Features
With Love from New Delhi!
by Austin Fernando
The media has revealed the finalisation of three defence-related agreements between Sri Lanka and India, and arrangements to bolster the capabilities of Sri Lanka’s armed forces and boost cooperation in the field of maritime security. With love from New Delhi!
Minister Jaishankar’s visit overlaps with the finalisation of these agreements, though the stated objective of the visit is the participation at the BIMSTEC (the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) summit hosted by Sri Lanka, in Colombo.
India’s security concerns
The underlying Indian concerns of defence and security (as told by Avatar Singh Bhasin) of small states in the region, falling within India’s security perimeter are as follows:
(a) these states must not follow policies impinging on Indian regional security concerns; (b) they should not seek to invite outside power(s); (c) they should look to India for any needed assistance, and (d) immediate neighbours would serve as buffer states in the event of an extra-regional threat and not proxies of the outside powers.
When India provides security assistance, it takes into consideration the above-mentioned conditions.
Latest security interventions
According to media reports, the proposed security arrangements include the acquisition of two Dornier aircraft (for Coast Guard duties and maritime surveillance), a 4,000-tonne naval floating dock and cooperation with Indian security establishment.
The floating dock is a facility equipped with automated systems for quality and swift repairs to warships. We do not own so many warships, and we have not been in maritime battles since the defeat of Sea Tigers but will own a floating dock.
A naval liaison officer will be posted at the Indian Navy’s Information Fusion Centre-Indian Ocean Region (IFC-IOR) and in Colombo for effective cooperation. This centre tracks merchant shipping and monitors threats such as maritime terrorism and piracy in regional waters, though Sri Lankan government’s participation in the said objectives of the quoted Center is low.
A finer dissection of these components will reveal that the components of the three projects are in line with the above-mentioned four concerns, very much in India’s favour. It is popularly said in Sinhala that one does not harvest a honeycomb to lick one’s fingers.
In general, our concern about regional security is comparatively negligible. However, for India, threats are serious. Maritime coverage from Colombo, Hambantota (even without entry to the harbour) and Trincomalee ensures security for Indians via the Indian Ocean Sea Lane off Sri Lanka’s southern coastline and the Bay of Bengal.
Here, China enters the scene. We must bear in mind that China imports over half of its oil, transiting an estimated 70—85% of its imported oil supply through the Malacca Straits from oil-rich nations via the Indian Ocean shipping lanes. President Hu Jintao referred to this situation as ‘the Malacca Dilemma!’ No wonder India, probably with the knowledge of the US, has taken this Malacca Dilemma into consideration, and is acting accordingly.
A week ago, we, representing the southernmost ‘buffer state,’ were at the South Block begging for dollars from Ministers S. Jaishankar and Nirmala Seetharaman, and later from Prime Minister Narendra Modi. Sri Lanka received a billion and a half dollars, and India wishes to get more in terms of business and security. Remember, India does not want to settle for ‘licking fingers’! We could learn from Minister Dr. Jaishankar!
Who is secured?
One may wonder why such defence/security/military assistance has been made available to Sri Lanka. Are we being pressured to acquire things like floating docks? Such docks can lift large ships like frigates and destroyers and are designed to berth alongside a jetty or moored in calm waters to effect repairs to ships.
Dornier aircraft and intelligence and information sharing cooperation will help us, though it will cost 29.4 million dollars at a time when President Gotabaya Rajapaksa is struggling to find dollars to pay for fuel! Nothing is heard of engaging Dronier craft to manage illicit, forced fishing in the Palk Bay! Of course, beggars can’t be choosers, and he who pays the piper is said to call the tune.
Since the perceived security threat in the IOR for us is low, one may think India is trying to use Sri Lanka as a buffer state “in the event of an extra-regional threat.” The scope of these components must be expanded to understand the Indian security concerns.
India is threatened by Pakistan in the west, the Chinese in Ladakh with minor irritants from Nepal in the Kalapani area, refugee movements in the eastern borders, and so on. India is free from such issues in the south, and this assistance can be considered mostly to ensure the perpetuity of a “no-trouble zone” in the IOR.
