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THE POST-WAR PERIOD AND INDEPENDENCE

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Continued from last week

NU’s Career Advances

In May of 1942, a month after the Japanese attack, NU was promoted to a higher post within the Department of Commerce and Industries. He was also seconded to serve as Deputy Commissioner in the Department of Commodity Purchase, where he was placed in charge of arranging the supply of commodities such as desiccated coconut and copra to the Food Ministry in Britain. (Interestingly, NU had selected “The Oil Seed Trade with Specific Reference to Copra” as his special subject when he applied for his M.Sc. (Econ.) degree. Correspondence from his Personal Files show that, while NU was studying at the LSE, Professor Paish, who was one of his professors, recommended NU to a London merchant dealing in edible oils, to carry out a survey of “The Trade in Edible Oils… from Production, through Importation, Distribution and Marketing to Consumers’ Demand” (N.U. Jayawardena Personal Files).

In NU’s words:

As Deputy Commissioner of Commodity Purchase, it fell to my lot to plan out the organization of the department in the early stages, particularly in regard to the purchase schemes for copra, oil and plumbago. Later I was engaged in reorganizing the operative methods of the Department and, in this connection, compiled a comprehensive code of departmental instructions.

He listed the activities of the Department of Commodity Purchase, “which was run on business lines,” and described the strength of the staff:

[There were] 11 Staff Officers including a full-time Commissioner and myself as Deputy, a store personnel of 112, and a clerical establishment of 117, while the annual turnover of the transactions of the Department exceeds Rs. 50 million. (N.U. Jayawardena Personal Files)

The Department of Commodity Purchase was based in the Bristol Hotel, which was located opposite the Cargill’s store, in the Colombo Fort. The Director of the Department was L.J.B. Turner, for whom NU had earlier worked at the Registrar General’s Office. In his rapid career ascent, NU would begin to catch up with and overtake persons for whom he had worked earlier. In 1946, he was appointed Acting Commissioner of War Risks Insurance to fill in for F. Leach, who had left the country. One may recall that it was F. Leach who had tried to appoint a Mudaliyar’s son over NU when he had applied for his first government job as a junior clerk of the District Road Committee in Hambantota (see Chapter 5).

Another Career Landmark

In June of 1946, NU was seconded to serve in the newly created post of Additional Controller of Finance and Supplies (Economics), in addition to the other posts he held. This was the first posting in the Treasury Department and it would have brought him much satisfaction, as the Treasury Department was considered to be the pinnacle of the civil service. Such a swift ascent was bound to create problems. The ‘mandarins’ of the Civil Service did not take kindly to the promotions which NU, the outsider, was given by the time he was 38, and to the multiple posts he held. Their resentment was all the more because the salary he received from these combined posts was ‘somewhat in excess of two Officers of State, one of whom was [his] superior authority’ (N.U. Jayawardena, 11 May 1987, p.3).

NU had risen on proven merit, rather than by passing the Civil Service examination, and as head of four separate departments, he received an income equal to a Class 1, Grade II official of the Ceylon Civil Service – even though he was not a member. This led the

Ceylon Civil Service Association to lodge a strong protest against NU. ( There is a letter addressed to NU in his Personal Files, dated 18 November 1946, in which the Chief Secretary wrote to inform him of his provisional appointment, to act “in addition to your own duties… as Additional Commissioner, Commodity Purchase, and Commissioner, War Risks Insurance, pending receipt of the advice of the Public Services Commission” (emphasis added). In this connection, NU described in detail a revealing episode involving the Acting Financial Secretary, C.E. Jones, which clearly exemplifies the phenomenon of the dethroning of the old guard elite – the “cultivated gentlemen” – by specialist technocrats who succeeded on merit (mentioned in the previous chapter):

There was, before [the Acting Financial Secretary] a rather bulky file containing dispatches from the Secretary of State on a highly complex subject of Economic Relations, which it fell to my lot to study, analyse and present in the form of a comprehensive report to… the Governor… to be signed by the Financial Secretary, together with a lengthy dispatch to the Secretary of State. [This was] a subject he did not know, [and] on which he could rely without reservation on my analysis and presentation. He then handed them the file with the request that if they or their colleagues felt they could do a better job than I had done, they were free to identify such a person to take over my position and other positions I held, and also receive the aggregate emoluments I was paid. (Apart from being dependent on NU to get through his work, it is interesting to speculate whether C.E. Jones’ sympathies with NU may have been strengthened due to the fact that Jones, too, had graduated from the London University (BSc.), unlike many of the senior members of the Ceylon Civil Service who were mostly products of Cambridge and Oxfor (ibid)

Following this interview with Jones, the representatives of the Civil Service Association left NU – as he triumphantly termed it – “severely alone.” Whether he was disturbed or not by the episode, NU was not slow to see its moral. Though he noted that it spoke volumes for the Association’s sense of ‘fair play’ and ‘merit,’ it no doubt made NU aware of the pitfalls and hazards of holding important positions in public life. Chapter 10 can read online on https://island.lk/nu-at-the-london-school-of-economics/

In regard to finance, my government intends to seek expert advice with regard to changes in our financial structure which may be necessitated by the transition from a colonial to a free, national economy.

