Features
What to do with Mattala Rajapaksa International Airport?
By GUWAN SEEYA
First, there was the China Bay airport nominated as a possible alternative to the Bandaranaike International Airport (BIA). The advantage was that since Sri Lanka was mainly affected by two Monsoons namely the South West and the North East, during that time the opposite coast has generally had good weather. For example, when the South-West monsoon was in full swing, the North-East was clear, and vice versa. The Air Ceylon Pilots’ Guild was pushing for that airport to be made an Alternative International Airport for BIA, but their request came too late as the Sri Lanka Air Force (SLAF) in its wisdom had stated that they had no objection to tall silos to be built for the Prima Flour Mill, on the takeoff and landing path of the single runway.
Soon another place was suggested and that was somewhere near Nilaveli, 20 miles north of Trincomalee. In the 1970s, Nilaveli was developing fast into a tourist area. This idea too was dropped, perhaps due to the LTTE problems brewing up. The need for an alternate international airport in the island was felt necessary as all aircraft landing at BIA were required by the Ceylon Air Navigation Regulations (ANRs) to carry fuel for Madras (the nearest alternative international airport to BIA,
that could accept large jets) plus fuel for another half an hour. If a second International Airport was established in Sri Lanka, airlines operating to BIA could arrive with less fuel. The problem was that all aircraft ‘burn fuel to carry fuel’. For example, if an aircraft needed to have 10,000 kilos of fuel when overhead BIA, the crew will have to uplift 12,000 kg at the point of departure! (Depending on the flying time). Therefore, carrying less fuel was a saving.
With the operation of the Lockheed L 1011 TriStars in the Airline, Air Lanka got involved with Air Canada on operational procedures. In the Canadian Operations Manual it was stated that it was not necessary to always have fuel onboard to a designated alternate airport and it permitted the Captain to arrive at the destination with a lesser amount of fuel, provided the destination airport predicted good weather and had at least two runways.
The theory behind the thinking was that even if one runway becomes unusable due to some reason, a second runway was available, as a backup for the landing. Interestingly, even today, when a new airline requests permission from the Civil Aviation Authority of Sri Lanka (CAASL) to operate to BIA, they have to show that they are capable of removing any disabled aircraft as soon as possible, so as not to obstruct and leave the single runway unserviceable for an unnecessarily long time.
The Air Navigation Regulations of the developed countries were all updated with the advance of aviation, while in contrast, Sri Lanka was still using ANRs promulgated in 1955! Unfortunately, even though the Aviation Act was amended in 2014, the supplementary regulations in force are still the 1955 version. But that’s another story. Getting back to our story, in the early eighties, it was felt that the original concrete runway built by the Canadians was now getting too old and a new runway should be built at BIA with Japanese aid. The plan was that the new runway was going to be parallel to and north of the existing one which will be converted (narrowed down) to a taxiway.
It was then that the Air Line Pilots’ Guild of Sri Lanka got activated and approached General S.Attygalle and requested him to retain the old runway as a second runway, so that the concept of carrying extra fuel during times of good weather, was not necessary. Even an International Civil Aviation Organization (ICAO) expert was called in. He declared that the new tall Air Traffic Control Tower that had already been built was too close to the old runway, making its use illegal. On the other hand, what the Airline pilots wanted was a runway that needed to be used as a ‘one off’ case, in case of an emergency and not on a regular basis. However, the plan fell through. They were back to square one.
The next possible place suggested for an alternative was Hingurakgoda Airport. There was Australian financial aid in the offing. There was a very good possibility of becoming a reality. In fact, Singapore Airlines constructed Boeing 747 performance charts for the proposed runway! However, some decision makers thought that the estimated costs were too high and based on Australian labour rates. Other critics said that the same weather affecting BIA will also affect the Hingurakgoda site. Eventually, that idea too was dropped.
Then the SLAF decided to move its Jet fighter Base to Sigiriya Airport which, after extension, could have also accepted big passenger jets diverting from BIA, due to bad weather or runway unserviceability. The Archeology Department objected to that move as noise and vibration produced by the jet exhaust noise will affect the Sigiriya Rock. At this point the then President Chandrika gave the exclusive use of an SLAF, Bell 412 helicopter to the Director General of Archeology Dr. Roland Silva and Chairman Urban Development Authority, Eng. Gemunu Silva, for two weeks to travel the length and breadth of the Island looking for a suitable site for an Alternate International Airport for BIA. In fact, they found a suitable site (250 Hectares, within the triangle of Kekirawa, Dambulla and Habarana) that consisted mainly of crown land needing no major acquisition from the farmers. A report was submitted to the then President. Sadly, it never saw the light of day. (Money down the drain?)
