Features
Using maths to combat COVID-19
‘The pandemic has now reached a level in which no human can make an optimal decision without the aid of a computer. Therefore, we need to start working on quantitative models to identify optimal decisions, instead of pointing fingers for not making proper decisions, when decision making is literally beyond the capacity of a human.’ – Senior Lecturer, Department of Mathematics, University of Colombo,
Dr. Anuradha Mahasinghe
by Sajitha Prematunge
What has math got to do with a pandemic? At the outset, it might seem the two are completely unrelated. One has only to observe that the number of infected in certain districts is higher than that of others and making informed decisions based on those numbers could mean the difference between stifling a cluster and a full-blown third wave. Senior Lecturer, Department of Mathematics, University of Colombo, Dr. Anuradha Mahasinghe knows only too well how important the numbers are in combating COVID-19. This is why, in June, he and his colleagues proposed an optimization model, aimed at minimizing the damage to the economy, while confining the COVID-19 incidence to a level endurable by the available healthcare capacity in the country, while their compartment model projected COVID-19 transmission. Their study investigated the effectiveness of the control process with the aid of epidemiological models.
Epidemiological models
Mahasinghe explained that an epidemiological model is a model that simulates and describes an epidemic. “Modelling is essential if you want to describe a phenomenon. From the spin of an electron to the rotation of the heavenly bodies, these phenomena are understood with the aid of models. It is the models that help us describe the changes in economies and fall of financial markets,” said Mahasinghe. And pandemics are no exception. He explained that an epidemiological model, based on a reasonable theory and supported by evidence, is a collection of entities and their operations, that when put together simulate and describe an epidemic, which provides important insights into the transmission of the disease.
But how does maths factor comes in when dealing with a pandemic such as COVID-19? Mahasinghe pointed out that math is inevitable whenever dealing with numbers or quantities. “Aren’t we really sensitive to numbers in this COVID era more than ever? Every person is anxious to know the numbers of reported cases and deaths.” One might say the numbers are governing us because decisions are also made based on these numbers. However, these numbers are only the smoke, warns Mahasinghe. “One should be able to make a better decision if he sees the fire. Therefore, to make the best decisions during the pandemic you have to look into a mathematical model that can best describe the phenomenon.”
Numbers may govern us but what governs the numbers? According to Mahasinghe, this can only be uncovered by a model that captures the quantitative aspects of the pandemic. “It’s what we call a mathematical model which provides us with an explanation to the occurrence of these numbers.” Such a model can also forecast how these numbers are going to change in the future.
But how credible are these models? Hopefully, they are nothing like the local weather forecast. “Such models are based upon very fundamental and well-accepted laws in nature such as energy conservation, which cannot be falsified,” reiterated Mahasinghe. “Such models are supported and validated by empirical evidence. People use such models very often to make decisions in industry to make profit. So, why not look into the numbers and the math behind them to make optimal decisions accordingly, in a pandemic scenario?”
Where we went wrong
When asked where Sri Lanka went wrong in attempting to contain the pandemic, Mahasinghe said, “I guess we didn’t see the fire, we only saw the smoke. More precisely, we didn’t pay enough attention to the transmission dynamics or to optimal decision making. We were able to make some good decisions in a qualitative sense, but I seriously doubt we had the insight to make quantitatively sound decisions.” He pointed out that even when the decisions were made, the outcome could not be predicted due to a lack of a mechanism to forecast.
When asked whether the authorities were too quick to lift the lockdown, Mahasinghe answered in the negative. “I don’t think it was too early. Lifting strict lockdowns was essential at that moment. We were struggling to achieve two conflicting goals; containing the disease and sustaining the economy. Stepping down from strict curfew to partial lockdowns is indeed a good decision in such a context.” But was it methodical? Was there a mechanism to decide on the nature of the partial lockdowns? Did we know how to optimally restrict mobility in order to achieve those conflicting goals? Did we know to what extent the lockdown of a district should be optimally eased? Did we estimate the potential increase in positive cases from a district when its lockdown would be relaxed? Did we know the magnitude of the economic loss caused by shutting down a region? These are questions Marasinghe believes that authorities should have paid attention to, when easing the lockdown.
