Features
The SJB’s problem
By Uditha Devapriya
When people get tired of a system, they do not want a variation, they want an alternative. The SJB’s right-wing flank are happily promoting IMF narratives of austerity, while going all-out against the JVP-NPP on the basis of the latter’s Marxist policies. The JVP-NPP for its part has been defending those policies rather awkwardly: that is, defending them without really defending them. The upper echelons of Sri Lanka’s most popular Left formation have been more adamant about their stances, even on political issues: weeks after Harini Amarasuriya came out in support of the 13th Amendment, for instance, Sunil Handunhetti remarked that the latter amendment had no support from either the JVP or the NPP.
The middle-classes are as divided and fragmented as ever, particularly on economic issues and the question of what is to be done to resolve the crisis. A significant section has tilted to the JVP-NPP, though they are not aligned with the latter’s supposed Marxism. They may not be fervent or committed socialists, but they are clamouring for a change in the system. They do not expect the SJB, still less the UNP or SLPP, to deliver that change. As for the Freedom People’s Alliance, it has gone quiet over the last month, while its members have been and continue to be associated with the Gotabaya Rajapaksa administration. These, plus the fact that the country’s main Opposition don’t appear to be agreed on any issue, be it taxation or the death penalty, have turned the middle-class to the only party which has promised to go out in search of alternatives and not variations on the status quo.
To be sure, the JVP-NPP’s Marxism may turn out to be a mirage. But in a country where policies have counted for little and populist rhetoric for everything, what party MPs and leaders do in public have a massive impact on voting patterns. On that basis, Anura Kumara Dissanayake has gained the sort of popularity that the SJB’s upper echelons, including the neoliberal haut monde (fashionable society), have not. Dissanayake’s recent skirmish with the police, which the anti-JVP-NPP media twisted and contorted – as Dayan Jayatilleka pointed out in this week’s DailyFT column, Dissanayake didn’t protect himself in a shop, he was escorted there by protesters worried about his safety – shows that in the great divide between the regime and the people, the people are willing to hedge their bets on the JVP-NPP.
Again, this is not a comment on, less an endorsement of, the JVP-NPP’s policies, economic or otherwise. The party imagines itself to be Left, and it is. But how far to the Left? “The JVP’s problem,” writes Dayan Jayatilleka, “is not that they are good Marxists but that they are bad Marxists.” Jayatilleka takes the party to task for not being able to band together with other Left formations and groups: he chastises the JVP for alienating the FSP, which to him is more radical, but also less sectarian. This may or may not be a fair critique. But the JVP’s problem, of being bad Marxists, is to me simpler to diagnose: the issue isn’t that they are promoting socialist policies, which are anathema to the SJB’s neoliberal flank, but that they haven’t clarified what these policies are and, even if they have done so, have failed to rationalise or explain them in concrete terms. The JVP-NPP, in other words, continues to commit the two most unforgivable sins that any political party, on the Left or the Right, can commit and be accused of: inconsistency and lack of coherence.
The JVP-NPP has a chance to fill a massive gap. When the SJB was formed back in 2020, this writer felt it would become the social democrat version of the UNP without becoming an appendage of the UNP. Since then two prominent SJB MPs have defected to the UNP and the President is making use of divisions within the party to promote tensions and control other MPs who owe their political careers to him. The recent COPF fiasco is a case in point. The government did not appoint a leader from another party, but instead chose an SJB MP whose brother is a staunch loyalist of Ranil Wickremesinghe. The problem, in other words, is not that Mayantha Dissanayake was taken to replace Harsha de Silva, but that Mayantha is Navin’s brother and that he accepted the government’s directive even as the SJB has vowed to distance itself from the government’s policies.
It would be wrong to view the SJB as an appendage of the UNP. But it would be wrong also to view it as a social democrat or a left-wing version of the UNP. The SJB has MPs who would not have been in politics without Ranil Wickremesinghe. It has MPs who have, on Twitter and elsewhere, proclaimed themselves as pro IMF, just days if not hours before the IMF releases statements praising the government’s much vilified tax reforms. It has MPs who do not want to join Mr Wickremesinghe politically, but whose proposed policies differ marginally and not substantively from his actual policies. Yes, the SJB has much potential for change, but the divisions between the leader and his MPs, which reflect a split between the populist and the neoliberal flanks in the party, are just too much for people to accept it as a viable, if not tangible, alternative to the current dispensation.
One can blame Wickremesinghe for sowing discord in the SJB. But as the main Opposition party, the SJB has the right if not the moral duty to immunise itself from the attacks, and worse the machinations, of the ruling party. And yet, instead of countering these tactics, the SJB has focused its energies on attacking the JVP-NPP, sometimes on the flimsiest, most ridiculous grounds, as the recent tussle over hand-me-down clothes between a Twitter bot and Vraie Cally Balthazaar, easily the JVP-NPP’s most youthful, candid, promising faces in Colombo, shows. The SJB’s co-option of artists, including actors, who have since the 1980s managed to set a low bar for pretty much everyone else, is another case in point: Damitha Abeyrathna, hailed as a heroine in the aragalaya, now steps on the SJB stage and praises the party leader while badmouthing the JVP-NPP through innuendo.
Damitha’s remarks are, however, exceptional, and thankfully so. Given the JVP-NPP’s rising popularity among the middle-classes and in particular the rural middle-classes, as well as sections of the peasantry and the working class, artists and academics are bound to come out in its support, even if they do not advocate what everyone assumes to be its economic positions. The IMF’s recent remarks clearly show that the world’s most powerful financial institution is not in fundamental disagreement with the regime’s tax and income policies, even if think-tanks like Verité have pointed out, correctly, that the IMF’s stance on economic reform cannot be used as an excuse to impose austerity on the people. In any case, Verité remains a glaring exception to the dismal rule: most Colombo-based think-tanks seem to have no issue with IMF reforms, and are in fact advocating more of the same. Against this backdrop, the JVP-NPP will eventually find out that the only way it can survive is by tapping into the tide of discontent that is fast turning against the regime and its allies.
The debates now raging over IMF reforms are completely different from six months ago. Back then the question was simple, and posed in Manichean terms: go to the IMF or suffer. Last year, however, the country was facing a dollar crisis. This year we are facing a rupee crisis. Even if we have the dollars – and, despite the quotas, the import restrictions, and other Central Bank imposed regulations, we do have enough with which to manage our fuel requirements and other essential imports – State-Owned Enterprises (SOEs) do not have the rupees with which to settle their transactions. This is a problem of revenue, and for such problems the typical prescription is higher taxation. The issue is that no one likes taxes: not the middle-classes burdened by privations, and certainly not the lower classes who don’t have the luxuries that the middle-classes do. Against such a backdrop, if the government, in tandem with the elite, advocates more of the same, only parties critical of extreme austerity can survive. From the narrow perspective of political survival, hence, it is the JVP-NPP that will flourish. It can seize the moment, or it can forego it. It would be foolish to forego it. The reason is simple. People don’t want continuity. They want a rupture.
The writer is an international relations analyst, researcher, and columnist who can be reached at udakdev1@gmail.com.
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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