(Throne Speech, Sir Henry Monck-Mason Moore, Governor, 25 Nov. 1947)

Slaughter tapping a rubber tree

The post-war period presented the country with a series of further economic hardships and challenges. The burdens of inflation, shortages of food and other imported items, as well as rationing and a series of controls, increased in the war’s aftermath. The State continued to play an interventionist role in the market, stepping up its regulatory controls, due to the continuing shortages of essential goods and the scarcity of exchange with which to buy these goods. Stanley Wickramaratne has aptly described, the “plethora of controls” regulating the supply of goods and services, and in general the free mobility of its citizens during and after the Second World War, which

… were departmentalized by the State and named Food Control, Textile Control, Rubber Control, Tea Control, Milk Food Control, Petrol Control, Poonac Control, Price Control and Import-Export and Exchange Control…

[After] Independence these control mechanisms gradually ceased to function except the last two mentioned. (Wickramaratne, 2002)

Sri Lanka was adversely impacted by factors associated with the worldwide economic and physical destruction caused by the war and had to hold its own in a world reeling from economic breakdown. Competing for access to markets and limited resources from a weak position, Sri Lanka had few options and was held hostage to the vagaries of the international market. As a small nation with an undiversified economy, it relied heavily on the export of a few agricultural commodities – primarily tea and rubber – for a large part of its revenue. (According to Das Gupta (1949, p.9), Sri Lanka produced “only a few things, but produces them almost entirely for export,” and derived about 60% of

its income from agricultural exports, producing only a quarter to a third of its total rice requirements.) Furthermore, it was not self-sufficient in the production of essential goods and was disadvantaged by an undeveloped banking system and capital market, as well as the lack of an industrial base. Thus, Sri Lanka had next to no recourse to internal financing that could help provide a financial cushion to tide over this period, nor the means to provide the investment capital to step up local production of essential goods to replace costly imports.

There was much that needed to be worked out and negotiated, and new institutions had to be set up to help meet the needs of the soon-to-be independent Sri Lanka and the challenges of the evolving post-war economic order. In addition, financial and trade arrangements had to be planned to bridge the immediate needs of the nation. After independence, Sri Lanka would be faced with the additional challenge of asserting itself as an independent sovereign nation.

NU described his work during this period of transition as a time when he “performed the functions of the principal financial and economic adviser to the Ceylon Government” (N.U. Jayawardena Personal Files). Over the four-year period, which stretched from 1946 to 1950, NU attended and assisted in several international conferences and negotiations. On the eve of national independence, NU would rise from his position as Controller of Finance and Supplies (Economics) to become both Controller of Exchange and Controller of Imports and Exports, and would set up the machinery for the operations of exchange control.

Declining Terms of Trade

By the war’s end, Sri Lanka had managed to accumulate substantial foreign-exchange surpluses, which were largely due to increased earnings from stepped-up rubber production, a reduction in imports during wartime as well as payments for basing the British South East Asia Command in Sri Lanka. However, as pointed out by Das Gupta (1949, p.31), these surpluses were “a measure not so much of prosperity but of privation,” since during the war, these could not be utilized as desired to purchase essential imports, and consumption had to be curtailed at great hardship to the population. Furthermore, following the war, these hard-earned savings actually lost value in real terms as the prices of imports rose sharply and the rise in the export price of rubber – Sri Lanka’s major export – did not keep pace. The restoration of Malaysian and Indonesian rubber stocks to the world market, and consequent increase in supply, had a somewhat dampening effect on the world price of rubber.

Sri Lanka’s foreign-exchange surpluses were quickly depleted, even though consumption continued to be restricted by the government to meet this dilemma. Ironically, by the year 1947, although imports were reduced to about the same level they had been in 1938, the economy experienced a balance-of-payments crisis, owing to a decline in the terms of trade. The case of rice imports starkly illustrates the economic dilemma Sri Lanka faced. According to Das Gupta, in 1947, Sri Lanka imported half the quantity of rice it had in 1938, but the bill for this was about two and a half times what it had been in 1938 (ibid, pp.90-91).

Workers loading dry goods in a Colombo warehouse

NU’s Link with Oliver Goonetilleke

In 1945, Oliver Goonetilleke (OEG) was appointed to the prestigious post of Financial Secretary – one of the three Officers of State – as the first (and last) Sri Lankan to hold this position. NU would now work more closely with him. In 1946, on one of his first high-level visits abroad, NU accompanied OEG to the UK to assist him in the negotiations with the British government on “post-war financial issues affecting Sri Lanka” (Ceylon Civil List, 1950, p.86). According to Jeffries, during this period one of the chief areas of negotiation involved “the continual struggle to secure an economic price for Ceylon rubber” (1969, p.106). When Indonesia and Malaysia fell under Japanese control during the war, both Britain and its allies relied heavily on Sri Lanka to step up production to meet the shortfall in this critical war material. At the war’s end, Sri Lanka’s rubber yields were adversely affected due to the wartime “slaughtertapping” (over-tapping) of its rubber trees. ( Das Gupta stated that at least one-quarter of all the rubber trees in Sri Lanka had been slaughter-tapped during the war.) According to Jeffries:

