Features
Washington manoeuvring to install federalism in Sri Lanka
by Daya Gamage
President Ranil Wickremesinghe is currently endeavouring to implement the 13th Amendment of the Constitution, which could lead to the establishment of a federal structure, much to the delight of Washington policymakers.
US policy towards Sri Lanka’s ethnic conflict has long been guided by the comforting notion that Tamil self-government within a decentralised Sri Lankan state would satisfy the legitimate needs of that minority community and shield it from ‘Sinhalese oppression’.
Washington policymakers projected onto Sri Lanka their panacea for ethnic discord—federalism—without prescribing mechanisms to protect democracy in devolved jurisdictions and prevent them from being used as bases for renewed militancy.
Washington – advocating federalism since the early 1980s – concealed the fact that federalism can perpetuate inequality and inconsistent legal protections across the country. Most notoriously, U.S. federalism sanctioned systems of law and law enforcement that protected slavery, racial segregation, and minority disenfranchisement for nearly two centuries. Federalism also contributed to a separatist civil war that killed 750,000 combatants plus an estimated 50,000 civilians. The U.S. Civil War became inevitable when the federal government insisted that preserving the Union took priority over Southern states’ right to continue practicing slavery and that separatism was not a right under the political contract that created the nation.
Sri Lanka never engaged in a debate within itself to find out that in the US the sharing of governmental authority between the centre and the states still poses serious problems. In recent years, for example, more than a dozen Republican-led states refused to expand Medicaid under the Affordable Care Act, denying health-care coverage to many low- income families. During the Covid-19 pandemic, the national public health response was hobbled by disjointed and sometimes counterproductive policies followed by state governments, costing tens of thousands of avoidable deaths. Much to the detriment of American democracy, in the wake of the 2020 presidential election, some state governments devised policies to constrain voting and even to override the popular vote. Such abuses have led some scholars to conclude that American federalism is dysfunctional. And, those in Sri Lanka who advocate federal structure need to comprehend these factors.
Activating the 13th Amendment fully and devolution of power seems to have returned to the national agenda with President Wickremesinghe taking a lead role. He undertook a similar endeavour as the prime minister in 2001-2004 during the Bush Administration with its Secretary of State Gen. Colin Powell and his deputy Richard Armitage playing a significant role during the Norwegian-initiated peace talks.
Washington believed that the Tamil community (accounting for 12% of the Sri Lankan population) had fewer economic and employment opportunities when compared to the ‘advantaged’ 74% Sinhalese majority and it would benefit from a federal system.
Washington policymakers arrived at this determination way back in the 1980s, long before the signing of the infamous Indo-Sri Lanka Accord. That determination governed the mindset of the policymakers and lawmakers in the U.S. through 2009 and to date.
Classified 1984/1986 US Documents Advocating Federalism
In June 1984, the Directorate of Intelligence (CIA) and the State Department’s Near East and South Asia Bureau (NEA) jointly prepared a document called ‘Failure to Share Political Power with Minority Groups’. Declaring President Jayewardene’s commitment to his Sinhalese-Buddhist constituency at the height of the July 1983 communal riots, it said “by the general election of 1956 Sinhalese-dominated parties had gained control of the government and driven the small Tamil parties out of the mainstream political life.”
Another document dated September 02, 1986 and authored jointly by the CIA and the NEA noted that ‘northern insurgency’ had politicised Sri Lanka’s Sinhalese and Tamil communities. The ethnic rivalry is at the heart of the conflict, the document says, adding that the Tamils believe – with some adjustments – they need some devolution of power to their districts and that they are victims of political and economic discrimination, suggesting that Washington refrain from providing military assistance to the Sri Lanka administration, as it noted even in another document that Washington shouldn’t get involved in a battle between two ethnic communities.
These three documents laid the foundation for the subsequent structure of Washington’s foreign policy toward Sri Lanka all the way until the end of the separatist Eelam War IV in May 2009 and well beyond.
