Sri Lanka likely to approve Sinopec’s $4.5bn refinery proposal on Monday

Sri Lanka will likely approve on Monday a proposal from Chinese state refiner Sinopec to build a $4.5-billion-dollar refinery, the South Asian island nation’s energy minister said on Saturday.

“It’s on the agenda for Monday. Once the cabinet gives approval, we will invite them to sign the agreement,” Power and Energy Minister Kanchana Wijesekera told Reuters.

Sri Lanka, trying to recover from its worst economic crisis in more than 70 years, is hungry for new investment and local fuel supplies.

Sinopec’s investment of at least $4.5 billion “will go up in value as and when they do additions, but they must first come and sign the agreement for us to give any more details,” Wijesekera said.

For Sinopec, the world’s top refinery by capacity and one of the largest petrochemical makers, the investment would mark a breakthrough in a long effort to expand beyond China’s borders. It owns refinery assets in Saudi Arabia and petrochemicals production in Russia.

The Sri Lanka investment follows state-run China Merchant Port Holdings’ 99-year lease at Hambantota port and a $392 million deal to build a logistics and storage hub in Colombo port, Chinese state media reported in April.

That fits into Beijing’s ambitious Belt and Road Initiative, billed as recreating the ancient Silk Road to boost global trade infrastructure, experts say.

Sinopec will start basic engineering design, including finalising the size of the refinery and technical configuration, after getting official approval, a senior company official told Reuters this month.

The investment will add to Sinopec’s recently started fuel retailing business, the third international company with a foothold in Sri Lanka, with a license to operates 150 petrol stations.

In August Sinopec and commodities trader Vitol were shortlisted by the Sri Lankan government to bid for the refinery. Vitol subsequently dropped out, the Sinopec official said.

The refinery may target markets beyond Sri Lanka, where local fuel consumption is low, and use its partnership with China Merchants Port to expand bunker fuel supply at Hambantota, a deep-sea port near busy shipping lanes between Europe and Asia, analysts say.

Sinopec’s fuel oil division, which runs the retail business there, began in 2019 supplying marine bunker fuel at Hambantota, another Sinopec official said.

Sri Lanka’s refinery at Sapugaskanda, commissioned in 1969, can process 38,000 barrels of oil a day.

Source: Reuters

Northern Tamils Are Not For Sale To China By P. Soma Palan

I refer to the Article under the heading “Can China win over the Northern Tamils” by M.S.M. Ayub in the Daily Mirror of 18th November 2023. My response to his query is an affirmative “No”. I say this not as a northern Tamil, but as an independent, free and objective thinker. In today’s International politics, the phrase “Geo-politics” is a commonplace expression. It means an inter-play of power and spheres of influence between militarized Nations. Geo-politics has been accepted by all countries as an axiom that rules and dominate international relations. But, in my view, Geopolitics is a dirty word, an obnoxious anathema in International politics, which has divided the world into two or more formations based on the power of the gun. One formation countervailing the other to maintain a precarious balance of terror between the military might of the Eastern block of Super-powers, Russia and China, poised with Western block of U.S.A and Europe. Small and militarily powerless countries are caught between the two explosive formations. A slight spark could ignite and reduce the whole world into rubble.

The China’s forays into the Northern Sri Lankan Tamils is part of this geo-politics game to counter the sub-continental power India, with whom it had border wars in the Himalayan region. Thus, China’s Belt and Road Initiative to gain strategic footholds in the Indian Ocean is an open secret. China is making concentrated efforts to gain access to India’s southern front. This is demonstrated manifestly in its massive Investment loans to Sri Lanka and Projects like Hambantota Port and Colombo Port City etc.

The recent diplomatic overtures to woo the Northern Tamils by offering relief aid of 500 Dry Rations parcels to needy families, worth Rs. 7500/- each can be considered more a bribe than an act of altruism. It amounts to trading, food in return for some space in the northern region to China. But, the Northern Tamils are more astute and has an ingrained conservatism and cannot be hoodwinked by free goodies of China. So, the Northern Tamils are not for sale and cannot be “won over” by China. Moreover, Northern Tamils and China are two worlds apart. Besides, there is not an iota of an element that connects Northern Tamils and China. On the contrary, the Northern Tamils have an inseparable binding with their ancestral forebears of Southern India, biologically, ethnically, linguistically, and culturally. These links with India cannot be broken and bartered away for free material aid or financial inducements; On the other hand, there is only a marginal connection between China and the majority Sinhala Buddhists of the South West Sri Lanka.