The Second Runway at BIA
Meanwhile, many experts thought that the best option was to construct a second runway at BIA. I am told that the International Air Transport Association (IATA) and Dayantha Athulathmudali, a former Deputy Director of CAASL, did an extensive study. The Attanagalu Oya, relocating the SLAF Base, the effect on the Free Trade Zone (FTZ) and how the presence of a number of churches and temples in the area may be affected were considerations. The question was whether the new, second Runway would be North or South of the existing one (built with Japanese aid.)
Going Down South
It was then that suddenly a decision was made to go south to the Hambantota District, on the instruction of the then Secretary to Ports and Civil Aviation. Initially, three possible sites were identified. They were Udamaththala, Gannoruwa and Weerawilla. In 2007, an Environmental Impact Assessment (EIA) was done at the behest of the ‘Project Proponent’ Airport and Aviation Services (Sri Lanka) Ltd, on behalf of the ‘Project Approving Agency’, Central Environmental Authority (CEA), by the Central Engineering Consultancy Bureau (CECB). The Report surmised that since there was an Airport already in existence at Weerawilla that, it that was the most cost-effective place to site the 2nd International Airport. According to the report, it was the most preferred site from all three options. Weerawilla was constructed by the Department of Civil Aviation, with the assistance of Banduladasa, a private pilot and the son of ‘Reliable Mudalali’ owner of Reliable Motors of Tissamaharama. That’s another story!
When the government announced that the 2nd International Airport was to be built at Weerawila, many aviation ‘experts’ wrote to the newspapers that priorities were mixed up and that the best option was to build a second runway at BIA and someone even said that Weerawilla was “One of the best examples of an ill-conceived project and chronic waste of tax-payers’ money.” The same sentiments were expressed in 1975, of the Mirabel Airport in Montreal, Canada which was meant to be the largest airport in the world and built to coincide with the summer Olympics of 1976, in Canada. After being built, it existed in a state of disuse for 27 years.
Mirabel Airport Montreal, Quebec, Canada
There were many experts who thought that the Weerawila International Airport will go the same way. When the farmers discovered that the Government preferred site was Weerawila airport and that their paddy lands would have to be acquired, their organizations resorted to legal action and the government then was forced to go to the second preference, clearing 800 hectares (almost 2,000 acres) of elephant habitat by cutting 44,000 hardwood trees, and it was just 13 km away from the original Weerawilla site. It was common knowledge that this site was in the middle of an elephant corridor. No one spoke up.
The Chairman of the Central Environmental Authority (CEA), Sri Lanka has gone on record saying “Since there was no objection from any stakeholders, we gave permission to the Mattala project. I refute the allegations leveled against this institution by the Environmentalists. Those allegations are made to mislead the people.” He could have read the whole story in his own CEA Library (Report 98).
The Mattala airport project started in 2009. Sadly, the Airline Pilots, being the end users, were not even consulted. No wind studies in the new site were done. (The International Civil Aviation Organization recommendations are that there has to be a wind study for at least five years with readings taken at least eight times daily at frequent intervals.) The flight conditions in the area in terms of turbulence must also be studied, as recommended by Annex 14 to the ICAO Convention. The officers of CAASL didn’t even know or didn’t care to find out the relative location of the Bundala Bird Sanctuary, Yala Sanctuary and the proposed site.
They didn’t even possess a detailed map! (Yours truly donated a 1: 50,000 map of the area to the CAASL) In March 2007, the Sri Lanka Aeronautical Society (SLAeS) was formed, to be a ‘think tank’ on aviation matters. All aspects of Aviation came under its purview. When the first President of the SLAeS, who was an Airline Captain not working in Sri Lanka, pointed out the embarrassing truth that Mattala was going to be a bad investment and that it was SLAeS’ duty to make it known, it was not received well by the ‘yes men’ of the CAASL, and a parallel Association was formed to take over some of the functions of the SLAeS to deliberately wind down the SLAeS which then died an unnatural death because the ‘Mattala Project’ had to go through at all costs.
Everyone, including the officers of CAASL were afraid to speak up. So much so that the Aviation Minister declared in 2017 to the members of the CAASL “Ogollo apata kewwe na” (You never told us!). There were many other acts of omission. In fairness to CAASL in 2007, its Management was in a fluid state. The CAASL Chairman’s contract wasn’t renewed and the Director General had taken a leave of absence from CAASL as he had had a difference of opinion with the then Chairman of Mihin Lanka. The officials managing the show were all in ‘acting positions’.
