Features
SLFP Mudalalis
by Sarath Amunugama
While his supporters were fitted into convenient positions on State boards, Minister R S Perera was more interested in his own nascent business interests. He set up a factory in Kelaniya to make rubber slippers. Then he set up a factory to manufacture ‘mantles’ for Kitson lamps. Since we got on well he would invite me to his spacious office to observe his experiments in firing up the gauze mantles which gave a blinding light for the Kitson lamp. He confided in me that he himself had to conduct the experiment because if anybody else discovered the formula he would take it to another investor. A sudden visitor to his office would have found the Minister and his Director of Information huddled behind a table trying to ignite a Kitsons lamp – a task which was not included in the gazette notification which detailed our respective responsibilities. Apart from his pseudo cientific experiments RS soon began to leak Cabinet secrets to SLFP Mudalalis. By this time the SLFP, and particularly Mrs. B, had nurtured a group of native entrepreneurs who using state patronage had built up lucrative businesses. They were personally loyal to the Prime Minister and a few of her like minded ministers including Maitripala Senanayake, Illangaratne and Kalugalle. Those ministers were quite willing to instruct the State Banking system and the State Trading bodies to favour these Mudalalis. ‘These lucky businessmen included J P A Piyadasa, Dasa, McCallum, Ratnapura Gem merchants, Douglas Perera and a host of other smaller fry including R S Perera, who were solidly behind the SLFP. They were now alarmed that NM was dead set on dismantling their privileges. They also succeeded in getting the ear of Felix who was willing to ally himself with anyone in order to establish himself as the intellectual leader of the SLFP government. After every Cabinet meeting on Wednesday morning RS would come back to his office and telephone his Mudalali friends about the latest outrage proposed by the Finance Minister Some of them would then come over to personally inspect RS’s copy of the offending Cabinet paper. Then they would lobby their friends to get the proposals rescinded. NM and Bernard made proposals to clean up the Banking system. Any attempt to change the structure of the People’s Bank was strongly opposed by the Mudalalis. It was the People’s Bank under its General Manager Solomons that had provided easy credit to fuel the acquisitions and investments of the Mudalalis. The LSSP had appointed Hector Abeywardene as the Chairman and he was not hobnobbing with the businessmen as his predecessors had done. In fact NM’s tinkering with the Banks based on an outdated philosophy did more harm than good.
The economy was on a downward spiral and following the shibboleths of the Marxists, NM was replacing entrepreneurship with State enterprises with neither the managerial capacity nor the enterprising spirit to be a success. He was dismantling a system which could deliver the goods and replacing it with the dead hand of the state because of an out of date doctrine. No wonder Felix and the modernists of the SUP were aghast at the blundering attitudes of `golden brains’ NM. They called him a ‘Gadol Modaya’ instead. I can recoil one occasion when we were summoned by NM to discuss publicity for his programmes. I suggested that his numerous corporations be asked to publicise their work with newspaper advertisements. NM was horrified at this idea and said that he did not want the Corporations to spend money oil propaganda. Since he was also not willing, to spend money from the Budget for publicity the case for the Government went by default. He had no time for modern publicity and was content to leave that to his party machine which was nearly extinct. This was a silly attitude when the JVP was throwing the book at the leftist leaders and creating a huge wave of hatred towards them. I had a great friend in Sarath Nawana, a dynamic LSSPer who came back from UK with the 1970 victory. He wanted to modernize the propaganda effort of the party. He became the editor of the ‘Janadina’ the LSSP paper and rival to “Aththa” which itself was becoming more critical of the Government. The leftist ministers of the Government were constantly in fear of being pulled up by the PM at Cabinet meetings for the criticisms levelled in their party newspapers. Nawana was continually warned by NAM who however resisted requests from other leaders to fire him. Sira of “Aththa” was also being warned regularly though Pieter and Sarath Muttetuwegama defended him. I had to constantly interact with these two irascible journalists particularly since my Minister RS was their favourite target. By this time RS and his Mudalali friends had become bitter enemies of NM. They were constantly bad mouthing him and complaining to the PM while at the same time Kumar Rupasinghe was poaching leftist cadres.
N M Perera
NM had been my ‘Beau Ideal’ when I was in the University. With a double doctorate in Political theory at the LSE under Harold Laski he was a scholar and writer of the first rank. His analysis of the annual budget was the best reasoned speech in Parliament. After speaking in Parliament he would come to Peradeniya to repeat his analysis and we would listen spellbound by the clarity and originality of his exposition. Whenever NM spoke at Peradeniya the Arts theatre was jam packed with both staff and students hanging on to his every word. NM was always elegantly, though simply, dressed in white trousers and bush shirt with a weatherbeaten watch on his right wrist. I noticed that the dial of the wristwatch was turned s and NM would from time to time dramatically look at the time, perhaps a habit picked up in Parliament where time is rationed. He loved fancy shoes and sandals. Later when I would meet him at Colvin’s house, where he would sit patiently to pick up his colleague for a high class social visit, I noticed his brightly polished shoes which would have been the envy of a ballroom dancer. In fact NM was a great ball room dancer and ladies would compete to take a turn with him. All this was of course hidden from his half starved worker supporters who imagined that their leader was living on ,half rations.