The only common factor that connects Sri Lanka to China is Buddhism. But then, China is Buddhist only in name. Even if China can be labeled as a Buddhist country, it is not Theravada Buddhism but Mahayana Buddhism. Moreover, China’s religion is Communism and not Buddhism. The latest report is that China has proposed to build the largest Statue of the Buddha in Sri Lanka to cater to latter’s Buddhist emotion and sentiments and buy its allegiance to China. A symbol of ties between Sri Lanka and China- vide DM report of 21/11/2023. In the final analysis, Buddhism originated in India, and both Sri Lanka and China are mere recipients of Buddhism. The aforesaid multiple factors binds Sri Lanka organically more to India than to China.

However, there is one common political factor that draws China and Sri Lanka to each other. That is, Sri Lanka’s imaginary apprehension about its close neighbor India, and China and India rivalry in the Himalayan border, which escalated into two wars between them. Therefore, China is seeking access to India’s southern front, while Sri Lanka is seeking China as a bulwark against India .Chinese Diplomat in Sri Lanka proclaimed that China is a “protector of Sri Lanka’s Independence, Sovereignty and territorial Integrity”. Therefore, China is asserting tangible presence in the Indian Ocean to protect itself and Sri Lanka. Hence the common needs of China and Sri Lanka, makes the latter to tilt towards China in its foreign policy, which is detrimental to Sri Lanka. This makes China and Sri Lanka strange bedfellows.

Logistically, India is our next door neighbor. Reliance on our neighbor is far greater than reliance on a distant China, thousands of miles away. Moreover, Sri Lanka has greater affinity to India than China. Besides, India has since antiquity never coveted or conquered others’ territories. On the contrary, India has only ceded territories to others. India was larger than what it is today. For example Afghanistan, Sikkim, Bhutan, Nepal, Pakistan and Bangladesh were part of India. India was and is absolutely a country of peace. It was other marauders, the Mongols, Persians, Moghuls, the Portuguese and the British that brought War into India. India’s culture is strongly and irrevocably embedded in its Sanatana Dharma since several millennia, and not in militarism. China winning over the Northern Tamils will be a pipe dream, while China winning over the Southern Sinhalese would be a disaster. Already the economic disaster had manifested by China’s overloaded Project Loans with corruption attached that brought the country to financial bankruptcy. The disaster of Geopolitics is a pending one, in the short or long term, when Sri Lanka would get caught up with embroilment in Big Power confrontation in the Indian Ocean ruining the whole country, including the Northern Tamils.

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Crisis-hit Sri Lanka eyes $200 mln yearly from foreign ships

Sri Lanka is eying to earn $200 million annual income from foreign ships traversing in its water by developing Electronic Navigation Charts (ENCs), the State Defence Minister said as the island nation is in the process of coming out of an unprecedented economic crisis.

President Ranil Wickremesinghe, who is also the Defence Minister, has already issued a gazette for navy to start the creation of ENCs, State Defence Minister Premitha Bandara Tennakoon said.

“Sea of Sri Lanka is located in a very strategic location. This is the route where all ships travel. We have ignored the charts of these ships for decades. We have realized that through such charts, Sri Lanka can earn $200 million,” Tennakoon told reporters in Colombo at a media briefing.

He said out of 122 ENCs, only six have been created.

“We lose significant revenue because we don’t have ENCs. It’s a huge task. Within two years we should be able to chart all,” he said.

“Priority will be given for places where we can earn revenue,” he said, referring to yachts using charts when they travel for leisure purposes.

“We can even think of yacht hubs. Each should use at least two ENCs and one chart (ENC) could earn a revenue of $25.”

He said the move could be used to earn revenue from 350000-45000 ships traveling the main sea route near Sri Lanka.

“It is important for the economy, tourism, and national security.”

The existing nautical charts are managed by the British Hydrographic Office according to an agreement with the National Aquatic Resources Research and Development Agency (NARA) Institute.

At present, the NARA Institute has entered into an agreement with the British Hydrographical Office for the creation of nautical maps covering the ocean region belonging to Sri Lanka.

Sri Lanka in process of rightsizing military; tri forces to be 150,000 by 2030 – State Minister

Sri Lanka has already started “right sizing” its strong military gradually to 150,000 by 2030 without any impact on national security while strengthening them with modern technology, State Defence Minister Minister Premitha Bandara Tennakoon said.

He said the government is in the process of reducing the army to 100,000, navy to 30,000, and air force to 20,000 by 2030 from the current numbers, which he did not mention.

