Features
What the world expects of Biden
US re-entering the Paris Agreement on Climate Change:
By Dr Janaka Ratnasiri
At the outset, let me congratulate President-Elect (PE) Joe Biden and Vice President-Elect Kamala Harris (KH) on their historic win at the recent Presidential election. PE Biden made history by receiving the highest ever number of popular votes in any presidential election, while KH made history by being the first woman to be elected as the US Vice President, particularly with South Indian and West Indies parentage. It was reported in media that PE Biden had stated that one of the first initiatives he would take as President of USA would be to re-enter the Paris Agreement on Climate Change (PACC) from which the US withdrew after President Donald Trump assumed office in 2017. The purpose of this write-up is to highlight the implications of the US withdrawal from the PACC and its re-entry.
UN FRAMEWORK CONVENTION ON CLIMATE CHANGE
The nations adopted the UN Framework Convention on Climate Change (UNFCCC) at the UN Earth Summit held in Rio de Janeiro in 1992 to adopt collective measures to arrest the global warming caused by uncontrolled emission of greenhouse gases (GHG) and, thereby, avoid any long-term climate change having many adverse impacts globally. In the UNFCCC, countries are divided into three groups, the first numbering 36 as listed in Annex I to the UNFCCC document, comprising developed countries as well as countries with transition economies (mostly Eastern European countries), the second numbering 25 comprising developed countries as listed in Annex II and the third comprising developing countries referred to as Non-Annex I counties.
The division into Annex I and Non-Annex I Parties was based on the Parties’ per capita emissions rather than on the total emissions, which are high in Annex I Parties than in Non-Annex I Parties. The UNFCCC requires the Annex I Parties comprising developed countries to take the lead in combatting climate change and its adverse effects, and to reduce their emissions back to 1990 levels by the year 2000 through voluntary measures. Non-Annex I Parties comprising developing countries are required only to take climate change considerations into account, to the extent feasible, when formulating their social, economic and environmental policies, and employ measures with a view to mitigate or to adapt to climate change.
The UNFCCC also requires all parties to submit periodic national communications (NC) incorporating GHG inventories of sources and sinks, and description of measures taken towards mitigation and adaptation as well as information on training, research, capacity building and public awareness programmes on climate change. Annex I Parties are required to submit their NCs regularly while Non-Annex I Parties are required to submit their NCs as and when funds are made available for that purpose. Sri Lanka has submitted only two NCs so far, the Initial NC in 2000 and the second NC in 2011. The third NC is under preparation beginning 2016 and is expected to be finalized in 2020, for which the Global Environment Fund contributed USD 654,300 (UNDP Website). The Ministry of Environment is the National Focal Point for UNFCCC in Sri Lanka responsible for preparing the NCs.
KYOTO PROTOCOL ON CLIMATE CHANGE
With growing evidence of climate change coming from all parts of the globe by way of increased frequency of extreme climatic events such as floods, droughts, heavy storms; increasing rates of glacier melting; change of rainfall patterns and a significant increase in global average temperature in recent years, and recognizing that the commitment for developed countries to reduce their emission levels back to 1990 levels is insufficient, prompted the Parties to UNFCCC to adopt the Kyoto Protocol on Climate Change (KPCC) in 1997 which made it mandatory for Annex I Parties to reduce their GHG emissions to levels below their 1990 levels. Each country was assigned a specific reduction commitment to be achieved within the 5-year period of 2008-2012 below their 1990 levels of emissions, with an average reduction commitment of 5%.
During the 5-year period 2008-2012, many countries, particularly the European countries, were successful in reducing their emissions as required. It is noteworthy that several industrialized developing countries such as China, India and Brazil categorized as Non-Annex I Parties are exempted from any emission reduction commitments because they have low per capita emissions, while at the same time, they emit high overall amounts of GHGs. This was a thorny issue not acceptable to countries like USA, Canada and Japan who wanted these high emitting countries also to undertake reduction commitments, which countries like China and India vehemently opposed. This dispute resulted in these developed countries withdrawing from the KPCC.
