Features
Significance of EU court ruling on banning LTTE
By Neville Ladduwahetty
The European Union’s General Court is reported to have rejected an appeal to lift the ban on the LTTE as an international Terrorist Organization within Europe (Sunday Times, November 28, 2021). Continuing, the report states: “The Court rejected multiple pleas…The argument that the LTTE had transformed into a transnational network composed of various divisions which respects Tamil rights and the peaceful enjoyment of the right of self-determination, was also rejected”. The Court had stated: “In fact, a distinction must be drawn between, on the one hand, the objectives which a people or the inhabitants of a territory seek to attain and, on the other hand, the conduct in which they engage in order to attain them”.
SIGNIFICANT CLAIMS by LTTE
During the course of the Court hearing the LTTE stated the following:
42 “The LTTE submits that Regulation No 2580/2001 is not applicable to situations of armed conflict, since those conflicts — and therefore the acts committed in that context — can, in its opinion, only be governed by international humanitarian law”.
43 “However, the historical facts show that the LTTE was involved in armed conflict against the armed forces of the Government of Sri-Lanka, seeking self-determination for the Tamil people and their ‘liberation from the oppression’ of that government. Given the way in which the LTTE’s armed forces were organised and their manner of conducting operations, the members of those forces meet all the requirements laid down by international law for recognition as ‘combatants’. That status gave them immunity in respect of acts of war that were lawful under the terms of the law on armed conflict and meant that, in the case of unlawful acts, the LTTE would be subject only to that law, and not to any anti-terrorism legislation. Since legitimate acts of war cannot be categorised as unlawful under national law, they fall outside the scope of Common Position 2001/931, which, as provided under Article 1(3) thereof, does not apply to acts which are not offences under national law”.
RESPONSE DURING the COURT PROCEEDINGS
The relevant paragraphs from the Court proceedings are presented below.
49 “The Commission argues that the LTTE is mistaken in asserting an incompatibility between armed conflicts and terrorist acts. There are no principles of immunity for combatants in respect of terrorist acts perpetrated during armed conflict. The LTTE does not substantiate its claim that the acts of which it is accused in the grounds for the contested regulations are lawful acts of war. The LTTE is wrong to claim that terrorist acts committed in the context of an armed conflict are subject only to humanitarian law. The institutions of the European Union enjoy a broad discretion as regards the European Union’s external relations and the factors to be taken into consideration for the purposes of adopting measures to freeze funds. The European Union compiles a list of terrorist organisations in order to deprive them of their sources of income, and it does this whether or not they are participants in an armed conflict. That approach is consistent with the European Union’s view — broadly shared, moreover, by the rest of the world — that all terrorist acts are reprehensible and must be eradicated, whether committed in times of peace or of armed conflict”.
61 “The Geneva Convention of 12 August 1949 relative to the Protection of Civilian Persons in Time of War expressly provides, in Article 33, that all measures of terrorism are prohibited. Similarly, Additional Protocols I and II to the Geneva Conventions of 12 August 1949, and relating to the Protection of Victims of International and Non-International Armed Conflicts, of 8 June 1977, which seek to ensure better protection of those victims, provide that acts of terrorism are prohibited at any time and in any place whatsoever (Article 4(2) of Additional Protocol II) and that acts or threats of violence the primary purpose of which is to spread terror among the civilian population are prohibited (Article 51(2) of Additional Protocol I and Article 13(2) of Additional Protocol II)”.
62 “It follows from the foregoing considerations that the perpetration of terrorist acts by participants in an armed conflict is expressly covered and condemned as such by international humanitarian law”.
115 “In the present case, it should be noted that, although the decisions adopted by the UK authorities (namely the Home Secretary and the UK Treasury) and Indian authorities do not in fact constitute, strictly speaking, decisions for the ‘instigation of investigations or prosecutions for an act of terrorism’ or ‘condemnation for such deeds’, within the strict criminal sense of the term, the fact remains that those decisions lead to the ban on the LTTE in the United Kingdom and the freezing of its funds, and also the proscription of the LTTE in India, and that they therefore clearly form part of national proceedings seeking, primarily, the imposition on the LTTE of measures of a preventive or punitive nature, in connection with the fight against terrorism”.
117 “Therefore, the LTTE is incorrect to claim that the only case of a non-criminal decision accepted as a basis for listing are decisions of the Security Council, as mentioned in Article 1(4) of Common Position 2001/931. The purpose of the last sentence of the first subparagraph of Article 1(4) of that common position is only to afford the Council an additional listing possibility alongside the listings which it can make on the basis of decisions of competent national authorities”.
