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Significance of Ceylon-China Trade Agreement of 1952

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by Dr. J. B. Kelegama

Excerpts from the keynote address at the 50 th anniversary celebrations of the historic “Rubber-Rice Pact” between Sri Lanka and China at the BMICH on December 20, 2002

I am honoured by the invitation of the Sri Lanka-China Business Cooperation Council and the Sri Lanka-China Society to deliver today the keynote address on the occasion of the golden jubilee celebrations of the historic Rubber-Rice Pact between Sri Lanka and China signed in December 1952.

I accepted this invitation with alacrity and pleasure, firstly because I have conducted negotiations with China and actually implemented the Agreement over a period of about 12 years in my capacity as a senior government official, secondly, because I have visited China seven or eight times both as a government official and a UN consultant and thirdly, because I have been a student of China’s economic development for many years and written and published several articles on China’s economic and trade issues, under my own name as well as under pen-names.

Further, I had the privilege of speaking on this subject at the death anniversary of Mr. R. G. Senanayake some years back, on the invitation of no less a person than Mrs. R. G. Senanayake herself.

The Ceylon-China Trade Agreement of 1952 was undoubtedly the most useful trade agreement negotiated by Sri Lanka and one of the most successful and durable trade agreements in the world, having been in operation for 30 years. It is therefore useful to assess the significance of the agreement and to refresh our memory regarding the circumstances that led to it and the person who played the key role in bringing it about – R. G. Senanayake.

 

Rice shortage

1952 was a very bad year for Sri Lanka. Premier D. S. Senanayake had died and Dudley Senanayake had just formed a new government when the country had to face a world shortage of rice.

The Government was committed at that time to provide every adult person with two measures of rice per week at a subsidised price, but rice was not available from the traditional suppliers – Burma, Thailand and Indo-China – and the world market price of rice had risen by 38 per cent between 1951 and 1952.

Sri Lanka was therefore compelled to buy 60,000 tons of rice from the USA and 10,000 tons from Ecuador at high prices, although this variety of rice was not suitable to the Sri Lankan palate. She was however not in a position to buy all the rice she needed at this high price as her foreign exchange resources were limited; besides, distribution of this rice would have pushed the food subsidy bill to intolerable levels.

The country was also facing a foreign exchange crisis in 1952 caused by a dramatic fall in her export prices brought about by the quick end of the Korean War boom. The end of the Korean War and the drastic reduction of commodity purchases by the West – in particular, of natural rubber by the United States – led to a collapse of Sri Lanka’s export prices by 23 per cent between 1951 and 1952.

The price of natural rubber declined by 36 per cent, of tea by 10 per cent, and of coconut oil by 40 per cent. Import prices increased by 8 per cent and terms-of-trade fell by 28 per cent. The trade surplus of Rs. 345 million in 1951 turned into a trade deficit of Rs. 200 million in 1952 and external assets fell by 30 per cent. In this critical situation Sri Lanka attempted to negotiate with the USA for a loan of US$50 million and for favourable prices for rubber exports and rice imports, but failed. The country was facing an unprecedented crisis: she could not find enough rice to feed her people and she had no prospect of a favourable market for her rubber exports.

It was in this grim setting that R. G. Senanayake, the then Minister of Commerce, played his master stroke. He found out that China was prepared to sell rice to Sri Lanka in exchange for rubber. At that time China was unable to obtain rubber as a result of prohibition of rubber exports from Malaya following a UN resolution preventing the sale of rubber to China. Thus China wanted rubber as badly as Sri Lanka wanted rice. R. G. Senanayake was quick to realise the mutual benefits of trade with China, and negotiated the Ceylon-China Trade Agreement or the Rubber-Rice Pact in Beijing towards the end of 1952. He stated in Parliament.

“We waited for foreign aid, foreign assistance. As you know Sir, over and over again, we made appeals for Point Four aid, we waited four long years. We have got in the form of assistance only a cook for the Kundasale Girls’ School. Therefore in these circumstances, it was necessary that we should go where it was possible to get our requirements.”

