Features
Sri Lanka’s external relations amidst power rivalries
By Neville Ladduwahetty
“Relationship Not Normal, Can’t Be…”: S Jaishankar On India-China Ties
As reported by a NDTV Staff Writer (13 Aug, 2022}, “External Affairs Minister S Jaishankar on Friday said that India-China relations cannot be normal unless border situation is and added that if China disturbs the peace and tranquility in border areas, it will impact the relations further”. In view of the fact that the relations between India and China are dependent on the “peace and tranquility” in the border areas means that Sri Lanka’s relations with either at any time has to be complex; a fact that is bound to affect the pursuit of Sri Lanka’s own self-interests.
The latest manifestation of this rivalry relates to the convolutions undergone by Sri Lanka with regard to China’s Yuan Wang 5 (YW5), described by some as a tracking vessel and by others as a research and survey vessel, docking at the Hambantota Port. Sri Lanka under the former Presidency gave permission for the YW5 to dock at Hambantota. Under the present Presidency Sri Lanka wanted the arrival to be deferred following concerns expressed by India relating to their security. The latest report is that Sri Lanka has granted permission for entry based on a brief by the Sri Lankan Embassy in China that “the country will face dire economic consequences if the ship’s visit is not allowed” (Daily Mirror, August 13, 2022). The report adds that the decision was also based on the fact that India and the US “failed to give ‘concrete reasons’ for why they opposed its arrival”.
An earlier manifestation of this rivalry was in connection with an Asian Development Bank- funded solar power project in the Island of Delft. International Tenders were called by the ADB and the contract was awarded to a Chinese Company because their bid was the lowest. India objected to the project on grounds of security and the project was abandoned with Sri Lanka continuing to deliver diesel to operate the generators and provide power to the people of Delft. In this instance, Sri Lanka failed to ask India to provide “concrete reasons” for their security concerns. Instead, Sri Lanka caved in and abandoned the project at a cost to Sri Lanka’s own self-interest.
The reason for doing so was offered by a former Mandarin of the Foreign Ministry who stated that during construction China could plant devices that would impact on the security of India. The fact that Chinese contractors are engaged in various parts of Sri Lanka thus giving them ample opportunities to plant devices anywhere seems to have escaped his wisdom. Furthermore, the fact that YW5 with its reported capabilities could carry out whatever tracking it wanted without any formal permission from outside Sri Lanka’s territorial waters should have been sufficient grounds to inform India that its concerns do not have a “concrete” basis from the outset. Why Sri Lanka did not challenge India’s concerns in the case of the solar project reflects a onetime policy of “India first” at any cost to Sri Lanka’s own self-interest.
LACK of CONSISTANCY in POLICY
It is crystal clear from the two examples cited above, that there is a lack of consistency in the manner Sri Lanka addresses issues relating to major powers; a fact made more complex in a background of power rivalry. The question is whether lack of consistency is due to lack of a clear policy or a deliberately adopted strategy that is sufficiently fluid to enable whoever is in power to address each issue according to his/her imperatives. The former was the practice adopted in the past. For instance, Sri Lanka’s stated policy when it came to External Relations was Non-Aligned. In fact, Sri Lanka was a key member of the Non-Aligned Movement along with India and other mostly ex-colonial countries.
However, under the former Presidency this long held policy changed because the global context of a bi-polar world had changed, warranting a reevaluation of the Non-Aligned policy. Consequently, the stated policy adopted by him was one of Neutrality which he stated during his acceptance speech delivered in Anuradhapura. This policy was transformed to Neutral and Non-Aligned by the Foreign Ministry and its Secretary went further stating that the policy was “India first”. This lack of consistency is not at all helpful in Sri Lanka’s relations with nations in general, and lacks clarity and when it comes to issues amidst power rivalries.
Such inconsistencies should be avoided at all cost. For instance, if the Ministry has a different perspective on external relations to that of the President, the matter should be discussed by the Cabinet of Ministers and a collective decision taken since the Supreme Court has ruled that: “So long as the President remains the Head of the Executive, the exercise of his powers remain supreme or sovereign in the executive field and others to whom such power is given must derive the authority from the President or exercise Executive power vested in the President as a delegate of the President” (S.D. No. 04/2015). Furthermore, under no circumstances should the Secretary have a different opinion to that of the collective decision taken by the Cabinet.
NEED for CONSISTENCY
Though the Non-Aligned Movement (NAM) still exists, Non-Aligned as a policy has lost its relevance because the context of a bi-polar world order in which Non-Alignment was relevant no longer exists. Instead, the multi-polar world order that exists today has given nation-states the freedom and license to pursue their self-interests. This situation has enabled India to ignore some of the core principles of Non-Alignment despite being one of its founding members. India developed defence related arrangement with Russia even during the glory days of NAM and continues to do so today. India also trained members of the LTTE to destabilise Sri Lanka and thrust devolution down Sri Lanka’s throat, all in the name of its own self-interests Today, India is actively procuring crude oil from Russia despite being an active member of QUAD with US, Japan and Australia. Sri Lanka too violated principles of the NAM when it supported the U.K. in the Falkland war, as an obligation for the outright grant given by U.K. to construct the Victoria Hydro Power Scheme.
What is evident from the conduct of nation-states is that at the end of the day, pure unbridled self-interest overrides commitment to bilateral or multilateral obligations. This then is the only policy that guides States when it comes to relations with other States, and when it comes to relations with rival powers the choices are hard but in the end, it is balancing priorities. Therefore, whether the stated policy is Neutral, Non-Aligned or even a combination of both, what matters are the decisions taken in respect of Sri Lanka’s relations with other States. Therefore, policies relating to External Relations should be a collective decision taken by the Cabinet, since too much is at stake when decisions are taken by others in the current context of power rivalries. However, since a State has to have a policy as to how it relates to other States, Neutrality is the preferred option since a policy of Non-Alignment is inappropriate in a transformed world order that is undergoing constant change because of rising aspirations of major powers.
CONCLUSION
Sri Lanka’s lack of consistency in respect of first granting permission for YW 5 to enter the Hambantota Port and later calling for its arrival to be deferred, and finally to reverse back to the original decision should be a lesson to revisit how decisions are taken when it comes to how Sri Lanka handles its external relations with other States regardless of their size and influence, or whether they are States engaged in power rivalry. What this experience has taught is that the decision-making process should be revised. Another lesson to be learnt is to not accept any concerns expressed by States at face value in the process of pursuing Sri Lanka’s self-interests. Instead, to require such States to show cause and “concrete reasons” for their concerns.
In the current context of the world order, the bi-polar world that existed has transformed itself into a multi-polar world, causing the policy of Non-Alignment to lose its relevance even though the Non-Aligned Movement continues to exist. Furthermore, this transformed world order has fostered power rivalries among aspiring States in the process of pursuing their unbridled self-interests; a fact manifested by India’s policy of “strategic autonomy”. How Sri Lanka navigates its own self-interests in such an environment is crucial for its growth and well-being. Therefore, in view of the seriousness of the issues at stake the decision making process when it comes to dealing with States in general and others engaged in power rivalries should be collective decisions by the Cabinet of Ministers backed up by a policy of Neutrality in view of Sri Lanka’s unique strategic location, since it is the only option left standing, because other options such as (1) Non-Alignment with any major centers of power: (2) Alignment with one of the major powers: (3) Bandwagoning: (4) Hedging: (5) Balancing pressures, are all unacceptable.
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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