“This will be done without removing anybody from the military. The numbers are based on natural reduction,” Tennakoon said, referring to the reduction due to retirements.

“While doing the right sizing of the military, we will be acquiring modern technology. We will do this gradually and carefully with no impact on national security. It will be done responsibly and in a scientific way.”

Sri Lanka’s 2024 defence budget of 423 billion rupees has been already approved by the parliament and it has been reduced to 6.5 percent of the gross domestic product (GDP) in 2024 compared to this year’s 7.5 percent, he said.

Soon after the end of a 26-year war against separatist Tamil Tiger rebels, the defence budget was 13.5 percent of the GDP in 2010.

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Govt Pays Rs 3.7M Monthly to ex-Presidents

An official document, PS/RTI/01/2023/205, obtained from the Presidential Secretariat, by Ceylon Today, reveals that former Presidents, namely Gotabaya Rajapaksa, Maithripala Sirisena, Mahinda Rajapaksa, Chandrika Bandaranaike Kumaratunga and Hema Premadasa, the widow of Ranasinghe Premadasa, receive secretary allowances, fuel allowances and retirement benefits totalling a staggering Rs 3,715,350 monthly.

According to the information, former President Gotabaya Rajapaksa receives a monthly secretary allowance of Rs100,000, a fuel allowance of Rs 679,950, along with a retirement benefit of Rs 97,500. Similarly, former President Mahinda Rajapaksa is entitled to a secretary allowance of Rs 50,000, a fuel allowance of Rs 679,950 and a retirement allowance of Rs 97,500.

Sirisena receives secretary allowance of Rs 100,000, fuel allowance of Rs 679, 950 and the retirement benefits of Rs 97,500.

Former President Chandrika Bandaranaike Kumaratunga, receives a secretary allowance of Rs 100,000, a fuel allowance of Rs 500,000, and a retirement benefit of Rs 97,500.

In a related context, Hema Premadasa, the widow of former President Ranasinghe Premadasa, currently receives governmental allowances. She is granted a secretary allowance of Rs 25,000, a fuel allowance of Rs 100,000, and a retirement allowance of Rs 65,000.

The disclosure also highlights specific anomalies in the allowances distributed. It notes that during October 2023, Bandaranaike received a substantial fuel allowance of Rs 500,000, while Premadasa was allocated Rs 250,000, raising questions about the allocation discrepancies.

According to the RTI application, dated 11 October 2023, based on the Article 36 (1) of the Constitution, Mahinda Rajapaksa and Maithripala Sirisena both who served as presidents of the country, are entitled for the retirement payment only for their tenure as presidents and are being excluded from receiving a prime ministerial retirement payment as well as their Member of Parliament salaries.

According to the Presidents’ Entitlement Act No. 4 of 1986, every former President and the widow/widower of a former President are entitled to a pension, fuel allowance and secretarial allowance during his or her lifetime. Moreover, they are provided with a suitable house to live in during their lifetime without any rent.

According to the information requests, made under the RTI Information Act No. 12 of 2016, it was clear that a single retired president or widow of a former president receive an allowance or protection given to former presidents (security) and that was not disclosed but Ceylon Today was urged to get that information from the Ministry of Defence and Ceylon Today would follow up.

The former presidents had stated to the media, on various occasions, that according to the Presidents’ Entitlement Act No. 4 of 1986, the pension that every former president is entitled to is credited to various funds and that they don’t take them for personal use.

But, it has come to light that no such funds had been credited to various funds as mentioned but they have credited these allowances to only their personal bank accounts.

The allowances and perks paid monthly to retired presidents and widows of former presidents are discussed in annual budget under the President’s expenditure heading. Their allowances and privileges were discussed in the Parliament this time too.

Speaking in opposition to this budget, Jathika Jana Balawegaya (JJB) Leader Anura Kumara Dissanayake said:

“Rs 84 million was allocated for former presidents last year, but Rs 110 million has been allocated this year. Former Presidents Mahinda Rajapaksa and former President Gotabaya Rajapaksa, the two brothers, who have been accused by the Court of complicity in the collapse of the economy, are among them. Therefore, when they have announced that they have participated in the collapse of the economy, this Parliament should not allocate money for them.’

