Features
Unbridled eploitation of natural resources that belong to the nation
By Ashley de Vos
(Continued from yesterday)
Sri Lanka has exposed itself to unnecessary problems in the recent past. It permitted a foreign company to pump millions of cubic feet, YES, millions (150 acres or more x 25 feet or more) cubes of sand from within the immediate economic zone of Sri Lanka, to create an artificial island in the sea off the City of Colombo.
How much are the millions of cubes of sand worth? Has the contractor paid the nation and its people for the exploitation of this resource? Countries like the Maldives and Singapore pay for the sand and the metal (granite stones) imported for the concrete works in their buildings from Indonesia. Even sand-rich Dubai imports construction sand all the way from Australia. If this was the case in Sri Lanka, how much would the contractor have to pay for the sand? Shouldn’t there be a charge for the sand? If it has been paid, who benefitted from it? More additional sand will be required for the construction of the buildings envisaged on this artificial island; where is the sand coming from – the sea or land – and who pays for the resource?
These are some of the questions that should have been asked and solutions sought before embarking on such projects. The negotiators should always be experienced people, certainly not inexperienced individuals with no love for the country. This is a lacuna that the decimation of three generations of youth in the past has brought upon this country
Sri Lanka is known to be a generous country and its past survival was based on correct decisions. However, there is a limit to generosity, especially when it affects a sovereign country and its citizens.
One shudders to think of the thousands of granite hillsides and huge boulders that have been and will be systematically destroyed to provide the rubble and metal for the concrete required for the construction of the mega structures in Colombo and on the new island. Granite is not an infinite resource in Sri Lanka. Instead, will the requirement of granite aggregate be imported from Indonesia like what other countries have done and continue to do? Are destroying one country to create another? We saw this effect in a different area when in the 1960s and 70s perfectly good old buildings were cannibalised for building parts to satisfy an unsustainable fashionable indulgence in the construction of more contemporary buildings.
As an artistic people, we have given every rock outcrop a name: Nandhagala, Ethagale, Gommatta gala, Bellumgala and so on. After these boulders and rock outcrops are all destroyed in our copy-cat concept of unsustainable development, disregarding whether it is suitable or not, would it be the time for Sigiriya? After all, in this greed-driven economy, it is money that matters. History and culture have no place.
Development is seen only in terms of short-term benefits; if you have a resource it must be exploited to collect its immediate monetary value. A very western thought concept as opposed to the lateral thinking of the past, regardless of other important cultural, historical, archaeological, environmental values that define the cultural matrix.
When the Yoda Ela was built, the kings responsible had a vision which allowed rain water falling on the Eppawela phosphate deposit to flow into the Ela. This minimal fertiliser addition was systematically transported in the water flowing along the canal to the fields in Anuradhapura. No unnecessary destruction of the resource, no transportation costs, only the celebration of a uniquely sustainable and viable vision. Are there such brains, today?
The fact that there was no holistic long-term vision available in any of the agencies responsible is seen in the very confused development concept for Colombo and the rest of the country. Here each agency works in a dictatorial fashion as though only it mattered. Shouldn’t there be a holistic vision, as each effects the other? This requires humility, not arrogance. If the agencies even at this late stage, refuse to come down from their high horses and work as a team, there will be no future worth talking of.
Tourism should not take precedence over health. The health of a nation could be more beneficial than the short-term benefits from tourism. Large scale agricultural development destroys the water shed urgently required by the surrounding village. The quarrying for granite destroys the water table in the immediate village. Most wells go dry.
The new artificial island off the Colombo City would have had some meaning and sense if it had been developed with all future development concentrated on it. At present there is no opportunity cost. All development that is out of human scale should have been moved to the artificial island and Colombo left in its pristine state. But then where is the clear holistic vision for development?
