Features
The Non Aligned Summit
by Leelananda de Silva
Sometime in 1973, Mrs. Bandaranaike, the Prime Minister. directed that I should be in charge of the economic side of the Non Aligned Summit (NAS), to be held in 1976 in Colombo. She was anxious to attach a high profile to economic issues in non aligned discussions. This was for two reasons. The first was that she wanted to make the NAS clearly more non-aligned, getting rid of the extreme anti western rhetoric of previous conferences, which was partly due to the focus on political issues.
Talking economics, specially at a time when the North-South dialogue was a dominant feature in international relations made great sense. The second reason was that she felt that greater attention to international economic issues would better relate the Summit proceedings to Sri Lanka’s own economic interests. As I advised her, it was necessary to focus on relevant economic issues for Sri Lanka, instead of merely following earlier Non Aligned economic agendas where issues like transnational corporations and the New International Economic Order were focused upon.
These issues were pushed by countries like Cuba and Algeria, as they were aimed at attacking the United States and Other Western countries. Thereafter, engagement with non aligned issues became my central task during my Planning Ministry years. Between 1973 and 1977, I was working as much with the Foreign Ministry as with the Planning Ministry.
The Fifth Non Aligned Summit held in 1976 was the culmination of a long process starting with Fourth Summit in Algiers in 1973. The Prime Minister led the delegation to Algiers and other members were Felix Dias Bandaranaike, Mrs. Lakshmi Dias Bandaranaike, Shirley Amarasinghe (Permanent Representative to the UN in New York), W.T. Jayasinghe (Permanent Secretary Defence and External i.e. Foreign Affairs), Susantha De Alwis (Permanent Representative to the UN in Geneva) and myself.
This delegation constituted many of the key persons who were responsible for the substantive preparations of the Colombo Summit. The other two persons who were not there were Arthur Basnayake and Izeth Hussain. The Algiers Conference was a grand affair and was held in a newly constructed palatial conference hall.
One of the things that struck me most was that the Conference was not organized well. During the week we were there, the conference sessions were held at night, and during the day we had our rest. This made most of the delegates very tired. Mrs. Bandaranaike suggested to the delegation that we should observe the way in which the Conference was organized in Algiers. There was nothing much to learn from them.
I was looking after the Economic Committee and it was being chaired by Ambassador Hernan Santa Cruz of Chile, a leading personality of the time in international affairs. I remember working closely with the Ambassador from India, K.B. Lall, who was later to lose out to Gamani Corea, in the UNCTAD Secretary General stakes.
The work of the Economic Committee was dominated by Algerian pressures to obtain support for the OPEC oil price hike which had just occurred, raising the price of oil from US $4 to $13 a barrel. This was a great shock to poorer developing countries. The Algerians and other oil suppliers manipulated the Summit to obtain a clear endorsement of the OPEC position, although it was the poorer developing countries which paid a heavy price for the oil price hike.
OPEC promised that they would support schemes to obtain better prices for other commodities, but this never happened, apart from unrealistic resolutions to change the world economic order. The OPEC countries started to push for a New International Economic Order which was later adopted by the United Nations in 1974. Layachi Yaker, the Algerian Minister of Trade was the key figure organizing this OPEC campaign in the non aligned context (he was later to be the head of the UN Economic Commission for Africa).
The great event of the Conference, in effect, took place outside Algiers. Salvador Allende, the President of Chile was overthrown and killed in a coup led by General Pinochet during the week of the Conference. Chile under Allende had emerged as an icon standing up to US hegemony in Latin America and generally in the third world. Many of the non aligned delegations were shocked by what happened in Chile. Hernan Santa Cruz, who was chairing the Economic Committee, was the living embodiment of the Chilean crisis and he was not to go back to his country for a long time.
One unforgettable memory that I have of this Summit was our departure from Algiers airport. Waiting for our respective planes, along with Mrs. Bandaranaike, were Emperor Haile Selassie of Ethiopia and President Houari Boumedienne of Algeria was there to wish us goodbye.
