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Sir. Oliver turns up uninvited at ‘Temple Trees’ cabinet meeting and says “this nonsense must stop”
(Excerpted from Memoirs of a Cabinet Secretary by BP Peiris)
In March 1961, with the Prime Minister again in the United Kingdom and C. P. de Silva in the Chair at Cabinet meetings, satyagraha movement was started in the Northern and Eastern Provinces. This was organized by the Federal Party, and C. P. proposed to make a statement in Parliament. It was unfortunate for C. P. that all these difficult situations arose at times when the had been asked to hold the fort.
The Government was full of anxiety. It was possible that the movement might spread to other parts of the Island. The entrance to the Jaffna Kachcheri was blocked by peaceful squatters outside the entrance who prevented other persons from entering or leaving the premises.
The Government Agent lived in the premises of the Kachcheri building and could not get out. The clerks who lived out could not get in with the result that no work could be transacted at the Kachcheri and the administration was brought to a standstill.
The government felt that it had to show the public that it realized its responsibilities. With the entrances to the Kachcheri blocked, rice rations could not be issued and the Government decided that the issue of rations must be maintained at all costs. As the Food Control Office was situated within the Kachcheri premises, co-operative societies were unable to obtain the necessary documents for the releases to them of rice for distribution to consumers. Special arrangements were therefore made for the purchase of paddy in all the affected areas.
C. P. made the following statement in the House of Representatives:
“The Government has further considered the situation in the country arising from the so-called peaceful satyagraha movement in the Northem and Eastern Provinces as well as the statements made on the floor of the Senate and the House of Representatives and in the Government Parliamentary Group. The Government will ensure that services essential to the life of the community, that is, the payment of charitable allowances, pensions, salaries of Government servants, and more specifically the issue of rice rations are carried out.
The Government will not hesitate if it becomes necessary to utilize all powers at its disposal, including those under Part III of the Public Security Act, in order to remove every obstruction which is likely to prevent the Government from discharging its legitimate functions.”
The powers referred to were to the declaration of a State of Emergency. The Government Agents of Batticaloa and Trincomalee had been successful in distributing rice to the people in sufficient quantities. In Jaffna, however, the Co-operative Wholesale Unions had refused to come to the Kachcheri to take delivery of the rations. In these circumstances, telegrams were sent to all authorized distributors to come and collect the rations. They refused to do so.
The food situation in Jaffna was getting worse. The Food Commissioner was directed, with the assistance of the Marketing Commissioner, to set up an organization for the distribution of rationed foodstuffs to those public servants, including members of their households, of Government departments and Government sponsored institutions which were functioning in the Jaffna District.
The campaign was now in its third week. Large numbers of men and women were picketing the Kachcheri, Education Office, District Agricultural Office, the Excise Warehouse and a few other offices. There were processions and public meetings. One procession was led by school teachers who were Government servants. Children played a prominent part in the campaign.
The uniformed staff of the Postal Department in Jaffna went on strike for a week. There was a one day token strike in the Government Hospital, the Paranthan Chemical Works and the Cement Works at Kankesanthurai.
In the Batticaloa District, large numbers of men, women and children were picketing the Kachcheri, the Excise Warehouse, the Agricultural Office and the Labour Office. In Trincomalee, the Kachcheri was being picketed. At Vavuniya, there were pickets at Government offices.
Public servants were playing a prominent part in the campaigns. Against all the rules, they participated in meetings and processions. Even school children held a meeting on the Jaffna Esplanade. Schoolboys marched through the town abusing the Police and the Army, who were patient. The Jaffna Municipal authorities were supporting the campaign. In short, Government administration had ceased in the Provinces.
It was stated by the Opposition Members in Parliament that, in the handling of the situation, the Government had proceeded from blunder to blunder. The initial mistake had been made with the Language of the Courts Bill. People asked for the use of Tamil in the Northern and Eastern Provinces but, with Sinhala only as the Official Language, the request was not allowed.
There were allegations of Police assaulting the satyagrahis, following which, those outside the Federal Party joined the campaign, and the Government was compelled to send troops to maintain law and order.
Their presence gave unnecessary provocation to the people. Something had to be done quickly, quietly, tactfully and in a statesman-like manner, and that something appeared to be to accept Tamil as a language of a national minority in this country and to guarantee its use for official purposes in the Northern and Eastern Provinces. The Government did nothing. What it did was to declare a State of Emergency throughout the Island from 11. 55 p.m. on April 17, 1961. In addition to the regular forces, the volunteers were called out. Reference to this was in the next Queen’s speech:
“Some of the changes wrought by the laws enacted by that session of Parliament have unfortunately led to controversy and My Government has had to exercise emergency powers under the Public Security Act in the larger interests of maintaining peace and orderly government and to avoid a dislocation of the life of the people generally.”