COPENHAGEN ACCORD
At the 15th Conference of Parties (COP15) held in Copenhagen in 2009, UNFCCC was due to decide on the terms of extension of KPCC beyond 2012 and several proposals were in the agenda. Several developed countries including those in the European Union were willing to undertake enhanced reductions. A committee comprising Brazil, Russia, India, China and South Africa (BRICS) was appointed to work out the details and present its recommendations to the Plenary. They had almost finalized a scheme recommending enhanced mandatory commitments to be undertaken by developed countries during the 5-year period 2013-2017 by closing time of the last day of the conference.
However, at the 11th hour, in an unprecedented move, USA President Barack Obama barged into the closed room where the BRICS committee meeting was held and made an intervention, which no one else would dared to have done. He announced that USA would pledge to get developed countries to mobilize funds to the extent of USD 100 billion a year by 2020 to finance projects in developing countries that would reduce their emissions. Trusting President Obama’s word, both China and India changed their stance hitherto held and agreed to undertake voluntary reduction commitments.
President Obama took a step further and proposed that even the developed countries should undertake only voluntary emission reductions rather than mandatory reductions as decided by KPCC. Surprisingly, the BRICS committee agreed to this proposal without raising any objection. He emphasized that developed countries should be left to decide to what extent they should reduce carbon emissions without being prompted by the KPCC. It may be noted that Annex I Parties had collectively reduced GHG emissions from fossil fuel burning from 30,950 MtCO2Eq in 1990 to 25,647 MtCO2Eq in 2018, a 17.1% reduction, with 11 Parties non-complying (UNFCCC website).
The intervention made by President Obama was tabled at the Plenary where it was taken note of, but was incorporated into the COP15 report which said that “developed countries commit to a goal of mobilizing jointly USD 100 billion dollars a year by 2020 to address the needs of developing countries. This funding will come from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources of finance. A significant portion of such funding should flow through the Copenhagen Green Climate Fund (GCF) to be established”. This arrangement was referred to as the Copenhagen Accord (CA). It was further decided that the modality of implementation of this Accord should be completed by 2015.
PARIS AGREEMENT ON CLIMATE CHANGE
With the proposal made at COP15 in 2009, UNFCCC took 6 years of negotiations for a consensus to be reached on the modality of implementing the CA. Finally, a decision was made in this regard at COP21 held in Paris in 2015, resulting in the adoption of the Paris Agreement on Climate Change (PACC). This incorporated the mandate given in the CA for undertaking voluntary emission reductions applicable to all countries. Developing countries agreed for undertaking these commitments on the understanding that they would receive adequate financial assistance for implementing projects that would reduce their emissions. This was clearly evident from speeches made by Heads of States at the Paris conference including Sri Lanka’s.
The key aim of PACC is to strengthen the global response to the threat of climate change by keeping a global temperature rise within this century well below 2 degrees Celsius (C) above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5o C. To reach this goal, appropriate financial flows, a new technology framework and an enhanced capacity building framework are expected to be put in place, thus supporting action by developing countries, in line with their own national objectives.
During the COP21, many heads of states made pledges for providing finances during 2016-2020, totaling USD 48 billion. Among the key contributors are Japan (USD 10B), EU (USD 11B), UK (USD 8.7B), France (USD 6.6B), Italy (USD 4 B) and USA (USD 4B) (Ref: UNFCCC website). It is noteworthy that USA which spearhead the abolition of mandatory emission reductions by developed countries and getting developing countries on board with them on the promise of mobilizing USD 100 billion annually by 2020, pledged only a paltry USD 4 billion contributions up to 2020. However, according to UNFCCC website, the actual amount received from USA to date amounted to only USD 1 billion.
In addition, several multilateral banks operating in Asia, Africa and globally pledged finances up to USD 160 billion by 2020. In addition, the European Investment Bank provided €3 billion in climate finance to developing countries in 2018. To date, the GCF is supporting 143 projects in countries in Eastern Europe, Latin America, Africa and Asia-Pacific covering mitigation, adaptation and cross-cutting sectors, for which USD 21 billion has been allocated. However, the actual amount collected to date is only USD 10 billion (GCF Website).
