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A fairy tale, success or debacle

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Ministers S. Iswaran and Malik Samarawickrama signing the joint statement to launch FTA negotiations. (Picture courtesy IPS)

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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Features

Complexities in global politics deepen as economic pressures intensify

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UK Prime Minister Andy Burnham meets Ukrainian President Volodymyr Zelensky in Kyiv. (BBC)

The present offer by the UK to strengthen Ukraine’s defense capabilities in the missile technology field in particular comes as ‘a stitch in time’ and the initiative is also likely to be appreciated considerably by democratic opinion world wide for the possible morale-boosting effect it would have on Ukraine. Besides continuous arms support, the conviction that the world’s frontline democracies are behind it would prove a huge plus in Ukraine’s eyes in its grinding fightback against the Russian invasion.

While continued US support for Ukraine could not be considered ‘a given’ any more, British Prime Minister Andy Burnham’s words during a recent visit to Kyiv that the UK would stand by Ukraine ‘for as long as it takes’ is the kind of assurance that Ukraine needs at present. For, the conflict in Ukraine is essentially a war of liberation conducted by the latter against an invader and deeply at issue here is the upholding of International Law and its foundational concepts, such as national sovereignty and a nation’s right to political self-determination. The world of democracy is of the firm view that the latter ideals cannot be compromised, come what may.

The UK has its work cut out in this connection. It would find it difficult to convince the Trump administration that it should staunchly stand by Ukraine but it could campaign vigorously with the rest of the West and the EU fold in particular to unflaggingly support the embattled and over-run country.

Ukraine has shown an impressive adeptness in using drone technology in particular against her enemy and has even manufactured her own hardware in this respect but using the relevant blueprints handed over by the UK for the manufacture of more sophisticated cruise missiles, for instance, may prove financially difficult, going forward. It is left to be seen whether the UK and the rest of the West who are with Ukraine will continue to be with her, considering their own rising financial constraints.

The latter impediments could only multiply in the future. Oil, gas and energy prices are on the rise and the latter costs are glaringly reflected in kitchens and meal tables the world over. As we go along consumer discontent would steadily intensify and governments, East and West, would need to figure out with considerable rigour and foresight how such disaffection could be ably managed. Failing which, in most democratic societies, the chances are that publics would be out on the streets demanding that their grievances be redressed forthwith.

These rising concerns are reflected in a recent move by some EU governments to consider imposing what is described as ‘a windfall tax’ on the profits specified major oil companies operating within their shores have made in the wake of the US-Israel war on Iran. The rationale apparently is to use such tax earnings to cushion the rising cost of living of their publics and bolster the respective countries’ social expenditure.

In a recent letter to the president of the EU Council the EU governments referred to said, among other things, while drawing attention to the ‘discontent that is growing over the rising cost of living’: ‘A common approach’ is needed that ‘ensures those who profit from the crisis contribute their share to reducing the burden on the general population.’ Meanwhile, Oxfam with reference to the above development is on record as calling for a ‘permanent windfall tax of at least 50% on profits exceeding a 10% return on investment.’

Such are the rising economic pressures on the majority of Western governments. The question to be posed is how consistent they would be in their assistance to Ukraine if they decide consensually to stand by her. The soaring cost of living in the West compels the conclusion that there could be no guarantee that Western assistance to Ukraine, particularly in the defense and security fields, would be of a longstanding kind.

Of particular concern would be the fact that the weapons systems on offer from the UK to Ukraine could be increasingly costly to manufacture going forward. Besides they would need to be manufactured and put into action without delay.

However, these considerations should in no way deflect Ukraine’s supporters from the principled policy stance of defending her to the extent possible. Because at issue is the defense of International Law and the democratic system of government from their enemies; fascism and authoritarian rule.

While during World Wars 1 and 2 the US was with the major democracies of the West, this time around with regard to Ukraine, the US has chosen to be at cross-purposes with them. For instance, in relation to tariff matters and defense expenditure, in the NATO context, the US is pursuing a hard line which puts it at polar opposites with the West. Thus it is no longer possible to talk unreservedly of a ‘Western democratic alliance’. Put plainly, the cause of democratic development has been weakened.

A measure of relief for the supporters of Ukraine in the West could come by way of the upcoming mid-term polls in the US. If the Democratic Party fares well in them the pressure would be on the Trump administration to defer to opposition opinion at home, accommodate the best interests of Ukraine in its West European policy and perhaps even work towards a diplomatic solution to the Ukraine crisis in cooperation with Russia. Accordingly, the Democratic Party would need to put the Trump administration on the defensive, so to speak.