By Mithun Jayawardhana and Sulochana Ramiah Mohan

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UK Parliament Grapples With Foreign Secretary David Cameron’s Alleged Ties to Chinese-funded Port City Project in Sri Lanka

In a heated session at the House of Commons, Labour MP Siobhain McDonagh raised serious concerns about the current Foreign Secretary David Cameron’s past professional engagements, claiming that he worked for a Chinese state enterprise sanctioned by the US Government and blacklisted by the World Bank for bribery. McDonagh asserted that the Foreign Secretary had been paid by the Chinese company to promote the construction of a port in Sri Lanka, a nation marred by accusations of war crimes and ongoing concerns about thousands of disappeared individuals since the end of the civil war in 2009.

During the parliamentary session, McDonagh posed a critical question to the Minister, emphasizing the British people’s right to know about the professional affiliations of their Foreign Secretary, especially when it involves employment by the Chinese government. The accusation raises questions about potential conflicts of interest and the impact on the UK’s foreign policy decisions, particularly regarding China and its investments in other nations.

Labour MP Pat McFadden furthered the inquiry by highlighting the Foreign Secretary’s role in promoting the Port City Colombo project in Sri Lanka, receiving praise from the China Harbour Engineering Company. McFadden pressed for clarification on the ultimate client when the Foreign Secretary received payment from KPMG Sri Lanka for his involvement in promoting the project, seeking to discern whether it was the Sri Lankan Government or the Chinese state-owned China Harbour Engineering Company.

Responding to the queries, Conservative MP and Minister for the Cabinet Office, John Glen, stated that the UK Government’s stance on China remains unaltered. Glen emphasized the commitment to engaging directly and robustly in the UK’s national interest. The response did not directly address the specific questions about the Foreign Secretary’s past employment and potential ties to the Chinese state enterprise.

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Did RW make a blind statement on Presidential, Parliamentary Elections?

Putting to rest speculation about uncertainty on the conduct of polls pending next year, President Ranil Wickremesinghe announced in Parliament on Wednesday that he would take steps for the conduct of both the Presidential and General Elections next year.

He made such an announcement against the backdrop of the political parties and politically savvy people raising concerns about the possible postponement of elections through legal and constitutional manipulations.

However, Article 31 (3) of the Constitution says (3) ‘The poll for the election of the President shall be taken not less than one month and not more than two months before the expiration of the term of office of the President in office.’

The Presidential Election is due by September or October in terms of the Constitution and therefore there is no requirement for making a fresh announcement. However, the President would have done it because many individuals were casting doubts about the timely conduct of it. In fact, he announced it previously in his address to the convention of his United National Party (UNP).

However, the question still lingers as to whether the President will attempt to postpone the Presidential Election next year through constitutional or legal manipulations.

Nevertheless, the parliamentary election can be called for by him at any time now though it is constitutionally scheduled to be held only in 2025, well after the Presidential Election.

No matter what, the key political parties and individuals harbouring presidential hopes have been expending their energy for some time in anticipation of the elections next year. In addition to the names of President Wickremesinghe, Samagi Jana Balawegaya (SJB) leader Sajith Premadasa, JVP leader Anura Kumara Dissanayake and individuals such as Dhammika Perera have already been floated as prospective candidates.

According to informed sources, the parties have done their own surveys to ascertain public opinion. As things stand at the moment, no party commands the clear-cut majority or 50 per cent mark of votes polled to win the elections. They will do a lot of strategizing in the months to come to fill the gaps needed to cross the mark at the election.

Things are slated to hot up starting from January, next year. In the meantime, Sri Lanka Podujana Peramuna (SLPP) is working on its convention scheduled for December 15. It will announce its vision and mission, probably with an indication about its plan for the Presidential Election. Besides, an SLPP group that is fully with the President will launch its political movement in January, next year, targeting the presidential elections.

The SLPP, as a party, has not yet decided to support President Wickremesinghe. It is highly unlikely that it will field its own candidate this time. Its electoral alliance with any prospective candidate will depend on the political outcome to be unfolded in the months to come.

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Rajapaksas responsible for SL crisis? President responds exclusive interview with Indian media, Firstpost

The Rajapaksas have their share of responsibility for Sri Lanka’s economic crisis, President Ranil Wickremesinghe acknowledged during an exclusive interview with Indian media, Firstpost.

When inquired if the Rajapaksas should at the very least apologise for their actions, President Wickremesinghe said it was up to them and he believes they have done so, recalling that former President Gotabaya Rajapaksa had previously issued a similar statement.

“The crisis took place during their time. When Mahinda Rajapaksa resigned as the Prime Minister and Gotabaya Rajapaksa resigned as the President, the whole political system collapsed. The Opposition which should have taken over shied away from the responsibility,” he explained.

The President further said that there were a lot of irresponsible actions by everyone, adding, “I think you have to look into all of that and not merely one part of it.”

