Features
Whither India- Sri Lanka relations?
Dr Sarala Fernando
Sri Lankans are familiar with the character of the village money lender who appears in most local films and teledramas. Money is lent to villagers in dire need without any philanthropic intent or sympathy and recovery is invariably through charging excessive interest. At first the relationship between lender and debtor is cordial and when repayments stall, gradually it turns to pressure and demands for favours outside the money transaction, the story finally ending up in the grabbing and selling off of the borrower’s collateral, his house, lands etc.
Recent developments in India-Sri Lanka relations reflect some of these elements although the terminology used is different. There is diplomatic talk of a “confidence building” phase which will lead to closer “integration” particularly in the defence area. As part of this”confidence building”, India has made commitments to the Sri Lanka government of upto $1.9 billion in loans, credit lines and currency swaps with another $500 million credit line for fuel . However the irony is that instead of appreciation India has harvested a lot of public criticism in Sri Lanka particularly after the signing of defence agreements on March 16 without due notification to Sri Lanka parliament or public scrutiny.
The Sri Lanka defence ministry subsequently confirmed the agreements to include ” receipt of Floating Dock Facility from the Government of India at no cost” and the provision of “Dornier Reconnaissance Aircraft” by India to Sri Lanka “free of charge”, (however no mention is made of the understanding that Sri Lanka would subsequently purchase another Dornier reconnaissance aircraft). Even more controversial will be the fact that Indian airforce and naval personnel will be stationed at these facilities during the construction and training periods. Meanwhile, a third maritime security pact was signed subsequently when visiting External Affairs Minister S. Jaishankar met Sri Lankan Foreign Minister G.L. Peiris which found specific mention in the Indian High Commission’s press release, listing the “MOU for providing Maritime Rescue Coordination Center (MRCC)” among agreements signed. According to Indian press reports, the MRCC’s network, to be set up by Bharat Electronics Ltd, will span seven sub-unit naval bases across the Sri Lankan coast, including in the southern port town of Hambantota, where China runs a large port.
These agreements are in stark contrast to China’s major projects in Sri Lanka which did not encompass stationing its troops for training or providing security for their personnel. After scuttling the Chinese power project in the Northern Islands on the suspicion that it could be used for spying and intelligence activities against India’s interests, one might well ask whether the proposed new Indian electronic intelligence system could be used to spy on Chinese port operations in Sri Lanka?
The new Indian security arrangements with Sri Lanka, coming on the heels of the agreement to jointly operate the entire oil tank farm in Trincomalee ( which is unlikely to happen given the huge resources required but will more likely block any other offer) and to set up a solar power park in Sampur, are in line with India’s leadership to enhance Indian Ocean security, regional cooperation and intelligence sharing as well as to secure their traditional interest in the North and East of Sri Lanka. The question is how do they impact on Sri Lanka’s own national interests?
One of the major areas of bilateral controversy has been the long standing poaching by Indian fishermen in the Northern seas of Sri Lanka; especially their use of bottom trawling (which is forbidden in their own coastal waters) as it is destructive to the marine environment. A recent press release following a bilateral meeting of coast guard and navy raised some questions in this regard as it carried the headline that bilateral fisheries issues should be handled in a ” humanitarian” fashion, completely ignoring the demands by the Northern fishermen for an end to poaching by Indian trawlers. Was this press release issued by the Indian side or is it a joint press release where the Sri Lanka side has softened its approach and backed down from pressing our national interests?
In the meantime according to press reports Tamil Nadu Chief Minister M.K. Stalin has spoken with Prime Minister Modi on March 31 regarding sending food grains, vegetables and medicine to the North and East in view of the economic crisis. This is presumably a follow up on a recent return of Tamil refugees from Sri Lanka to India – so far it is only a trickle since some 16 persons had reached Indian shores illegally claiming economic hardship in Sri Lanka (but having found the funds to pay the boatman some Rs 100,000). However it does bring back recollections of the situation in the 1980’s and claims of economic deprivation which led to India’s dispatch of relief supplies to Jaffna in an air drop utilizing five Antonov 32 transports escorted by four Mirage 2000 fighter jets violating Sri Lanka’s airspace which is still referred to mockingly by Sri Lankans as the “parippu drop”.