Until such time Ukraine’s Western supporters have no choice but to remain committed to it, ensure its steadfast defense against the invasion and work judiciously towards keeping the economic pressures at home in check.

Interestingly, at the present juncture in international politics the US could be said to be more weak than strong. For example, it has to some extent been militarily humbled by Iran; so much so it is resorting to economic means to keep Iran in check.

In keeping with this strategy, the US has launched ‘a new big wave of anti-Iran economic sanctions’ at the time of writing, aimed at cutting Iran away from all its major income sources. Some of these relate to digital assets, technology, gold, aviation and shipping. The hoped for result is the complete severance of Iran from the US dollar system.

However, while the UK and EU have no choice but to adhere to their policy of backing Ukraine, going forward they would need to dialogue more closely with the US and ensure that it cooperates with them on outstanding questions, such as Ukraine and the strengthening of democracy. The well being of the world is served when the latter aim is pursued.

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“Envisioning Sri Lanka: Beyond Recovery”

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Prime Minister Dr. Harini Amarasuriya opening the event

OPA 39th Annual Conference calls for Sri Lanka to move Beyond Recovery towards Sustainable Transformation

The Orgnisation of Professional Associations (OPA) successfully concluded its 39th Annual Conference, held recently at the Cinnamon Grand Colombo, under the theme “Envisioning Sri Lanka: Beyond Recovery”.

Held under the patronage of Jayantha Gallehewa, President of the OPA, with the leadership and guidance of Tisara De Silva, President-Elect and Chairman of the 39th Annual Conference, the Conference brought together leading professionals, academics, business leaders and representatives of the public and private sectors to deliberate on Sri Lanka’s next phase of national development.

The Inaugural Session, on August 2026, was graced by Prime Minister Dr. Harini Amarasuriya, as the Chief Guest; Andrew Patrick, British High Commissioner to Sri Lanka, as the Guest of Honour; and Murtaza Jafferjee, Chairman of the Advocata Institute, Sri Lanka, as the Keynote Speaker.

In her address, Prime Minister Dr. Harini Amarasuriya emphasised that overcoming the economic crisis alone should not be Sri Lanka’s ultimate objective, stressing that recovery must serve as the foundation for a broader economic and institutional transformation necessary for sustainable national progress. Reflecting on the difficult period experienced by the country, the Prime Minister noted that Sri Lanka had faced significant economic, social and institutional challenges, which had weakened public confidence and created uncertainty about the country’s future.

She stressed that “recovery only provides the foundation” and that Sri Lanka can move forward sustainably only by using that foundation to bring about meaningful transformation.

The Prime Minister observed that the theme of the OPA’s 39th Annual Conference, “Envisioning Sri Lanka: Beyond Recovery,” aptly encapsulated these national aspirations. She emphasised that Sri Lanka’s objective should not merely be to return to the conditions that existed before the crisis, but to forge a stronger national foundation characterised by robust institutions, a resilient economy, high-quality public services and an enabling environment in which every citizen has the opportunity to thrive.

She further underscored that Sri Lanka’s future development cannot be secured through economic growth and physical development alone. She emphasised that the effective mobilisation of the country’s knowledge, skills and professional expertise, is equally essential to achieving sustainable and inclusive national progress

The Technical Sessions held on 12 August 2026 brought together 19 distinguished experts and professionals representing academia, industry, banking and finance, public health, technology, management and business leadership. Their diverse expertise provided a multidisciplinary platform to examine the critical challenges, emerging opportunities and strategic choices that will shape Sri Lanka’s next phase of development, with particular emphasis on economic transformation, institutional strengthening, digitalisation, private-sector growth, human capital and sustainable development.

The deliberations were structured around four principal sub-themes: “Resilient Recovery and Sustainable Economic Development”; “Future Readiness: Innovation & Transformation”; “Policy for Impact: Advancing Equity, Sustainable Living, and National Well-Being”; and “Leadership, Governance and National Responsibility.”

Across these thematic areas, the sessions explored the structural reforms, institutional requirements and policy choices necessary to move Sri Lanka beyond economic stabilisation towards a more productive, competitive, resilient and inclusive economy. The discussions brought together diverse professional perspectives, enabling participants to examine national priorities through economic, technological, industrial, financial, social and governance lenses.

Particular emphasis was placed on the need to move beyond the diagnosis of problems towards pragmatic, evidence-based and implementable solutions. The deliberations recognised that sustainable national progress requires not only sound policies, but also effective institutions, professional competence, innovation, responsible leadership and the capacity to translate policy into tangible outcomes.