Commenting to remarks of critics claiming that he was defending the Rajapaksas, President Wickremesinghe refuted the claims, stating “I am not defending the Rajapaksas. I am saying the Rajapaksas are responsible. But there is no one else to take responsibility thereafter. The critics are the ones who ran away from responsibility.”

Questioned on his attendance at former President Mahinda Rajapaksa’s birthday celebrations recently, the President said he and Mahinda Rajapaksa have always exchanged birthday wishes and have also celebrated birthdays, which he claimed was common practice.

“I have always wished Mahinda Rajapaksa on his birthday and he has wished me for my birthday. This time Mr. Namal Rajapaksa asked if I could come to his house for a party, so I said yes. If any MP invites me and I have time, I go to the birthday party. Sometimes we also get a cake and cut it at the Parliamentary group meeting or Cabinet. That’s a tradition,” he said.

Stating that he was not a surrogate for the Rajapaksas as claimed by the critics, President Wickremesinghe revealed that the Rajapaksas’ party was currently divided.

“One half is working with the Samagi Jana Balawegaya and the other half is with me. If you ask me if the whole of Rajapaksas party is supporting me, I would say no. If you ask me if the whole of the Samagi Jana Balawegaya is supporting Sajith Premadasa, I would say no. All parties are split,” he said.

President Ranil Wickremesinghe said that he only appealed to all political parties to work together to pull the country out of the crisis, and he received the majority to be appointed as the President of Sri Lanka.

US Ambassador hails challenging journey of Lanka

Ambassador of the United States to Sri Lanka Julie Chung, acknowledged the resilience of the Sri Lankan people, the abatement of inflation, and the gradual reduction of shortages at the seventh annual general meeting of the Sri Lanka – USA Business Council (SLUSABC) of the Ceylon Chamber of Commerce.

The Ambassador of the United States to Sri Lanka recognized the challenging journey that Sri Lanka has traversed since the previous annual general meeting in August of the previous year. She emphasized the importance of Sri Lanka’s commitment to long-term regulatory and economic reform, inclusive of equitable debt restructuring, fiscal transparency enhancement, the creation of an attractive regulatory environment, and the fortification of democratic governance.

SLUSABC elected Chief Operating Officer of WICHY Plantation Company (PVT) LTD, Charithra Hettiarachchi as President for 2023/2024 and he expressed the Council’s commitment to strengthening ties between Sri Lanka and the USA in the areas of trade, tourism and development.

He outlined the Council’s goals, which include creating networking opportunities, advocating for member companies, providing educational resources, and promoting corporate social responsibility and sustainable business practices. Hettiarachchi, expressed the council’s gratitude to the government of the United States of America for the support extended during Sri Lanka’s time of need especially during the last two years. The direct involvement of the embassy in facilitating the import of fertilizer, assistance through the IDFC fund and the numerous work done to develop the human capital of Sri Lanka were a few examples that were highlighted during his speech.

The 2023/24 Executive Committee includes Tilak Gunawardena from MAC Holdings and Tuan Farhath Noor Armith from Fanam International as Vice Presidents, Randeewa Malalasooriya from CBL Natural Foods as the Treasurer, and Sanji De Silva as the Immediate Past President. Dr. Asanka Ratnayake, a Past President, was unanimously honored as an Honorary Member of the council.

Newly appointed committee members include Aitken Spence Travels (Pvt) Ltd, Expelogix (Pvt) Ltd, Jafferjee& Sons (Pvt) Ltd, Sampath Bank PLC, and Spillburg Holdings (Pvt) Ltd.

Research ships from any country welcome to Sri Lanka

Sri Lanka will welcome any research and exploration vessel from any country, including China, said Sri Lankan President Ranil Wickremesinghe in an interview to Indian agency FirstPost

In response to the recent port calls made by China’s Yuan Wang 5 and Shi Yan 6, Ranil Wickremesinghe said that when inquired, there was no evidence to claim the vessels were spy ships.

“What is a spy ship is a big question mark. These are civilian ships, but if there are issues, if there are spy ships, we will not allow them to come in. But as far as exploration is concerned, we allow not only Chinese ships but other ships, but no one highlights the fact that other ships also come to Sri Lanka,” said the President.

He also said that “each time a Chinese ship comes, we get a lot of publicity. But if a ship, a research ship, comes from another country, we are ignored.”

He also said that Sri Lanka is going to develop its own hydrographic unit and get its own ships and “then we can do surveys in around India and China.”

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