WITHDRAWAL FROM PARIS AGREEMENT BY PRESIDENT DONALD TRUMP
President Donald Trump who assumed duties in January 1917 felt that the PACC is disadvantageous to USA bringing benefits to other countries at the expense of American tax payers. He said this in a press briefing held at the White House Rose Garden on 01.06.2017. He further said that Americans stand to lose over 2.5 million jobs by 2025, reduced wages, shuttered factories affecting the economy badly if USA stayed in the PACC. He also said that under the PACC, China and India will be allowed to build more coal power plants while USA is debarred from building any, and that USA’s vast energy resources will have to be kept under lock and key without being able to generate employment for people in exploiting these resources.
One assertion made by President Trump was that no one knows where the money collected from developed countries go to. The Green Climate Fund’s website lists exactly 143 projects that are underway in Non-Annex I countries. The total amounts for each are listed, along with the anticipated benefits. It is obvious that President Trump’s decision to withdraw from the PACC is based on misinformation which probably would have been provided by his advisers.
President Obama, on the other hand, said at the COP21 meeting where the PACC was adopted that USA had taken many initiatives to reduce carbon emissions including building many renewable energy projects such as wind and solar energy plants, adopting energy efficiency systems and introducing standards on power plant emissions and phasing out fossil fuel use, and that these activities have created a large number of new employment opportunities while at the same time keeping the environment clean.
Though President Trump wanted to withdraw from the PACC with immediate effect as announced at the press briefing held in June 2017, the official notification of withdrawal was submitted to the UNFCCC Secretariat only on 04.11.2019. As such, the withdrawal took effect only on 04.11.2020, as per PACC provisions. On this occasion, Chile, France, Italy, UK and UN Climate Change issued the following joint statement on 04.11.2020.
“On 12 December we will be celebrating the five-year anniversary of the Paris Agreement. We must ensure that it is implemented in full. We note with regret that the US withdrawal from the Paris Agreement has formally come into effect today. As we look towards COP26 in Glasgow, we remain committed to working with all US stakeholders and partners around the world to accelerate climate action, and with all signatories to ensure the full implementation of the Paris Agreement” (UNFCCC website).
PRESIDENT-ELECT JOE BIDEN’S DECISION TO RE-ENTER PARIS AGREEMENT
The international community would welcome the decision made by PE Biden to re-enter the Paris Agreement. He should be conscious of the fact that the entire group of developing countries gave their consent to undertake emission reductions placing trust on President Obama’s assurance that he would mobilize USD 100 billion annually up to 2020 to meet the costs incurred by them in undertaking projects that will reduce carbon emissions.
If this pledge is kept, by now there should be USD 500 billion collected in climate funds, but the amount collected so far does not come anywhere close to this figure as described before. With President Trump withdrawing from the PACC, all these developing countries who undertook commitments were left high and dry. PE Biden will therefore have to take off from where President Obama left for collecting funds for climate financing. To honour the pledge given by President Obama, PE Biden has an obligation to make a substantial contribution towards the climate fund from USA sources including the private sector.
Even within USA, emission reduction targets made by President Obama set in 2009 in Copenhagen, as announced in his speech made at COP21 meeting, that USA will reduce its carbon emissions in the range of 17 percent below 2005 levels by 2020 has not been kept. According to GHG emission data on fossil fuel burning posted in the UNFCCC website, the reduction between 2005 value of 7,392 MtCO2Eq and 2018 value of 6,676 MtCO2Eq (the latest available) is only 9.67% which is far below the target. Though he has set a new target of 26 – 28 % reduction below 2005 levels by 2025, it is unlikely this target would be met, unless PE Biden makes a concerted effort to enhance the emission reductions.
CONCLUSION
Biden’s decision to re-enter the PACC and continue its original financial commitments will certainly restore the confidence the developing countries had in the US as a leading partner in making the planet Earth a safe place for the future generations. People should be able to live without fear of adverse impacts of climate change such as flooding, land-slides, draughts and sea level rise inundating low-lying coastal habitats. These impacts are felt in all countries irrespective whether they are developed or developing, but the developing countries lack the adaptive capacity to meet the adverse impacts.
The international community looks forward to seeing Biden take initiatives to fulfill the commitments made by the US and expects him to meet these commitments pledged by President Obama in encourage the developing countries to undertake reduction commitments. The US could also demonstrate its commitment to prosperity of nations while ensuring rights of people to live in peace by removing unjust trade sanctions imposed on countries having different ideologies. Biden could bring about a change and make history.
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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