The sessions further underscored the importance of collaboration across sectors, recognising that Sri Lanka’s complex development challenges cannot be addressed in isolation. Stronger engagement among Government, private sector, professional associations, academia and civil society was identified as essential to fostering a coherent national response and ensuring that professional knowledge and expertise are effectively translated into policy and action.

Collectively, the Technical Sessions provided a substantive platform for knowledge exchange, critical reflection and forward-looking dialogue, reinforcing the OPA’s commitment to bringing the country’s professional expertise to bear on the task of building a resilient, innovative, equitable and prosperous Sri Lanka.

The OPA expressed its sincere appreciation to Prime Minister Dr. Harini Amarasuriya, the Chief Guest; Andrew Patrick, British High Commissioner to Sri Lanka and Guest of Honour; and Murtaza Jafferjee, Chairman of the Advocata Institute, Sri Lanka and Keynote Speaker, for their distinguished contributions to the Conference.

Much of what the 39th Annual Conference achieved would not have been possible without the leadership, commitment and generous contributions of Jayantha Gallehewa, President of the OPA; Tisara De Silva, President-Elect and Chairman of the 39th Annual Conference; Eng. Ravi Rupasinghe, General Secretary; Dharshana Wijemanne, Treasurer; Bhanu Wijayaratne, Convener & the Chairman of the Session Planning Committee of the 39th Annual Conference Committee, Past Presidents and Office Bearers; Presidents and representatives of Member Associations; members of the Executive Councils and General Forum; and the distinguished Session Chairmen, Resource Persons and professionals who shared their time, expertise and insights in pursuit of the Conference’s shared vision. The OPA remains immensely grateful to all those whose collective contributions enriched the 39th Annual Conference and strengthened its role as a meaningful platform for professional exchange, informed dialogue and national reflection.

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Nostalgia for Lankans in Toronto …

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‘Avurudu Musical Show 2027,’ a uniquely styled musical Avurudu celebration … Ceymphony Band style.

For Sri Lankans living 14,000 kilometres from home, the sound of home has never felt closer — and that’s thanks to one man and his band.

Since stepping into the spotlight, Gamini Hemalal and the Ceymphony Band have turned into the heartbeat of the Sri Lankan community in Toronto.

Their mission is simple: bring the music, bring the memories, bring the people together. And it’s working.

What turned out to be the talk-of-the-town was their intimate musical evening with Sri Lanka’s legendary crooner Sohan Weerasinghe.

Sohan Weerasinghe: Had
everyone on their feet at the
Angus Glen Golf Club, in
Toronto, Canada

It was a ‘full house’ long before the big date. Tickets vanished within days — demand was that overwhelming.

According to those who were there, it was a truly amazing evening. The hall was packed, the energy electric. Sohan didn’t just sing — he owned the stage.

With his velvet vocals, his charm, and that signature style, he had everyone on their feet. The ladies, especially, couldn’t get enough. No wonder they call him “The Ladies’ Man!”

One attendee summed it up perfectly:

“We had so much fun. It is truly a blessing to have our kids around us, enjoying these beautiful moments together. Thank you, Gamini Hemalal, for such a wonderful evening, with an amazing crowd and an incredible atmosphere. Your hard work and dedication truly made it a special night.

“We also need to say a big thank you to the Ceymphony Band for delivering such an outstanding performance. You all were absolutely amazing! Our entire family had a fantastic time, and we truly enjoyed every moment.

Ceymphony Band: Extremely popular in the scene in Toronto

“Wishing you all continued success. Keep up the amazing work, we can’t wait for the next.”

And the next is already on the cards: ‘Halloween Pissu Baila Party 2026,’ on Friday, 30th October, at the famous Angus Glen Golf Club.

Gamini promises a crazy night of baila, music, dancing and Halloween vibes with the Ceymphony Band. Action runs from 8:00 PM to 12:00 midnight, with plenty of prizes to be won.

Gamini Hemalal: Amazing work for the Sri Lankan community,
in Toronto, Canada

Gamini is also putting together a special event, connected with the 2027 Avurudu celebrations — ‘Avurudu Musical Show 2027,’ a uniquely styled musical Avurudu celebration … Ceymphony Band style.

It’s scheduled to be held on Saturday, 10th April, 2027, also at the Angus Glen Golf Club.

Through music, Gamini Hemalal and Ceymphony are doing what diaspora bands do best — they’re shrinking the distance between two worlds.

One baila beat at a time, one full house at a time, they’re making sure that even in Canada, Sri Lankans feel like home.

Yes, there is plenty of action, indeed, for the Sri Lankan community in Toronto, Canada.

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