Features
Sudden withdrawal of Prohibition of Obscene Publications Bill
MINISTRY of JUSTICE LEGAL REFORMS:
By Kalyananda Tiranagama
(continued from yesterday)
In early 2005, Lawyers for Human Rights and Development (LHRD) made a comprehensive and country-wide study on the spread of obscene publications throughout the country and their pernicious social impact, heavily contributing to the increase of sexual abuse of women and children and disruption of family life; on the weakness and lacunae in the existing laws to deal with the problem; the problems and difficulties faced by the Police in the enforcement of the law; how the existing law can be enforced more effectively till required amendments are made in the law and possible amendments that can and need to be made to strengthen the law to effectively deal with the problem. The Study was published in Sinhala and English in May 2005 and launched at a public seminar held with the participation of high officials from the concerned public institutions, Ministry of Justice, Attorney General’s Department, Ministry of Women’s Affairs, National Child Protection Authority, Women and Children Bureau of the Police and Department of Probation and Child Care.
Following the launch, at the initiative of the Sri Lanka Foundation Institute, a public seminar was conducted for law enforcement officers to explain to them how the existing law can be enforced more effectively to curb the menace of obscene publications. Over 500 law enforcement officers participated in the seminar held in the SLFI Auditorium, chaired by Chandra Fernando, Inspector General of Police.
Limitations in the existing law
In our study we pointed out the following limitations in the existing law:
a. Lack of a clear definition of the term ‘obscene’
retarding Police from taking action against publications that are clearly obscene.
b. Existing penalties,
Rs. 1500 – 2000 fine or/and imprisonment for a term not exceeding six months, are hardly adequate for these offences and they cannot have a deterrent effect.
c. No provision to deal with exposure of children to pornographic material.
The 1995 Penal Code amendment does not cover such offences.
d. No provision for confiscation of equipment used for the production and distribution of pornographic publications.
Without confiscating such equipment, the computers used to make these publications, the printing presses used to print them or the vehicles used for their distribution, this menace can never be arrested.
e. This law was hardly applicable to other media except print media
. At present a greater threat is posed by electronic media, social media.
f. The Police had the discretion to decide under which provision of law an offender is to be charged, the Penal Code or the Obscene Publications Ordinance.
g. Though many of the acts promoted through the stories and material published through various media are crimes punishable under the law, there is no specific provision to punish such incitement or promotion of criminal conduct.
h. More than the persons who sell these publications, it is the persons who print, produce and distribute these publications who are mainly responsible for this menace. Law needs to be further strengthened to enable the Police to arrest and prosecute persons who print, produce and distribute them rather than the sellers of obscene materials.
i. Producing and distribution of pornography is a big business with high profits, in which many people are involved. Existing law cannot deal with the partners in this business or the huge profits they make at a heavy social cost.
j. Though equally or more harmful material are shown by various T.V. Channels during peak hours when children are watching them, there are no provisions to prevent that or deal with the persons who are responsible for these shows either in the Public Performances Ordinance or in any other law.
Steps taken by the Government to Amend the Law in 2007
Following the launch of the Study in May 2005, in August 2005 the Ministry of Cultural Affairs and National Heritage obtained 100 copies of the Study for distribution among the members of the Cabinet of Ministers.
As shown by a letter of the Secretary to the Ministry of Cultural Affairs and National Heritage, the Cabinet of Ministers has approved a Cabinet Memorandum presented by the Minister of Cultural Affairs and National Heritage for the Amendment of the Obscene Publications Ordinance and it has been sent to the Legal Draftsman for drafting the Bill.
The Draft Bill prepared by the Legal Draftsman has been presented to the Cabinet of Ministers by the Minister of Cultural Affairs and National Heritage, Mahinda Yapa Abeywardhana (now the Speaker of Parliament) and the Minister of Justice and Legal Reforms, Amarasiri Dodangoda with a Cabinet Memorandum dated 28 March, 2008.
LHRD received a copy of the Draft Bill from the Secretary to the Ministry of Cultural Affairs with his letter dated 31 October, 2007 and LHRD sent its observations to the Secretary.
Provisions in the 2007 Draft Bill
This Obscene Publications Amendment Draft Bill has taken steps to rectify several weaknesses in the existing law:
a. Lack of a clear definition of the term ‘obscene’ –
S. 12 of the Bill defines the term ‘obscene’: Any matter, object or thing is obscene if such matter, object or thing tends to deprave and corrupt persons who are likely, having regard to all relevant circumstances, to read, see or hear such matter, object or thing.
b. Existing penalties – Rs. 1500 – 2000 fine or/and imprisonment for a term not exceeding six months – are hardly adequate for these offences and they cannot have a deterrent effect.
