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The JVP’s Military Battle for Power

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THE APRIL 1971 REVOLT – II

By Jayantha Somasundaram

The JVP evolved in the late 1960s under Rohana Wijeweera as a radical rural youth group. It believed that a socialist change in Sri Lanka could only be effected through a sudden armed insurrection launched simultaneously across the country. Recruits to the JVP underwent a series of political classes as well as military training, while the organisation clandestinely armed itself. The United Front Government responded in March 1971 with a State of Emergency, the arrest of JVP cadre and the deploying of the Army to the provinces.

In March 1971 events rapidly escalated. The JVP believed that the government was planning to use the Army to launch an all out offensive against them. And on 2nd April nine JVP leaders, six members of the Political Bureau and three District Secretaries, met at the Vidyodaya Sangaramaya at a meeting presided over by S.V.A Piyatilake. They took the decision to launch their attack at 2330 hours on 5th April. “The decision taken was to attack on a specific date at a specific time. This decision is completely in line with the evidence that the Fifth Class of the JVP…advocated that in the circumstances of our country, the best method would be to launch simultaneous attacks everywhere,” concluded the Judgement of the Criminal Justice Commission Inquiry No 1 1976.

The date of attack was relayed by pre-arranged code in the contents of a paid radio obituary notice by an unsuspecting state-owned Ceylon Broadcasting Corporation. The JVP cadres at Wellawaya however misinterpreted the instruction and launched their attack on the Wellawaya Police Station 24 hours earlier on the night of 4th April.

The initial targets were rural police stations both in order to further arm themselves and because the JVP viewed the police as the only representative of the state in the countryside. Moreover, they believed that the police and the armed forces were low on ammunition and they discounted the government’s ability to counter attack once the JVP had gained control of the countryside. Besides, the attacks on remote police stations across much of the country’s rural south, a large group also travelled north in order to rescue Wijeweera who was held in Jaffna.

Attacking with home-made weapons in groups of 25 to 30 in order to seize better arms from the police stations, the JVP believed that controlling these rural police stations would provide them with areas of military and political control, thereby denying the government access to such areas which would provide secure rear-bases for subsequent attacks by the JVP on towns and cities. Ten out of the island’s 22 Administrative Districts were battlegrounds. “Ninety two Police Stations had been attacked, damaging fifty and causing around fifty to be abandoned,” wrote Major General Anton Muttukumaru in The Military History of Ceylon.

Piyatilake was responsible for operations in Colombo. He detailed Raja Nimal an Advanced Level student to storm the Rosmead Place residence of Prime Minister Sirima Bandaranaike on the night of the 5th along with 50 student cadre, to capture the Prime Minister and transport her to a place where she would be held. However the expected vehicle and Piyatilake failed to arrive at the prearranged rendezvous in Borella and the attack did not materialise. Meanwhile unaware of the impending danger, the Prime Minister’s security advisers prevailed upon her to move to her official residence at Temple Trees, where she would be more secure.

Elsewhere in the Colombo District a major attack occurred at Hanwella, where the A4 High Level and Low Level Roads converge. Early on the morning of the 6th about 100 JVP combatants using hand bombs, Molotov Cocktails and firearms attacked the Police Station compelling its personnel to abandon their positions and flee into the surrounding jungle. The JVP captured the station’s armoury of weapons, hoisted a red flag and froze transport into Colombo. They held the town until armed police from Homagama supported by troops from Panagoda overpowered them.

 

The Battle for Kegalle

Athula Nimalasiri Jayasinghe, known within the Movement as Loku Athula, was in charge of the Kegalle and Kurunegala Districts. Once the decision to attack was made he moved into the area on the 3rd, meeting Area Leaders at Weliveriya and coordinating operations with detachments in Veyangoda and Mirigama. About 600 JVP combatants were deployed across the Kegalle District concentrated at Warakapola and Rambukkana.

Under Patrick Fernando, the Pindeniya detachment attacked both the local Police Station and the Bogala Graphite Mines, capturing a lorry load of explosives from the mines. On the 8th the Warakapola Police Station was successfully attacked, its weapons including two sub machine guns seized and the building set ablaze. In addition, Police Stations at Bulathkohupitiya, Aranayaka, Mawanella, Rambukkana and Dedigama were also attacked and the station at Aranayake burned down. Only Kegalle Police Station and the area surrounding it remained under Government control.