 

Opposition

The Agreement was negotiated in the teeth of opposition from some of his own colleagues in the Cabinet. Indeed, the opposition of J. R. Jayewardene, the Minister of Finance, was well known. The Cabinet was advised by the newly created Central Bank under an American Governor. Opposition also came from R. G. Senanayake’s predecessor in the ministerial post, from the American Government, and from some of the local newspapers which carried on a virulent press campaign against any dealings with Communist China. S. P. Amarasingham’s informative book “Rice and Rubber: The Story of China-Ceylon Trade” provides a detailed account of the strong opposition R. G. Senanayake had to face in negotiating the Agreement.

The American Government invoked the Battle Act which prevented it from giving aid to countries selling strategic materials to Communist countries and cut off aid to Sri Lanka. In addition, she stopped selling sulphur needed by Sri Lanka’s rubber plantations. This was the price that had to be paid for trading with China.

Prime Minister, Dudley Senanayake, however, fully backed his Minister of Commerce and was prepared to pay this price; he realised that the benefits to Sri Lanka from the agreement far outweighed losses consequent to the cutting-off of American aid. He argued:

“Ceylon’s old trade pattern has been knocked out by changes in the world market and we have to seek new markets for our needs of essential foodstuffs and for our exports.”

Rebutting the charges that the Trade Agreement was opening the door to communist influences in Sri Lanka, he pointed out:

“Communism thrives in many places not through an understanding of that particular ideology but through poverty and want. I am confident that our Trade Agreement with China will instead of opening doors to communism help us to stand firmer against it.”

It is a tribute to the two Senanayakes that they displayed remarkable pragmatism and courage in negotiating the Trade Agreement. They did not allow their prejudices or ideological considerations to stand in the way of deciding what was in the best interests of the Country; nor were they intimidated by threats of big powers.

 

R. G. Senanayake stated:

“I have always held the view that political ideologies should not stand in the ways of countries trading with each other if that trade is to their mutual advantage.”

He foresaw as far back as 1952, the emergence of China as a world power. He stated in a speech: “Talking of China in particular, it would be unrealistic to ignore a nation of 500 million in our continent with a united and cohesive government for the first time in many centuries. She is bound to be a major factor in world trade.”

As he foresaw, China has now become the seventh largest exporter in the world and the largest trader among developing countries whose purchases and sales influence the world markets. In 2000 for instance, her exports were US$249 billion and imports US$225 billion. If we include Hong Kong’s trade with China (as the greater part of Hong Kong’s trade is entrepot trade with China) then China becomes the fourth largest exporter in the world after the USA, Germany and Japan, its exports amounting to $452 billion.

 

The Agreement

The Trade Agreement signed in 1952 was for five years and renewable; there was, however, an annual Trade Protocol specifying the quantities of commodities to be exchanged in the ensuing year, which had to be negotiated every year. The trade was based on barter – exports and imports to balance every year; only the outstanding balance at the end-of-the-year was to be settled in foreign exchange.

Trade however was rarely balanced in the following years but the outstanding balance was generally carried forward to the next year without settlement in foreign exchange.

In the first part of the agreement there were specific commitments by Sri Lanka to purchase rice, and for China to buy rubber; the values were to balance. Thus in 1953, Sri Lanka agreed to buy 270,000 tons of rice from China which in turn agreed to purchase 50,000 tons of rubber; these quantities were exchanged on the basis of world market prices and were equal in value. In addition, China agreed to pay a premium price for rubber over the world market (Singapore) price and further, handling charges for rubber exports in Colombo.

Thus in 1953, China paid for Sri Lanka rubber Rs. 1.74 per lb. whereas the average world market price was Rs. 1.05 per lb. This premium varied with every five-year agreement. The handling charge which was fixed at five cents per lb. too varied in subsequent years. China also agreed to supply rice to Sri Lanka below market prices – at 54 pounds or Rs. 720 per ton in 1953.