Today, there is a bifurcated Colombo, requiring emergency surgery in infrastructure requirements with as usual, preference being given to areas with political clout. It is trying to imitate, copy and compete with what other cities with diverse and more efficient and vibrant economies are trying to achieve. What is the real need for this unsustainable development in Colombo: is it our inferiority complex getting the better of us?
If the new artificial island built with our sand is so important, there are many unanswered questions that need to be answered. There are many projects around Sri Lanka and in the Maldives, in isolated locations; they are totally self-contained where power, water, disposal of garbage and other services are concerned.
a. On this new artificial island, what happens to the garbage generated there? It cannot be brought back to land or disposed in the ocean. How will it be disposed of?
b. Where is the fresh water requirement coming from? It should be generated within the artificial island through an RO process.
c. How is power requirement being generated? Generators, solar and storage batteries? It should not come off the Sri Lankan national grid.
d. Where are construction material like sand and rubble coming from?
e. What is the pattern for a sustainable traffic movement in and out of the area? It should not interfere with normal traffic flow.
f. Wouldn’t there be any competition with existing traffic flow?
g. There should not be more flyovers destroying the old inner city and some of the important buildings within it. What is happening near the Kelaniya Bridge? It unbelievably ugly, and how sustainable is it? What is the lifespan of such a construction?
h. The draining of and the free flow of the excess rain water from the Beira has been disturbed. The lack of a proper drainage system to the ocean will increase the level of the existing water table of the surrounding ground leading to forced ingress of water into many of the basements of the present buildings.
i. There is one Beira outlet facing the south west monsoon, how viable is it? Sand accretion builds up and sea currents may obstruct free movement of water. This is a phenomenon observed in many of the river outlets along the west coast during the monsoon.
j. Is there a proposal for the sand bank that may collect to the south of the artificial island? Over time, there is a possibility of sand driven by natural forces collecting south of the island as another artificial piece of land. Is there a proposal? Who will own it?
k. Will there be any restitution of the coral reefs and nurseries for fish spawn destroyed during the pumping of sand that churned up millions of tons of mud and silt from the ocean floor? A destructive process. What are the institutions that documented or were engaged in the original research prior to the commencement of the pumping of sand?
l. Were there historical ships (now belonging to the Department of Archaeology) that were destroyed in the process of pumping sand; what method was adapted to document and or conserve them?
m. Has there been any study by way of a long-term investigation with focus on future development of new sea currents and their effect on the seascape and the beaches of the land mass to the north of the new island?
n. How will this artificial island, protruding a couple of miles or more into the sea, impact Muthurajawela and Negombo? What will support a landscape that is extremely fragile, with marshes and mangroves that could be easily destroyed if the sea decides to come in. We use the word ‘decides’, as no one can safely predict the mind and action of the ocean over time.
o. What is the possible damage to the traditional fisheries and the livelihoods of the fishermen on the North-Western coast?
p. Were the citizens of the country ever consulted on the building of this artificial sand island?
q. Is it possible to prevent smuggling and other unwanted activities taking place there?
There is an interesting aspect of the new island, which has been missed up to now. A small section of it has been designated as being developed by Sri Lanka. Where is this section located? The infrastructure requirements for this section of land would have to be provided by Sri Lanka. Once Sri Lanka is involved in the project, there is no way out. This is a Chinese checkmate move to get Sri Lanka to provide all the requirements listed above for the project. This should be rejected at all costs, even if we have to forego the generous carrot offered by the Chinese in the form of a section of the artificial island as belonging to Sri Lanka. But do our ‘expert’ negotiators see the writing on the wall?
All infrastructure on the artificial island should be self-contained and pollution free and should not affect or be a burden on Sri Lanka and the citizens of Sri Lanka. All regulations and other statutory enactments being proposed and even legislated should be very clear on this.
The old city of Colombo, in spite of being a British creation, has greater significance for Sri Lanka especially on the intimate human scale, than the new island city outside, which is not visually subservient to the old city. But then we don’t have a holistic vision, do we? (Concluded)
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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