The [Sri Lankan rubber] industry had already sacrificed its interest in order that the war might be won, but now Ceylon was being expected to compete on equal terms in the market with Malaya and Indonesia whose plantations were in full production after the enforced wartime rest. (Jeffries, 1969, p.106) ( Sri Lanka’s strong reliance on rubber for its revenue continued into the early 1950s. In 1952 R.G. Senanayake, who was Minister of Trade and Commerce, negotiated a Rubber-Rice Pact with the People’s Republic of China, in which the former agreed to purchase Sri Lanka’s entire annual output of rubber for five years at a premium, in exchange for rice supplied at a price well below the world market price (see de Silva & Wriggins, 1988, pp.269-71).)

OEG, who had a reputation as an astute negotiator, would have reminded the British government of Sri Lanka’s loyal support and sacrifices made during the war and of Britain’s moral obligation towards Sri Lanka. His skills of persuasion were legendary both in Sri Lanka and in Britain. A British government official was said to have woefully remarked that, “after shaking hands with him, it was advisable to check that all one’s fingers were there” (ibid, p.82). OEG once described himself as “no chicken in either strategy or in tactics” (ibid, p.74); and NU characterized him as someone who was “uncommonly intelligent,” and “highly imaginative… astute to the point of being uncanny, and an able negotiator” (quoted in de Zoysa manuscript, p.15).

Negotiations in London took place over a period of three and a half months from the end of July to mid-November 1946. An interesting side note to this episode is that during this time, NU visited his professors at the London School of Economics to inquire into the possibilities of resuming studies for his interrupted M.Sc. degree. He apparently had not abandoned hopes of completing his studies for a postgraduate degree. Although records show that his professors were amenable to this proposition, NU’s career again overtook him and he never completed this degree (LSE Student Records on N.U. Jayawardena).

Independence

Earlier in 1942, when the British government entered into discussions with India on the question of its independence, the Sri Lankan leadership also began to place pressure on the British regarding the same issue. According to Charles Jeffries, the Civil Defence Department

became the regular meeting place for “the triumvirate” of D.S. Senanayake, Oliver Goonetilleke and Ivor Jennings, who planned and worked out the negotiating points and strategies that would be undertaken towards this goal (Jeffries, pp.68-69). By 1943, this group had managed to wrest preliminary terms of agreement from the colonial government. In December 1944, a Commission composed of Lord Soulbury, Sir Frederick Rees and Frederick Burrows visited the island, and the resulting Soulbury Constitution (1947) introduced to the country a parliamentary government with a cabinet system for the first time. Elections were held under this constitution in August and September 1947, and the newly founded United National Party (UNP) formed the government. Its leader, D.S. Senanayake became the first Prime Minister of Sri Lanka and J.R. Jayewardene (JR) was appointed Finance Minister.

Working with J.R. Jayewardene

NU worked with JR in various official capacities over a period of nearly six years. He first came to know JR in 1946, when NU was appointed, along with his colleague K. Williams, to the Treasury in the newly created positions of Controller of Finance and Supply (Economics) – a year before JR assumed office as Finance Minister. NU was to work for him successively in his capacities as Controller of Exchange, Deputy Governor and Governor of the Central Bank.

NU found JR to be an unassuming and courteous Minister, who was never “intellectually stubborn or arrogant,” and who possessed a “fine sense of humour.” He found him “more ready to learn than to talk” and felt he “brought to bear a trained… [and] legal mind”

(N.U. Jayawardena, c.1985, p.59). According to NU:

JR wanted facts and their analysis, but would not accept any rendering of analysis unless he was convinced of its validity… He was thus more concerned with the substance and less with the detail… JR was quick to perceive and was not slow to decide, which he did with deliberation but once he had decided he remained unshakeable unless new facts or new situations emerged to justify the review of decisions taken. (ibid)

For NU, working for JR was “both a demanding duty and an intellectual pleasure” (ibid). He found in JR an eagerness to learn – a quality which NU himself valued and shared. JR, a lawyer by profession, felt he needed a grounding in economics. NU worked closely

with him, explaining the economic realities to the Minister – as did Professor B.B. Das Gupta of the Economics Department of the University, whom JR consulted on economic issues. The new Finance Minister had to absorb his lessons quickly, as he had to contend with several technically complex issues and crises during this period, including the international negotiations that led to two Sterling Assets Agreements with the UK, setting up the exchange control machinery required to ensure the success of these agreements, as well as laying the groundwork for the creation of a Central Bank. NU would be centrally involved in all of these areas.

Controller of Exchange

NU was appointed Controller of Exchange in April 1947. This was a prestigious post in which he was the implementer of some “purely central banking functions,” including “the determination of foreign exchange rates, control of foreign exchange holdings of commercial banks, and arrangements for forward cover” (N.U. Jayawardena, 1950, p.11). Exchange control originally came into operation in Sri Lanka upon the outbreak of war in Europe in September 1939, and was initially restricted to financial transactions in the non-sterling area. NU started out with a “skeleton staff” of nine members, working from an office on the first floor of the De Mel Building on Chatham Street (N.U. Jayawardena, 1949, p.29).