The US has recently pledged financial support to Sri Lanka amounting to USD 19 million for renewable energy. The Adani Group has won two renewable energy projects in Pooneryn and Mannar. Indians are reported to have pledged another USD one billion. This shows how India and the US are using Sri Lanka’s economic crisis to their benefit. More assistance may flow in, but certainly, Sri Lanka will be under pressure to opt for security cooperation with donors, whoever it may be.
India-US agreements
Some agreements have been reached between the US and India on security and defence, namely, the Basic Exchange and Cooperation Agreement (BECA) signed on 27 Oct. 2020, and two agreements signed earlier — the Logistics Exchange Memorandum of Agreement (LEMOA) and the Communications Compatibility and Security Agreement (COMCASA) for enhanced military cooperation between the two countries. Since both countries have common interests in the Indian Ocean and the Indo-Pacific, let us summarily look at these agreements.
BECA will help India get access to American geospatial intelligence that enhances the accuracy of automated systems and weapons like missiles and armed drones. It will help India access topographical and aeronautical data, and advanced products that will aid in navigation and targeting. The sharing of information on maps and satellite images will be useful.
LEMOA was signed in August 2016. It allows the militaries of the US and India to replenish from each other’s bases, and access supplies, spare parts, and services from each other’s land facilities, air bases, and ports, which can be reimbursed later.
COMCASA, signed in September 2018, allows the US to provide India with its encrypted communications equipment and systems so that Indian and US military commanders, and aircraft and ships of both countries, can communicate through secure networks during times of war and peace. The COMCASA paved the way for the transfer of communication security equipment from the US to India to facilitate “interoperability” between their forces.
India has enhanced security and defence cooperation with the US since skirmishes with the Chinese military along with the Line of Actual Control (LAC) in Ladakh. They cooperate at all levels in the areas of intelligence and military activities. Secretary of State Mike Pompeo called on External Affairs Minister Jaishankar; National Security Advisor (NSA) Ajit Doval has been communicating with the US NSA Robert C O’Brien, and Chairman of the US Joint Chiefs of Staff Gen Mark A Milley has been in communication with Chief of Defence Staff (late) Gen Bipin Rawat. The US Secretary of Defense Mark T Esper has held discussions with Defence Minister Rajnath Singh.
On 20 March 2021, Minister Rajnath Singh said at a press briefing with the new US Secretary of Defence Lloyd J Austin present: “We reviewed the wide gamut of bilateral and multilateral exercises and agreed to pursue enhanced cooperation with the U.S. Indo-Pacific Command, Central Command, and Africa Command. Acknowledging that we have in place the foundational agreements, LEMOA, COMCASA, and BECA, we discussed the steps to be taken to realise their full potential for mutual benefit.” It signals that the change of guard in the US has not changed the defence relationships.
Secretary Defense Austin declared: “We discussed opportunities to elevate the U.S.-India major defence partnership, which is a priority of the Biden-Harris administration. And we’ll do that through regional security cooperation and military-to-military interactions and defence trade. In addition, we are continuing to advance new areas of collaboration, including information sharing and logistics, artificial intelligence, and cooperation in new domains such as space and cyber.”
This shows that there has been no change, but enhancement of cooperation between India and the US, instead, and we may become pawns in this defence chess game.
The gain reviewed
The new equipment (as we lay people understand from the media) is to collect, collate, and mutually share information. It is not yet understood what other commitments are. Maybe there are overarching provisions in these above-mentioned agreements compelling us to share any security information gathered from a third party. Anyhow, technically we may not be able to control Indians sharing information.
Though this equipment reaches us due to a temporary dollar crisis, it is not the only international problem we have. Further, even after the dollar crisis is over it will not be easy to change the agreements, since India’s security problems will not disappear. One may recall ill-will that the withdrawal of the Indian Peace Keeping Force generated. Hence the need for caution.