Thus Sri Lanka benefited both ways from the agreement. The second part of the agreement covered trade in other commodities – those Sri Lanka and China wanted to buy and sell – but without specific commitments; the total value of exports and imports however were expected to balance every year. In view of the substantial mutual benefits, the Trade Agreement was renewed every five years by R. G. Senanayake’s successors in his ministerial post – in 1958, 1962, 1967, 1972 and 1977 – and was wound up, in the sense that the barter element was given up, in 1982 when it was found that the barter of rice and rubber was no longer in mutual interest. Sri Lanka had almost reached self-sufficiency in rice and needed only very small quantities from abroad while China was able to purchase rubber from several rubber producing countries without restriction and without paying a premium.

R. G. Senanayake paid an important tribute to China after negotiating the Trade Agreement, when he concluded his Cabinet paper on the subject in the following words:

“We noted on the Chinese side the absence of the spirit of bargaining and haggling on comparatively small points. On the other hand, they gave us the impression of being large-minded and forthright in their dealings.”

I can confirm this as I conducted trade negotiations with China over a dozen times. Benefits

The significance of the Ceylon-China Trade Agreement lies in the positive benefits Ceylon received during the thirty years of its duration. Those benefits exceeded expectation as China expressed her gratitude to Sri Lanka for supplying her rubber when other rubber producers were not prepared to do so and in spite of the opposition and denial of aid by the US Government. These benefits are discussed in detail below.

(1) The premium over world market price for rubber was estimated between Rs. 68 and Rs. 95 million in 1953 alone. It was about 56 per cent more than the world market price in that year. No estimates are available for successive years, but the premium was substantial, for even a ten cents premium meant Rs. 200 per metric ton and Rs. 10 million for 50,000 tons.

(2) The handling charge of 5 cents per lb., in 1953 was equal to Rs. 100 per metric ton or Rs. 5 million for 50,000 metric tons of rubber. As the charge and quantity varied from year-to-year the total sum too changed, but it was significant.

(3) The sale of rice by China to Sri Lanka at prices below the world market resulted in a net benefit of about Rs. 92 million in 1953 alone. Although there was a net benefit in the following years, no estimates have been made. China agreed to sell rice at the same price Burma sold rice to Sri Lanka with certain adjustments for differences in quality and transport costs. China never tried to exploit the rice market to her advantage.

Even when she did not have an exportable surplus, she supplied Sri Lanka with rice direct from Burma under a triangular trade arrangement, but charged us only the price she paid Burma – not a cent more – even when she had reason to charge something more.

(4) As a result of the agreement a grant of about Rs. 125 million was extended by China during the ten-year period 1958-68 to meet part of the costs of rubber replanting. Thousands of acres of uneconomic rubber land were replanted thereby revitalizing our rubber industry.

(5) China continued to purchase Sri Lanka’s rubber at a premium even when other markets were prepared to sell her rubber at lower prices.

(6) Sri Lanka found an assured market for her rubber and an assured source of supply for her rice and insured herself to a great extent against vagaries in the world market. She also diversified her export and import markets.

(7) The Trade Agreement benefitted the Ceylonese traders as against non-national traders by creating a new market for them. In spite of the opposition from non-national trading establishments – particularly British managing agency houses – R.G. Senanayake reserved the export of rubber to China for the Ceylonese traders. He also reserved China for the Ceylonese importer under his policy of Ceylonizing the external trade of the country.

(8) The Trade Agreement laid the foundation for expanding trade between Sri Lanka and China even after the barter agreement ceased to operate. In 2001 for instance China and Hong Kong (which mainly re-exports China’s products) constituted the largest supplier of imports valued at Rs. 64 billion to Sri Lanka.

