ENB News08022008
ENB 
Pre. and Post Independence.... Facts vs Fiction
by Rita Perera -The Island
Every newspaper and TV channel in Sri Lanka had a field day in the run up to its 60th anniversary, depending of course on its particular political complexion Its a pity
that in all the euphoria that accompanied these efforts, there were, by and large, many glaring errors, omissions and a lack of priority given to salient facts in their
coverage of the road to Independence. Except for a few notable articles and editorials most of what purported to be the background to this epochal event was a
travesty of history. Accurate research in this day and age is a comparatively easy task and it is indeed a pity that a rare opportunity was missed to highlight some of
the notable aspects in our struggle to overthrow our colonial yoke in 1948. The lessons learnt would probably have been invaluable if applied to the post-
Independence era !
The whole process was a slow one , and even a cursory glance through the somewhat mammoth handbook of the Ceylon National Congress, edited by its one time
Honorary Secretary, S.W.R.D.Bandaranaike, will reveal the untiring and dedicated efforts involved in wresting concessions from a reluctant Imperial administration.
The whole process started in 1865 with the ‘Ceylon Reform League’ and progressed (albeit at almost snail’s pace ) to getting minimal representation in the Legislative
Council, which had only nominal powers to curb the over-riding dictates of the governor’s authority
The catalyst that galvanised the nascent desire for a drastic change were the riots and the Martial Law that was arbitrarily imposed by Governor Chalmers, in 1915,
with the notorious ‘Shoot at Sight’ order. In the panic that ensued, Buddhists, especially those in the Temperance movement, were arbitrarily shot, imprisoned or had
their properties confiscated. As many prominent Buddhist leaders of the calibre of D.S.and F.R.Senanayake, D.B.Jayatilleke and others were imprisoned without any
trial, Hindu Tamils, Sinhala Christians, Burghers , Malays etc unhesitatingly rallied, at risk of their own lives to save them. E.W.Perera was given the onerous task to
take a copy of the ‘Shoot at Sight’ order, which he did (hidden in the sole of his shoe) and he made representations in Whitehall on behalf of his compatriots. No
easy task as Britain was also in the throes of the 1st World War. The Buddhist leaders were later released and the Governor recalled. Other Ceylonese leaders,
notably D.B.Jayatillake, after his release from prison joined him and they tried to make the British public aware of the situation in Ceylon. However, even those who
were half hearted up to then, of the need for further reforms joined to form The Ceylon National Congress.
Among the eminent persons who strove, in the ensuing years to obtain a greater say in both the then existing Legislative and Executive councils and restrict the almost
arbitrary powers of the Governor were people of all the races and religions in Ceylon. Their aim was not partisan or self seeking either for themselves or their
particular group...the narrow parochial forces of dissension had not yet begun its destructive and insidious work. The very names of these illustrious patriots, who
sought with no material gain for themselves to gradually pave the way through a veritable labyrinth of reforms...leading to the Donoughmore and later the Soulbury
Constitutions should be recalled and remembered with honour, whenever we celebrate the freedom we now have. It didn’t come easy as even a quick perusal of The
Handbook of the Ceylon National Congress will prove. This National Congress was the base from which most of the other political parties/groups sprang up
thereafter, sans the infighting, narrow political aspirations and extremist views that have afflicted our country since. Its probably idle speculation, but one can’t help but
wonder, if these long dead patriots would have been so willing to work so unremittingly, to achieve Freedom from the grip of the British, if they could have foreseen
the sad consequences evident in this country today.
To cite a few glaring examples.. the enactment of the Sinhala Only Act with few, if any concessions to the Tamils, Muslims and Malays, who were also in the forefront
of the struggle to rid this country of foreign domination..Even ensuring that the minimal legal provisions of the language laws are enacted, such as having the name
boards in streets, .railway stations and other public places in all 3 languages...making provision that the legal provision of using their first language is an option at police
stations and government departments. etc. The role played by Christians , who were in the forefront of the struggle for freedom, risking even their lives for their
Buddhist compatriots are today marginalised in many insidious ways...Probably, many of our former National Leaders, hastily converted to Buddhism realising early
on, that being Christians would not help their political careers..( the famous Donoughmore Buddhists!)