Draft Bill has proposed to impose heavy penalties which will have a deterrent effect:
– S. 3 of the Bill: For publishing obscene material – imprisonment up to 10 years or a fine not less than 25,000 rupees or both; second or subsequent conviction – imprisonment for a term which may extend up to twenty years or a fine not less than 100,000 rupees or both.
LHRD made the following observation on the penalties proposed in the Draft Bill
*** The Jurisdiction to try these offences has been given to the High Court. For practical reasons it is better to leave this jurisdiction with the Magistrate’s Court. Otherwise, these cases will pile up in the High Courts for decades.
*** These proposed sentences also appear too excessive. Mandatory jail sentence of two years coupled with a fine of Rs. 100,000 and confiscation of equipment will be more than enough to have a deterrent effect.
c. No provision to deal with exposure of children to pornographic material. The 1995 Penal Code amendment does not cover such offences.
–
S. 4 of the Bill: Exposure of children to obscene material: imprisonment for a term not less than two years and not exceeding ten years or a fine not less than 200,000 rupees or both; second or subsequent conviction – imprisonment for a term not less than two years and not exceeding twenty years and a fine not less than 500,000 rupees;
d. No provision for confiscation of equipment used for the production and distribution of pornographic publications. Without confiscating such equipment, the computers used to make these publications, the printing presses used to print them or the vehicles used for their distribution, this menace can never be arrested.
–
S. 16 (2) of the Bill makes provision for the confiscation of any movable property used in the commission of the offence.
e. This law was hardly applicable to other media except print media. At present a greater threat is posed by electronic media, social media.
– S. 3 (a) of the Bill makes it applicable to all media: Any person who (a) publishes, publicly exhibits or lets on hire or knowingly sells or distributes or in any manner introduces into circulation through any medium of communication, any matter, object or thing which is obscene – commits the offence.
f. The Police had the discretion to decide under which provision of law an offender is to be charged, the Penal Code or the Obscene Publications Ordinance.
– S. 4 of the Obscene Publications Ordinance is not in the Bill and they have to ignore Penal Code provisions and act under the new law.
Though this Bill was drafted by the Legal Draftsman to give effect to a Cabinet approved Memorandum, though the Draft Bill was presented to the Cabinet by two Ministers, the Minister of Cultural Affairs and National Heritage and the Minister of Justice and Legal Reforms as early as March 2008, for some unknown and undisclosed reason the Bill was never presented to Parliament.
In the study conducted in 2004 – 2005, LHRD had come across 29 different obscene publications published and distributed throughout the country by different publishers. Most of them were weekly or fortnightly publications with multi-colour photographs. Publishing of obscene material is a lucrative business. There can be no doubt that during election times many of our politicians and political parties get the support of these press owners to have their posters and other propaganda material printed. Otherwise, there is no valid reason for this important Bill not to be presented to Parliament even 12 years after the Bill was presented for Cabinet approval. That was the response we got from the Police as well when we questioned them as to why they raided only the paper stalls where these publications were available for sale and why they did not raid the printing presses where these publications were printed.
The ‘Prohibition of Obscene Publications Bill’ brought by the Ministry of Justice under its Legal Reforms Project was published in the Gazette on Friday, December 24, 2021. The weekend being Christmas Holidays, the public had hardly any time to go through the Gazette and see what it is. However, within two days of its publication the Bill was withdrawn by the Minister of Justice. A statement issued by the Secretary to the Ministry of Justice M.M.P.K. Mayadunne on December 29, has stated that the decision to withdraw the Bill was taken due to concerns raised by civil society activists and other stakeholders, objecting to the bill on several grounds, including copyrights.
Several questions arise from the statement of the Ministry Secretary. Other than the definition of the term ‘obscene’ in the Bill, the contents of the Bill were not published in any print media. What are the provisions in the Bill that led to objections that aroused concerns of the civil society activists? When and how did they raise these concerns? Print or electronic media did not publish any news about the concerns of civil society activists.
Usually when people have objections to or concerns about any matter, they issue a statement or conduct a press conference expressing their views. But nothing of that sort has happened in this instance. Moreover, there was hardly any time for anybody to raise their concerns. If there was anything contrary to fundamental rights or inconsistent with the Constitution in the Bill they can go to the Supreme Court and challenge it.
Who are these civil society activists and other stakeholders who are so powerful as to compel a powerful Cabinet Minister as the Minister of Justice to withdraw a Bill published in the Gazette within 48 hours of its publication? Who are these stakeholders who may be adversely affected by the prohibition of publication of obscene material? What copyright they can have in the production of indecent and obscene material?
