Features
Sustainable solution to decline in tea production, export revenue and livelihood issues
by Jayampathy Molligoda
Chairman, Sri Lanka Tea Board
(1) Introduction:
The word “sustainability” is often distorted without being used in ecological context to get its proper meaning. In simple terms, we have the responsibility to protect the right of future generations to live in a safe environment. Similarly, Climate change can be understood as a set of alterations in the average weather caused by global warming due to the emission of greenhouse gases. Climate change phenomenon is serious, which is worse than the COVID-19 pandemic. it is the one challenge that potentially has the most severe impacts globally and on Sri Lanka. The very reason for this is that climate change affects virtually every aspect of our ‘every day today’ life, economic, social and environmental. It is a multidimensional challenge, with its impacts ranging from issues like human health, supply of safe water and food, biodiversity, economic development, etc.
(2) Systems view of life:
Modern Science has come to realize that all scientific theories are approximations to the true nature of reality. Science doesn’t have answers to natural phenomena. Mechanistic view looks at a closed view of a specific area which is a tiny part of a large system. They have dominated our culture for the past three hundred years and is now about to change. Before 1500 AD the dominant world view was that people lived in small communities and experienced nature by the interdependence of spiritual and material phenomena.
The Systems view looks at the world in terms of relationships and integration, inter-dependence of all phenomena i.e.: physical, biological, social, and cultural. Instead of concentrating on basic building blocks, the systems approach emphasizes basic principles of organization.
According to Prof. Fritjof Capra, an Austrian-born American physicist, the architect of “systems view of life” to find lasting solutions, there are solutions to the major problems of our time. They require a radical shift in our perceptions, our thinking, and our values. An “Eco system” is a living system of communities of plants and animals, microbes sharing an environment with non- living plants such as air, water, climate, soil. In my view, the above is the best illustration to understand the importance of adhering to the “system view of life” to find lasting solutions. Capra’s view is that our traditional politicians and business leaders have been unable to provide long term solutions to these problems and he welcomed the creation of social movements founded on the premises to change the current traditional sociological paradigm and to build sustainable communities.
From the systemic point of view, the only viable solutions are those that are “sustainable” Therefore, the challenge of our time is to create sustainable communities, that is, social and cultural environments in which we can satisfy our needs and aspirations without diminishing the chances of future generations. The sustainable communities need to be designed in such a way its social structures do not interfere with natures inherent ability to sustain life but support and corporate with natures inherent ability to sustain life.
(3) Structures, Processes and patterns:
The following ten points are useful in order to understand as to how the eco- system works.
1. Eco system is a living system of communities of plants and animals, microbes sharing an environment with non- living plants such as air, water, climate, soil
2. The theory of living system tries to understand this and the ecological literature deals with the basic principles of ecology (and live accordingly)
3. Nature, every organism, plant, micro-organism, cells, tissues all are in a living system.
4. All living systems need energy and food.
5. All living systems produce waste, but there is no net waste
6. Capra expresses the life of any living organism as made up of pattern, process and structure.
7. If we apply these ideas to ourselves or our organizations, we can see that in the patterns we find our identity.
8. In the processes we develop our relationships, our beliefs, our principles and behaviours becoming more conscious.
9. In the structures we become more fluid, more focused on the present moment; we become alive.
10. The building of sustainable communities is deeply connected to our search for a new sociological paradigm.
This gave rise to the concept of Complex Adaptive Systems, as a multidisciplinary concept- are considered complex because they are made-up of diverse elements which are interconnected with each other and are adaptive in that they have the capacity to change and learn from experience.
(4) Decline in tea production, market share, revenue, despite chemical application:
In this connection, we wish to state that Sri Lankan tea production has been drastically declining over a period of time, despite supplying large quantities of imported artificial fertilizer. For an example, in 2010 the total tea production was 330 million kilos, covering 222,000 hectares, wherein some 160, 000 metric tons of fertilizer per year had been used on an average basis up to date on a regular basis, however, we have ended up with only 289 million kilos of tea production in 2020, covering 253,000 hectares. The compound annual average growth rate (CAGR) was negative 1.5% and the Sri Lankan tea industry cannot sustain anymore as both quality, quantity as well as the competitiveness have drastically eroded. As a result, our market share has come down and the foreign exchange revenue which was around US $ 1.6 Billion eight years back has now come down to US $ 1,24 million/year only. As you are aware, during the period 2017 to end 2019, a large number of tea factories had to close down and many smallholders were badly affected and the new/re planting extents were less than 1%, where as it should have been at least @2% of the cultivated extent.
As a result of excessive usage of agro-chemicals, there has been a number of rejections of our Ceylon tea consignments reported from the major important markets such as Japan, EU, UK, Saudi Arabia, Taiwan etc. This situation has arisen due to detection of pesticide residues in the Ceylon Teas exported, which are over and the above the permitted maximum residue levels (MRLs). Tea Exporters Association (TEA) has brought to the notice of SLTB notice on number of occasions the serious non- compliances which includes detection of excessive pesticide and other chemical residues over and above MRLs. In addition, the presence of foreign/extraneous matters and high moisture levels which lead to microbial contamination & fungus formation may end up in development of micro toxin fungus – these will become health hazard.
(5) Tea plantation system as a complex adaptive system:
My own view is that the long- term goal of Sri Lankan tea industry would be to build “sustainable communities” for the tea plantations and, achieving higher foreign exchange earnings from tea exports may be only one of the unit objectives.
A sustainable community is one that is economically, environmentally, and socially healthy and resilient. It meets challenges through integrated solutions rather than through fragmented approaches that meet one of those goals at the expense of the others. And it takes a long-term perspective—one that’s focused on both the present and future.