(9) Economic co-operation between Sri Lanka and China began with the Trade Agreement. It was expanded by leaps and bounds with establishment of diplomatic relations with China by S.W.R.D. Bandaranaike and closer relations under Sirimavo Bandaranaike as symbolised by the Bandaranaike Memorial International Conference Hall (BMICH), textile mills at Veyangoda and Pugoda, other grants and interest-free loans. Economic co-operation thereafter is demonstrated by the superior courts complex, Gin ganga scheme and assistance to restore Abayagiri dagaba.

(10) The Ceylon-China Trade Agreement with its price concessions for both Sri Lanka’s exports and imports and assistance to rubber replanting by China was perhaps the first instance of a developing country giving economic assistance to another developing country. In other words, it was the first time where economic co-operation among developing countries or South-South co-operation took place.

(11) Finally, Ceylon-China Trade Agreement and closer commercial and economic relations laid the foundations for a firm friendship between Sri Lanka and China, which was strengthened, expanded, and cemented by the Bandaranaike governments. China’s friendship for Sri Lanka has been demonstrated not only in trade and economic co-operation but also in times of national crisis. There was only China to warn other countries to ‘keep their hands off Sri Lanka’ at the height of the Indo-Lanka crisis in June-July 1987. This friendship was demonstrated again thereafter by the visit of Prime Minister of China and his offer of Rs. 375 million in economic assistance.



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A 20-year reflection on housing struggles of Tsunami survivors

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The aftermath of the 2004 tsunami.(Picture Sena Vidanagama for AFP)

Revisiting field research in Ampara

by Prof. Amarasiri de Silva

The 2004 Indian Ocean tsunami, also known as the Boxing Day tsunami, triggered by a magnitude 9.1 earthquake off the coast of Sumatra on 26 Dec., 2004, had a catastrophic impact on Sri Lanka. It is estimated to have released energy equivalent to 23,000 Hiroshima-type atomic bombs, wiping out hundreds of communities in minutes. The tsunami struck Sri Lanka’s eastern and southern coasts approximately two hours after the earthquake. The eastern shores, facing the earthquake’s epicenter, bore the brunt of the waves, affecting settlements on the east coast. The tsunami displaced many families and devastated villages and communities in the affected districts of Sri Lanka. Although Boxing Day is associated with exchanging gifts after Christmas and was a time to give to the less fortunate, it brought havoc in Sri Lanka to many communities. It resulted in approximately 31,229 deaths and 4,093 people missing. In terms of the dead and missing numbers, Sri Lanka’s toll was second only to Indonesia (126,804, missing 93,458, displaced 474,619). Twenty-five beach hotels were severely damaged, and another 6 were completely washed away. More than 240 schools were destroyed or sustained severe damage. Several hospitals, telecommunication networks, coastal railway networks, etc., were also damaged. In addition, one and a half million people were displaced from their homes.

Ampara district was a hard-hit district, where more than 10,000 people died. A Galle bound train from Colombo, carrying about 1,700 passengers visiting their ancestral homes and villages, on the Sunday after the Christmas holidays, was struck by the tsunami near Telwatta; most of them were killed.

About 8,000 people were killed in the northeast region, which the LTTE controlled at the time. The Ampara district was a hard-hit district, with more than 10,000 people dying and many more displaced. In sympathy with the victims, the Saudi Arabian government established a grant to construct houses to assist 500 displaced families in Ampara in 2009. The Saudi Envoy in Colombo presented the house keys to President Mahinda Rajapaksa in 2011 for distribution to tsunami victims in the Ampara district. However, due to the protests by local majoritarian ethnic groups, the government intervened, and a court ruling halted the housing distribution to the victims, mandating that houses be allocated according to the country’s population ratio. The project includes residential units and amenities such as a school, a supermarket complex, a hospital, and a mosque, making it unique for Muslim people. Saudi government ambassador Khalid Hamoud Alkahtani engaged in discussions with the Sri Lankan government to sort out the issues and agreed to give the houses to the respective victims.

Immediate Recovery

The immediate relief work was initiated just after the disaster, and the government had financial and moral support from local people and countries worldwide. As most displaced people were children and women, restoring at least basic education facilities for affected children was a high priority. By mid-year, 85 percent of the children in tsunami-affected areas were back in school, which showed that the relief programme in school education was a success.