Definition of the word ‘obscene’
The word ‘obscene’ has been defined in the Bill as “any matter, object or thing, which by itself or where it comprises more than one distinct component taken by itself, is sufficient to deprave and corrupt the mind of a reasonable person, but does not include any matter, object or thing containing anything done in the interest of science, literature, art, education or learning.”
If it is this definition of the word ‘obscene’ in the Bill that has led to these concerns of civil society activists and other stakeholders, it must be pointed out that it is a definition found in the law of England and India and upheld by our Supreme Court in a number of cases.
The definition in the 2007 Draft Bill
: “Any matter, object or thing is obscene if such matter, object or thing tends to deprave and corrupt persons who are likely, having regard to all relevant circumstances, to read, see or hear such matter, object or thing.’’
Webster’s New Collegiate Dictionary
definition: disgusting to the senses; repulsive; abhorrent to morality or virtue; designed to incite lust or depravity.
Oxford Dictionary
definition: “Offensive to modesty; expressing or suggesting unchaste or lustful ideas; impure, indecent, lewd.”
The definition
given in the English Case of Regina vs. Hicklin: “I think the test of obscenity is this, whether the tendency of the matter charged as obscenity is to deprave and corrupt those whose minds are open to such immoral influences, and into whose hands a publication of this sort may fall.”- Cockburn C. J., Regina v. Hicklin, 1L. R. 3 Q. B. 360, Quoted in Archibold, 27th ed., 1321
In the case of Sub-Inspector of Police, Tangalle v. Dharmabandu, 33 NLR 14, our Supreme Court adopted the definition of ‘obscenity’ given in the English Case of Regina vs. Hicklin. The Court held: “An Article is obscene where the tendency of its contents would be to deprave and corrupt the minds of those into whose hands it may fall.”
In two other cases – De Bruin v. Dharmabandu, 32 NLR 88; and Perera v. Agalawatte, 39 NLR 22, the Supreme Court adopted the definition given above. In these cases, the Supreme Court has clearly laid down certain criteria for deciding whether a publication is obscene or not. These criteria can be enumerated as follows:
a. Are there persons whose minds are open to immoral influences of (obscene) publications?
b. Is the publication likely to fall into the hands of those persons?
c. Do the photographs, pictures, stories and articles contained in a publication have a tendency to deprave and corrupt the minds of those into whose hands it may fall?
In respect of any publication, if the answers to these three questions are yes, then it is an obscene publication. In determining whether a publication could have had a harmful effect, the overall impact of the publication is taken into account. The intention of the editor/publisher/printer is irrelevant.
S. 292 and S. 293 of the Indian Penal Code dealing with obscene publications, enacted in 1969, has adopted the definition of obscenity given in Regina vs. Hicklin Case.
S. 292(1)
A book, pamphlet, paper, writing, drawing, painting, representation, figure or any other object, shall be deemed to be obscene if it is lascivious or appeals to the prurient interest or if its effect, or (where it comprises two or more distinct items) the effect of any one of its items, is if taken as a whole, such as to tend to deprave and corrupt persons who are likely, having regard to all relevant circumstance, to read, see or hear the matter contained or embodied in it;
Certain things or items are clearly exempted from the application of this provision:
Exception – this section does not extend to –
(a) any book, pamphlet, paper, writing, drawing, painting, representation, or figure-
(i) the publication of which is proved to be justified as being for the public good on the ground that such book, pamphlet, paper, writing, drawing, painting, representation, or figure is in the interest of science, literature, art or learning or other objects of general concern, or
(ii) which is kept or used bona fide for religious purposes;
(b) any representation sculptured, engraved, painted or otherwise represented on or in –
(i) any ancient monument within the meaning of the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958), or
(ii) any temple or on any car used for the conveyance of idols, or kept or used for any religious purpose.
The definition of the word ‘obscene’ given in the withdrawn Bill is more or less the same as the above mentioned definitions found in the English Law, Indian Penal Code and the definitions adopted by our Supreme Court. There is nothing objectionable or inconsistent with freedom of expression in it. There is no apparent valid reason or justification for the Ministry to withdraw this Bill immediately after its publication in the Gazette.
The Ministry Statement has stated that an amended Bill would be presented to the Cabinet for approval, once discussions are held with interested parties, including the BASL.
Who are these interested parties who are so powerful as to compel the Minister to immediately withdraw a Bill that was published in the Gazette?
Are they the same parties that prevented, all this time since 2008, the Cabinet approved Obscene Publications Amendment Bill, drafted by the Legal Draftsman in 2007, from being enacted?
Certainly, it cannot be the BASL.
(The writer is the Executive Director of Lawyers for Human Rights and Development)
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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