Features
Ukraine crisis and Sri Lanka, Security Implications
by Sarala Fernando
Before the present crisis engulfed Ukraine most Sri Lankans would have been hard pressed to find Ukraine on the map despite its huge territory and ancient civilization (603,628 km2 , making it the second largest country in Europe after Russia; the territory of modern Ukraine has been inhabited since 32,000 BC according to internet postings). It was the arrival of Ukrainian tourists as the first post-Covid visitors bringing welcome foreign currency that made the headlines in the Sri Lanka press in 2021, despite some scandal that they had also brought a new Covid strain to Sri Lanka. However today since the invasion of Ukraine, security implications override the economic benefits as thousands of Ukrainian and Russian tourists are stranded in Sri Lanka and unable to use even credit cards as international banks withdraw from dealings with Russia.
Yet, lest we forget, Sri Lanka’s relations with Ukraine go back to the time of the armed conflict when the Sri Lankan Airforce had depended heavily on its four Ukraine built AN32 B aircraft to maintain the lifeline with the Palaly complex as described by Dr Gamini Goonetilleke in his book In the Line of Duty on recollections of treating war casualties and armed forces personnel injured in battles in the north. Initially the four purchased aircraft had even been flown by Ukrainian pilots. As I recall one Ukrainian pilot lost his life in a crash. Just recently the remaining planes were refurbished in Ukraine factories and returned to Sri Lanka .
Most of the analysis in the Sri Lanka press and media has been on the economic impact of the Ukraine crisis, the rising oil prices, impact on our exports of tea and garments, impact on tourism, safe return of stranded Sri Lankans etc. Yet we should take cognizance that Russia’s objectives in the invasion of Ukraine are all security related, from dismembering its territory and altering its recognized borders, to its disarmament and neutrality and probably regime-change viz a puppet government to replace the present President elected by 70% of the popular vote. These demands are contrary to the fundamentals of international law and UN resolutions. Yet what has stirred the world to action to support Ukraine is the courage of ordinary people who are resisting the invasion by the aggressor military superpower. Ukraine’s dream of joining NATO is now probably dead as that security organization has firmly stated its goal is “containment”; it will not intervene and risk a larger European war. Did the West give President Zelensky false hopes of support? Several of the Sri Lankan commentaries underline the “hypocrisy” of the US, charging that the military super power had initiated much worse destructive foreign wars and NATO is also blamed for stretching too far east and ignoring Russian concerns.
Quite frequently these analysis refer to the notion of “Finlandization” and neutrality. Yet the thirst for freedom and the power to decide a state’s own strategic path runs deep. As a young foreign service officer sent to the Sri Lankan embassy in Washington D.C. in the late 1970’s, I remember being puzzled by the single line entries for Estonia, Latvia and Lithuania in the back of the American Diplomatic Directory. Much later, appointed as Sri Lanka’s Ambassador in Sweden covering also the Baltic States, I learned from those leaders how precarious had been their fight for independence from the Soviet Union and how grateful they were for steadfast American support during those long years of suppression. Ukraine’s resistance will reverberate in these states and others freed from the Soviet Union and now within the EU or NATO security umbrella.
Before Russia launched its invasion of Ukraine on Monday, February 21, some amateur analysts were speculating this was just a war of words between the US and Russia. However it seems on this occasion US intelligence has proved “unerringly accurate” on Russia’s plans to invade Ukraine. Moreover, those diplomatic watchers who had learned the lessons of history were worried all along as to Russia’s real intentions, given what had happened in segments of the former republics subsequent to their emergence as independent nations after the dissolution of the Soviet Union in 1991. Transnistria in Eastern Moldova, Abkhazia and South Ossetia in Northern Georgia and Artsakh in Southwestern Azerbaijan all have seen the rise of freedom movements among local Russian populations, resulting in these slivers of territory moving to depend on Russia for financial and arms support.