COMMENT
It is evident from the admissions made by the LTTE that they were engaged in an armed conflict and that their acts should be judged under provisions of International Humanitarian Law. Furthermore, starting with the Geneva Conventions of 1949 that all “measures of terrorism are prohibited” and “relating to the Protection of Victims of International and Non-International Armed Conflicts, of 8 June 1977, which seek to ensure better protection of those victims, provide that acts of terrorism are prohibited at any time and in any place whatsoever (Article 4(2) of Additional Protocol II) and that acts or threats of violence the primary purpose of which is to spread terror among the civilian population are prohibited (Article 51(2) of Additional Protocol I and Article 13(2) of Additional Protocol II)”.
The significance of the EU Court Ruling is the acknowledgement that because Additional Protocol II that is applicable to non-international armed conflict, as it was in Sri Lanka, it should be read along with the Geneva Conventions of 1949 because it offers greater protection for civilians. This means that provisions of Common article 3 of the Geneva Conventions and its expanded provisions in Additional Protocol II of 1977 should be factored in all evaluations when addressing accountability. Furthermore, it means that Article 6 of the Additional Protocol II of 1977 should be followed in the case of “Penal prosecutions”. Since this calls for “anyone charged with an offence shall have the right to be tried in his presence” and on the “basis of individual penal responsibility” (Article 6, (b) and (e), the question of charging anyone associated with the armed conflict presents serious challenges because it rules out command responsibility, and because the inability to locate and identify former combatants becomes a barrier to prosecution.
Therefore, the efforts the UNHRC is currently engaged in to collect evidence to exercise Universal Jurisdiction, becomes a futile exercise.
SECURITY COUNCIL RESOLUTION S/RES/1373 (2001)
The governing reason for the Court to retain the ban on the LTTE was because the LTTE resorted to terrorist acts during the armed conflict. This fact alone warrants the application of Security Council Resolution 1373 in all its dimensions. This is the significance of the ruling by the Court. This means that all States and especially Sri Lanka, are bound to comply by the provisions in Resolution 1373 if global terrorism is to be addressed.
SC Resolution 1373 states as follows:
1. Decides that all States shall:(a) Prevent and suppress the financing of terrorist acts;(b) Criminalize the wilful provision or collection, by any means, directly orindirectly, of funds by their nationals or in their territories with the intention that the funds should be used, or in the knowledge that they are to be used, in order to carry out terrorist acts;(c) Freeze without delay funds and other financial assets or economicresources of persons who commit, or attempt to commit, terrorist acts or participatein or facilitate the commission of terrorist acts; of entities owned or controlleddirectly or indirectly by such persons; and of persons and entities acting on behalfof, or at the direction of such persons and entities, including funds derived orgenerated from property owned or controlled directly or indirectly by such personsand associated persons and entities;
(d) Prohibit their nationals or any persons and entities within their territoriesfrom making any funds, financial assets or economic resources or financial or otherrelated services available, directly or indirectly, for the benefit of persons whocommit or attempt to commit or facilitate or participate in the commission ofterrorist acts, of entities owned or controlled, directly or indirectly, by such personsand of persons and entities acting on behalf of or at the direction of such persons;
2. Decides also that all States shall:(a) Refrain from providing any form of support, active or passive, to entitiesor persons involved in terrorist acts, including by suppressing recruitment ofmembers of terrorist groups and eliminating the supply of weapons to terrorists;(b) Take the necessary steps to prevent the commission of terrorist acts,including by provision of early warning to other States by exchange of information;(c) Deny safe haven to those who finance, plan, support, or commit terroristacts, or provide safe havens;(d) Prevent those who finance, plan, facilitate or commit terrorist acts fromusing their respective territories for those purposes against other States or theircitizens;(e) Ensure that any person who participates in the financing, planning,preparation or perpetration of terrorist acts or in supporting terrorist acts is broughtto justice and ensure that, in addition to any other measures against them, suchterrorist acts are established as serious criminal offences in domestic laws andregulations and that the punishment duly reflects the seriousness of such terroristacts;(f) Afford one another the greatest measure of assistance in connection withcriminal investigations or criminal proceedings relating to the financing or supportof terrorist acts, including assistance in obtaining evidence in their possessionnecessary for the proceedings;(g) Prevent the movement of terrorists or terrorist groups by effective bordercontrols and controls on issuance of identity papers and travel documents, andthrough measures for preventing counterfeiting, forgery or fraudulent use of identity papers and travel documents;
The sentiments and near identical opinions were expressed by the United States Supreme Court in the case of Holder v. Humanitarian Law Project, when the “…court voted 6 to 3 to uphold a federal law banning ‘material support’ to foreign terrorist organizations. The ban holds, the court explained, even when offerings are not money or weapons but things such as ‘expert advice or assistance’ or ‘training’ intended to instruct in international law or appeals to the United Nations” (Washington Post, June 22, 2010). Chief Justice John G. Roberts Jr. in writing the majority opinion said that those challenging the ban “simply disagree with the considered judgment of Congress and the Executive that providing material support to a designated terrorist organization – even seemingly benign support bolsters terrorist activities of the organization… (the law) is on its face, a preventive measure – it criminalizes not terrorist attacks themselves, but aid that makes the attack more likely to occur…” (Ibid).
