Features
Will CEB make an effort to comply?
President’s target on renewable energy share in power generation:
by Dr Janaka Ratnasiri
IMPLEMENTING THE NEW POLICY DIRECTIVE OF PRESIDENT
As described in detail by the writer in an article published in The Island of 25 and 26 September, a press release issued by the President’s Media Division on 14.09.2020 said that the President had directed that plans should be made to generate 70% of the country’s overall electricity requirements from renewable energy (RE) sources by 2030. Apparently, this has been decided at a meeting that President had with the State Ministry of Solar, Wind and Hydro Power Generation Projects Development and the Power Minister at the Presidential Secretariat on the 14th September. The Press Release also said that The Government has made the promotion of renewable energy a top priority and President advised the Secretary to the President to issue a gazette calling for all the institutes to assist in this endeavor. See http://www.pmdnews.lk/70-of-electricity-demand-will-be-generated-using-renewable-energy-by-2030/.
However, as required by Section 5 of the Sri Lanka Electricity Act, No. 20 of 2009, to give effect to this policy decision, it has to be referred to the Cabinet to get its approval and incorporate it in the General Policy Guidelines in respect of the Electricity Industry. Thereafter, the PUCSL will be able to direct the CEB to comply with the new policy guidelines. Being a matter concerning RE share in power generation, the relevant cabinet paper will have to be presented to the Cabinet by the Power Minister. The general practice is for the Secretary to the Ministry to draft the paper in concurrence with the Minister. The question is how long the Power Ministry will take to attend to this.
CEB’S LONG-TERM GENERATION EXPANSION PLAN
According to the Sri Lanka Electricity (Amendment) Act No. 31 of 2013, any capacity addition to the country’s power system requires that the new plant shall comply with the provisions in the CEB’s Long-term Generation Expansion (LTGE) as well as the approval of the PUCSL and the Cabinet. The LTGE Plan for 2020-2039 prepared by the CEB in May 2019, when submitted to the PUCSL for approval, PUCSL returned it saying that it did not confirm to the Policy Guidelines of the Ministry on Electricity Industry as decided by the Cabinet in March 2019 which had specified a target of 50% as share of renewable energy (RE) sources to be achieved by 2030 and also saying that it did not include the externality costs.
In response, the CEB has revised its LTGE Plan and resubmitted it to the PUCSL in March 2020. (See https://www.pucsl.gov.lk/lcltgep-2020-2039/). However, the revised plan too has a RE share of only 35% as in the original draft and it has not been adjusted to achieve a target of 50% of RE by 2030, though requested by the PUCSL. By its letter dated 28.05.2020, the PUCSL has reiterated that the CEB Plan be revised to achieve the requisite target of 50% of RE share by 2030. However, with the President giving specific directions recently to generate 70% of electricity from renewable sources by 2030, there is an urgent need for the Policy Guideline document to be amended through a Cabinet decision to give effect to the President’s new directive. The CEB will then have to revise its LTGE Plan to comply with this policy.
BUILDING THE FIRST GAS POWER PLANT IN SRI LANKA
The Chairman of the Ceylon Electricity Board (CEB) was reported in the weekly Sunday Morning of 18 October 2020 as having said that the power purchase agreement (PPA) for the 300 MW combined cycle gas turbine (CCGT) power plant to be built at Kerawalapitiya selected after calling for tenders in 2016 would be signed once the Cabinet approval is received for it. (http://www.themorning.lk/300-mw-kerawalapitiya-lng-plant-ceb-awaits-cabinet-nod/). Though the CEB Chairman has said that approval of the Cabinet has been sought for the PPA to be entered into with the supplier of the CCGT power plant, according to the Sri Lanka Electricity Act No. 31 of 2013, once the project is approved by the Cabinet, the PPA needs the approval of the PUCSL only.