In Ukraine territory, Crimea was annexed by Russia without a shot being fired in 2014 and the adjoining People’s Republic of Donetsk and People’s Republic of Luhansk were recently proclaimed and recognized by Russia. These newly proclaimed Republics are much larger territories than the area controlled by separatists prior to Russia’s invasion . Now it seems now no one knows the size of the eventual territorial grab from present day Ukraine with Russia demanding in addition that Crimea be recognized as an integral part of Russia.
In sum, Russia is proclaiming its sphere of influence and what is happening in Ukraine is significant because for the first time, it is not just parts of territory but the whole of Ukraine which is under military threat by Russia. President Putin has claimed that Russia built Ukraine and therefore has rights of ownership. President Zelensky who was elected by 70% of popular vote by the Ukrainian people may be under threat of life yet continues to lead the unequal fight with courage in the face of a much superior military adversary. It is a lesson that we in Sri Lanka should learn as we grow more closely integrated in the present time of economic crisis with our Big Neighbour on supply of energy, use of Sri Lanka ports and even provision of essential foods and supplies. Will this result one day in a similar claim to what President Putin is now making, that Russia has historical claims, had “built” modern Ukraine and therefore had rights of ownership?
There is much speculation in the press as to why the rest of Western Europe had not immediately come to the assistance of Ukraine. The outward reason given is that Ukraine is not a member of either the EU or NATO. However the real reason may be that over the years, perhaps fooled by the thought that Russia could be persuaded to more liberal views, the era of globalization and economic integration has been proceeding apace such that Europe had become over- dependent on Russia for energy supplies and also for essential minerals. It is said that currently even more energy supplies than before the Russian invasion of Ukraine are being transported to Europe from Russia. However this state of affairs is about to change. Finally, in the face of the resistance by the Ukrainians, the West is acting, with economic sanctions against Russian leaders, Russian banks and significantly for the first time providing direct supplies of arms and missiles, even jets to Ukraine along with humanitarian aid. EU countries are increasing national defence expenditure in recognition that Russia is an aggressor nation and a re-set of European security architecture seems to be looming which may lead finally to that elusive European independent security force which has been pushed by France.
So the big question is whether Russia has miscalculated the costs of the invasion of Ukraine in the mistaken belief that Europe was sunk in apathy and NATO unable to act? The Russian propaganda spin based on unfounded charges of Nazism and genocide leveled against Ukraine’s Jewish President , seemed destined to bring along the Russian public. If however the provocation was aimed at Germany, it has not restrained that European powerhouse which has halted the certification of Nordstream 2 pipeline which would have brought Russian gas direct to Germany. Citing “the new reality” in Europe with the Russian invasion of Ukraine, Chancellor Olaf Scholz has also just announced that Germany is taking the first steps to rearming its military forces with major increases budgeted in national defence spending, overturning its pacifist policies after World War 11.
Germany’s depleted armed forces will receive a €100 billion increase in the defence budget and meet NATO’s spending target of 2two per cent of GDP while Germany will diversify its sources of energy supply. European countries, even the traditionally neutral Scandinavians like Sweden, are taking unprecedented steps in offering to send defensive military supplies, anti tank weapons and missiles to Ukraine. The supply of Stinger missiles to Ukraine brings back memories of the Afghanistan conflict and how Al Quaeda rebels were once trained to push back the superior Russian forces.
Some are asking why Western sanctions have been targeted at President Putin, Foreign Minister Lavrov and the oligarchs? It is tit for tat, in the same way the Russian leaders have targeted the Ukrainian President, trying to create conditions for regime-change by accusing him of being surrounded by “Nazis”. Finally the West appears to have realized that the real threat lies in the aggressive compulsions of the Russian leadership while the economic sanctions against the Russian banks will contribute to weakening their grip on power.
The larger question that the Ukraine crisis poses for Sri Lanka is whether any assessment has been made of the strategic calculations of our Big Neighbour and who are the backroom planners? For example, Sri Lanka has welcomed Indian politicians into its high circles and honored them at academic and other celebrations, yet how many here will acknowledge that at heart India’s leaders work together in support of what they perceive to be India’s national interests? For example, have we taken cognizance of the ramifications of the legal case one leading Indian politician is taking forward to make the whole of Adam’s Bridge a heritage site of India? If this is agreed in Indian courts, what will be the legal ramifications with regard to those islands on the Sri Lanka side which have come under Sri Lanka sovereignty since the bilateral maritime agreements signed in 1974 and 1976?