The Army could only access the interior regions of the District on the 10th and initially had to focus on removing road blocks and repairing culverts and bridges to gain mobility. When they penetrated the countryside they were frequently ambushed as in Aranayake and both sides sustained casualties. In The JVP 1969-1989 Justice A.C. Alles concludes that “the insurgents had met with considerable success in the Kegalle District.”

On the 12th at Utuwankande the Army was ambushed by the JVP using rifles and submachine guns. But the battle was turning in favour of the Army which brought to bear superior arms to put pressure on the rebels and gradually reopen the abandoned police stations in the district.

Finally on the 29th led by Loku Athula the JVP forces began their withdrawal from the District, from Balapattawa via Alawwa and then north. As they retreated in the direction of the Wilpattu Park they came under attack from the Army and from the air by Air Force helicopters. The Army finally ambushed them near Galgamuwa, killing some and capturing Loku Athula on 7th June.

The experience of the Kegalle District was replicated by the JVP in the Galle, Matara and Hambantota Districts. With the exception of Dickwella all Police Stations in the Matara District were abandoned. While in the Ambalangoda Police Area all stations, Elpitiya, Uragaha, Pitigala and Meetiyagoda fell to the JVP.

Widespread JVP attacks were also launched across the North Central Province where only the Anuradhapura Police Station was spared. As in the Kegalle District the outlying stations had to be abandoned and personnel withdrawn to Anuradhapura. However the Kekirawa Station, though attacked several times, held out. The Army was only able to move into the outlying areas of the Anuradhapura District on the 30th. Further north the Vavuniya Police Station in the Northern Province was also attacked. Less intense activity was reported in the Kandy, Badulla and Moneragala Districts.

N.Sanmugathasan in A Marxist Looks at the History of Ceylon remarked that “The rank and file (of the JVP) seems to have been honestly revolutionary, with a sense of dedication that must be admired, and a willingness to sacrifice their lives – unheard of before in Ceylon.” The first Ceylonese Army Commander General Muttukumaru wrote “Their (JVP) courage was also evident in the display of their military skills which enabled them to control many regions in the country and give battle to the armed forces in fierce guerrilla fighting.”

The military background

In November 1947 on the eve of independence, Ceylon signed a Defence Agreement with the United Kingdom. The military’s threat perception was determined by “the Government’s concern, (which) was invasion by India. The military’s focus was to have a defence force capable of meeting any external threat until assistance arrived from Britain.” In the words of Air Vice-Marshal P.H. ‘Paddy’ Mendis, who was Air Force Commander in 1971, the objective that determined the capabilities of the armed forces therefore was to “hold up an invading force of the enemy until assistance arrived from a bigger country with which we have an alliance.” (Brian Blodgett in Sri Lanka’s Military: The Search for a Mission 1949-2004)

The only military threat perceived was external; there was no anticipation of an internal military threat. Furthermore, in the wake of the 1962 abortive coup against the Sri Lanka Freedom Party (SLFP) Government, and the alleged 1966 coup against the United National Party Government, both parties that had been in power were wary of the Army which in 1970 had an authorised strength of 329 officers and 6,291 other ranks, and an annual budget of Rs 52 million (US$10mn), just 1.2% of total government expenditure.

Despite these inherent structural limitations, the Government and the Army responded swiftly, appointing regional Co-ordinating Officers in the worst affected districts. They were Colonels E.T. de Z. Abeysekera in Anuradhapura, S. D. Ratwatte in Badulla, Douglas Ramanayake in Galle and Derek Nugawella in Hambantota, Lieutenant Colonels R.R Rodrigo in Jaffna, Cyril Ranatunga in Kegalle, D.J.de S Wickremasinghe in Matara, Tissa Weeratunga in Moneragala and Dennis Hapugalle in Vavuniya.

The Ceylon Volunteer Force was immediately mobilised, and the first military casualty was Staff Sergeant Jothipala of the 2nd Volunteer Battalion, Sinha Regiment [2(V)SR], who was killed at Thulhiriya in the Kurunegala District on the first day of the insurrection. While Sandhurst-trained Major Noel Weerakoon of the 4th Regiment, Ceylon Artillery was the first officer to be killed whilst leading an ammunition convoy from Vavuniya to the besieged town of Anuradhapura; he was wounded when his convoy was ambushed and later succumbed to his injuries.