The most important objective for Sri Lanka at Algiers was to get the Summit to endorse Colombo as its next venue. Whether this would be done was not at all certain. To the great delight of Mrs. Bandaranaike, the Algiers Summit confirmed Colombo as the venue for the Fifth Summit. This was the start of the preparatory process. Mrs. Bandaranaike was anxious that economic issues, particularly in a North- South context, should be equally placed with political issues on the NAS agenda. This was my task in the next four years, and those preparations were pursued largely in UN multilateral forums, which were then brought into convergence at the NAS.
After the Algiers Summit and prior to the Summit in Colombo, I attended three non aligned meetings held in Dakar (Senegal), Lima (Peru) and Algiers. The Dakar and Lima meetings were at Foreign Ministers level. Apart from myself, others on the delegations were Felix Dias Bandaranaike, Shirley Amarasinghe, and Arthur Basnayake.
The Dakar meeting was held outside the main city in a newly built conference hall, in the middle of nowhere. One night, Shirley Amarasinghe, Arthur Basnayake and I had to go in a car assigned to us by the government for a late night meeting. The relations with our driver was pretty bad as he was using the official vehicle assigned to us for his own purposes.
This night, on our way to the conference hall, he stopped the car in the middle of a jungle saying there was no petrol and that he was going to leave us and go to collect some petrol. This was a frightening experience. We had to forget our status and had to plead with the driver offering him some goodies to take us to the conference hall somehow. About half an hour later, he said that he had some petrol in the car and that he would use it. Anyway, we got to the conference hall and we did not see the driver again.
I was to work closely with Shirley Amarasinghe on Non Aligned issues, although he was in New York and I was in Colombo. We traveled together for many meetings and met often in New York and in Colombo. I enjoyed working with Shirley Amarasinghe. Shirley had held the highest offices of government, being appointed as Secretary to the Treasury at the age of 47.
One day in Dakar he told me that when Felix Dias Bandaranaike had to leave the Finance Ministry in 1962, he also had to leave his post of Treasury Secretary. He had thought of retiring from the public service and his brother, Clarence, who ran the leading motor firm Car Mart had asked him to come and take over the running of the company. He was seriously considering moving to the private sector.
At this point, Mrs. Bandaranaike and N.Q. Dias who was the Secretary of the Ministry of Defence and External Affairs had asked him whether he would like to move into the diplomatic service and proceed to New Delhi as High Commissioner. His whole life changed with that decision to go to New Delhi at the age of 50. For the next 17 years until his death, he was a leading figure in UN circles and latterly as Chairman of the Law of the Sea Conference.
I remember another amusing incident. Over the weekend in Dakar, Arthur Basnayake, whose academic background was geography, wished to go to the interior of Senegal by train. He wanted to go alone, and there was a train going to that place. So I accompanied Arthur to the railway station. The Dakar main railway station was totally deserted and there was no train in sight. We walked down the long platform and there was a man seated at the end of it, smoking a cigar.
We asked him whether we could see the station master. He said he was the station master. We asked him about the train, which was scheduled to leave that morning. He told us that was a good question, as yesterday’s train had not yet left. He suggested to us that we take the bus outside the station to our destination, as that will get us there sooner. The bus was run by the station master’s son, and to get business for the bus, it was in the interest of father and son to see that the trains were delayed.
The meeting at Lima, Peru had the usual agendas and the usual speeches. What was more interesting was the coup that took place while we were in Lima. On the Monday morning of the conference, it was ceremonially opened by General Morales, the Military Dictator of Peru. On the Wednesday morning, as we were leaving for the conference, we were informed that we should stay in the hotel as a coup had taken place and there was a curfew.
The conference met again the day after and it was wound up on the weekend. When it was wound up, the new military ruler came to declare the conference closed. The host Government Peru insisted that the former dictator Morales’s name should not be mentioned in the communique and he should not be thanked for opening the conference. This was non aligned politics at its best.
The mechanism for pursuing non aligned agendas was the Coordinating Bureau of the Non Aligned Countries Meeting at Foreign Minister’s level. I attended a meeting in Algiers of the Bureau in early 1976. The task of the Sri Lankan delegation was to keep the Bureau informed of our preparations in Colombo. I remember this meeting for one poignant reason.