A third issue is the recent proposal apparently floated from our New York mission to canvass a seat for Sri Lanka in the UN Security Council, which will come vacant at the end of the year. It is difficult to understand how such a proposal could have originated from the Sri Lanka side amidst the current economic crisis which has led to closing down of our diplomatic missions in Oslo, Iraq and Sydney. Is this idea being put forward by another interested party which could count on an obedient proxy?
The Chinese, preoccupied with containing the new Covid outbreak in Shanghai, are keeping quiet on these new developments with India, but must be worried about the impact on their major projects and the robust diplomatic partnership they have maintained with Sri Lanka over the years. The Chinese Ambassador has already protested when a project which had been approved by tender to a Chinese supplier to provide solar power in the Northern Islands had been canceled due to protests by India. Then there was the fiasco over the rejected organic fertilizer shipment from China which led to the blacklisting of the Sri Lanka bank providing the guarantee which was later lifted after negotiations including a hefty fine payment.
The new developments in India- Sri Lanka relations have important domestic political consequences for the Sri Lanka government. Beholden to India, President Gotabaya ‘s announced political platform to bring in a new Constitution aiming inter alia at doing away with the 13th Amendment and including the One Country One Law proposal, have all but died a natural death. India’s position on the Sri Lanka Tamil question is consistent, calling upon Sri Lanka to address the “legitimate aspirations” of the Tamil community “for equality, justice, peace and dignity within a united Sri Lanka”. They are moreover pushing for provincial council elections to be held soon.
A spate of resignations including the Chairman of Viyathmaga think tank from his elevation to Chairman of Litro gas has removed many of the wedges holding up the electoral platform of the present government. Prime Minister Mahinda Rajapaksa has already signaled the failure of the organic farming initiative and announced the restoration of the chemical fertilizer subsidy to farmers – an important political constituency. It will be interesting to see whether the current talks with the IMF will include reducing the lion’s share of the national budget devoted to defence, another policy initiative of President Gotabaya Rajapaksa. Going to the IMF will imply close scrutiny of even bilateral projects revealing any commissions paid.
At this time when Ukraine is under invasion by Russia, there is much discussion by Sri Lanka analysts on the term “Finlandisation” whereby smaller countries are understood to build their policies on the principle of “deference” to the Big Neighbour which is carving out its own sphere of influence. However while some argue that the war in Ukraine would not have happened if Ukraine had been under the security umbrella of NATO, others argue that Ukraine’s peace and stability depends on giving up of its ambitions to join NATO and providing reassurance to Russia. What is interesting to note however is that the Russian military aggression in Ukraine has sparked a counter response all over Europe where EU members are for the first time raising their levels of military spending significantly.
Even Finland and Sweden judging by the popular mood are considering renouncing their “neutrality” and joining NATO. In the present crisis, Russia is being “decoupled” from the rest of Europe, economically through sanctions and reducing dependence on energy supplies from Russia, as well as the strengthening of NATO and willingness of its partners to actively assist Ukraine with military hardware including planes. Surely such an outcome could not have been envisaged by the policy planners in Russia nor the huge domestic costs of the invasion, economic and military, let alone the moral condemnation of the world. But then it seems foreign incursions disguised as national threats have the ability to rally Russian nationalism and domestic support for President Putin.
(Sarala Fernando, retired from the Foreign Ministry as Additional Secretary and her last Ambassadorial appointment was as Permanent Representative to the UN and International Organizations in Geneva . Her Ph.D was on India-Sri Lanka relations and she writes now on foreign policy, diplomacy and protection of heritage)
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 . )
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