Relief efforts for households included the provision of finances to meet immediate needs. Compensation of Rs.15,000 (US$150) was offered for victims towards funeral expenses; livelihood support schemes included Payment of Rs.375 (US$3.75) in cash and rations for each member of a family unit per week, a payment of Rs. 2,500 (US$25) towards kitchen utensils per family. These initial measures were largely successful, though there were some problems with a lack of coordination, as witnessed. (See Map 1)

The most considerable financing needs were in the housing sector. The destruction of private assets was substantial (US$700 million), in addition to public infrastructure and other assets. Loss of current output in the fisheries and tourism sectors—which were severely affected—was estimated at US$200 million and US$130 million, respectively.

2004 tsunami-impacted zone. (Image courtesy Reliefweb)

Strands of Hope: Progress Made for Tsunami-Affected Communities of Sri Lanka

By mid-June 2005, the number of displaced people was down to 516,000 from approximately 800,000 immediately after the tsunami, as people went home—even if the homes in question were destroyed or damaged—and were taken off the books then. At first, an estimated 169,000 people living in schools and tents were mainly transferred to transitional shelters/camps—designed to serve as a stopgap between emergency housing and permanent homes. This transitional shelter was only supplied to affected households in the buffer zone.

By late August 2005, The Task Force for Rebuilding the Nation (TAFREN) estimated that 52,383 transitional shelters, accommodating an estimated 250,000 tsunami-affected people, had been completed since February 2005 at 492 sites. Those transitional housing programme shelters were expected to be completed with 55,000 by the end of September 2005. This goal seems more than achievable. I did not find evidence to show that it has been achieved.

I did my field research in Ampara district with support from UNDP Colombo, the Department for Research Cooperation, and the Swedish International Development Cooperation.

My research shows that the tsunami affected families in Muslim settlements along the East Coast had a severe housing problem for two reasons.

• First, the GoSL has declared that land within 65 meters of the sea is unsafe for living due to possible seismic effects, and people are thus prohibited from engaging in any construction in that beach area. This land strip is the traditional living area of the Muslims, particularly the fisher folk. Families living along the narrow beach strip have not been offered alternative land or adequate compensation to buy land outside the 65-metre zone.

• Second, the LTTE has prohibited Muslims from building houses on land purchased for them by outside agencies on the pretext that it belongs to the Tamils.

The GoSL established several institutions as a response strategy for post-tsunami recovery after the failure of P-TOMS. The Task Force for Rebuilding the Nation (TAFREN), the Task Force for Relief (TAFOR), and the Tsunami Housing Reconstruction Unit (THRU) were the lead agencies created through processes involving private and public sector participation. In November 2005, following the election of President Mahinda Rajapaksa, the Reconstruction and Development Agency (RADA)was set up. This became an authority with executive powers following the parliamentary ratification of the RADA Act in 2006. RADA’s mandate was to accelerate reconstruction and development activities in the affected areas, functionally replacing all the tsunami organizations and a significant part of the former RRR Ministry. According to RADA, the total number of houses built so far (as of May 2006) in Ampara is 629, while the total housing units pledged is 6,169. At the time of the research (March to June 2006), no housing projects were completed in a predominantly Muslim area.

Compensation for damaged houses was not based on a consistent scheme. As a result, some families received large sums, while others did not get any money. In some instances, those who collected compensation were not the affected families. The Auditor General, S.C. Mayadunne, noted that Payment of an excessive amount, even for minor damages, is due to the payments being made without assessing the cost of restoring the houses to normal condition. (For example, Rs. 100,000 had been paid for minor damages of Rs. 10,000) … Payments made without identifying the value of the damaged houses, thus resulting in heavy expenditure by the government (For example, a sum of Rs. 250,000 had been paid for the destruction of a temporary house valued at Rs. 10,000) (Mayadunne, 2005, p. 8). That compensation was not paid according to an acceptable scheme, which led to agitation among the affected people and provided an opportunity for political manipulation. The LTTE and the TRO requested direct aid for reconstruction work in LTTE-controlled areas. The poor response of the GoSL to this demand was interpreted as indifference on its part towards ethnic minorities in Ampara. Meanwhile, the GoSL provided direct support for tsunami-affected communities in southern Sri Lanka, where the majority were Sinhalese, strengthening this allegation.

