Features
Sri Lanka and Turkiye: Renewing an old friendship
By Uditha Devapriya
The Sri Lankan government has reportedly tasked the Lakshman Kadirgamar Institute to conduct a review of the country’s foreign relations. While officials have not yet come out with details, the review is set to include a reconsideration of Sri Lanka’s ties with various countries, in light of recent international developments. The Executive Director of the LKI, Dr D. L. Mendis, has emphasised the need for a more robust foreign policy, observing that while “Sri Lanka comes first”, relations with the region, “especially India”, will have to be “a bit better.” In other words, while maintaining the country’s tradition of being a friend to all, it must prioritise its relations with its neighbourhood.
This is timely and important, both for Sri Lanka and its people. For too long, we have, as Dr SinhaRaja Tammita-Delgoda once noted, been made to feel like a junior partner. What the country needs is a foreign policy that is multidirectional: a policy which takes into account the big players as well as the small. Such a policy can be accused of being vague, obscure, and unrealistic. But Sri Lanka’s priority must be to engage with countries with which it has cooperated for so long. Instead of latching ourselves on to one bloc or another, it has to be more concrete, specific, and certainly forward-looking.
When assessing its relations with South Asia and its immediate neighbourhood, the country should thus be as ready to mend broken ties with traditional partners, like Japan, as to seek new friendships or consolidate friendships that have never been allowed to grow. Over the years, numerous delegations have been sent to regions like Central Asia. These have never been followed up. To quote Arshad Cassim, Sri Lanka’s pursuit of new bilateral relations has been “momentary in approach” and “driven by circumstances.” Far from winning friends, this has only served to distance us from them. It is in light of these developments that Sri Lanka needs to expand to other countries. Among them, Türkiye.
Türkiye is a complex country. It is also a growing giant. Though beset by various economic and political tensions, the country is picking up speed: its economy grew up 7.6% in the second quarter this year, driven by an expanding financial sector, strong domestic demand, rising exports, and burgeoning tourism. A year ago, it was assailed by inflation and a steep depreciation of its currency. Today, Goldman Sachs has raised its growth forecast for 2022 from a meagre 3.5% to a respectable 5.5%. This has been buttressed by a strong industrial base: manufacturing accounts for more than 20% of the economy, and its key industries include not just chemicals, but also motor vehicles. The country just unveiled its first electric car, the TOGG, with plans to increase annual production to 175,000 units.
Sri Lanka’s relations with Türkiye go back decades and centuries. Even though Ankara opened an Embassy in Colombo in 2013, formal diplomatic relations were established in as early as 1864. Trade between the two countries remains low if not negligible, running into around USD 150-200 million, but plans are underway to build on them. Tunca Özçuhadar, one-time Ambassador to Colombo and the Director General of Protocol at the Ministry of Foreign Affairs in Ankara, has described Türkiye’s relations with the island as “completely friendly.” Türkiye is one of the few countries with which Sri Lanka has enjoyed warm times throughout. In a number of sectors – not only trade, but also industry, defence, people-to-people, and cultural – there is scope to deepen these common interests.
Türkiye’s shift to Asia, and specifically to South Asia, is one of the more fascinating foreign policy developments of the last 25 years. The country’s economy is growing by leaps and bounds, and it has made this the centrepiece of its foreign policy. According to Temmuz Yigit Bezmez and Selma Bardakci of the Foreign Economic Relations Board of Turkey, its outreach to the Asia-Pacific has become “a crucial part of its foreign policy diversification.” This marks a significant rupture in its external relations since the 20th century. On its founding in 1923, the country initially looked to the West. It sided with the US and Western Europe during the Cold War and joined NATO. These commitments guided its external relations for the next 50 years, gaining a new lease of life after the Cuban Missile Crisis of 1962.