Although Chile had a military government now, the Non Aligned Bureau, still recognized the Allende government of Chile. Its Foreign Minister Orlando Letelier, suave, elegant and the perfect diplomat, was there in Algiers. I had a cup of tea with him and discussed the forthcoming Conference in Colombo, which he expected to attend. About a month later, he was gunned down in the streets of Washington D.C. in broad daylight, a murder which had ramifications the world over.
Let me now briefly set out my observations of the NAS in Colombo. I was appointed by the Prime Minister to be Secretary of the Economic Committee of the Conference. By virtue of my position, I chaired an inter-ministerial committee on economic issues for the NAS in Colombo. We met a few times but it was not productive in shaping an economic agenda from Sri Lanka’s point of view. This had to be done by the Planning Ministry.
One of the first things I had to do was to provide an input into the Prime Minister’s speech for the Conference. After discussing with the Prime Minister and with Felix Dias Bandaranaike, I submitted two proposals- one fora Countervailing Third World Currency and the other for the establishment of a Third World Commercial and Merchant Bank. The first proposal for a third world currency was a political one, to please radicals like Cuba. The second proposal was one I had developed and discussed with the Prime Minister.
She liked the proposal which was pragmatic, and this was included in her speech. The Summit adopted the proposal and was later to be followed up by UNCTAD. I was asked by UNCTAD to come over to Geneva to prepare a paper on this proposal which I did in May 1977.
I am proud of this proposal, with which Mrs. Bandaranaike agreed. She wanted a high profile for economic issues, as they related to her own domestic concerns. People could relate to food and agriculture and pharmaceuticals in a way that they do not relate to Arab- Israel or East West political confrontations. The proposal for a Bank, which had merchant banking functions, was modeled on the experience of the Crown Agents in London.
Most developing countries at the time did not have the expertise and the skills to get the best terms from exporting and importing transactions. It was found at that time that Sri Lanka was purchasing commodities like oil, rice and wheat, when prices were high in a volatile world market; and full of stocks locally when the prices were low in world markets (at a time when we should be buying).
A central facility for developing countries would enable them to obtain large gains through combined purchasing and other means. The bank could also handle many financial transactions of borrowing and obtaining export credits. An institution of this kind is still relevant in today’s world for many of the smaller developing countries.
Prof. Senaka Bibile had made his mark through his proposals for rationalization of pharmaceutical supplies and the purchase of non- branded, generic products for national health services. Such arrangements reduced the costs of medical supplies. Senaka Bibile was known to Mrs. Bandaranaike. She suggested to me that I should have him on the delegation to work with me in the Economic Committee to develop his ideas through a resolution which would then be applicable to the developing countries in general.
Senaka Bibile worked with me at the Conference to get the resolution drafted, and we had to do some lobbying among the delegations. I found that most countries welcomed the proposals on pharmaceuticals and there was no problem in getting a strong resolution adopted. This is a resolution which had clear implications for health policies in countries like Sri Lanka. It was a delight to have worked with Senaka Bibile.
The NAS was a historic event and it should be remiss of me if I did not mention the others who were associated closely with the NAS, as I had personal knowledge of the event. In organizing an NAS on this scale, Sri Lanka was punching above its weight in international relations. Mrs. Sirimavo Bandaranaike, the Prime Minister, was primarily responsible for the success of the Summit. She personally supervised many of its key aspects.
Felix Dias Bandaranaike and Shirley Amarasinghe were actively engaged in most of the preparatory work between 1973 and 1976. They were persons of international standing and were highly respected, and with Mrs. Bandaranaike, were responsible for a highly acclaimed Summit. W.T Jayasinghe, the Foreign Secretary, Arthur Basanayake, Director General of the Foreign Ministry and Izeth Hussein, Director of the Non Aligned desk at the Foreign Ministry were key figures in the preparations on the political side. Susanta de Alwis who was our ambassador in Geneva, was the secretary of the political committee, and he and I being secretaries of the two committees had to interact closely to avoid possible conflicts in conference proceedings and resolution drafting. Neville Kanakarathne can be added to this list. Izeth Hussein made a distinctive contribution in drafting what was considered an outstanding Political Declaration which captured the essence of Non-Alignment. Dr. Mackie Ratwatte, was the man in charge of the organizational side of the Conference. He was assisted by several Foreign Office officials, specially Ben Fonseka. Manel Abeysekara managed a flawless protocol operation with finesse and flair. This aspect of the Summit was crucial, as delegations with Heads of Governments and State are sensitive to their treatment by the host country.