Is this astute politician counting on his Sri Lanka friends to leverage this quite blatant threat to Sri Lanka’s sovereignty and control of territory? How many in Sri Lanka have taken account of the chains of small islands around our mainland, an essential part of our territorial integrity and the need to protect these islands rather than to offer them for exploitation and sale to foreigners ? For years we have been unable even to reach understandings with India on the sustainable management of the Palk Straits. Surely, it is in the interests of both countries to ensure for example that bottom trawling does not kill off all the marine life in the Palk Straits and joint measures could be agreed between officials concerned with aquatic resources, on fleet size, volumes of catch, no-fishing during breeding seasons etc.
Between Russia and the former territories of the Soviet Union which are now independent states, there exists a similar situation to South Asia in the spill- over of ethnicities, leaving room for separatist movements to take shape with or without the direct intervention or surreptitious support of the Big Neighbour. Sri Lanka’s Jaffna has old historical roots, a proud independent heritage even before the creation of Tamil Nadu in modern day India. At one time prior to independence, Jaffna intellectuals claimed superiority over Madras although today that might be forgotten as Tamil Nadu emerges as an economic power house in India, attracting the largest portion of foreign investment into that country. A key question now in Sri Lanka is how the North’s relations with the rest of the country will develop in the post-conflict era and whether cooperation or conflict will prevail? Ukraine in the throes of the invasion crisis has appealed to the international courts and the UN and it has asked the EU take the extraordinary step of granting Ukraine emergency membership and protection. Whom will Sri Lanka turn to in the event of a crisis with the Big Neighbour?
However one thing we can be happy about and that is the urban renewal in Jaffna post- conflict, which, showcased along with the natural beauty of its white beaches , mangroves and palmyrah groves, makes it such a welcome place to live in and visit, in stark contrast to the environmental pollution and urban chaos in Chennai. But then, that is what people are lamenting today about Ukraine’s capital – they say that Kiev is a beautiful city – which is being bombed into submission. It seems these matters touching the people are of no consequence in the strategic calculations of the Big Powers. In Ukraine, the people are standing up for their values and freedom to chose their way of life despite the unbelievable cost of resistance in winter conditions, in human lives, displacement and destruction of critical infrastructure and buildings.
Sri Lanka’s official statement expresses deep concern about the recent “escalation of violence” in Ukraine , calling upon all parties concerned to exercise “maximum restraint” and work towards the “immediate cessation of hostilities” and to resolve the crisis through “diplomacy and sincere dialogue.” The Sri Lanka Foreign Secretary has been quoted as saying we want to be “neutral” – however this word has uneasy connotations now as Russia had sought guarantees from Ukraine of “neutrality” and has not hesitated to embark on military invasion for lack of such guarantee. For some of us who remember 1987, the “parippu drop” and subsequent signing of the Sri Lanka- India Accord which paved the way for the arrival of the IPKF, the present crisis in Ukraine recalls the vulnerability of small states situated near Big Powers and the difficulty of pursuing their dreams of independence.
Sri Lanka’s lukewarm diplomatic response today even its abstention in the UNGA resolution condemning Russia for its invasion of Ukraine, is understandable given the island’s current precarious economic situation. Yet how prudent is it to turn to Russia for loans today at a time when Western sanctions have been imposed on Russian banks and we may be targeted as a sanctions-breaker? Our shot-gun reactive diplomacy today is a far cry from the early days when Sri Lanka made a principled stand for Japan (in San Francisco), China (despite US congressional sanctions) and even Vietnam during its war with the US.
(Sarala Fernando, retired from the Foreign Ministry as Additional Secretary and her last Ambassadorial appointment was as Permanent Representative to the UN and International Organizations in Geneva . Her Ph.D was on India-Sri Lanka relations and she writes now on foreign policy, diplomacy and protection of heritage).
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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