afraid of the cloud, sunshine is sure to follow.
With this, I conclude. I thank you all for your graceful presence and patience.
Joy Bangla, Joy Bangabandhu!
Features
The heart-friendly health minister
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.
Features
A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY
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.
Features
A fairy tale, success or debacle
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 . )