Near the end of 1947, Sri Lanka suffered a severe drain on its “overseas balances,” which was also causing “serious financial difficulties” to Britain. This crisis resulted in the government’s tentative decision to extend exchange control to include the sterling area – in other words, it would now cover “all financial transactions between Ceylon and the outside world” (ibid, p.10; and N.U. Jayawardena, 1950, p.3). Before undertaking this step, NU was sent to spend a “short but useful period” at the Reserve Bank of India in Mumbai to study the exchange control operations of that institution.( . A couple of months earlier, in September 1947, India had already extended her controls to cover the sterling area, due to similar circumstances (N.U. Jayawardena, 1949, p.10). He later spent additional time studying the exchange control operations at the Bank of England to obtain further technical training. When exchange control was extended to cover the sterling areas in June 1948, NU was appointed full-time Controller of Exchange and relieved of his other duties to enable him to devote his full energies and attention to exchange control (ibid, p.12).

This extension of controls “multiplied the volume of work manifold,” demanding “a new orientation of policy on principles which bore little relationship to the practices pertaining to non-sterling area transactions” (The increased scale of operations can be put into perspective if one bears in mind that at that time, 60% of all imports and 70% of all exports were transacted with sterling-area countries (see de Silva & Wriggins, p.220).

Also, earlier, exchange control was limited to a few but not all countries in the non-sterling area, and these “transactions were mainly derived from instructions received from the Secretary of State for the Colonies” (N.U. Jayawardena, 1949, p.11). (ibid, p.11). With the introduction of extended controls, every transaction involving foreign trade or foreign remittances had to pass through the Exchange Control Department and therefore required close coordination with other government departments such as Customs, the Post Office, Import and Export Control, and Food Control. In addition, an advisory committee, which included the heads of the main banks such as the Bank of Ceylon and the Imperial Bank, was formed to give advice to the Controller.

A comprehensive manual was drawn up and distributed to banks and authorized exchange dealers as well. A large number of staff members had to be recruited to carry out the expanded operations, requiring the Department to locate to more spacious quarters on York Street. ( The extent and rate of increase in staff numbers gives some indication of the onerous nature of exchange control operations. After relocating to York Street, by the end of 1948, a mere one and a half years after NU took over as Exchange Controller, the staff would increase to 191 members. “Congested conditions” later necessitated a further move to more spacious quarters in Echelon Barracks, some time in 1950 (N.U. Jayawardena, 1949, p.32).

In spite of the recruitment of additional staff, NU noted that: “it was still necessary to work long hours at a stretch to keep the machinery of control working and to avoid delays and inconvenience to the… public.”

Another challenge during the first year of operations was to train the staff, who initially did not have the technical knowledge required to carry out these controls. According to NU, it was “to their credit that they overcame this handicap in a short time” (N.U. Jayawardena,

1949, p.11). In his Administrative Report for the year 1949, NU described the year as a “trying and strenuous year” for his staff. He proudly noted that it gave him “no little pleasure to record that the Department of Exchange Control has, on the whole, maintained a high

reputation… an achievement of which every member of the staff should justly be proud” (N.U. Jayawardena, 1950, p.22). NU described exchange control as “an irksome restriction,” however, noting that it was a necessity at that time to promote a “more equitable distribution of goods in short supply.” Nonetheless, NU’s firm belief in the superiority of the market mechanism clearly comes out in this report, when he speculates about alternatives to exchange control, asking whether its ends could not be better served by:

methods based on the alternative principle of regulating the demand for foreign currencies at a stable exchange rate through the price mechanism. This is undoubtedly a question with many implications, administrative, economic and financial… It… deserves close study… by everyone who naturally resents the irksome restrictions of control. (ibid, p. 23, emphasis added)

A Passion for Work

There was no cutting back on his working hours when NU reached the position of Controller of Exchange. As before, a twelve-hour workday was the rule – with eighteen hours not being unusual. His daughter Neiliya recalls how NU would often ask her mother to

bring her for a drive and to pick him up in office:

I remember my mother and myself going to the Exchange Controller’s office, and sitting in the car for an hour or more waiting for my father to finish work. But he always kept us waiting. His assistant would bring bundles and bundles of files when he finally came down and put them in the luggage boot. This was always after 7:30 or 8 p.m.

Neiliya recalls how at other times:

I would have my dinner and go with my mother and pick him up. I would be given an ice-cream cone on the way home. He would go home and have a shower, have dinner and sit with his files from about 10 p.m. and work until around 2 a.m. He would then get up at 5 a.m., work until 7.30 a.m. and we would see him at his desk on our way out to school.

To be continued

(Excerpted from N.U. JAYAWARDENA The first five decades)
By Kumari Jayawardena and Jennifer Moragoda ✍️



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Features

Federalism and paths to constitutional reform

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Chelvanayakam (R) and S. W. R. D. Bandaranaike shaking hands.