Land scarcity in tsunami-affected Ampara and disputes over landownership in the area were the main reasons for not completing the housing programmes. The LTTE contended that the land identified for building houses by the GoSL or purchased by civil society organisations for constructing such houses belongs to the Tamils, an ideology based on a myth of their own, a Tamil hereditary Homeland—paarampariyamaana taayakam’ (Peebles, 1990, p. 41). Consequently, housing programmes could not be implemented at that time.

The land question in the Eastern Province has a history that dates back to 1951 when the Gal Oya Colonisation scheme was established. According to the minority version of this history, in a report submitted by Dr. Hasbullah and his colleagues, it shows that the colonists were selected overwhelmingly from among the Sinhalese rather than the Muslims and Tamils, who were a majority in Ampara at that time, and, as a result, the ethnic balance of Ampara District was disrupted. However, conversely, B.H. Farmer reported in 1957 that Tamils, especially Jaffna Tamils, were ‘chary’ and did not have a ‘tradition of migration,’ which was the apparent reason for less Tamil representation among the colonists of Gal Oya. According to Farmer, up to December 31, 1953, between five and 16 percent of the colonists were chosen from the Districts of Batticaloa, Jaffna and Trincomalee, predominantly Tamil. Contradictory evidence (with a political coloring following the recent rise of ethnicity in this discourse) reports by Dr. Hasbullah that 100,000 acres of agricultural land in the East have been ‘illegally transferred from Muslims to the Tamils’ since the 1990s. The Tamils, however, believe that the land in the Eastern Province is part and parcel of the Tamil Homeland. This new political ideology of landownership that emerged at that time in the ethnopolitical context of the Eastern Province has intensified land (re)claiming in Ampara by Muslims and Tamils.

According to Tamil discourse, the increase in the value of land in Ampara over the past two decades has led to rich Muslims purchasing land belonging to poor Tamils, resulting in ethnic homogenization in the coastal areas of the District in favor of the Muslims. ‘Violence against Tamils was also used in some areas to push out the numerically small Tamil service caste communities’ as Hasbullah says. In a situation with an ideological history of land disputes, finding new land for the construction of houses for Muslim communities affected by the tsunami posed a challenge at that time.

In the face of this challenge, Muslims in Ampara sought assistance from Muslim politicians and organisations that willingly came forward to assist them. The efforts made by these politicians and civil society organisations to erect houses for tsunami-affected Muslim families were forcibly curtailed by the LTTE. Consequently, a proposed housing program for Muslims in Kinnayady Kiramam in Kaththankudi was abandoned in 2005. Development of the four acres of land bought by the Memon Sangam in Colombo for tsunami victims of Makbooliya in Marathamunai was prohibited in 2005. Similar occurrences have been reported in Marathamunai Medduvedday. Mrs. Ferial Ashraff, at that time Minister of Housing and Common Amenities, wanted to build houses in Marathamunai, Periyaneelavanai DS division (Addaippallam), the Pandirippu Muslim area, and in Oluvil–Palamunai, but the LTTE proscribed all such initiatives.