Scientists began to observe certain properties in biological systems. The adaptation of the individual independent components within the system to the environment was one such property. The experts observed this phenomenon was visible in systems such as eco-systems, global economics systems, and social systems.
(6) Strategies implemented by the new administration:
With the new administration, the government together with the private sector stakeholders have been able to reverse the negative trends experienced previously and the higher fob prices and increased tea auction sale averages are now getting tricked down to growers, thus addressing the livelihood income issues systematically.
The Sri Lanka tea industry witnessed a recovery amidst the COVID pandemic, with a substantial increase in production and the export volume during the first quarter of 2021 compared to the corresponding period as well as the year 2020 compared to 2019.
During the Q 1- January to march ’21, the tea export revenue was Rs. 65 Billion, up by Rs. 16 billion YoY, from Rs 49 Billion during the 1Q, 2020.
Q 1- January to march ’21 cumulative production totaled 74 million kgs, up by 20 Mn. kg.
FOB price was Rs. 939/= per kilo during the Q1, which is an increase of 13%, from Rs. 827/= during the corresponding period 2020.
FOB price in US $ during the Q1 was US$ 4.77 as against US$ 4.47 during Q1 -20.
March fob in US $ was ($ 4.87) the highest ever.
FOB price during the year 2020 was Rs 867/=per kilo, when compared to Rs 823/= per kilo during the year 2019.
Consequent to this cabinet decision under the caption “Towards a green socio-economic pattern with sustainable solutions to climate change” actions have been taken by SLTB to request stakeholders to encourage them to produce, supply and use organic manure to be set up on each agro- climatic region in large quantities. It was suggested in the SLTB circular that immediate action be taken by TRI to formulate and prepare specifications of organic manure applications covering different applications such as Nursery stage, immature, mature VP and Seedling and recommendations for small holdings etc. The development of the organic fertilizer business needs high tech inputs based on R&D, the required raw material availability and market acceptance based on different crops. The regulatory issues that prohibit or delay arranging import of trial quantities of organic materials (without micro- organism) for R&D evaluation need to be addressed. The necessary guidelines from the regulatory authorities should support development of organic fertilizer at large scale.
(7) Implementation of tea industry strategic plan:
As a solution, we have recommended the stakeholders to follow strategies which includes ‘Integrated weed management system’ and migrate in to offering high quality ‘Ceylon Tea’ with near Zero pesticide & other chemicals to the global market in accordance with our ‘Tea industry strategic plan 20-25’ and CTTA tea strategy-road map.
One of the most striking features of the current operations of the stakeholders is the increased awareness and adherence of the social & environmental considerations at estate level. Ceylon tea is at an advantageous position in the global market viz; other competitors for reasons such as “Zero tolerance” policy on child labour, adherence to environmental considerations on a sustainable basis and of course the quality of Ceylon tea as perceived by the buyers. As a result, Ceylon tea continues to fetch a higher price at the Colombo auction compared to teas from other producing countries, although the cost structures and productivity levels of our estates are totally disproportionate to make the industry commercially viable in short to medium term scenario.
Tea plantations have to therefore pursue environmentally friendly and socially responsible practices & methods in all their agricultural field operations (i) tea manufacturing processes(ii) and managing its employees (iii)to ensure that all-natural resources and eco-systems will be managed in a sustainable manner. The companies will have to make every endeavor to conserve the usage of all resources by optimizing resource utilization and minimizing waste through practicing cleaner production principles. They will strive to be self-sufficient in green energy to operate all our tea factories through harnessing the hydropower potential within all the lands belonging to the company.
There are many strategies recommended by TRI and others such as development of Agro- forestry farming systems using all unutilised estate land to have ‘nitrogen fixation’ as suggested by Chairman TRI. This will improve the soil porosity, provided we issue guidelines instructing them to follow TRI guidelines on Integrated soil fertility management strategies as mandatory good agricultural practices (GAP)towards minimizing soil acidity, top soil erosion and wastage of inputs etc.
(8) Conclusion:
As stated, it is a fact that there has been no increase in productivity, but a gradual decline in tea productivity measured in terms of the yield per hectare in Sri Lankan tea estates, partly due to continuous application of chemical fertilizer and due to difficulties in adopting mitigating strategies to arrest negative impact of climate change. This depleted soil condition and land degradation issues need to be corrected as a matter of priority. This proposed strategy will enable the growers at least to correct the high acidity levels in the soil and improve soil porosity and tea product quality.
In sustainability circles much is written about “three pillars of sustainability” or in other words, “triple bottom line” of environment, society, and economy. My own view is this is to confuse ends with means. The Environmental sustainability and Human well-being are two desirable points. Economic wellbeing in the long run is driven by those two. In other words, the necessary precondition for long term economic sustainability and profitability of the tea estates is environmental and social well-being from the long- term perspective.
As for marketing of tea in the global markets, the discerning customers have high expectations of the standards and practices applied by the supply chain including tea estates. For example, Tea” is made according to the principles of “sustainable food” thus providing values to discerning customers, employees and all other stake holders. SLTB global promotion campaign aims to popularize tea drinking around the world in order to expand demand and increase per capita consumption, using three USPs; authenticity means demonstrating sustainability credentials, wellness factor and the premium quality of Ceylon Tea.
If the estate management does not look at long term view, it is unlikely they make profits on a continuous basis. Eventually, the long- term value creation for the shareholders depends on the sustainable development of the estates and the community in which they operate. That is why I consider tea plantation sector as one of the truly complex adaptive systems.
Are we leaving the tea plantations to future generations in a better condition than the one we inherited?
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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