S. J. V. Chelvanayakam: Visionary and Statesman

S. J. V. Chelvanayakam KC Memorial Lecture Delivered at Jaffna Central Collage on Sunday, 26 April, by Professor G. L. Peiris – D. Phil. (Oxford), Ph. D. (Sri Lanka); Rhodes Scholar, Quondam Visiting Fellow of the Universities of Oxford, Cambridge and London; Former Vice-Chancellor and Emeritus Professor of Law of the University of Colombo.

I. Life and Career

Had Mr. Chelvanayakam been with us today, he would no doubt be profoundly unhappy with the state of our country and the world.

Samuel James Velupillai Chelvanayakam was born on 31 March, 1898, in the town of Ipoh, in Malaya. When he was four years of age, he was sent by his father, along with his mother, for the purpose of his education to Tellippalai, a traditional village at the northern tip of Sri Lanka, or Ceylon as the country was then called, in close proximity to the port of Kankesanturai. He attended three schools, Union College in Tellippalai, St John’s College Jaffna and S. Thomas’ College Mount Lavinia, where he was a contemporary of S. W. R. D. Bandaranaike, with whom he was later destined to sign the Bandaranaike-Chelvanayakam Pact.

He graduated in Science as an external student of the University of London, in 1918. In 1927, he married Emily Grace Barr-Kumarakulasinghe, daughter of the Maniyagar, or administrative chief for the area, appointed by the colonial government. He had four sons and a daughter. His son, S. C. Chandrahasan, worked closely with me during my time as Foreign Minister on the subject of repatriation of refugees from India. Chandrahasan’s wife, Nirmala, daughter of Dr. E. M. V. Naganathan, was a colleague of mine on the academic staff of the University of Colombo.

Mr. Chelvanayakam first contested the Kankesanturai constituency at the parliamentary election of 1947. His was a long parliamentary career. He resigned from his parliamentary seat in opposition to the first Republican Constitution of 1972, but was re-elected overwhelmingly at a by-election in 1975. He died on 26 April, 1977.

There are many strong attributes which shine through his life and career.

He consistently showed courage and capacity for endurance. He had no hesitation in resigning from employment, which gave him comfort and security, to look after a younger brother who was seriously ill. As his son-in-law, Professor A.J. Wilson remarked, he learned to move in two worlds: a product of missionary schools, he was a devout Christian who never changed his religion for political gain. He was, quite definitely, a Hindu by culture, and never wished to own a house in Colombo for fear that his children would be alienated from their roots.

Gentle and self-effacing by disposition, he manifested the steel in his character by not flinching from tough decisions. Never giving in to expediency, differences of principle with Mr. G. G. Ponnambalam, the leader of the All Ceylon Tamil Congress, of which Mr. Chelvanayakam was a principal organiser, led him to break away from the Congress and to form a new party, the Ilankai Tamil Arasu Kachchi, or the Federal Party.

During the disturbances in March and April, 1958, he was charged in the Magistrate’s Court in Batticaloa and sentenced to a week’s imprisonment. He was also subject to house arrest, but he never resorted to violence and used satyagraha to make his voice heard. When, in 1961, he was medically advised to travel to the United Kingdom for surgical treatment, he had to be escorted to the airport by the police because he was still under detention. Although physically frail and ailing in health during his final years, he lost none of the indomitable spirit which typified his entire life.

II. Advocacy of Federalism: Origins and Context

At the core of political convictions he held sacrosanct was his unremitting commitment to federalism. A moment of fruition in his life was the formation of the Federal Party, Ilankai Tamil Arasu Kachchi, on 18 December, 1949.

Contrary to popular belief, however, federalism in our country had its origin in issues which were not connected with ethnicity. At its inception, this had to do with the aspirations, not of the Tamils, but of the Kandyan Sinhalese. The Kandyan National Assembly, in its representations to the Donoughmore Commission, in November, 1927, declared: “Ours is not a communal claim or a claim for the aggrandizement of a few. It is the claim of a nation to live its own life and realise its own destiny”.

Mr. S. W. R. D. Bandaranaike, soon after his return from Oxford, as a prominent member of the Ceylon National Congress, was an ardent advocate of federalism. He went so far as to characterise federalism as “the only solution to our political problems”. With Thomas Hobbes in his famous work, The Leviathan, he conceived of liberty as “political power broken into fragments”. Bandaranaike went on to state in a letter published in The Morning Leader on 19 May, 1926: “The two clashing forces of cooperation and individualism, like that thread of golden light which Walter Pater observed in the works of the painters of the Italian Renaissance, run through the fabric of civilisation, sometimes one predominating, sometimes the other. To try and harmonise the two has been the problem of the modern world. The only satisfactory solution yet discovered is the federal system”.

Federalism had a strong ideological appeal, from a Marxist-Leninist perspective. The constitutional proposals, addressed by the Communist Party of Ceylon to the Ceylon National Congress on 18 October, 1944, go very far indeed. They envisioned the Sinhalese and the Tamils as two distinct “nations” or “historically evolved nationalities”. The high watermark of the proposals was the assertion that “Both nationalities have their right to self-determination, including the right, if they so desire, to form their own separate independent state”.