“Lockdowns could have been relaxed with the aid of proper optimization models capable of providing answers to these questions.” He repeated that such models are used very often in industrial decision making and provide promising solutions. “You can’t bring the COVID incidence down to zero even with such models, but at least you know what’s going on and the effectiveness of a decision so the health sector can take relevant measures.
According to Mahasinghe, authorities have overlooked the significance of data. “Even now I don’t think enough attention is paid to data.” According to him, some important data were not gathered. For example, he pointed out that, despite Western Province residents being advised against crossing borders, some invariably did, as there were no strict rules against it. “There is no point in regretting the fact, but we could have counted the number of vehicles that crossed the borders and used it to estimate the impact on transmission.”
He explained that the entire country can be regarded as an epidemiological network, where the nodes are the cities and the interconnections are the roads. “There are elegant models in network theory to gain many insights into transmission through such a network.” He also noted another pertinent issue, that even if data were gathered, they were not used. “Much effort was made to gather and organize COVID related data such as incidence per region etc, and that is really commendable. However, have we used them; what were the insights we gained into transmission from them except for some trivial speculations?” questions Mahasinghe. He reiterated that such insights can only be gained through an extensive study that involves the collaboration between mathematicians, computer scientists, epidemiologists and economists. “The mathematician’s part alone includes exhaustive algorithmic development and computational modelling challenges,” explained Mahasinghe.
Criteria
When asked what factors were taken into consideration in their optimization model, Mahasinghe reminded that a delicate balance must be struck between two conflicting goals. “We need to find the optimal compromise between containing the disease and sustaining the economy. As a developing country, we can’t afford beyond a certain level of the control process, so budgetary constraints must be considered.” It is obvious that COVID-19 is transmitted through human mobility. He pointed out that, consequently, inter-regional travel plays a significant role. “On the other hand, transmission dynamics can be modelled to a certain extent by well-known compartment models. However, human mobility affects the compartments and the relevant model has to be moderated accordingly to reflect that reality.” The optimization model considers all factors, such as medical capacity to deal with the pandemic, economic concerns, transmission dynamics, regional contribution to the economy, and generates a lockdown relaxation strategy that keeps the level of incidence below a desired threshold, while minimizing damage to the economy.
However, Mahasinghe pointed out that this was a prototype and it can be made closer to reality by incorporating more constraints. “For instance, I haven’t considered the fact that most agricultural activities are done in the North Central province. But, if required, that too can be incorporated without difficulty.” According to him epidemiologists and economists can introduce more constraints to the optimization model, and the applied mathematician’s job is to overcome the computational challenges posed by incorporating them.
Relevant?
There is no point in closing the stable doors after the horse has bolted. Months after the lifting of the lockdown are such models even relevant? “The compartment model that captures the transmission of COVID-19 is still applicable, irrespective of any lockdowns, unless it is quite certain that there is absolutely no community transmission. I think we were in such a stage only at the very beginning of the first wave,” said Mahasinghe. According to him, the network-based model that captures human mobility is also applicable irrespective of lockdowns or any other preventive measures. In contrast to these, the optimization model is applicable in its existing form only when lockdowns are in force. “Having said that, this model may still be useful with some changes in the present context where small regions are isolated. For instance, a slightly changed variant of that model can determine which areas should undergo isolation. Moreover, it is possible to modify the optimization model further to be used in the process of making decisions on identifying the persons to be quarantined.”
Human mobility is a critical factor in the spread of a pandemic as well as any models targeted at managing such, how could a mathematical model factor this in? “Not only COVID-19 but even dengue is transmitted mainly due to human mobility. A mosquito doesn’t travel very far during its lifetime. Humans are more responsible for carrying diseases.” Mahasinghe pointed out that COVID-19 is not very different. “If you know the way humans move from place to place, and also know the level of incidence in each place, it is not that difficult to model how the disease is transmitted through humans.” He observed that most preventive measures are also focused on restricting human mobility, which he deemed commendable. “A mathematical model can prescribe the optimal way to restrict mobility.”