It may be noted that the CEB invited proposals through a 500-page Requests for Proposals (RFP) for this power plant in November 2016. However, the decision on the award of the tender took more than 3 years for reasons described in detail by the writer in several of his previous articles published in the Island including the one that appeared on 19.08.2019. The writer pointed out that the CEB should be held responsible for delaying this project.
The writer understands that the award of the tender to the local tenderer, Lakdhanavi Ltd, who had submitted the lowest tender was approved by the Cabinet last December. Further, soon after President Gotabaya Rajapaksa assumed office, he has instructed the award be made to this tenderer. It is therefore surprising that the CEB is seeking the approval of the Cabinet again for the project and in addition is seeking the approval of the AG’s Department for the PPA, which are not necessary according to the provisions in the Electricity Act.
According to a report appearing in the Sunday Times of 25.10.2020, the matter has run into a controversy as the AG’s Dept. has not granted its approval for the PPA. Apparently, some changes have been proposed by the tenderer whereas the RFP has not made provisions to make such changes after the bids are closed. Nevertheless, the CEB as well as the Ministry are in agreement to the changes and want to proceed with the signing of the PPA.
The report says that the Minister will submit a Cabinet Paper seeking its approval to authorize the CEB to sign the PPA with Lakdhanavi at the agreed levelized tariff and issue a letter of intent to build the power plant. (http://www.sundaytimes.lk/201025/news/power-plant-ministry-ignores-ags-advice-seeks-go-ahead-from-cabinet-421184.html). If the RFP did not have provision to make any changes after the bids are closed, it is a lapse on the part of the person who drafted the RFP and should have been rectified at the beginning and not brought up nearly 4 years later and cause further delay.
CEB’S IMMEDIATE PLANS FOR POWER SECTOR DEVELOPMENT
In the CEB Chairman’s statement given to the press, he has also given the following list of additional major thermal power plants planned to be built within the decade.
A 300 MW CCGT power plant operating with gas to be built by a local contractor
A 300 MW CCGT power plant operating with gas to be built jointly with India and Japan with financial support from the Asian Development Bank (ADB) as a joint venture with CEB.
A 600 MW coal power plant as an extension to the existing coal power plant at Puttalam.
According to a report appearing in the Island of 26.10.2020, the CEB Chairman has stated that “the government would go ahead with the fourth power plant at the Norochcholai, as soon as the Environmental Impact Assessment (EIA) was completed. He has further said that the Cabinet had already endorsed the plant’s fourth unit although the AG’s Department and the PUCSL were still studying the proposal. (https://island.lk/govt-to-go-ahead-with-fourth-coal-plant-at-norochcholai-once-eia-is-ready/).
In the writer’s above article, he pointed out that in order to achieve a target of high RE share in the energy mix for power generation, all the existing and proposed coal power plants and diesel operated generators will have to be removed and correspondingly increase the share of RE sources such as solar, wind and biomass power plants. In the President’s vision for clean energy, coal has no place, which unfortunately the utility has still not understood.
The meeting that the President had with the Power Ministry and Renewable Energy Ministry on the 14th October would have been attended by the CEB Chairman. Hence, he would have been aware of the President’s directive when he made his statement to the press last week proposing to build new coal power plants. In any case, the President announced his policy to give high priority for RE sources in his manifesto. It appears that the CEB is not keen in meeting the President’s target of achieving 70% share of power generation from renewable resources since it is planning to build more coal power plants which will make it impossible to achieve the President’s target.
BRINGING LIQUEFIED NATURAL GAS (LNG) FOR THE NEW POWER PLANTS
The new CCGT power plant is required to operate with natural gas once it is available and until such time, it is permitted to operate with petroleum oil – fuel oil or diesel oil. In order to realize the President’s vision to have the existing CCGT plants converted to gas and to operate new CCGT plants to be built soon, it is necessary to have LNG available in the country by the time these power plants are built. However, the importing of LNG for operating the power plant has been a problem because there are no suitable locations to build a land terminal on the West coast close to Colombo and even mooring a floating storage and regasification unit (FSRU) off the West coast has been a problem.