Today, there are days that the air is extremely turbulent on the final approach and it is a struggle even for the big Jet Pilots to fly in there. There have been some days when it is so turbulent that lighter aircraft are unable to land. Ironically, today the very same farming organizations which took out an ‘interim injunction’ on the development of the Weerawila airport are affected by the displaced elephants from Mattala. To add insult to injury, trees at the Sooriyawewa Cricket Grounds were also cleared in the name of progress.
That again is in neglect. Director, Environment Conservation Trust, Sajeewa Chamikara is reported to have said, “All attempts to educate the Aviation Ministry of the consequences that have to be faced in future when plans were drawn to construct an international airport at Mattala were ignored. Since this area is populated with migrant birds throughout the year, we told the government to shift the location to a place with less vulnerability, but their failure to listen to us has now brought several consequences,” (as reported by Nirmala Kannangara of the Sunday Leader). During the run up to the project, many frontline professionals also wrote about the dire consequences the aircraft, passengers and crew will have to face in the event of bird strikes.
After building a new airport, the authorities have to continuously maintain it at great expense. It has to meet high safety standards in inspection, servicing, overhaul and repair. Otherwise time will take its toll. Some of the areas that this will apply pertains to maintenance of visual aids, provision of spare parts, providing and implementing a ‘Lights Maintenance Schedule’ for general and basic maintenance for Approach, Runway and Taxiway lighting systems. Aircraft docking systems including light maintenance procedures, cleaning procedures for lights, light intensity measurements, lamp replacement, removal of water (condensation).
Maintaining signs and markings. (Just to paint the Centre line only on the runway over 1,000 gallons of white paint are needed!) Continuous maintenance of Airport Electrical Systems is another area, power cables and distributors in field, transformers and regulators (including standby units), transformer stations for electric power supply relay and switch cabinets (including switch cabinets in substations), control cables, monitoring units, control desk, secondary power supplies (generators), fixed 400 Hz ground power supplies and apron floodlighting. Maintenance of Pavements such as surface repair, cement concrete pavements, bituminous pavements, Repair of joints and cracks.
That is, joints in concrete pavements, joints in bituminous pavements, cracks in concrete pavements and cracks in bituminous pavements. Maintenance of grass and unpaved areas. Maintenance of all buildings inclusive of lighting and electric equipment, communication facilities, air conditioning system, automatic doors, baggage conveyor belts (fixed installations), baggage claim units, passenger boarding bridges, people lifts (elevators), people movers (escalators, etc.), Fixed fire protection installations and logistics of holding of regular safety department meetings. The list goes on.
If the authorities had built a second runway at BIA, there was little or no advantage in having a second International Airport in the island as there are only two or three days per year, when aircraft need to divert to another airport due to bad weather. BIA can also accommodate Airbus 380 aircraft in an emergency, if necessary. Operators are now retiring the A380 anyway! So, did the authorities get their priorities mixed up? MRIA earning money by being there for overflying traffic is a big myth. BIA can satisfy the same requirement. With the advent of a pandemic such as Covid 19, the objective should be to reduce the points of entry to Sri Lanka and have a good Domestic Air Service, for tourists and local passengers. Jaffna, Batticaloa, Ratmalana, Sigiriya, Anuradhapura, Hingurakgoda and Weerawilla could be regional airports, serviced by smaller aircraft. That again is another story.
It has now been a few years since Mattala Rajapaksa International Airport (MRIA) commissioned and it continues bleeding taxpayers’ money. The ‘aviation experts’ of the day have not been able to give an acceptable solution to put MRIA to good/ profitable use. That is the bitter truth. Doesn’t the whole sad scenario sound like the Hans Christian Anderson’s story “The Emperor’s new Clothes”? The country needs to conserve every dollar it spends in continuous maintenance of MRIA.
Even with the electrical fencing, there are more elephants that trespass into the airport premises and the runway, than fare paying passengers. In the seventies, the Canadians were considered the best of the best airport builders. (They even built BIA). Yet it took the Canadian experts twenty-seven long years to realise that the Mirabel Airport project was a failure. It was built on a ‘political whim’ of the Pierre Trudeau Government. All the coaxing and big incentives given to attract the international airlines didn’t work. Every airline preferred the Duval Montreal International Airport. Then in 2012 they admitted their mistake and demolished the terminal buildings at last and gave (sold) the land back to the farmers.
What are we going to do with MRIA? Will the Airport and Aviation Sri Lanka (AASL) and the environmentalists be able to resolve this expensive problem and face the situation squarely? Or, will we have to wait another 20 years like Mirabel International Airport, Montreal. Quebec, Canada?
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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