Features
Sri Lanka — The Status Quo Resumes?
By Charles Seevali Abeysekera
BROMLEY, UK, (IDN) — Fast forward the clock nine months and the country appears to have got through the worst with funds being provided by friendly donor countries and more recently by the IMF. A semblance of normality has returned or so it appears on the surface.
Gone are the demonstrations and barricades at Galle Face Green, gone are the endless queues at fuel stations and gone are the fears of imminent starvation.The foreign exchange reserves, almost zero last July, have risen appreciably, fuel is available, albeit at a very high price and an essential life blood of the country—tourists—are returning.
Therefore, is Mother Lanka slowly but surely on the way to a full recovery and has normal service resumed…. or is it but an illusion? if I am penniless and someone lends me a few shillings to get by, am I to then assume that I am suddenly very solvent?
After a hiatus of many years, I recently visited Sri Lanka, albeit for a short period, and had a few but very interesting conversations with those who I believe provide a barometer into the so-called “pulse of the nation”—those who depend on a daily or monthly wage in order to feed themselves. In other words, the vast majority of the populace.
From a purely aesthetic point of view, Sri Lanka looked exactly as it did when I was last in the country halfway through the last decade—chaotic, disorganized, dusty, manic and poor. I hasten to add that I did not venture into those parts of Colombo which to me are but an artificial edifice to those who seek to glorify delusions of grandeur!
To listen and absorb the voices of the desperate in the form of the bus driver, the baggage attendant, the receptionist, the porter, the waiter and the sales assistant describing just how desperate their lives are, was both very disturbing and sad.
For you know that you are but a passing stranger with whom they are sharing the experience of their day-to-day struggle and the resulting trauma. A stranger who will go away and live a life that they can never dream of, let alone aspire to, in their own country—no matter how hard they try.
The bus driver who finds it hard even to pay for the room he lives in because the spiraling inflation has resulted his earnings being effectively halved because the cost of goods has more than doubled but his wages have either remained static or even reduced.
The porter who laments the absence of tourists because he can no longer depend on tips to supplement his measly wages and thus even offers to carry my lap top case in the hope of getting a tip.
The sales assistant working in a retail spa outlet in a hotel, who laments the fact that only a single customer had walked in that day and wonders how he is going to make ends meet.
These are but three individuals whose economic plight is pathetic to observe and who hope desperately that things will improve. “Hope” being the operative but meaningless key word !
The conversation with the sales assistant at the retail outlet revealed another aspect to Sri Lankan, or Sinhalese culture and society to be more specific, which I had long understood to be the case, but this was the first time it had revealed itself in such a stark manner.
Whilst conversing with him in Sinhalese, he made a statement that I was not from Sri Lanka. I responded by asking him if my Sinhalese was so bad?
No, he replied, “your Sinhalese is very good but you speak in a way that tells me you are not Sri Lankan or at least not living here”.
Having aroused my curiosity, I asked him to clarify what exactly he meant. His explanation was thus:
You have spoken to me in Sinhalese with courtesy and civility but such conversations do not happen, or at least are very rare, with customers who are Sri Lankan. When Sri Lankans (default Sinhalese) speak to us, they speak to us as though we are lesser beings and expect us to be servile. The way you speak tells me that you have not grown up here and thus you speak to me as an equal, and not as though you are a superior.
This simple exchange highlights one of the many reasons why Sri Lanka is where it is. For a society that discriminates against its own on such a diabolical socio-economic hierarchical manner is simply incapable of progressing.
“Sri Lankans are such friendly warm and welcoming people” or so claims the banners and videos that invite the world to come to Sri Lanka. However, what this marketing campaign omits is a simple but stark reality.
Sri Lankans are indeed very friendly and welcoming people if you happen to be light skinned aka white! They are also very friendly and warm if they conclude that you can do something for them or that you are more affluent than they are. They are equally friendly and warm if they treat you on a “machang” level.
However, if they think you are of a lower socio-economic class to them, they will treat you as lesser beings and expect you to be servile. This obscenity works all the way down the socio-economic food chain.
A recent observation I heard from someone who frequents upmarket hotels in Colombo was just how disinterested staff appeared to be, their sullen faces and poor demeanor. I guess if those who are surviving on the breadline observe the financial disparity between themselves and those that have money to throw away like confetti, the above observation does make sense.