CONCLUSION
The significance of the European Union’s Court ruling is that the process gave the LTTE the opportunity to state its case which was that the LTTE was engaged in an armed conflict with the Government of Sri Lanka and consequently, their actions should be judged under provisions of International Humanitarian law. This admission is no different to the opinion expressed in 2008 that the conflict in Sri Lanka was an armed conflict and therefore, the applicable law is International Humanitarian Law related to Non-International Armed Conflict. Furthermore, the UN appointed Panel of Experts (Darusman Report), and the Report of the Office of the Human Rights Commission (OISL), also advocated a similar approach to address accountability. Despite all attempts, successive Sri Lankan Governments have failed to adopt this approach and instead, continue to present the conflict as one between the State and a Non-State actor, perhaps influenced by the humanitarian approach adopted by Sri Lanka’s Lessons Learnt and Reconciliation Commission (LLRC).
The significance of the European Union’s Court proceedings was that it gave the Court the opportunity to inform the LTTE that the justification to retain the ban on the LTTE was because the LTTE resorted to acts of terrorism during the armed conflict, based on the Geneva Conventions of 1949 and the Additional Protocols of 1977 that prohibit terrorist acts regardless of the motivations for the armed conflict. Therefore, by implication, as long as the LTTE remains designated a terrorist entity all Member States are required to comply with all the provisions of Security Council Resolution 1373.
This means that Member States need to ensure that provisions are incorporated in domestic law to prevent acts such as financing of terrorists; criminalize collection of funds by their nationals; freeze funds and other assets; prohibiting their nationals from making funds or other resources available to persons who commit or attempt to commit terrorist acts; refrain from providing any support active or passive; deny safe haven; prevent those who plan terrorist acts from using their territories etc. as cited in Resolution 1373.
Since the Prevention of Terrorism (Temporary Provisions) Act (No. 48 of 1979) became law several decades prior to Resolution 1373, it is incumbent on the Sri Lankan Government to upgrade the PTA of 1979, if Sri Lanka is to fulfill its obligations to the UN. Furthermore, the fact that countries such as U.K. and some EU Member States knowingly permit the LTTE to conduct activities that contravene the provisions of Resolution 1373 means they are not only guilty of violating the US Supreme Court’s interpretation of Resolution 1373 cited above, but are also complicit in turning a blind eye to the activities of the LTTE in their respective territories.
A matter of extreme irony is that while the European Parliament’s Resolution on Sri Lanka calls for “the repeal of the PTA (as) a key condition of Sri Lanka’s status as a GSP+ beneficiary country”, it ignores the fact that because the intent of the PTA as well as Resolution 1373 were to prevent terrorist acts, and a significant proportion of the provisions of Resolution 1373 resonate with those in Sri Lanka’s PTA. Therefore, since the EU and Sri Lanka together with the rest of the global community have to fulfill the provisions of Security Council Resolution 1373, it makes no sense to repeal the PTA and comply with Resolution 1373. This anomaly needs to be clarified before rushing to repeal the PTA and implement legislation that embodies provisions of Resolution 1373.
The significance of the ruling by the European Court is that because the LTTE resorted to terrorist acts, it follows that it is in violation of Security Council Resolution 1373. This ruling therefore, gives the Sri Lankan Government the opportunity to set up a special unit within the security establishment that should collaborate with Interpol to implement the full scope of Resolution 1373 if the influence and activities of the Tamil diaspora are to be neutralized.
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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