The Islamabad housing scheme in Kalmunai Muslim DS division and the construction of houses by Muslim individuals in Karaithivu were banned, and threats were issued by the LTTE and a Tamil military organisation called Ellai Padai (Boundary Forces). Because the GoSL and the intervening agencies could not resolve the housing problem, the affected communities became disillusioned and lost confidence in the GoSL departments, aid agencies, and international NGOs. Much effort and resources were wasted in finding land and designing housing programmes that have not materialised. Some funds pledged by external agencies failed to materialise, causing harm to low-income families. Efforts to provide housing for tsunami-affected people in the Ampara District at that time highlighted their vulnerability to LTTE threats and the power politics of participating agencies. Regarding housing and land issues, the Muslim people of Ampara adopted two approaches to address their challenges. First, in some cases, they reached a compromise with the LTTE, agreeing that upon completion of a housing project, a portion of the houses would be allocated to the Tamil community under LTTE supervision.

For instance, this approach proved successful in the Islamabad housing programme, which was halfway complete as of the time of the research (March–June 2006). Similarly, a housing scheme in Ninthavur followed a comparable compromise with the LTTE. According to Mohamed Mansoor, the then President of the Centre for East Lanka Social Service, 22 of the 100 houses were to be allocated to the Tamil community upon completion. This allocation was deemed reasonable because Muslims owned 80 percent of the land in the area, while Tamils owned 20 percent. At the time of the author’s fieldwork, approximately 30 houses had been completed at this site. I don’t know what happened afterward.

The second approach adopted by the people was to build houses in the areas they had lived in before the tsunami, despite construction being prohibited within 65 meters of the sea. Muslims in Marathamunai knew they would not be allocated any land for housing and sought funds from organisations such as the Eastern Human Economic Development to construct homes on their original plots. The affected individuals have made efforts to urge their leaders to engage with the TRO and the LTTE to reclaim the funds borrowed by Muslim people and organisations to purchase land. The four-acre plot that the Memon Society had acquired for housing development was sold to a Tamil organisation for Rs. 1,000,000 (roughly USD 10,000) and was one such land in question.

The national political forces operating in Ampara have deprived the poor (Muslim) fisher folk of their right to land and build houses in their villages. These communities have resorted to non-violent strategies involving accepting the status quo without questioning it and fighting for their rights. The passivity among the poor affected families is a result of them not having representation in the civil society organisations in the area. These bodies are run by elites who do not wish to contest the GoSL rule of a 65-metre buffer zone or LTTE land claims. The tsunami not only washed away the houses and took the land of the poor communities that lived by the sea, but it also made them even poorer, more marginalised, and more ethnically segregated.

Here, 20 years later, it is time that justice was done to the Muslim families in the Ampara district who were severely hit by the tsunami. It is also a significant and timely commitment made by President Dissanayake to offer 500 houses to the Muslim tsunami victims. Such a promise is overdue and essential, as these marginalised communities have desperately needed a voice and action in their favour for over 20 years. Delivery of such homes to the victims would be an important step in restoring social harmony and the dignity and livelihoods of those affected by the tragic incident.

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Worthless corporations, boards and authorities

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Prof. O. A. Ileperuma

The Cabinet has recently decided to review the state-owned, non-commercial institutions, many of which are redundant or are of no use. The government manages 86 departments, 25 District Secretariats, 339 Divisional Secretariats, 340 state-owned enterprises and 115 non-commercial state statutory institutions. The national budget allocates Rs. 140 billion to manage these institutions.

We have inherited a large number of redundant Corporations, Boards and Authorities causing a huge drain on our financial resources. These institutions were basically created by previous governments to give jobs to defeated candidates and friends of government politicians. For instance, we have the State Pharmaceutical corporation and the State Pharmaceutical Manufacturing corporation. They can be merged. Then, we have the Coconut Development authority and the Coconut Cultivation Board, which is redundant. Decades ago, coconut cultivation came under the coconut research institute (CRI). An extension section of the CRI can easily undertake the functions of these two institutions. Another example is the still existing Ceylon Cement corporation which earlier ran two cement mills at Puttalam and Kankesanthurai. Now, the Kankasenthurai factory does not exist and the Puttalam factory is under the private sector. Still this Ceylon Cement Corporation exists and the only activity they are doing is to lease the lands for mining which earlier belonged to them. There is a chairman appointed by the minister in charge based on political connections and a general manager and a skeleton staff of about ten workers. This corporation can be easily dissolved and the Ministry Secretary can take up any functions of this corporation.