The battle rages

In 1971 the Royal Ceylon Air Force (RCyAF) consisted of three squadrons: No. 1 Flying Training Squadron with nine Chipmunk trainers based at China Bay, No. 2 Transport Sq. equipped with five Doves, 4 Herons and three Pioneer fixed wing aircraft and four helicopters and No. 3 Reconnaissance Sq. with Cessna aircraft. In the 1960s Britain had gifted five Hunting Jet Provost T51s jet trainers which had gone out of service by 1971.

Beginning at 0900 hours on 5th April the Jet Provost, which were in storage at China Bay, began operating out of this airbase. Armed with Browning machine guns and rockets, they carried out air to ground attacks using 60 lb rockets. The three Bell 206A Jet Ranger helicopters protected by Bren Guns airlifted 36,500 lb of ammunition during April to critical police stations. In addition the Doves carried out supply missions and during the course of April, 900 soldiers and 100,000 lb of equipment were transported by the RCyAF.

The JVP seized parts of the Colombo-Kandy A1 Trunk Route at Warakapola and Kegalle, cutting off the main artery between Colombo and the tea growing highlands. In response the Jet Provost had to mount aerial attacks on the key bridge at Alawwa which led to the downing of a Jet Provost and the death of her pilot.

If not for the premature attack in Wellawaya which resulted in the Police and Military around the country being placed on high alert “the situation would have been very grave for not only would several Police Stations have been captured, but the JVP would have been able to arm itself with modern weapons,” wrote Justice Alles.

Desperate for arms and ammunition in the first days of the rebellion, the Government aware that a Chinese cargo vessel bound for Tanzania with an arms shipment was currently in Colombo Harbour, unsuccessfully appealed to both Beijing and Dar-es-Salaam to make these arms available to Sri Lanka.

International support

As rural police stations fell, the government abandoned others, regrouping its limited forces and anxious to protect the towns and cities. This tactic paid off. The JVP only had equipment captured from police stations. They did not go on to overrun military camps nor capture their more sophisticated weapons. While the JVP did control parts of Kegalle, Elpitiya, Deniyaya and Kataragama uncontested, the Army replenished its meagre stocks of weapons.

Wijeweera had focussed solely on a single decisive blow against the Government. There was no provision to conduct even a short term guerrilla operation, or an attempt to lead a peasant uprising. And during the first 72 hours his strategy appeared to be working. What dramatically altered the balance of forces against the JVP was the immediate and sustained influx of military equipment that flowed in from overseas to enable the armed forces to turn the tide in their favour.

Within four days of the JVP attack, Air Ceylon’s Trident took off from Singapore carrying a consignment of small arms provided by Britain from its base there. The following day the UK agreed to supply six Bell-47G Jet Ranger helicopters armed with 7.62mm machine guns. On 12th April on board a US Air Force Lockheed C-141 Starlifter, Washington shipped out critical spare parts for the RCyAF helicopters which were flying twelve hour days. And at Colombo’s request New Delhi on the 14th sent six Indian Air Force Aérospatiale SA 315B Lama utility helicopters with crews to Katunayake Air Force Base, along with troops to guard them as well as arms, ammunition and grenades. They would remain in-country for three months.

On the 17th Air Ceylon flew in nine tons of military equipment which the Soviet Union made available from supplies in Cairo. While on the 22nd a Soviet Air Force Antonov AN-22 transporter arrived with two Kamov Ka-26 rescue helicopters and five Mikoyan-Gurevich MiG-15 jet fighters and one MiG-17 high-subsonic fighter. The Soviet aircraft were accompanied by 200 trainers and ground crew.

China, Australia, Pakistan and Yugoslavia would also send arms and equipment. Colombo’s Non Aligned foreign policy which enabled it to source and receive military weapons and equipment from countries across the globe had succeeded. However the disparate array of equipment would pose a logistics dilemma for the military.

The sudden influx of arms and ammunition rapidly altered the balance of power against the JVP. For example the Army took Yugoslav artillery into Kegalle to flush out the rebels. And around 16,500 JVP members were captured, arrested or surrendered. The remaining combatants withdrew into jungle sanctuaries in the Kegalle, Elpitiya, Deniyaya and Kataragama areas.