Vernon Mendis, who was then the High Commissioner in London, was brought to Colombo to act as Secretary General of the Conference, as W.T Jayasinghe and Arthur Basnayake declined to undertake that role. Vernon’s role was to assist the Prime Minister during the Conference proceedings. Dharmasiri Peiris, Secretary to the Prime Minister, worked behind the scenes over this entire four year period and was guide and adviser to the Prime Minister on many NAM issues, and ran her office at the Conference, where many questions had to be addressed on an urgent basis.
He was associated with Nihal Jayawickrama, Secretary to the Ministry of Justice and Sam Sanmuganathan, Secretary to the Ministry of Constitutional Affairs On the economic side I received much assistance from Wilfred Nanayakkara, Deputy Director of the Economic Affairs Division in the Ministry of Planning. Lakdasa Hulugalle, an outstanding economist working with UNCTAD and an authority on North South issues was in regular contact, and was a great source of advice during the Summit. Havelock Brewster, a well known Caribbean economist from UNCTAD worked with the Economic Committee, at my request. He was actively involved in the drafting of the large number of economic resolutions which came up at the Conference.
Let me divert here to record my recollections of two episodes connected with the Summit as they are instructive and should not be forgotten. First was Mrs. Bandaranaike’s decision to vacate ” Temple Trees” so that Mrs. Gandhi, the Prime Minister of India could occupy it during her visit to Colombo. At this time, Indo- Sri Lanka relations were at a low ebb, due to Sri Lanka’s assistance to Pakistan during the Bangladesh crisis. Mrs. Bandaranaike wanted to signal her closeness to India and also her personal regard for Mrs. Gandhi by this gesture.
That was a master stroke in bilateral relations. The second was with regard to Kurt Waldheim, the Secretary General of the UN. He was in Colombo accompanied by Dr. Gamani Corea, who was Secretary General of UNCTAD. He expected to address the Non Aligned Summit, of Heads of Government. There were many who were opposed to Waldheim addressing the Summit and preferred him to address the Foreign Minister’s Conference the previous week. It is my recollection that Waldheim in the end addressed the Summit. In 1976, the Secretary General of the UN was not regarded as an equal to Heads of Government.
The Colombo Summit was attended by over 60 Heads of Government and I remember seeing most of them either in the Conference hall or outside. There were Anwar Sadat of Egypt, Gadaffi of Libya, and Marshal Tito of Yugoslavia. Yugoslavia was one of the key countries in Non Aligned and Third World organizations, and it is astonishing that 20 years later Yugoslavia is no more. I remember standing next to Tito as the national anthem was being sung to bring the Summit to an end. He had gone out of the hall and had just come in and I happened to be standing next to him.
Apart from the Heads of Government, there were many other Foreign Ministers and high officials I came in contact with in the course of my work on the Economic Committee. It is a long time and I forget their names.
After the Summit, in early 1977, Felix Dias Bandaranaike, Shirley Amarasinghe, Arthur Basnayake, Izeth Hussein and I were the delegation to the Non Aligned Foreign Ministers meeting in New Delhi. Mrs. Gandhi had lost the election and there was a new BJP government. Mrs. Bandaranaike had asked the Sri Lanka delegation to meet with Mrs. Gandhi, informally at her residence. This was not at all appreciated by the new Indian Government. That was the last time I was to see Mrs. Gandhi, having seen her on many occasions in the previous six years. This was also my last non aligned meeting, as Mrs. Bandaranaike lost the election later in the year and a new government came in.
(Excerpted from the writer’s autobiography, The Long Littleness of Life)
Features
The heart-friendly health minister
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.
Features
A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY
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.
Features
A fairy tale, success or debacle
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 . )