However, apart from such ploys designed to make themselves popular with their voting public, honesty and hard work were key characteristics of our early political
leaders. In all the plethora of coverage in most of the media, such qualities that characterised our patriots and politicians, both before and after gaining our
Independence in 1948, are ignored in the assessment of our history , in the 60 years that have since elapsed. Probably such comparisons are odious, especially in the
context of the conditions prevailing in Sri Lanka today, as compared with the happier situations prevailing in many other countries in this region, who gained their
independence around the same time too!
Every newspaper and TV channel in Sri Lanka had a field day in the run up to its 60th anniversary, depending of course on its particular political complexion Its a pity
that in all the euphoria that accompanied these efforts, there were, by and large, many glaring errors, omissions and a lack of priority given to salient facts in their
coverage of the road to Independence. Except for a few notable articles and editorials most of what purported to be the background to this epochal event was a
travesty of history. Accurate research in this day and age is a comparatively easy task and it is indeed a pity that a rare opportunity was missed to highlight some of
the notable aspects in our struggle to overthrow our colonial yoke in 1948. The lessons learnt would probably have been invaluable if applied to the post-
Independence era !
The whole process was a slow one , and even a cursory glance through the somewhat mammoth handbook of the Ceylon National Congress, edited by its one time
Honorary Secretary, S.W.R.D.Bandaranaike, will reveal the untiring and dedicated efforts involved in wresting concessions from a reluctant Imperial administration.
The whole process started in 1865 with the ‘Ceylon Reform League’ and progressed (albeit at almost snail’s pace ) to getting minimal representation in the Legislative
Council, which had only nominal powers to curb the over-riding dictates of the governor’s authority
The catalyst that galvanised the nascent desire for a drastic change were the riots and the Martial Law that was arbitrarily imposed by Governor Chalmers, in 1915,
with the notorious ‘Shoot at Sight’ order. In the panic that ensued, Buddhists, especially those in the Temperance movement, were arbitrarily shot, imprisoned or had
their properties confiscated. As many prominent Buddhist leaders of the calibre of D.S.and F.R.Senanayake, D.B.Jayatilleke and others were imprisoned without any
trial, Hindu Tamils, Sinhala Christians, Burghers , Malays etc unhesitatingly rallied, at risk of their own lives to save them. E.W.Perera was given the onerous task to
take a copy of the ‘Shoot at Sight’ order, which he did (hidden in the sole of his shoe) and he made representations in Whitehall on behalf of his compatriots. No
easy task as Britain was also in the throes of the 1st World War. The Buddhist leaders were later released and the Governor recalled. Other Ceylonese leaders,
notably D.B.Jayatillake, after his release from prison joined him and they tried to make the British public aware of the situation in Ceylon. However, even those who
were half hearted up to then, of the need for further reforms joined to form The Ceylon National Congress.
Among the eminent persons who strove, in the ensuing years to obtain a greater say in both the then existing Legislative and Executive councils and restrict the almost
arbitrary powers of the Governor were people of all the races and religions in Ceylon. Their aim was not partisan or self seeking either for themselves or their
particular group...the narrow parochial forces of dissension had not yet begun its destructive and insidious work. The very names of these illustrious patriots, who
sought with no material gain for themselves to gradually pave the way through a veritable labyrinth of reforms...leading to the Donoughmore and later the Soulbury
Constitutions should be recalled and remembered with honour, whenever we celebrate the freedom we now have. It didn’t come easy as even a quick perusal of The
Handbook of the Ceylon National Congress will prove. This National Congress was the base from which most of the other political parties/groups sprang up
thereafter, sans the infighting, narrow political aspirations and extremist views that have afflicted our country since. Its probably idle speculation, but one can’t help but
wonder, if these long dead patriots would have been so willing to work so unremittingly, to achieve Freedom from the grip of the British, if they could have foreseen
the sad consequences evident in this country today.