These proposals received further elaboration in a memorandum submitted to the Working Committee of the Ceylon National Congress by two leading members of the Communist Party, Mr. Pieter Keuneman and Mr. A. Vaidialingam. Their premise was set out pithily as follows: “We regard a nation as a historical, as opposed to an ethnographical, concept. It is a historically evolved, stable community of people living in a contiguous territory as their traditional homeland”.

The Soulbury Commission, which arrived in the country in December, 1944, had no hesitation in recognising that “The relations of the minorities – the Ceylon Tamils, the Indian Tamils, Muslims, Burghers and Europeans, with the Sinhalese majority – present the most difficult of the many problems involved in the reform of the Constitution of Ceylon”.

They took fully into account the apprehension expressed by the All Ceylon Tamil Congress that “The near approach of the complete transfer of power and authority from neutral British hands to the people of this country is causing, in the minds of the Tamil people, in common with other minorities, much misgiving and fear”.

III. Constitutional Provisions at Independence

The Souldbury Commission, like the Donoughmore Commission before it, was not friendly to the idea of federalism, principally because of their commitment to the unity of the body politic. Opting for a solution, falling short of federalism, they adopted the approach that, if the underlying fear related to encroachment on seminal rights by capricious legislative action, this anxiety could be convincingly assuaged by enshrining in the Constitution a nucleus of rights placed beyond the reach of the legislature.

The essence of the solution, which commended itself to the Soulbury Commission, was a carefully crafted constitutional limitation on the legislative competence of Parliament, encapsulated in Article 29(2) of the Independence Constitution. The gist of this was incorporation of the principle of non-discrimination against racial or religious communities by explicit acknowledgement of equal protection under the law.

The assumption fortifying this expectation was the attribution of an imaginative role to the judiciary in respect of interpretation. It was lack of fulfillment in this regard that precipitated a setback which time could not heal. Judicial attitudes, including those of the Judicial Committee of the Privy Council, which constituted at the time the highest tier of the judicial hierarchy, were timid and diffident.

When the Citizenship Act of 1948, by means of a new definition, sought to deprive Tamils of Indian origin of the suffrage, no protection was forthcoming from the courts on the ground of impermissible discrimination. This refusal of intervention was premised on an implausibly narrow construction of the word “community”, in that, according to the Courts’ reasoning, in the landmark case of Kodakkan Pillai v. Madanayake, Indian Tamils were not identifiable as a community distinct from the larger community of the Tamils of Ceylon. It is hard to disguise the reality that this was, at bottom, a refusal to deal with the substantive issues candidly and frontally.

The resulting vulnerability of minority rights, which judicial evasion laid bare, was a major contributory cause of the erosion of confidence on the part of minority groups. This mood of suspicion and despair, arising from an ostensibly weak method of protection of human rights, presaged ensuing developments.

IV. Further Quest for a Constitutional Solution

Chelvanayakam

The central theme of this lecture, in honour of a statesman who was an epitome of restraint and moderation, is that the deterioration of ethnic relations, which culminated in a war of unrivalled savagery over a span of three decades, was progressive and incremental. There was no inevitability about the denouement. It was gradual and potentially reversible. At several crucial points, there was opportunity to arrest a disastrous trend. These windows of opportunity, however, were not utilised: extremist attitudes asserted themselves, and polarisation became the outcome. This trajectory was, no doubt, met with dismay by far-sighted leaders of the calibre of Mr. Chelvanayakam.

The formation of the Federal Party was a turning point. With Mr. S.J.V. Chelvanayakam, King’s Counsel, as founder-president, and Dr. E.M.V. Naganathan and Mr. V. Navaratnam as joint secretaries, the party embarked on a journey which marked a radical departure from the conventional thinking of the past. This was plain from the text of seven resolutions adopted at the national convention of the party held in Trincomalee in April, 1951. The foundation of these resolutions was the call to establish a Tamil state within the Union of Ceylon, and the uncompromising assertion that no other solution was feasible.

The path was now becoming manifest. The demand up to now had been for substantial power sharing within a unitary state. This was now giving way to a strident demand for the emergence of a federal structure, destined to be expanded in the fullness of time to advocacy of secession.

Although standing out boldly as a landmark in constitutional evolution, the Federal Party resolutions did not carry on their face the hallmark of finality or immutability. The call of the Tamil leadership for secession yet being some years away, the ensuing decades saw further attempts by different governments to resolve the vexed issues around power sharing.

The first of these was the Bandaranaike-Chelvanayakam pact, signed by the Prime Minister and the leader of the Federal Party on 26 July, 1957. There was an air of uneasy compromise surrounding the entire transaction. This was evident from the structure of the pact, which, as one of its integral parts, contained a section not reduced to writing in any form, but consisting of a series of informal understandings.