What are the implications of mobility? For example are people of certain districts more inclined to travel and therefore may contribute more to the spread of the disease and are such implications reflected in the numbers? “As long as the model is deterministic and you can overcome the computational challenges by necessary algorithm development, closed-form and conclusive solutions can be generated.” Mahasinghe implied that math helps to see the big picture. “Consequences of travel from the Western to other provinces is obvious. However, considering the transport network, Southern and North Western Provinces are also at high risk.” He observed that less attention has been paid to those regions. This begs the question, are the Southern and North Western provinces a time bomb waiting to go kaboom? He reiterated that special attention must be paid to regions that are relatively less danger, such as North Central, which contributes significantly to economic growth, as the Western province is not capable of contributing to the economy in its full capacity. “It is important to keep the incidence at a low level in such places.”
The study predicted that easing lockdown in the Western Province would have adverse repercussions. “As long as vehicles cross inter-provincial barriers, the disease is transmitted to those regions. But in what magnitude? We had access to certain transport data, so we knew to a certain extent how people would mobilise within the country. Also the epidemiological data were available. So we had enough inputs to be fed into our algorithm.” The results were appalling. In fact, this computer experimentation was done in the early days when Sri Lanka was hit by the first wave and there were no strict measures to curtail inter-provincial mobility. During the days in question, Mahasinghe ranked the provinces according to their vulnerability to COVID-19, using another model, by adopting some ideas from network theory. Recently, upon perusing a map that indicated the countrywide spread of the disease Mahasinghe came to realize that the ranking has been validated, eventually. “What I don’t understand is why we failed to foresee this.”
Mahasinghe and his team had access to certain transport data, such as the number of buses, trains and bus routes. However, his models were prototypes. To make the prediction more accurate they would need current transport data, such as the number of private vehicles crossing provincial borders. “There are a number of police barriers between borders, so a vehicle count would not be impossible. If health planners are willing to use that type of model, these could be extremely valuable datasets.”
Quantifying the qualitative
In their model they quantify the degree of social distancing. But can criteria so human in nature be quantified? Moreover, how can something as complex as a pandemic, with so many variables, human in nature, be simplified into ones and zeroes? Mahasinghe maintained that it is possible to estimate the degree of social distancing observed, if provided with sufficient data. “I understand that it sounds quite unrealistic. It is because we think of individuals.” Mahasinghe emphasised the importance of noting that they are not modelling an individual, but rather a population. “Though a population consists of individuals, the dynamics of the population is not merely the sum of the dynamics of an individual. When you single out a person, the behaviour of that person is surely very uncertain and unpredictable. Take two persons, they may have certain things in common, so it is not that unpredictable. If you take a thousand people, a lot of commonalities can be extracted and the situation becomes predictable now.” He explained that, therefore, it is possible to assign a value to the degree of distancing with the aid of necessary data.
“Interestingly, it is true that we mathematicians seek certainty in an uncertain world. However, an event that looks uncertain from one point of view looks certain from another.” The toss of a coin is a simple example. “If you toss a coin, the outcome of it being head or tail is widely believed to be uncertain. However, it is the lack of data that makes it uncertain. Suppose the initial speed, the weight, the angle of projection and such were provided, then the outcome may be predictable by basic equations of motion.” Mahasinghe emphasised that math does not guarantee elimination of uncertainty. “That is definitely not the direction the mathematical sciences are moving, specially with the recent developments in quantum physics and unconventional computing. However, where macroscopic events like pandemics or human behaviour are concerned, there are many certainties that we misinterpret under the cover of uncertainty due to our lack of knowledge, eventually missing an opportunity to gain crucial insights into the scenario.”
Mahasinghe pointed out that many decisions are binary in nature. Let alone policy decisions, many behavioural decisions are inherently binary. “For instance, you may decide whether to wear a mask or not. So the one-zero nature of the action is inherent and not artificially imposed by a mathematician.” He further explained that some non-binary decisions can still be quantified. “For instance, if you decide to wear the mask on three days and go unmasked on four days of the week, it can be quantified using numbers and interpreted using probability.” Mahasinghe elaborated that, with recent developments in non deterministic models, applied mathematicians do not hesitate to incorporate uncertainty. “Consequently, uncertainty is no longer immeasurable. It is possible to confine uncertainty of the solution within reasonable limits.