How a ‘friendly’ country could exhibit ‘unfriendliness’ was seen in India’s response to the UNHRC in the recent past. Further, imagine what will happen if China and Russia do not use their veto power in support of Sri Lanka at a critical juncture.
We can learn from India how to manage a critical situation. Of course, India, being a crucial player in international politics, may do things that we cannot even dream of. However, I could relate how India manages the US, which wants India to move away from Russian equipment and platforms, probably to guard against exposure of technology to Russia. But India has been purchasing the S-400 air defence missile system from Russia.
The same happened when President Trump evinced an interest in the Article 370 issue as regards Kashmir; Indians told him in no uncertain terms that it was an “internal affair”. Sri Lanka cannot afford to be so abrupt or abrasive. As was seen when the Indians dropped food in June 1987, no major power will support us in case of a disagreement with New Delhi.
Lesson learnt
What is playing out on the economic front here will make us more beholden to India, which will not allow us freedom of action. I say so from my experience with Indians, though the event is nineteen years old. It was regarding the refurbishment of the Palaly Air Base. I was the Secretary/ Ministry of Defence at the time.
The Air Base at Palaly required refurbishment due to excessive use during the conflict. Though the need was essential, the then government faced financial difficulties. Therefore, we sought foreign assistance. Consequently, I tried to obtain money through the Indian Line of Credit.
Upon my request, the SLAF selected a local contractor to undertake this job––a government subsidiary under the Ministry of Highways. An Indian team agreed on the arrangements. The Minister of Defence also concurred.
Problems emerged in the process of finalisation of the agreement. Captain M. Gopinath, Defence Attaché of the Indian High Commission discussed the problems with me. The issues pertained to India’s security concerns:
(a) The first request was to give preference to India in the case of further work on the runway in the future.
(b) The second request was that no other country should be permitted to conduct any military operation from the Palaly runway.
(c) The third condition was for us to permit India to use the runway if required.
I understood their concern about China or Pakistan using the air base. Such an eventuality would compromise the security of Indian nuclear installations and military facilities. Our concern was the impending constraints we would face if we were to get Chinese or Pakistani assistance to fight the terrorists having agreed to the second demand. Lacking such freedom also amounted to an erosion of our sovereignty.
My understanding from the discussion with our political authorities was that the demand made by the Indian High Commission was a tall order for a sovereign country. The then Prime Minister Ranil Wickremesinghe rightly quoted from the exchange of letters between PM Rajiv Gandhi and President J.R. Jayewardene, and settled the issue without complications.
This strategy and outcome may serve as a guide in dealing with similar situations. Circumstances may be different because we are in a far worse predicament regarding dollars, but the authorities concerned must be mindful of the repercussions of current actions and Indian approaches.
Foreign influence
This attitude may have intensified within the last two decades when Chinese influence grew on security, politics, finances of nations in trouble including Sri Lanka. Indians will be Indians, and they will insist on many things which could not be challenged by us, because of the foreign exchange crisis. Similarly, the Chinese will go all out to promote their Belt and Roads Initiative.
It could be seen from President Rajapaksa’s change of heart after Minister Basil Rajapaksa’s New Delhi visit in search of dollars; he has agreed to consider the TNA demands favourably! We do not know what else the government has agreed to in respect of the Palk Bay fishing, the 13th Amendment, Provincial Council elections, release of prisoners in custody, etc.
Conclusion
Critics have raised questions about the Indian intentions and asked whether we are being drawn into a conflict zone because the relations between India’s allies (e. g., the US, Australia, Japan, the Maldives, etc.,) and China have turned sour. Is Sri Lanka being placed on a collision course with China? If so, we need to avoid such eventuality due to other negative situations that may arise. Balancing relationships is a must. However, as for Indians, what is happening now would mean that we have entertained Bhasin’s four concerns about Indians.
Balancing national security, borrowing dollars, international relations, etc., is a high-wire act Sri Lanka has to perform.
(The writer is the former High Commissioner of Sri Lanka in India and Secretary to the President of Sri Lanka.)
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