The essence of the pact was the proposed system of regional councils which were envisaged as an intermediary tier between the central government and local government institutions. This did break new ground. Not only did the pact confer on the people of the North and East a substantial measure of self-governance through these innovative councils, including in such inherently controversial areas as colonisation, irrigation and local management, but territorial units were conceived of as the recipients of devolved powers. Of particular significance, the regional councils were to be invested with some measure of financial autonomy. The blowback, however, was so intense as to compel the government to abrogate the pact.

The next attempt, eight years later, was by the United National Party, which had vehemently opposed the Bandaranaike–Chelvanayakam Pact. This was the Dudley Senanayake–Chelvanayakam Pact, signed between the leader of the United National Party, at the time Leader of the Opposition, and the leader of the Federal Party. It differed from the Bandaranaike–Chelvanayakam Pact, both contextually and substantively.

As to context, it was signed on 24 March, 1965, on the eve of a parliamentary election, to ensure for the United National Party the support of the Federal Party. A disheartening feature was the plainly evident element of duplicity. Once in government, the Prime Minister’s party showed little interest in implementing the pact. Within three years, the Federal Party left the government, and its representative in the cabinet, Mr M. Tiruchelvam QC, Minister of Local Government, relinquished his portfolio.

Substantively, the lynchpin of the pact was a system of district councils, but there was entrenched control of these bodies by the central government, even in regard to action within their vires. This was almost universally seen as a sleight of hand.

Despite the collapse of these efforts, room for resilience and accommodation had by no means disappeared. Nowhere is this better exemplified than in the events which led up to the drafting and adoption of the “autochthonous” Constitution of 1972. This involved the historic task of severing the centuries-old bond with the British Crown and bringing into being the Republic of Sri Lanka.

One of the Basic Resolutions, which eventually found expression as Article 2 of the new Constitution, characterised Sri Lanka as a unitary state. The Federal Party proposed an amendment that the word “federal” should be substituted for “unitary”. Mr. V. Dharmalingam, the spokesman for the party on this subject, in his address to the Constituent Assembly, on 16 March, 1971, showed flexibility by declaring that the powers of the federating units and their relationship to the centre were negotiable, once the principle of federalism was accepted. Indivisibility of the Republic was emphatically articulated, self-determination in its external aspect being firmly ruled out.

There was no reciprocity, however. Mr. Sarath Muttettuwegama, administering a sharp rebuke, declared: “Federalism has become something of a dirty word in the southern parts of this country”. The last opportunity to halt the inexorable march of events was spurned.

The pushback came briskly, and with singular ferocity. This was in the form of the Vaddukoddai Resolution adopted by the Tamil United Liberation Front at its first national convention held on 14 May, 1976. The historic significance of this document is that it set out, for the first time, in the most unambiguous terms, the blueprint for an independent state for the Tamil nation, embracing the merged Northern and Eastern Provinces. The second part of the Resolution contained the nucleus of Tamil Eelam, its scope extending beyond the shores of the Island. The state of Tamil Eelam was to be home not only to the people of the Northern and Eastern Provinces, but to “all Tamil-speaking people living in any part of Ceylon and to Tamils of Eelam origin living in any part of the world who may opt for citizenship of Tamil Eelam”.

The most discouraging element of this sequence of events was the timid and evasive approach adopted by prominent actors at crucial moments. The District Development Councils Act of 1980 presented a unique opportunity. Disappointingly, however, the Presidential Commission, presided over by Mr. Victor Tennekoon QC, a former Chief Justice and Attorney General, lacked the courage even to interpret the terms of reference as permitting allusion to the ethnic conflict. Despite the persevering efforts of Professor A.J. Wilson, son-in-law of Mr. Chelvanayakam, and a confidant of President J.R. Jayewardene, and Dr. Neelan Tiruchelvam, the majority of the members were inclined to adopt a narrow, technical interpretation of the terms of reference. The setting of the legislation was one in which Tamil formations, such as the Tamil United Liberation Front, were struggling to maintain their moderate postures in an increasingly polarised environment, with pressure from radical elements proving almost irresistible.

The whole initiative paled into insignificance in comparison with a series of tragic events, including the burning of the Jaffna library during the run-up to the District Development Council elections in the North and the calamitous events of Black July 1983. Policymakers, at a critical juncture, had, once again, let a limited opportunity slip through their fingers.

The next intervention occurred in the sunset years of the United National Party administration. This was the Parliamentary Select Committee on the ethnic conflict, known after its Chairman as the Mangala Moonesinghe Committee, appointed in August, 1991.

The Majority Report made a detailed proposal which was intended to serve as the basis of a compromise between two schools of thought—one stoutly resisting any idea of merger of the Northern and Eastern Provinces, and the other demanding such merger as the indispensable basis of a viable solution. An imaginative via media was the concept of the Apex Council, which formed the centrepiece of the Majority Report. It adopted as a point of departure two separate Provincial Councils for the North and the East. This dichotomy would characterise the provincial executive as well: each Provincial Council would have an Executive Minister as the head of the Board of Ministers. However, over and above these, the two Provincial Councils together would constitute a Regional Council for the entire North-East region. Although presenting several features of interest, as a pragmatic mediating mechanism, the proposal did not enjoy a sufficiently broad support base for implementation. (To be concluded)

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Procurement cuts, rising burn rates and shipment delays deepen energy threat

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Norochcholai power plant

Coal crisis far worse than first feared

Sri Lanka’s coal supply crisis is significantly deeper than previously understood, with senior engineers and energy analysts warning that a dangerous combination of reduced procurement volumes, rising coal consumption and shipment delays could place national power generation at serious risk.