But acquiring and operating a land terminal or a FSRU are complex affairs and under the current situation, the country lacks the necessary expertise to venture into such an exercise. Realizing this, India, Japan and South Korea offered assistance in this regard, but authorities here are somewhat reluctant to accept such assistance. As described previously, even the selection of a CCGT power plant on BOOT basis and signing its PPA could not be accomplished by our professionals even after a lapse of nearly four years despite the fact that several CCGT power plants are in operation in the country and CEB has entered into PPAs with hundreds of independent power producers in the past. Therefore, one cannot imagine how long our professionals would take to finalize a PPA for a hitherto unknown operation of a FSRU or an LNG land terminal.
There are several other options available for bringing LNG into the country. One is to use a mini-terminal at Dikkowita adjoining its fisheries harbour for which the Cabinet approval has already been granted. LNG is brought to the terminal in small shallow carriers which could be accommodated in Dikkowita terminal. After re-gasification, the gas could be taken to the power plant site using pipelines. The writer understands that Its commencement is awaiting the approval of the relevant regulatory authorities. It appears that there is no one in authority willing to take a decision on this matter.
Another option available is to make use of insulated standard containers conforming to specifications of International Standard Organization (ISO). These containers could be used both for transport and storage until the gas is used in the power plant. Once a container is brought to the Port in a standard container carrier, it is unloaded on to a trailer drawn by a prime mover and taken to a yard close to the power plant site. As and when required, a container is moved to a platform built close to the power plant and LNG is fed to a re-gasifier with storage from which the gas is fed to the power plant. There is no additional infrastructure required to import these containers other than what is already available within the Port. The only requirement is that it needs the clearance from the Ministry of Energy, Ports Authority, Motor Traffic Dept. and the Central Environmental Authority.
A third option is to negotiate with China who is building an LNG terminal within Hambantota Harbour to feed its 400 MW CCGT gas power plant currently being built there to supply power to industries in the Chinese Industrial Estate planned in Hambantota. If the capacity of this terminal is increased, the additional gas could be brought to the city in a pipeline laid along the highway reservation for operating the gas power plants planned near the city. In addition, the government should be able to provide a bunkering service to LNG operated vessels passing Hambantota for which Singapore is already building the necessary infrastructure.
A fourth option is to develop Trincomalee Harbour as a hub for natural gas distribution. LNG could be brought in large carriers to Trincomalee Harbour which has the ideal depth and area to build a large land terminal. Once re-gasified, gas could be stored and brought to the city and other load centres through pipe lines. Surplus gas could be supplied to South India who has been negotiating for decades to bring gas from suppliers in the region including Myanmar, Turkmenistan and Iran. Sri Lanka need not spend any capital on the project other than providing the land and regulatory mechanism while building the actual facility could be assigned to an investor with good track record.
CONCLUSION
With the President announcing his new policy on incorporation of 70% of power generation from renewable resources, the Ministry Policy Guidelines on Electricity Industry needs amendment through a Cabinet decision to give effect to this policy decision. Further, the CEB will have to revise its long-term generation expansion plan to align with this policy as its current plans only yield a RE share of only 35%.
Achieving a 70% target of renewable energy share in power generation by 2030 is feasible both technically and financially as pointed out by the writer in his recent articles which appeared in the Island of 25th and 26th September. However, the question is whether the CEB is willing to give up coal enabling it to meet the President’s target.
There are several options available for bringing LNG to the country to make achieving this target feasible. However, a suitable regulatory mechanism needs to be put in place before such mechanisms are implemented along with necessary facilities for monitoring of operations and ensuring safety protocols are adhered to following acceptable international procedure including guidelines laid down in international classified societies.
With the President giving the leadership for adopting cleaner technologies for power generation, it is essential that the relevant organizations, particularly the CEB, do their utmost to achieve his targets without giving lame excuses or its engineering staff threatening trade union action to get the President to change his policy as they have done in the past.
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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