Features
The state in Sri Lankan nation
By Neville Ladduwahetty
The prevailing state in the Sri Lankan nation is that while one group is engaged in protests, and making demands that cannot be constitutionally realised, another group is patiently lining up in long queues to collect supplies needed to fulfil their basic needs. The two groups are from two different strata of society. While the former consists of young and educated, and from the middle strata of Sri Lankan society, the latter is largely from the working class, and hence their focus is on how to survive in these trying circumstances.
This separation of interests has given rise to a political crisis as far as the first group is concerned, and an economic crisis as far as the second group is concerned. Although the political and economic concerns are those of two separate groups, there is a good possibility for the two concerns to merge if allowed to fester due to lack of attention. The general impression is that easing the economic situation in the country would prevent such a merger, and that in fact it may even ease up on the political demands.
DEMANDS of the PROTESTERS
The main demand of the protesters is in the slogan “Gota Go Home”. However, this is easier said than done, as it cannot be achieved constitutionally, as pointed out by recognised constitutional experts and other commentators. The methods being contemplated to oust the President are either to pass a vote of no-confidence (No-Confidence Motion (NCM) in Parliament or for Parliament to impeach him. In the case of a no-confidence vote, there has to be sufficient votes in Parliament to make it a reality; a fact that is seriously in doubt. Besides, even if there are sufficient numbers in Parliament to clobber together a simple majority, all that would happen is for the Cabinet of Ministers to “stand dissolved” (Article 49 (2) (c). As far as the President is concerned, he is constitutionally entitled to appoint a new Prime Minister and a new Cabinet of Ministers. In short, the position of the President remains unaffected.
On the other hand, if the strategy is to impeach the President, a Member of Parliament has to give notice of a resolution addressed to the Speaker under provisions of Article 38 (2). However, such a resolution has to be signed either by a “not less than two-third” majority, or by a simple majority and the Speaker is satisfied that the claims of the resolution merit inquiry. Since neither a two-third majority nor a simple majority with the endorsement of the Speaker are realistic propositions, impeaching the President is not a viable option.
What these constitutional provisions mean is that the President cannot be sent home unless he resigns. Since both protesters and their supporters, advisors and backers are supposed to be smart and educated, how come they were not aware of the many constitutional constraints that prevent them from sending the President home? Other than, of course to plead their case. And had they realised their limitations, would they have opted for other approaches; that would gently persuade the President out of the goodness of his heart, to resign and go home? This also means, therefore that a need exists for protesters to revisit current strategies and use their charm and wit to persuade the President to go home, because the protests taking place at Galle Face Green and in the rest of the country would amount to nothing but expressions of frustration without substance, since he cannot be ousted constitutionally.
The fact, that these limitations have not occurred to them is disappointing, particularly because the protesters represent the future generations of Sri Lanka. It is they who have to take over the baton when the time comes. Furthermore, since they do not have a formal structure, it is not possible to bring these hard realities to their attention. Indications are that they too would blunder just as previous generations have done.
ECONOMICS ISSUES
Economic issues are affecting a vast swath of Sri Lankans and its numbers are more than those of the protesters. Yet, because they suffer in silence, they do not get the attention and publicity the protesters get. The majority of them are affected by lack of fertilizer and issues relating to the energy sector.
The practice thus far has been to import crude oil and refined products from a variety of foreign sources. Since Sri Lanka has failed to develop its owned fossil fuel deposits, said to be available in the Mannar Basin, the practice of importing energy needs has to continue. This has resulted in the import of both crude oil and finished petroleum products, as done in the past. The current lack of funds to continue with the practices of the past has brought the whole issue of energy to a head, because the inability to sustain imports has affected every sector of society, the most vulnerable being those who are not with the protesters. Therefore, there is an urgent need to adopt a fresh energy policy that would be in keeping with the prevailing reality of rock bottom Forex Reserves; a fact that now compels the government to abandon practices of the past.
FRESH ENERGY POLICY
A fresh energy policy should not lose sight of the long-term goal of meeting energy demands through technologies other than fossil fuels. The need to do so is dictated by global commitments to meet the realities of Climate Change. This is similar to the sudden switch to organic fertiliser which the government adopted without factoring in the inevitable public reaction to such a policy. Therefore, while recognizing the merits of both policies, their implementation should be undertaken in a measured manner; a fact now realized and admitted by the government as a mistake.
The proposed fresh energy policy should be treated strictly as an interim measure. While this interim measure is in operation, the government should set up the infrastructure needed to switch from fossil fuel dependence to alternate technologies, starting with the major cities. Such an approach should have been adopted in respect of fertiliser, too. However, a fact that should be realized in respect of both policies is that any government should engage in a campaign to secure the support of the public, if the benefits of both policies are to be realized.
An interim policy, relating to securing regular supplies of both crude oil and refined products, would be to negotiate with countries that are prepared to set up a Refinery of sufficient capacity in Trincomalee to supply Sri Lanka’s needs of refined products, and for them to export the balance to any country of their choice. In the meantime, Sri Lanka should expand the Refinery at Sapugaskanda from its present capacity of 44,000 barrels/day, which is reported to meet only 25% of Sri Lanka’s needs to 100,000 barrels/day so that Sri Lanka is not totally dependent on a single source for its energy needs. Since Refinery Capacities range from 100,000 to 250,000 barrels/day, a Refinery within the average range would be readily able to supply Sri Lanka’s needs, with export of the rest to Indian Ocean Rim countries.
In summary, the government should seriously explore an arrangement for the delivery of 44,000 barrels/day needed by Sapugaskanda in the form of crude oil and the balance refined products needed, while the new refinery is being set up.
The quantity of refined products would decrease with the expansion of the capacity at Sapugaskanda to 100,000 barrels/day. The cost of procuring Sri Lanka’s needs from the foreign owned refinery could be partially offset by the revenue generated from the lease of the land for say, 25 years, and from sources such as Port charges, rents from restored storage tanks, and other associated services. Furthermore, the cost of procuring refined products from such a Refinery would gradually decrease in proportion to the rate at which Sri Lanka accelerates its switch from fossil fuels to alternative technologies.
CONCLUSION
Notwithstanding all the shouting at Galle Face, and in other parts of the country, as well as abroad, with the call, “Gota Go Home”, the President cannot be removed constitutionally either through a No-Confidence Motion in Parliament or through a Resolution to Impeach, as explained above. Therefore, the only way for the President to be legitimately removed, is for a voluntary resignation. The fact that the protesters, their supporters and their backers failed to recognise this impediment before they started on their adventure, is disappointing for the generation that is supposed to represent the Future of Sri Lanka.
In the meantime, another section of society is patiently standing in lines to secure basic needs for survival. A section of this citizenry was affected by the policy relating to fertiliser adopted by the government. For them, there is hope that they would be able to restore their livelihoods with the government admitting that the policy while being commendable, failed in the implementation process; a realisation that has caused the government to revisit the manner in which the policy should have been implemented.
The rest of the Sri Lankan population is seriously affected by an inability to secure sufficient energy needs to continue with their livelihoods. This situation is unlikely to improve if the government continues to supplement its energy needs piecemeal, depending on lines of credit. The government needs to seriously engage with a willing party to address its immediate needs as an interim measure, not forgetting its long-term vision and its global commitments to phase out fossil fuels as a source of energy. The broad outlines of an interim arrangement are presented above for consideration. It is left to the government to seriously consider this or alternative interim arrangement, if the economy is to breathe again.
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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