About this time, just before a night meeting at Temple Trees, with Sirimavo in the Chair, I saw the Governor-General Sir Oliver walking up and down one of the corridors deep in thought. He spoke to no one; and no one knew what his business was at Temple Trees at that time of the night, 9 p.m. There had been summoned, to be in attendance at the meeting, the three Service Chiefs, the Inspector-General of Police and a few senior deputies, all the Government Agents in the Northern and Eastern Provinces, the Food authorities and other officials concerned with the problem in hand.
When the meeting began, the Governor-General walked into the room, drew a chair, and sat down behind the Ministers and the officials present. It is unconstitutional for the Sovereign to attend a Cabinet meeting, and I did not know how to record his presence in the Minutes. After the discussion had gone on among the Ministers for about two hours (11 p.m.) the Governor-General addressed the meeting. I thought he began on the wrong note.
“Madam Prime Minister,” he said, “It is time this nonsense stopped. I have come to exercise my constitutional right to advise and to warn.” He spoke for over one hour and I made copious notes for the purposes of my Minutes. His master-scheme, in short, was, amalgamate the revenue districts of Jaffna and Anuradhapura and make Anuradhapura the capital of the new district, and transfer all pending cases to Anuradhapura; stop the trains somewhere near Vavuniya and move more troops to the north.
He elaborated on this theme and made many more points which I cannot now remember. He then said “I have finished. Please consider my suggestions carefully”, and left the room. I ran after him and asked “Sir, how am I to record your presence at this meeting?” In typical O. E. G. style, he said “Peiris, I saw you making notes while I was speaking.
Cut them all out. I was not present at this meeting.” The Ministers did not accept his advice as they thought the Governor-General was laying a trap for them. Timeo danaos et dona ferentes. Beware the Greeks bearing gifts.
In February 1962, the emergency was still in operation with a censorship of news added and the newspapers had ceased to be newsworthy. The emergency was partially lifted on April 7, 1962, after having been in operation for 252 days. The emergency regulations kept in force applied to the detention of those connected with a suspected coup to overthrow the Government. The censorship of news and the proscription of the Federal Party were lifted and newspapers became readable again.
In 1961-62, the actual budget deficit was expected to be Rs 559 million. For several years previous to 1960, there had been an excess of recurrent expenditure over revenue. Very serious difficulties were foreseen, in these circumstances, in raising loans to finance economic development. The public would not subscribe to the loans if they were to be used to finance unproductive expenditure. Every effort was therefore made to reduce recurrent expenditure and this necessitated further taxation to the limit of Rs 45 million.
The economic development programme was carried out on funds raised by way of loans, but the expenditure had been far in excess of the loans raised. Increase in prices and costs would result in severe consequences. It had also far-reaching social consequences and could bring about a distortion in income distribution of an adverse character. A process of rising prices tends to be cumulative in effect. Rising prices result in pressure for wage increases which, if realised, prove in turn self-defeating by further raising the level or prices and costs.
The cost of living was continuing to rise. As in chemistry, every political action by the Government appeared to have a reaction. There was an accumulation of about three million rupees stock of handloom textiles which the people were not buying because, compared with the foreign articles, the quality was cheap and the price high. People were prepared to pay a little more for the superior and more durable article.
The Government stepped in and brought local textiles under the Industrial Products Regulation Act which compelled an importer of foreign textiles to buy, in relation to the quantity of his imports, a prescribed quota of the local article. The traders retorted by buying the local product as required by law, selling it well below cost, and adding the difference to the cost of the imported article. People still preferred to buy the imported article and did not seem to mind the increase.
Maldive fish and dried fish were being imported by the private sector and reasonable quantities were always available to the public, the importers keeping a reasonable margin of profit for themselves. The Government thought that the trader should not be allowed to make the profit and handed the monopoly of import to the Co-operative Wholesale Establishment. Immediately, the two commodities went underground. They were not available at co-operative societies but were obtainable at neighbouring boutiques at blackmarket prices.
Of several Corporations, only four were showing profits – KKS Cement, Gintota Plywoods, Ceramics and Leather. Corporations are business concerns and should be manned by men of experience in business methods. Instead, they were manned by inexperienced party men who were appointed merely to please the party members. When an experienced man of integrity was appointed, he found it impossible to carry out his duties because of political pressure.
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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