Sri Lankan or at least Sinhalese culture does not allow for the dignity of labour because it is a society based on feudal patriarchal values and not on meritocracy. For example, a person who patronizes a hotel can never understand what it is like to be in the shoes of those who work there and whose job is to serve him or her.
For the simple truth is that the person who patronizes the hotel will never ever need to be a server—at least not in Sri Lanka. The irony is that when those very same patrons go overseas, especially for education purposes, they are happy to do any jobs to make ends meet and despite them encountering working conditions opposite to those in Sri Lanka, when they return home, they revert to type—master/mistress—servant.
How does a society that looks down upon its own based on class and wealth, ever aspire to progress? The near bankruptcy of Sri Lankan has also very rightly been attributed to the industrial scale corruption and incompetence of the political class. It is generally claimed that a single family caused the downfall of Sri Lanka.
However, long before this single family allowed their cancer to metastasise, corruption was the standard operating procedure, not just among the political class but also the business class.
To blame the political class for the downfall of Sri Lanka is disingenuous, for the political class has been aided and abetted in the downfall of Sri Lanka by the business class.
It is claimed that of the $54 billion owed by Sri Lanka to creditors, some $34 billion has been moved overseas illegally. Did one single family steal all this and that too in no more than a decade? Of course not!
The truth is that money has been moved overseas illegally since the time that overseas developers were introduced into Sri Lanka in the late 1950’s and that was done by the local business class in cahoots with the political class.
The “commission culture” started a long time ago with the difference between then and now being that back in the days of good old Ceylon , there were only a few chosen elite who knew the system and they operated within the “old boys” network.
A fish rots from the head down. Sri Lankans have been desperately seeking a competent political leader with integrity to lead them into the “promised land”. However, as much as the country needs such a political leader it also needs leaders of commerce who are also competent, are honest, have integrity, pay their taxes and can lead by example. Does the country possess such leaders?
As the country ended up being bankrupt due to both economic and political incompetence, the answer is quite evident. Is it not?
An interesting exercise in understanding where some of the $34 billion has ended up is to observe the property market in overseas cities such as Melbourne.Whilst many who migrated to Australia did so with what little they could take in terms of foreign exchange and then got on the property ladder by way of job security and mortgage, what is equally revealing is just how many have arrived in Australia and managed to buy property for cash.
The obvious question is just how did these recently migrated folks end up being able to pay hundreds of thousands of dollars or even millions to buy property outright?
That answers can be found within the illegal trading currency market and those that leave Sri Lanka with thousands of dollars on their person. Those same people will rinse and repeat the process with each and every trip they make overseas. The fear of getting caught in Colombo is easily offset with an adequate bribe which is the standard operating procedure.
I became aware just how insidious this continues to be when I was recently listening to some very senior executives in some of the largest conglomerates in Sri Lanka talking about leaving Sri Lanka, which according to them had no future, and how they planned to migrate and move their millions overseas through the illegal currency market.
When the leaders of industry, to whom their employees and indeed the wider public look up for guidance, leadership and vision are contemplating migrating and taking vast sums of the nation’s wealth with them illegally, is it any surprise that the country ended up bankrupt?
To blame one corrupt family of destroying the country is utterly disingenuous because the country has been brought to its knees by its own corrupt and false values which by default actively encourages citizens to act illegally.
This corrupt system is aided and abetted by what I refer to as the “machang culture”. A system that is based on who you know and what influence you possess, which by default, actively encourages rule breaking. A system where meritocracy and abiding by rules are alien concepts.
A society can only progress if it is a rules-based society where the majority of the citizenry abides by the law of the land. In such a society, processes, structures and systems will work seamlessly and will be fit for purpose because those who work within and manage them will adhere to the rules because they are expected to and is the culture.
However, in a society where false values and rule-breaking are almost inculcated from the cradle, processes and systems will be abused, manipulated and will not be fit for purpose.
In such a society, which Sri Lanka sadly is, each and every citizen therefore bares a direct or indirect responsibility for the bankruptcy of the nation.To borrow in order to build, grow and become self-funding is simple visionary logic which is applicable to individuals, organizations and countries.
To borrow in order to steal the money borrowed, borrow again and repeat the process and borrow again and repeat the process yet again gives Einstein’s Definition of Insanity a whole new meaning!!
*Charles Seevali Abeysekera, a semi-retired sales and marketing professional, has worked in the UK mailing industry for over 35 years. He also scribes a blog on current affairs as well as reflections and thoughts on his own life journey. [IDN-InDepthNews]
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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