In the field of sciences, the National Science Foundation was created in 1968 to promote science and technology and to provide funding for researchers. Then a former president created two other institutions, National Science and Technology Commission (NASTEC) and National research Council (NRC). While NASTEC is tasked with science policy and NRC provides research grants; both these tasks were earlier carried out by the National Science Foundation. In the field of education, curriculum revisions, etc., were carried out earlier by the Department of Education, and later the National Institute of Education was created, and for educational policy, the National Education Commission was created. The latter was created to provide a top position for an academic who supported the then government in power.

There is a Water Supply and Drainage Board and also a separate Water Resources Board, and they can easily be amalgamated.  There is also the Cashew corporation serving no useful purpose and its duties can be taken over by an institution such as the Department of Minor Crops. There is also the State Development & Construction Corporation and the State Engineering Corporation of Sri Lanka which appear to be doing similar jobs.

We still have Paranthan Chemicals Ltd., which is the successor to the Paranthan Chemicals Corporation involved in manufacturing caustic soda and chlorine. Their factory was destroyed during the war nearly 20 years ago, but it exists and its only function is to import chlorine and sell it to the Water Board for the water purification process. Why can’t the Water Board import chlorine directly?

I am aware that my views on this subject are likely to draw criticism but such redundancies are a severe drain on the Treasury, which faces the difficult task of allocating funds.

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Head-turner in Egypt…

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Prathibha Liyanaarchchi, Miss Intercontinental Sri Lanka 2024, is back in town after participating in the 52nd edition of Miss Intercontinental held at the Sunrise Remal Resort, Sharm El-Sheik, in Egypt.

There were nearly two weeks of activities, connected with this event, and Prathibha says she enjoyed every minute of it.

“It was wonderful being in the company of over 52 beautiful girls from around the world and we became great friends.

“My roommate was Miss Greece. She was simply awesome and I even taught her a few Sinhala words.

“Most of the contestants were familiar with Ceylon Tea but didn’t quite know much about Sri Lanka.”

However, having won a special award at Miss Intercontinental 2024 – Queen of Tourism – Prathibha says she is seriously thinking of working on a campaign to show the world that Sri Lanka is a paradise island and that tourists would love to experience our scene.

Although our queen was not in the final list, she made it into the Top 22 and was quite a drawcard wherever she went.

“I guess it was my tan complexion and my height 5 ft. 10 inches.”

She even impressed an international audience with her singing voice; the organisers were keen to have a contestant from the Asia Oceania group showcase her talent, as a singer, and Prathibha was selected.

She sang Madonna’s ‘La Isla Bonita’ and was roundly applauded.

Even in the traditional costume section, her Batik Osariya and the traditional seven-piece necklace impressed many.

With her new buddies…at the beauty pageant

The grand finale was held on 6th December with Miss Puerto Rico being crowned Miss Intercontinental 2024.

“I would like to say a big thank you to everyone who supported me throughout this journey. I’m honoured to have been named a Top 22 Finalist at Miss Intercontinental 2024 and awarded the Special title of Miss Tourism Queen. It was a challenging yet unforgettable experience competing in Egypt. Preparing, in just three weeks, and performing, was no easy feat, but I’m so proud of what I accomplished.”

For the record, Prathibha, who celebrated her birthday on Christmas Day (25), is a technical designer at MAS holdings, visiting lecturer, model, and a graduate from the University of Moratuwa.

Unlike most beauty queens who return after an international event and hardly think of getting involved in any community work, Prathibha says she plans to continue serving her community by expanding her brand – Hoop The Label – and using it as a platform to create a positive change for the underprivileged community.

“At the same time, I am committed to furthering my education in fashion design and technology, aiming to combine creativity with innovation to contribute to the evolving fashion industry. By blending these passions, I hope to make a lasting impact, both in my community, and in the world of fashion.”

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