Washington sentiments
Washington sentiments were amply reflected in this 1984 (once) classified document. This June 1984 document had the most revealing sentiments that played a major role in subsequent years during Washington’s intervention in Sri Lanka’s national issues, one of which was the proposal for a federal system in Sri Lanka solely and exclusively focusing on minority Tamil issues.
Washington’s initial (1984) understanding was that a federal structure would extensively satisfy the Tamil demands. The document states, “Tamil demands probably would be satisfied by a federal structure that would guarantee Tamils control over security and economic development where they comprise the majority of the population”. This belief was notably expressed by State Department Foreign Service Officers (FSOs) at frequent intervals in subsequent years when Washington intervened in Sri Lankan national affairs; in keeping with this agenda the USAID in 2005, with active participation of top officials of the US Embassy in Colombo, continuously for three months, convened nationwide public seminars with the assistance of civil society groups underscoring the merits of federalism.
The June 1984 classified ‘intelligence assessment’ expressed fear that if Washington was seen associating with a regime that battles a minority group it could “damage the U.S. prestige in the region and in parts of the Third World and that highly politicised Tamil minority in Sri Lanka might even turn to the Soviet Union for support.” (It is with this rationale that Washington deeply engaged during the 2002-2004 peace talks that it believed could bring favourable acceptance in the international community). In 2023, President Wickremasinghe seems to be bringing back the scenario to which he was engaged in as prime minister in advocating the implementation of the 13th Amendment.
The June 1984 ‘Intelligence Assessment’ further declares “Tamil demands probably would be satisfied by a federal structure that would guarantee Tamils control over security and economic development where they comprise the majority of the population” – meaning the North-East region of Sri Lanka.
The document opined that Washington believed “the Tamils have become convinced that they should have an autonomous homeland with economic and security control.”
What the June 1984 document says about the United States refusal to extend military assistance to the (American-friendly) Jayewardene regime’s request to combat the LTTE terrorism and its total blocking of the supply of military gear to the subsequent Rajapaksa regime during (2006-2009) its military offensive against the separatist movement led to Washington’s strict belief that such military equipment could be used for “repressive measures against the Tamils.”, and that other avenues need to be found such as devolution of power and setting up a federal structure.
The following are from ‘Sri Lanka: The Challenge of Communal Violence’, a joint intelligence assessment by the Directorate of Intelligence (CIA) Office of Near Eastern and South Asia Bureau of the State Department. June 1984 Secret document subsequently declassified:
1. President Jayewardene’s failure to deal with the demands of Sri Lanka’s Tamil minority – 18 percent of the population – has brought the Tamils to the brink of open insurrection. In our judgment, Jayewardene, through his political maneuvering since his election in 1977, has contributed to the deterioration of communal relations by failing to share political power with minority groups
2. Tamil demands probably would be satisfied by a federal structure that would guarantee Tamils control over security and economic development where they comprise the majority of the population.
3. The Tamils, according to Embassy and scholarly reports, have become convinced that they should have both an autonomous homeland and control over security forces and access to more economic development projects.
4. We believe the frustrations of the last year have convinced even moderate Tamils they must press for a separate homeland with the hope of achieving at least a federal relationship with Colombo.
Subsequent US Manipulation for a Federal System
In early 2012, under the auspices of the Office of the Under Secretary-General of the United Nations (Political Affairs) B. Lynn Pascoe, attended by many professionals that included President Barack Obama’s close confidante and information czar Prof. Cass Sustein and his wife Dr. Samantha Power, the U.S. President’s human rights-war crimes-genocide crusader in the National Security Council, to start a process of restructuring several developing Third World nations’ constitutional arrangements to promulgate federalism as an answer to ethnic minority grievances.
The Under-Secretary-General (Political) B. Lynn Pascoe was a retired career diplomat from the US State Department.