To cite a few glaring examples.. the enactment of the Sinhala Only Act with few, if any concessions to the Tamils, Muslims and Malays, who were also in the forefront
of the struggle to rid this country of foreign domination..Even ensuring that the minimal legal provisions of the language laws are enacted, such as having the name
boards in streets, .railway stations and other public places in all 3 languages...making provision that the legal provision of using their first language is an option at police
stations and government departments. etc. The role played by Christians , who were in the forefront of the struggle for freedom, risking even their lives for their
Buddhist compatriots are today marginalised in many insidious ways...Probably, many of our former National Leaders, hastily converted to Buddhism realising early
on, that being Christians would not help their political careers..( the famous Donoughmore Buddhists!)
However, apart from such ploys designed to make themselves popular with their voting public, honesty and hard work were key characteristics of our early political
leaders. In all the plethora of coverage in most of the media, such qualities that characterised our patriots and politicians, both before and after gaining our
Independence in 1948, are ignored in the assessment of our history , in the 60 years that have since elapsed. Probably such comparisons are odious, especially in the
context of the conditions prevailing in Sri Lanka today, as compared with the happier situations prevailing in many other countries in this region, who gained their
independence around the same time too!
BOI’s new processes boost Sri Lanka’s investment climate
Many foreign investors are attracted to Sri Lanka because of the relative ease in setting up enterprises in the country. A Japanese enterprise at the BOI Katunayake
Export Processing Zone manufactures advanced electronic components. Sri lankan workers can easily be trained to perform complex work processes.
In the current international environment where there is very strong competition for trade and investment, a select group of international institutions have established
ranking systems based on internationally acceptable variables. Investors and decision makers decide in which country to invest based on these ranking measures. The
stakes are very high as most countries nowadays have free market economies and therefore seek to attract investment. This is because investment levels have a
significant impact on levels of employment, influx of foreign exchange, technology transfers and other economic benefits. Furthermore FDI is a resource that a nation
can create if certain conditions can be improved.
According to a study conducted by the World Bank, Sri Lanka though placed 101st out of a total of 178 countries, has performed well in some of the criteria that the
World Bank uses to ascertain the business friendliness of economies of countries. According to the World Bank, "a high ranking on the ease of doing business index
means that the regulatory environment is conducive to the operation of business. This index averages the country’s percentile ranking on 10 topics, made up of a
variety of indicators, giving equal weight to each topic".
The ten leading countries in order are Singapore, New Zealand, USA, Hong Kong-China, Denmark, the UK, Canada, Ireland, Australia and Iceland. Interestingly
Sri Lanka is ahead of a number of economically more developed and larger countries, which have considerably more resources or industries. These include Russia
(106), Argentina (109),India (120), Brazil (122), Indonesia (123), and Egypt 126).
Among the 10 criteria used by the World Bank, Sri Lanka was placed 29th in the category "starting a business", 64th in "protecting investors" 60th in "trading across
borders" and 39th for "closing a business).
Sri Lanka is with the more successful States in these criteria and this could be attributed to the New Companies Act, which is very liberal. The efforts made by the
investment promotion agency of the Government, the BOI, to speed up the application process are another important factor. The Board of Investment of Sri Lanka
now offers over the counter approval for most projects. Hence Sri Lanka has become a more investor friendly country in a number of respects.
A number of steps were taken in this direction. The first was the initiative taken by Dhammika Perera, Chairman and Director General of the Board of Investment of
Sri Lanka to examine personally all pending BOI project proposal files and clear those that had no reason to be kept on hold. Perera, who is a leading entrepreneur
in Sri Lanka, had stated that the single biggest impediment to investment was the lengthy period of time taken to process applications. These delays had frustrated
potential investors and compelled them to look elsewhere.