Information reviewed by The Island shows that Lanka Coal Company (LCC) had originally planned to secure 2.32 million metric tons of coal for the relevant supply period to meet generation requirements at the Lakvijaya coal power complex.

Following procurement discussions, the final arrangement was to obtain 840,000 metric tons from Potencia, including a 10 percent optional quantity, and 1.5 million metric tons from Trident, equivalent to 25 vessels.

However, subsequent decisions resulted in the cancellation of four Potencia shipments, reducing that supplier’s volume to 627,000 metric tons. This brought the total expected procurement down to 2.16 million metric tons, creating an immediate 160,000 metric ton deficit, even before operational demand is considered.

“This is a major shortfall in any generation planning model,” a senior engineer familiar with coal operations said. “When stocks are planned to the margin, a reduction of this scale can have serious consequences.”

Power sector sources said the deficit becomes more critical because coal consumption rates have increased by more than 10 percent, meaning larger volumes are now required to generate the same electricity output.

“In simple terms, the system is burning more coal for less efficiency,” an energy analyst told The Island. “That means the real shortage may be substantially larger than the paper shortage.”

Experts attributed the higher burn rate to ageing equipment, maintenance constraints and operating inefficiencies at the Norochcholai plant.

A third concern has now emerged in the form of shipment delays and possible unloading constraints, raising fears that even contracted supplies may not arrive in time to maintain safe reserve levels.

“If vessel schedules slip or unloading is disrupted, stocks can fall very quickly,” another senior engineer warned. “At that point, the country has little choice but to shift to costly thermal oil generation.”

Such a move would sharply increase electricity generation costs and place additional pressure on public finances.

Analysts said the convergence of three separate risks — procurement reductions, higher-than-expected consumption and delivery uncertainty — had created a serious energy planning challenge.

“This is no longer a routine procurement issue,” one industry observer said. “It has become a national power security issue.”

Calls are growing for authorities to disclose current coal inventories, incoming vessel schedules and contingency measures to reassure the public and industry.

With electricity demand expected to remain high and hydro resources dependent on rainfall, engineers caution that delays in addressing the coal gap could expose the country to avoidable supply disruptions in the months ahead.

By Ifham Nizam

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Lake Gregory boat accidents: Need to regulate water adventure tourism

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Gregory’s Lake

LETTER

The capsizing of two boats in Lake Gregory on 19 April was merely an isolated incident. It has come as a stark and urgent warning that a far more serious tragedy is imminent unless decisive action is taken without delay.

Mayor of Nuwara Eliya, Upali Wanigasekera has publicly stated that stringent measures have been introduced to prevent similar occurrences. However, it must be noted that such measures are unlikely to yield meaningful results in the absence of a comprehensive regulatory framework governing Inland Water Adventure Tourism (IWAT) in Sri Lanka.

For decades, this sector has operated without any regulation. Despite repeated calls for reform, there remains no structured legal mechanism to oversee operational standards, safety compliance, or accountability. Consequently, there is chaos particularly in critical operational aspects of this otherwise vital tourism segment.

The situation in Lake Gregory is not unique. Other prominent inland tourism destinations, such as Kitulgala and Madu Ganga, face similar risks. Without urgent intervention, it is only a matter of time before a major calamity occurs, placing both local and foreign tourists in grave danger.

At present, there appear to be no enforceable legal requirements governing:

*  The fitness for navigation of vessels

*  Mandatory safety standards and equipment

*  Certification and competency of boat operators

The display of permits issued by local authorities is often misleading. These permits function merely as revenue licences and should not be misconstrued as certification of compliance with safety or technical standards.

Furthermore, local authorities themselves appear constrained. The Nuwara Eliya Mayor is reportedly limited in his ability to enforce meaningful improvements due to the absence of legal backing. Compounding this issue is the proliferation of unauthorised operators at Lake Gregory, functioning with minimal oversight.

Disturbingly, there are credible concerns that some boat operators function under the influence of intoxicants, while enforcement authorities appear to maintain a lackadaisical stance. The parallels with the unregulated private transport sector are both evident and alarming.

In the absence of a proper legal framework, any victims of such incidents are left with no recourse but to pursue lengthy and uncertain claims under common law against individual operators.

The Minister of Tourism, this situation demands your immediate and personal intervention.

A robust regulatory framework for Inland Water Adventure Tourism must be urgently introduced and enforced. This should include licensing standards, safety regulations, operator certification, regular inspections, and strict penalties for non-compliance.

Failure to act now will not only endanger lives but also severely damage Sri Lanka’s reputation as a safe and responsible tourist destination.

The time for incremental measures has passed. What is required is decisive policy action.

Athula Ranasinghe
Public-Spirited Citizen

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