As the Secretary of the University Economics society, which was a LSSP front, I would visit NM in his Borella house to fix dates for his and other party bigwigs visits to the Campus for lectures. His front office was full of books and newspapers which could certainly have done with some dusting. There was a large portrait of Trotsky indifferently hung up. In the middle of the room there was a large table with a mountain of files on either side. He guffawed when I told him about our requirements. ‘You people are with us only till you pass the CCS exam’ he said. ‘Only Batty and Shanmugaraja continued with us’. I assured him that this time it would be different. Little did I know at that time that he was prophetic. Any way he consulted his diary and gave me some was prop he tic. Any way he consulted dates and a couple of dog eared books for me to read. Vivienne Goonewardene came from inside the house and seeing that I was famished after the long train journey from Peradeniya, invited me to have breakfast. NM waded into the stringhoppers and I marvelled at his appetite. He had a broad chest which was barely contained by a sleeveless banian. He wore a checked sarong and had a pair of cheap wooden clogs on his feet. His wooden clogs were the stuff of legend. Apparently after their celebrated jail break on the eve of the Japanese air attack on Colombo during the second world war, NM held up the getaway by going back to his cell to retrieve his cheap wooden clogs much to the fury of Robert Gunawardene who had coordinated the operation ‘Yathura’. Significantly the LSSP selected the key as their party symbol for the election. NM was well known for his frugality and thrift. Sarath Nawana told me how he refused to loosen the purse strings for expenses for his party paper. While having breakfast he cut short our discussion about politics and was planning a Buriyani dinner expedition to a Muslim friend’s house. He asked Vivienne, who by this time was living with him, to ring up Leslie and invite him also for Buriyani. Many years later I had to interact with him almost daily during the JVP insurrection which I will describe later. After he was defeated in 1977, and was out of Parliamentary politics which had been his life’s vocation, I visited him in his Cotta road residence which he occupied after selling his Borella property. There were not many visitors then but his faithful Sena Gunasekera and long standing driver looked after him. I remember NM affectionately talking to his dog which curled under his table and was licking his toes. I was the Secretary to the Media ministry when NM died in hospital. My Minister Ananda Tissa de Alwis and I rushed there and coordinated the final ceremonies with JRJ’s concurrence. Though he was out of Power we ensured that NM got what was in effect a state funeral. have a vivid mememory of his old comrades led by Colvin whoa walked all the way behind the cortege and were sprawled on sports ground totally exhausted and oblivious to the official ceremonies that had begun and were being broadcast island wide.
Liepzig
With the success of the ULF, embassies of the socialist bloc became more active in Colombo. The PM made several highly successful visits to China ina and the USSR. She was so popular as the first woman PM that the Bandaranaike name became synonymous with Sri Lanka in foreign countries. With her trade mark Kandyan saree, flashing smile and inborn courtesy she made a brilliant ambassador for her country and global leaders vied to be photographed with her. In the Information Department we were inundated with requests for interviews which she handled with great aplomb. It was her and the country’s finest hour. Whenever Somasara and I wanted to meet her we would go early in the morning to Temple Trees and she would greet us graciously and quickly decide on the issues on which we needed guidance. Her officials in the Defence ministry – Ratnavale and Ridgeway Tillekeratne – had been my bosses in Ratnapura and were constantly in attendance at Temple Trees and we could all chat with her easily because of the Ratnapura connection.
She followed her husband in only using Temple Trees for official engagements and lived in her own house at Rosmead Place. Her house was well kept but did not have any of the garish furniture that has become so commonplace in politician’s houses today. The telephone was fixed to a bracket on the wall and Mrs. B would take calls in the sitting room for everybody to hear. After her state visits she would be received ceremonially by the cabinet on the airport tarmac. These festivities were orchestrated by T B Illangaratne. I was drafted into this ceremony because I had to bring my younger daughter Varuni and her friend Lekha Ratwatte, daughter of Mackie, to the tarmac to present bouquets of flowers to the returning PM. This was a nerve racing task for me as the two mischievous children would run around and had to be dragged back just in time to greet Mrs. B who unfailingly kissed them after receiving the welcoming flowers.
This is an excerpt from Sarath Amunugama’s three-volume autobiogbraphy, the first of which is now in print.
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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