Another factor identified, this time by Dr Sarath Amunugama, Minister of Enterprise Development and Investment Promotion, was the complex nature of the
documentation that the BOI required investors to fill prior to approval. Since many of the questions asked by the BOI were not absolutely necessary, the 12 page
document that had been in use for many years was replaced by a much more investor friendly one-page document. Investors could obtain approval if everything was
in order with this simplified application form. Only exempt from this were projects where environmental approvals were needed.
The third improvement on the part of the BOI was the assigning of dedicated BOI officers for each investor. The objective of the BOI was to create a service
reminiscent of that offered by a major bank, where personalized service would ensure that the investor is "not lost" at any stage of the application process. For very
large projects such a major commercial investors or infrastructure projects, Dr Amunugama established a dedicated Mega Projects Unit consisting of senior and
highly experienced officers of the BOI. These changes within the BOI have played an important in improving the business climate of Sri Lanka and making the island
more investor friendly.
Export Processing Zone manufactures advanced electronic components. Sri lankan workers can easily be trained to perform complex work processes.
In the current international environment where there is very strong competition for trade and investment, a select group of international institutions have established
ranking systems based on internationally acceptable variables. Investors and decision makers decide in which country to invest based on these ranking measures. The
stakes are very high as most countries nowadays have free market economies and therefore seek to attract investment. This is because investment levels have a
significant impact on levels of employment, influx of foreign exchange, technology transfers and other economic benefits. Furthermore FDI is a resource that a nation
can create if certain conditions can be improved.
According to a study conducted by the World Bank, Sri Lanka though placed 101st out of a total of 178 countries, has performed well in some of the criteria that the
World Bank uses to ascertain the business friendliness of economies of countries. According to the World Bank, "a high ranking on the ease of doing business index
means that the regulatory environment is conducive to the operation of business. This index averages the country’s percentile ranking on 10 topics, made up of a
variety of indicators, giving equal weight to each topic".
The ten leading countries in order are Singapore, New Zealand, USA, Hong Kong-China, Denmark, the UK, Canada, Ireland, Australia and Iceland. Interestingly
Sri Lanka is ahead of a number of economically more developed and larger countries, which have considerably more resources or industries. These include Russia
(106), Argentina (109),India (120), Brazil (122), Indonesia (123), and Egypt 126).
Among the 10 criteria used by the World Bank, Sri Lanka was placed 29th in the category "starting a business", 64th in "protecting investors" 60th in "trading across
borders" and 39th for "closing a business).
Sri Lanka is with the more successful States in these criteria and this could be attributed to the New Companies Act, which is very liberal. The efforts made by the
investment promotion agency of the Government, the BOI, to speed up the application process are another important factor. The Board of Investment of Sri Lanka
now offers over the counter approval for most projects. Hence Sri Lanka has become a more investor friendly country in a number of respects.
A number of steps were taken in this direction. The first was the initiative taken by Dhammika Perera, Chairman and Director General of the Board of Investment of
Sri Lanka to examine personally all pending BOI project proposal files and clear those that had no reason to be kept on hold. Perera, who is a leading entrepreneur
in Sri Lanka, had stated that the single biggest impediment to investment was the lengthy period of time taken to process applications. These delays had frustrated
potential investors and compelled them to look elsewhere.
Another factor identified, this time by Dr Sarath Amunugama, Minister of Enterprise Development and Investment Promotion, was the complex nature of the
documentation that the BOI required investors to fill prior to approval. Since many of the questions asked by the BOI were not absolutely necessary, the 12 page
document that had been in use for many years was replaced by a much more investor friendly one-page document. Investors could obtain approval if everything was
in order with this simplified application form. Only exempt from this were projects where environmental approvals were needed.
The third improvement on the part of the BOI was the assigning of dedicated BOI officers for each investor. The objective of the BOI was to create a service
reminiscent of that offered by a major bank, where personalized service would ensure that the investor is "not lost" at any stage of the application process. For very
large projects such a major commercial investors or infrastructure projects, Dr Amunugama established a dedicated Mega Projects Unit consisting of senior and
highly experienced officers of the BOI. These changes within the BOI have played an important in improving the business climate of Sri Lanka and making the island
more investor friendly.