In the 1970s, however, it realised the limits of these engagements and began seeking new alliances and friendships. In 1978 Türkiye signed a “friendship agreement” with the Soviet Union, affirming “principles of good neighbourly and friendly cooperation” while remaining in NATO. Six The dissolution of the Soviet Union in 1991 enabled it to cement relations with Eastern Europe and Central Asia. Snubbed by its European partners and frustrated in its bid to join the European Union, Türkiye looked at other regions. Among these was Asia. By the beginning of the 21st century, the continent’s prospects seemed limited. But by 2003, the year Recep Tayyip Erdogan became Prime Minister, Türkiye had recognised the importance of Asia, especially China, South-East Asia, and South Asia.
The country had reached out to South Asia before. In 1968, Foreign Minister İhsan Sabri Çağlayangil visited India. On his arrival Çağlayangil highlighted both countries’ commitment to democratic values. The joint declaration that led from the delegation highlighted India’s and Türkiye’s desire to form relations with as many countries as possible, “regardless of these countries’ social and political regimes” (Aslan 2022). However, Cold War geopolitics made it difficult for Türkiye to pursue these relations. The 11 September 2001 attacks and the subsequent US invasion of Afghanistan pushed the country to revisit these countries. A series of engagements with India hence followed. It was in this context that Prime Minister Erdogan visited Sri Lanka, two months after the December 2004 tsunami.
Erdogan’s visit was reciprocated by President Mahinda Rajapaksa in 2008. Negotiations to establish formal diplomatic relations immediately ensued. Türkiye had been one of the first countries to recognise Sri Lanka upon its independence in 1948, yet it was only five years after Rajapaksa’s visit to Ankara that Türkiye established an Embassy in Colombo. These developments had a positive impact on bilateral trade: from USD 139 million in 2015, trade volumes between the two countries rose to USD 219 million in 2018. This was a period of expanding ties with South Asia as well: Türkiye reactivated relations with Bangladesh and Pakistan via areas such as defence, industry, and people-to-people ties. While ambitious in scope, these engagements have widened the potential for industrial and infrastructural cooperation: Pakistani Prime Minister Shehbaz Sharif’s recent proposal to include Türkiye in the China Pakistan Economic Corridor (CPEC) is a case in point.
All these were captured in Türkiye’s official announcement of its shift to Asia, the Asia Anew Initiative, in 2019. Coming in seven years after Hillary Clinton’s declaration of the US’s Pivot to Asia and six years after China’s declaration of the One Belt One Road Initiative, the Asia Anew Initiative signals not just Asia’s geostrategic importance for major powers, but also its potential for up-and-coming players like Türkiye.
Sri Lanka is obviously playing a part here. Over the last few years, it has pursued a number of avenues to deepen bilateral relations, including a double taxation avoidance treaty. While these have been justly commended, their limits too have been recognised. Türkiye’s Foreign Minister Mevlüt Çavuşoğlu, for instance, has admitted that while trade between the two countries is low, relations should be bolstered through sectors such as tourism. Sri Lanka’s exports to Türkiye consist predominantly of tea; as former Sri Lankan Foreign Minister G. L. Peiris has acknowledged, if trade is to be meaningful for both sides, Sri Lanka needs to move away from commodity exports. This point has been echoed by his counterpart in Ankara, who has argued that it is pointless to base economic ties on “specialised products.” This calls for cooperation in sectors like agriculture, construction, and pharmaceuticals.
For the last 25 or so years, Sri Lanka has been pushed back by the notion that its relations with the world should be limited to its neighbourhood. Yet a country like Sri Lanka cannot be restricted to this region or that. It must seek new ground and establish new friendships. But to cement ties with the world beyond South Asia, it must employ professionals who can look into other regions and territories. Türkiye has been a reliable ally and a faithful friend. As Türkiye’s Ambassador in Colombo Demet Şekercioğlu recently put it, “Sri Lanka requires her friends more than ever before.” Sri Lanka has for far too long been at the receiving end of major power rivalries. Countries like Türkiye can help us diversify our foreign relations. As the island embarks on an overhaul of its foreign policy, then, it would do well to remember who its friends are, and what it should do to cultivate and keep them.
The writer is an international relations analyst, researcher, and columnist who can be reached at udakdev1@gmail.com
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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