What next
With all the talk on vaccination, Mahasinghe emphasised the importance of developing two mathematical models prior to vaccination. The first is a compartment model that explains the post-vaccination dynamics of the disease. “This is pretty standard in mathematical epidemiology. The second, developing a model to capture the effects of the interactions between individuals and predict the outcomes, is subtler and challenging.” He explained that once a phase of vaccination is over, persons in society can be divided into two categories: vaccinated and unvaccinated. “Take a random encounter between two persons. What type of interaction would it be? Is it a vaccinated encountering another vaccinated, an unvaccinated encountering another unvaccinated or a vaccinated encountering an unvaccinated? Obviously, the consequences of these encounters are essentially different.”
The discipline of mathematics referred to as game theory is a promising tool in modelling this type of scenario and forecasting the outcomes. In addition, once vaccination commences, there will be the issue of free riding. Due to different reasons, some people in the high risk category will also choose to remain unvaccinated, eventually resulting in a significant number of potential free riders. Mahasinghe explained that this has already been addressed in the game theory in particular, under evolutionary games. “As a nation we can’t be content with an elementary formula for herd immunity. Instead, we need to develop and upgrade elegant vaccination strategies using compartment models and game theory.” Mahasinghe is of the view that, in this pre-vaccination phase, these two are the immediate concerns that need to be addressed by applied mathematicians.
Benefits
When asked what are the drawbacks of not using a mathematical model are and the benefits of using one, Mahasinghe pointed out that in a scenario of conflicting goals and monetary restrictions, it is impossible to make decisions without seeing where the optimal compromise is. “It is easy to put the blame on politicians and other policy makers for not making the right decisions, but how can a human make an optimal decision in this entangled web of parameters, conflicting goals and constraints? Plainly speaking, we need computers to generate the best decisions for us.” That’s indeed what the computers are intended to do primarily, according to Mahasinghe, although they are more frequently used to watch YouTube videos and log into Facebook!
But to perform the intended task using a computer, models and algorithms that can be read by the computer must be created. “That’s why you need to look into optimization, mathematical programming, computational modelling and game theory. This way, you may be able to keep the numbers within certain limits. Also, you can pre-assess a decision quantitatively. Our health workers and armed forces have already committed much and continue to do so and to receive the full benefit of their commitments, the willingness to switch from qualitative to quantitative methods, is essential.
When asked if such models are used successfully in other countries to counter the pandemic, Mahasinghe answered in the affirmative. Since the very beginning, an extensive mathematical modelling process has been done and that’s how the predictions were made. In fact, vaccination models had long been applied to control epidemics even in African countries. In Sri Lanka, there are many misconceptions about mathematical models.” Mahasinghe has observed certain non-mathematicians presenting elementary regressions, numerical approximations and statistical tests, erroneously referring to them as mathematical models.
“Perhaps that’s why some policy makers have lost faith in math. As mentioned earlier, a mathematical model is based on an unfalsifiable conservation law. It cannot be compared to a trivial curve fitting cakewalk. Our people get easily carried away by exotic words. People tend to admire words like machine learning, artificial intelligence and such, but how many are aware of the maths behind these words?” He observed that a closer examination of news reports on machine learning or AI being used in some country to counter the pandemic, would reveal that they are mathematical models and machine learning techniques are used due to the toughness of generating a closed-form solution. “Even to apply computational heuristics, the problem has to be formulated mathematically. Correct problem formulation is a major component of a so-called AI-powered decision.
Mahasinghe explained that the subject of operations research emerged in the new industrial era to enable industrial decision making using computers, as the number of industrial parameters exceeded human ability to process. “The pandemic has now reached this level so that no human can make an optimal decision without the aid of a computer. Therefore, we need to start working on quantitative models to identify optimal decisions, instead of pointing fingers for not making proper decisions, when decision making is literally beyond the capacity of a human.”
Features
The heart-friendly health minister
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
Features
A LOVING TRIBUTE TO JESUIT FR. ALOYSIUS PIERIS ON HIS 90th BIRTHDAY
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Features
A fairy tale, success or debacle
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )