Features
When two Richards fought for Kelaniya in the 1956 elction
By Avishka Mario Senewiratne
Eight years after independence, Ceylon – relatively new to democracy and independent rule, though looking good on the global canvas – was on the verge of the humiliating defeat of its ruling government led by the United National Party (UNP). The vast masses of Ceylon had been disillusioned by the pro-elite UNP politics and were persuaded to vote for the Mahajana Eksath Peramuna (MEP) led by S. W. R. D. Bandaranaike, the leader of the Sri Lanka Freedom Party (SLFP). Though toxic for the future, the majority were inclined to see the implementation of the Sinhala Only Act, canvassed by the MEP in a favourable light.
Since the early 1940s, Junius Richard Jayewardene was known to be a highly accomplished and methodical politician. He served as the Minister of Finance in the Cabinet of D. S. Senanayake (1947-1952) and Dudley Senanayake (1952-53), and as Minister of Agriculture and Land (1953-56) in Sir John Kotelawala’s regime. Undoubtedly, he was second in line to be the leader of the UNP as well as to be Ceylon’s Prime Minister. However, in 1956, despite his excellent track record in politics, there was little he could do to retain his parliamentary seat in Kelaniya when Richard Gotabaya Senanayake challenged him.
Uncle and Nephews of the UNP
The story began with one man who did not live beyond 1901. This was Mudaliyar D. C. G. Attygalle, a father of four; three daughters and a son. The three daughters married John Kotelawala Sr. (father of Sir John), F. R. Senanayake (father of R. G. and brother of D. S.) and Col. T. G. Jayewardene (uncle of J. R.). When Ceylon received independence in 1948, the sons and nephews of all these esteemed gentlemen were prominent members of the United National Party, and in high office or eagerly waiting their entry.
The UNP was chartered in 1946 by D. S. Senanayake, who would be PM a year later. His successors were to be his son and nephew. Some high officials of the party were related to him, as well. For these obvious reasons, critics of the UNP ridiculed the party acronym as “Uncle-Nephew Party” and also pilloried it as “Unge Neyange Paksaya” – ‘their relations’ party’ (Weerawardana, p. 121).
The subjects of this essay, J. R. Jayewardene and R. G. Senanayake were thus related to each other and had a friendship since their childhood. When R. G. Senanayake entered politics in 1944, his friend J. R. was a well-established politician. Despite being a victim of polio and unable to be as active as he would wish, RG strived to serve his people with great charm, enthusiasm and sincerity. According to Prof. K. M. de Silva, RG hardly made an impact in the legislature, and if not for his being the son of F. R. Senanayake, many may have questioned his appointment as Parliamentary Secretary to the Ministry of Defence and External Affairs in 1947 (de Silva and Wriggins, p. 266). This Ministry was under his uncle DS, the Prime Minister.
The two Richards in San Francisco
In September 1951, all was set for the Japanese Peace Treaty Conference in San Francisco. However, Prime Minister D. S. Senanayake declined to travel for the event despite being Minister of External Affairs as his knowledge of foreign affairs was limited to the sub-continent. He suggested that JR should represent Ceylon. At JR’s request, DS appointed RG to accompany him, along with a private secretary, R. Bodinagoda later Chairman of Lake House. The only other person on the entourage was JR’s wife, Elena Jayawardene.
Not only was this delegation small but it also was poorly equipped, given its lack of informed aides and stenographers unlike delegations of other countries at the San Francisco Conference. Nevertheless, for JR this was a great opportunity and the beginning of a long association with Japan. His 15-minute speech created a major impact on the conference stressing Japan’s right to be a free state. JR became an instant global celebrity and PM Yoshida of Japan shook his hand with tears of joy in his eyes.
This was an unexpected triumph for Ceylon and its future leader, JR. Young R. G. Senanayake received a once-in-a-lifetime opportunity to watch how his senior colleague won over leaders of the world in San Francisco. JR and RG along with Sir Claude Corea, the Ambassador of Ceylon to the USA, travelled to various parts of the US visiting the Ceylonese diaspora in that country.
Two Richards, two foes
With the passing of time, RG developed ambitions for high office. However, the presence of his cousins in senior positions deprived him of the opportunity to quickly achieve his political goals. Though concealed by his charm and winning ways, there was little RG could do to prevent displayng his true goals and envy of his cousins. He believed that Prime Minister D. S. Senanayake had taken over his own father’s destiny (F. R. Senanayake died prematurely in 1926) of becoming Ceylon’s first prime minister, and that his cousin Dudley was in the position which would otherwise have been his (see de Silva and Wriggins, pp. 265-266).
Soon, however, a major rift between JR and RG began to appear and their lifelong friendship was over by early 1952. Apart from his political ambitions, the tension between JR and RG was aggravated by a family dispute over RG’s association with his future wife, Erin. The bitterness in their personal lives spilled over into the political field and soon they were enemies.
Yankee Dicky Vs China Dicky
Despite the obvious signs of the careerist in RG, when Dudley was made Premier upon the untimely death of his father, he appointed his cousin RG as Minister of Trade and Commerce, while Jayewardene was re-appointed as Minister of Finance. In this capacity, RG built a formidable name for himself when he convinced the Government of Ceylon to sign the Rubber-Rice Pact with China in 1952. This was the crowning achievement of RG’s political career and it won him the name “China Dicky”.
Realising the demand for rubber in China and his country’s need for rice at the cheapest possible price, RG urged his government to forget their political differences with China and reach a Rubber – Rice Agreement. Though PM Dudley and his Cabinet strongly backed RG’s strategy, the Minister of Finance, now labelled “Yankee Dicky”, was not in favour of the Pact and vehemently opposed it. This was well reported in the Times of Ceylon. Dudley Senanayake believed that the Pact would solve Ceylon’s food shortage and boost the economy to a great extent as well as help find opportunities to seek new markets (see Amarasingam, where ??? p. 3).
JR was critical of the Pact for two reasons. One was that the USA would be (they later were) concerned and critical of Ceylon’s association with China. At a time when Ceylon was seeking entry to the UN, how would other nations perceive such a stance? The other was how China might influence the economy of Ceylon as they were to have a monopoly on the purchase of Ceylon’s rubber.
Nevertheless, the Pact was a great success and, after being renewed every five years, remained in effect till 1982. The supply of rice to Ceylon by China at prices below the world market resulted in a net benefit of about Rs. 92 million in 1953 alone. RG’s popularity was secured in comparison to that of the Minister of Finance. Consequently, the bitterness and envy between the two Richards further deepened.
RG leaves the Cabinet
A year later in 1953, with the infamous Hartal, the sensitive Dudley Senanayake resigned from his office as Prime Minister and thus Sir John Kotelawala – who had been expected to succeed DS in 1952 – was made Ceylon’s third PM. While R. G. Senanayake was re-appointed as Minister of Trade, J. R. Jayewardene was given a new portfolio; that of Minister of Agriculture and Land. JR was Sir John’s most trusted lieutenant and the new PM held him in high esteem and confidence.
On the other hand, Sir John’s relationship with his cousin RG deteriorated by 1954 when the latter opposed the Premier’s contemplated visit to the USA. RG had feared that Sir John would reach a deal with the Americans and break away from Ceylon’s policy of remaining neutral in foreign affairs. Furthermore, RG was critical of the appointment of Sir Oliver Goonetilleke as Governor-General, as well as Sir John’s attempts to seek a solution to the problems of the Indians in Ceylon’s polity.
Partly for these reasons, RG resigned from the Cabinet. However, it was well known that the real reason for his resignation was his opposition to JR whom he severely disliked. Deeply embarrassed by RG’s actions, Sir John later wrote the following in his memoirs: “The good God gave me friends, but the devil gave me my relations. It is an irony of fate that at critical stages of my public career some of my relations, instead of rallying around me, have caused me the most embarrassment and trouble.” (An Asian Prime Minister’s Story, p. 130)
An early election in 1956
1956 was a key year in the annals of Ceylon’s history as the majority of Buddhists were preparing to celebrate the 2500th Buddha Jayanthi. The Buddhist clergy had asked the government to keep the year free of political agitation. On the other hand, the movement to do away with English as the State language and implement Sinhala Only was making strong headway. The leader of the SLFP, S. W. R. D. Bandaranaike was clamouring for it along with his large coalition of parties (the MEP).
The feudal-style UNP regime had lost much of its credibility with the public as the government failed to cater to their demands despite being a stable regime with much promise. Influenced by the advice of Sir Oliver Goonetilleke, Sir John was keen to hold the elections as early as April 1956. Being neutral on the language policy, on the insistence of many of his aides including JR, Sir John decided to give into Sinhala Only in early 1956.
By doing this last-minute volte-face, Sir John expected the UNP to score a comfortable win. However, he had gravely misread the trends of the day. The majority of Sinhalese had reposed much faith in the MEP while most of the Tamils were angered by Sir John’s last-minute policy shift on the language issue and refused to join forces with him at the election.
JR realised that his party was about to face an inevitable defeat. Furthermore, Sir John Kotelawala’s comments in the press on various social issues made him and his regime even more unpopular. It was in such a milieu that Parliament was dissolved in February 1956 although it could go on until January 1958. Accordingly, nominations were to be handed in by March 8 and the election was to be held on three days – April 5, 7 and 10.
The Kelaniya Electorate
J. R. Jayewardene first entered the State Council through a by-election held in the Kelaniya constituency in 1943. The previous holder of that seat was the most revered Sir Don Baron Jayatilaka who retired from politics and asked JR to succeed him. JR, however, had an opponent in the person of E. W. Perera, the famous freedom fighter. However, the poll favoured of JR as he amassed 21,765 votes against Perera’s 11,570 (Ceylon Daily News, 19.11.1943). Winning this historic election by over 10,000 votes was a great boon in the political life of JR. Through his grandmother (Helena Wijewardene’s) benevolent services to the famous temple of Kelaniya, this constituency was by all means related to JR. Kelaniya was a rural but growing electorate and consisted predominantly of Sinhala Buddhists.
In the subsequent election of 1947, JR once again ran at Kelaniya, under the banner of the newly formed UNP. This time he had a comfortable victory against Bodhipala Waidyasekera of the LSSP by over 7,000 votes (The Parliament of Ceylon 1947, p. 31). At the 1952 General Election, JR’s opponents were his aunt Wimala Wijewardene contesting from the SLFP and Vivienne Goonawardene of the LSSP. Based on this election result, JR reckoned that Kelaniya was not a safe seat for him any more as his majority against these two female candidates was less than 2,000. This was not a good record for JR as 1952 was a year the UNP was at its zenith. Therefore, he calculated that contesting again in Kelaniya was a risk, quite apart from the other troubles the UNP faced in 1956.
RG declares war on JR
R. G. Senanayake who was a Parliamentarian since 1947, had run at Dambadeniya successfully. He won both the 1947 and 1952 elections under the UNP banner with overwhelming majorities. He was expected to contest in the same seat again as he had won great respect and acceptance in this electorate. RG, unlike JR, was more of a people’s man, who rallied around the village folk and listened to their grievances. Wimala Wijewardene, a formidable opponent in the last election, had changed her seat to Mirigama and was expecting a comfortable win. However, until late 1955 there was no idea of whom to nominate for Kelaniya under the SLFP banner or that of any other party.
It was then that R. G. Senanayake declared that he would contest the Kelaniya electorate as an Independent candidate. He would also contest Dambadeniya as an Independent. This came as a great surprise to both JR and the MEP. Everyone knew that this move was to settle a personal vendetta against JR, and the MEP was initially reluctant to support RG, knowing his intentions and temperament. Senior journalist K. K. S. Perera once related to the writer that RG had at once said that he was coming to Kelaniya to remove a bad tooth from the next parliament!
It was clear that there was no other opponent in the calibre of RG who would defeat the all-powerful JR, the second in command in the UNP. For this reason, the MEP backed RG in Kelaniya. They would have good reason to remove JR from Parliament for they knew what a capable, methodical and shrewd politician he was. RG’s popularity under his father’s legacy, as well as the success he gained through the Rubber-Rice Pact, were well noted by the common men and women throughout the country. Another opponent JR had to face in Kelaniya was Ven. Mapitigama Buddharakkita Thera, who was not only the head of the Kelani Temple but also a leader of the Eksath Bikku Peramuna. He too supported RG to force JR’s exit from Kelaniya.
Times of Ceylon, January 28, 1956
JR’s unenthusiastic campaign and fate
After parliament was dissolved, JR holidayed for three days in Wilpattu and returned to Colombo with a much-relaxed mind but well aware of the apprehensions of the UNP. He had few doubts that he would lose his seat. However, he realised he did not have the time to campaign for the UNP in other parts of the country, even though his party needed his support now more than ever. Within a week or two into the campaign, JR fathomed that the UNP and his seat were doomed. Sir John’s blunders and controversial remarks made him unwittingly the MEP’s best campaigner (see de Silva and Wriggins, pp. 307-308). Visiting his own constituency, JR realised that his support had eroded.
He did attract crowds at his meetings in Kelaniya, but nothing similar to RG’s. Soon there were many jeers at these meetings, and stones were being thrown at JR’s car. What was more disappointing to him was to see Mrs. Robert Senanayake, Dudley’s sister-in-law (who was RG’s sister) campaigning against JR. This gave the notion that the Senanayakes were disillusioned with the UNP (see Dissanayaka, p. 40). Though Sir John visited Kelaniya on February 28, few were convinced that JR was winning. Day by day, attendance at JR’s meetings seemed to be diminishing in number.
The election was held on three separate days. The UNP selected those electorates where they were strongest to be held on the first two days. If they had done well on those two dates, it was possible that this would help change the electoral mood in constituenceis they were weak in. JR’s election was scheduled for the third day. However, the rout was clear when the UNP won only eight seats on the first day. The next two days brought the UNP no wins. The MEP, at this election, secured 51 seats with 40.7% of the vote.
The LSSP and the Federal Party won 14 and 10 seats each with vote percentages of 10.2% and 5.4%, respectively. The UNP, though holding 27.3% of the total vote, won just eight seats. Almost all its powerful Ministers, including JR, were defeated. Sir John comfortably won Dodangaslanda and M.D. Banda were among the eight UNPers to win their seats. Eight Independents and three members of the Communist Party were also elected. It was the worst defeat the UNP faced in the 20th century.
The results in Kelaniya were equally humiliating. As expected, RG topped Kelaniya with 37,023 votes (76%) whereas JR received only 14,187 (24%) votes (The Parliament of 1956, p. 21). JR was badly defeated and RG had accomplished his goal also winning Dambadeniya as an Independent with 94% of the votes against the hapless UNP candidate. This was the first time a single MP was represented two seats in Parliament. JR, knowing his fate, arrived at the Colombo Kachcheri where the votes were counted leaving the place after the results were declared amidst insults and jeers.
His car was hit with stones and rotten fruits as it left the premises. Escorted by the police, JR arrived at Braemar, his home in Ward Place. His driver was in tears and so was his younger brother, H. W. Jayewardene. However, JR remained calm and collected retaining his normal composure despite the humiliating defeat. He retired to his room in silence. A few days later, the man was seen back to normal with his spirits up, interacting with his family and, of course, planning his next election!
Aftermath
JR spoke very little of this episode, but nearly 40 years later in the preface to his memoir, Men and Memories, referred to the 1956 election as an “Electoral Holocaust”. He went on to say, “I had done much for the electorate but was defeated by an intruder in April 1956” (p. ix). With the defeat, one depressing outcome that emerged was that many of his close friends and relatives stayed away from him.
However, with much free time at his disposal, he went into serious reading, especially the six volumes of Winston Churchill’s History of the Second World War. It was through this book that he derived the motto, “In Defeat, Defiance”. JR used his defeat to focus on himself and opted to partner his old friend Dudley Senanayake to rebuild the UNP. Fortunes were such that the defiant JR would go on to become Sri Lanka’s first Executive President in 1978.
RG, on the other hand, was reappointed to the portfolio which he had previously relinquished. He worked closely with the new PM, S. W. R. D. Bandaranaike. Though being asked to resign from one of his two parliamentary seats by the new PM, and also by the press, RG refused to do so (Manor, p. 264). It was once said that during parliamentary votes RG used to raise both hands as he represented both Kelaniya and Dambadeniya!
However, after Bandaranaike’s untimely assassination, RG never came to prominence as a Cabinet Minister in any of the future regimes of 1960 or 1965. Despite being ill, he once again contested in two electorates in 1970 (Dambadeniya and Trincomalee) losing both badly. He passed away prematurely aged 59 in December 1970. He was widely respected for his integrity and sincere care for the common people he represented.
“Defeat is never fatal. Victory is never final. It’s courage that counts.” – Sir Winston Churchill
References
Amarasingam, S. P., (1953), Rice and Rubber: The Story of China-Ceylon Trade, Ceylon Economic Research Association
De Silva, K. M. and Wriggins, H., (1988), J.R. Jayewardene of Sri Lanka, Volume 1, Anthony Blonde/Quartet
Dissanayake, T. D. S. A., (1975), Dudley Senanayake of Sri Lanka, Swasthika
Fernando, J. L., (1963), Three Prime Ministers of Ceylon: An Inside Story, M. D. Gunasena
Jayewardene, J. R., (1992), Men and Memories: Autobiographical Recollections and Reflections, Vikas
Kotelawala, Sir J., (1956), An Asian Prime Minister’s Story, George Harrop & Co.
Manor, J., (1989), The Expedient Utopian: Bandaranaike and Ceylon, Cambridge
The Parliament of 1947,
The Ceylon Daily News
The Parliament of 1956,
The Ceylon Daily News
Times of Ceylon,
January 28, 1956
Weerawardana, I. D. S., (1960), Ceylon General Election
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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