Meanwhile there were reports that the JVP were endeavouring to bring weapons in by sea. But the Royal Ceylon Navy’s frigate and Thorneycroft boats could not secure the island’s territory nor prevent supplies reaching the rebels. This compelled Colombo to rely on the Indian Navy which sent three of its Hunt-class escort destroyers, INS Ganga, INS Gomathi and INS Godawari to patrol Ceylon’s maritime perimeter. In Sri Lanka Navy: Enhanced Role and New Challenges Professor Gamini Keerawella and Lieutenant Commander S. Hemachandre explain that “Sri Lanka’s dependency on the Indian Navy during the Insurgency to patrol its sea frontier in order to prevent arms supply to the Insurgents, was total.”

At Anuradhapura the JVP had established a base camp as well as six sub camps in the surrounding jungle where weapons, explosives and food had been stored. JVP operations in the Rajangana and Tambuttegama areas were controlled from this base camp. A platoon of 1CLI armed with 82mm mortars was sent to Anuradhapura in May and participated in Operation Otthappuwa, under 1CLI 2iC Major Jayawardena to take control of this area. By the end of May the insurrection was completely crushed.

Some counter insurgency operations however continued into the following year. A-Company 1CLI established a forward base in Horowapatana as late as November 1972 from where they carried out combing out operations until April 1973 while 1CLI’s D-Company closed its Kegalle operations only in December 1974.

Outcomes

The international media reported that summary executions had taken place. Writing from Colombo in the Nouvel Observateur on 23rd May, Rene Dumont said “from the Victoria Bridge on 13th April I saw corpses floating down the (Kelani) River which flows through the north of the capital watched by hundreds of motionless people. The Police who had killed them let them float downstream to terrorise the population.” The New York Times in its 15th April edition said that “many were found to have been shot in the back.”

Lieutenant Colonel Cyril Ranatunga commanding troops in Kegalle was emphatic. “We have learned too many lessons from Vietnam and Malaysia. We must destroy them completely.” While another officer was quoted alongside him in the International Herald Tribune of 20th April as saying “Once we are convinced prisoners are insurgents we take them to a cemetery and dispose of them.” And the Washington Post on 9th May quoted a major who said that “we have never had the opportunity to fight a real war in this country. All these years we have been firing at dummies, now we are being put to use.”

One of these public executions became a celebrated case, the brutal murder of Premawathi Manamperi of Kataragama. She had been crowned festival queen at the previous year’s Sinhala New Year celebration. Two soldiers, Lieutenant Wijeysooria and Sergeant Ratnayaka would be convicted, but both claimed their orders were: “Take no prisoners; bump them off, liquidate them.” (Jayasumana Obeysekara Revolutionary Movements in Ceylon in Imperialism and Revolution in South Asia edited by Kathleen Gough and Hari P. Sharma)

Janice Jiggins notes in Caste and Family in the Politics of the Sinhalese 1947-1976 that “Many in the armed services took the view that the fighting was an expression of anti-Govigama resentment and in certain areas went into low caste villages and arrested all the youth, regardless of participation.”

In the aftermath of the insurgency the armed forces expanded. The Air Force which had 1,400 personnel in 1971 grew to 3,100 by 1976. New units were raised: a Special Police Reserve Force, a Volunteer RCyAF and a new Field Security Detachment targeting subversion. The latter was placed under Lieutenant Colonel Anurudha Ratwatte 2(V) SR, the Security Liaison Officer to the Prime Minister. While a new Volunteer Army unit the National Service Regiment, targeting recruits over 35 years provided according to Fred Halliday “a damning sign that the whole of the country’s youth was in opposition to (the Government).”

The JVP uprising broke the back of the left parties which were trapped politically by the insurrection which they could only denounce at the cost of their long term influence. The SLFP too was isolated from its electorate due to the harsh measures adopted; curfew, censorship, trial without jury, postponement of elections, suspension of habeas corpus and other civil rights. Their Government suffered a devastating defeat at the next elections in 1977.

The uprising questioned the efficacy of a parliamentary system that could not accommodate a generation of educated youth, nor keep politicians aware of their needs and strengths. The decades-old mass national parties seemed to have no place for them. And the JVP charge that the leaders in parliament were of a different class and therefore they themselves of a different sub culture, seemed valid.



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The heart-friendly health minister

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Dr. Ramesh Pathirana

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.

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A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY

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Fr. Aloysius Pieris, SJ 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 on Nov. 23, 2019.

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.

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A fairy tale, success or debacle

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Ministers S. Iswaran and Malik Samarawickrama signing the joint statement to launch FTA negotiations. (Picture courtesy IPS)

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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