Since the early 2012-process commenced a number of closed-door meetings and seminars at which the partition of UN member states has been discussed. Most of the meetings have been held under the direction of the UN Interagency Framework for Coordination on Preventive Action (the Framework Team or FT). The control of the FT fell into the domain of the under-secretary-general of Political Affairs Jeffrey Feltman, who took over from Pascoe in June 2012.The UN slot in the Department of Political Affairs, for decades, has always been assigned to a retired American Foreign Service officer (FSO), and it is the second most influential position next to the Secretary-General.
When a former American FSO occupies the Number Two slot of the UN, the State Department has extensive leverage over the operation of the United Nations, and it has been seen that both branches – the Department of Political Affairs and the US State Department – work together to achieve common objectives. As much as the state department and its representative – US ambassador to UN- maintain jurisdiction over the Human Rights Commission in Geneva under internal UN arrangement, during this period, the Under-Secretary (Political) Jeffrey Feltman oversaw the functioning of UNHRC.
When the process commenced in 2012, Sri Lanka, apart from Nepal, was also a target for the identity federalism engineers. To promote a ‘serious devolution to the peripheral regions’ – whether one calls it federal structure or otherwise – Dr. Samantha Power, who initially attended the Framework Team in early 2012 with the UN Department of Political Affairs, travelled to Sri Lanka in November 2015. UN Under-Secretary-General (Political) Jeffrey Feltman travelled to Sri Lanka for talks in July 2017, during the Sirisena-Wickremesinghe administration.
Illegality of the Indo-Lanka Accord and 13th Amendment
First, there is a reasonable argument to be made that the bilateral accord – the Indo-Sri Lanka Accord of 1987 – that mandated the devolutionary restructuring of the Sri Lankan government was illegal from the very inception.
But the 13th Amendment was imposed on the country under duress rather than being legislated through democratic debate.
What is less debatable is that the Indian airdrop and intimidatory diplomatic communications from New Delhi to Colombo prior to the IPKF were violative of at least the spirit of Article 2(4) of the United Nations Charter. That UN Article enjoins all member states to “refrain in their international relations from the threat or use of force against the territorial integrity or political independence of any State.” Both the Security Council and the General Assembly have adopted numerous resolutions that contain implicit or explicit references to Article 2(4), condemning, deploring or expressing concern about acts of aggression or the launching of armed intervention. A number of resolutions have included calls for withdrawing troops from foreign territories.
In addition, Article 51 of the Vienna Convention on the Law of Treaties states that an “expression of a state’s consent to be bound by [a] treaty which has been procured by coercion of its representative through acts or threats directed against him shall be without legal effect.” Similarly, Article 52 of the same Convention provides that “a treaty is void if its conclusion has been procured by the threat or use of force in violation of the principles of international law embodied in the Charter of the United Nations.”
Some Indian commentators have argued that Sri Lanka cannot withdraw from the 1987 Accord—and by extension the Amendment—by reason of the Vienna Convention because neither Sri Lanka nor India are signatories to the Convention. The United States has never ratified the Vienna Convention, but its Department of State as early as 1971 acknowledged that the Convention constituted “the authoritative guide to current treaty law and practice,” even for non-parties. Despite being a non-signatory, the U.S. Government has frequently brought cases before the International Court of Justice (ICJ) based on alleged violations of the Vienna Convention. In short, neither India nor the USG has standing under international law to press Sri Lanka to honour commitments imposed on it illegally.
The Thirteenth Amendment was enacted in the Sri Lanka Constitution as a result of this illegal Indo-Sri Lanka Accord of 1987.
What has been outlined above is that Washington policymakers and lawmakers endeavoured from early 1980s to impose a federal structure on Sri Lanka, and current Ranil Wickremesinghe presidency is succumbing to US pressure. Further, Sri Lankan lawmakers need to be apprised of the illegal entry of the 1987 Indo-Lanka Accord and its by-product the 13th Amendment.
(The writer is a retired Foreign Service National Political Specialist of the U.S. Department
of State once accredited to the Political Section of the American Embassy in Colombo)
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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