Tea exports pass US$ 1b landmarkRamani KANGARAARACHCHI
The tea export trade has recorded a landmark achievement, by exceeding the US $ 1 billion value barrier in 2007 for the first time in its 140 year history.
A plucker in Hatton. Picture by Shirajiv Sirimane Chairman Sri Lanka Tea Board Lalith Hettiarachchi said, the value of tea exports in 2007 recorded a 22 per cent increase over the 2006 figure by advancing from
Rs. 91.7 billion to Rs. 112 billion which is a remarkable improvement.
The Chairman Colombo Tea Traders’ Association T. Akbarally said the annual crop for 2007 declined by only 2 per cent and this outstanding performance was
achieved, notwithstanding the most challenging circumstances the tea industry faced during the year such as crippling work stoppages by the plantation labour unions,
over wage issues at the beginning of the year coinciding with severe drought conditions that further impaired production.
The annual production in 2007 decreased from 310.8 million kgs in 2006 to 304.6 million kgs.
He said despite the significant increase in the value of tea exports, the volume of tea exports in harmony with the crop loss, has recorded an even greater reduction of
almost 5.5 per cent from 327.4 million kgs to 309.8 million kgs.
However, it is noteworthy to mention that the value of each kg of tea exported increased on average, by 29%, he said.
Chairman Hettiarachchi said the future challenge of the industry is to increase the export of value added tea from 35% to 65% because the bulk tea gets a low price
and value added tea gets a higher price.
He pointed out that the budget proposal submitted last year to set up an export fund to help tea exporters did not get attention but there is a strong case for the
Treasury to consider the incentives as they get only a marginal Rs. 30 to 40 million from their own cess which is not sufficient.
The total extent of tea in Sri Lanka stands at 221,000 ha in 14 administrative districts and it has created more than 1.2 million direct and indirect employment.
It is the only 100 per cent import inputs free micro commercial agri business in the country which earns 13 per cent of export income and 60 per cent of total
agricultural exports.
Salary hike for SL migrant workers in Saudi Arabia
Thursday, 07 February 2008
Responding positively to a request made by the Minister of Foreign Employment Promotion and Welfare, Keheliya Rambukwella, the Government of Saudi Arabia
has agreed to increase the wages of Sri Lankan migrant domestic workers by 60 percent.
Accordingly the monthly salary of a domestic worker will be increased to Saudi Riyal (SAR) 600-650 amounting to SL Rupees 17250- 18680, with effect from
April 1st.
The wage increase in Saudi Arabia comes after 11 years, it is reported.
It is estimated that around 460,000 Sri Lankan migrant workers serve in the oil rich kingdom, of whom 60 per cent are females. Of these, 80 per cent work as
domestic helpers.
According to the Chairman, Sri Lanka Bureau of Foreign Employment (SLBFE), Kingsley Ranawaka, they have taken steps to inform all Middle East countries to
increase the minimum wage of Sri Lanka domestic workers to Rs.20, 000. The Bureau has issued a circular to this effect from January 1, which has been forwarded to all embassies, Ranawaka said.
He said Saudi Arabia which was reluctant to impose this salary structure earlier, had agreed to do so as a result of fresh initiatives from Rambukwella.
The new clause envisaging the revised salary structures would be included in all new contracts signed by prospective migrant domestic workers prior to their
departure, Foreign Employment Bureau sources said. The Bureau has taken effective steps to uplift the living standard of the migrant workers while introducing fresh
initiatives to protect rights and uplift their welfare.
has agreed to increase the wages of Sri Lankan migrant domestic workers by 60 percent.
Accordingly the monthly salary of a domestic worker will be increased to Saudi Riyal (SAR) 600-650 amounting to SL Rupees 17250- 18680, with effect from
April 1st.
The wage increase in Saudi Arabia comes after 11 years, it is reported.
It is estimated that around 460,000 Sri Lankan migrant workers serve in the oil rich kingdom, of whom 60 per cent are females. Of these, 80 per cent work as
domestic helpers.
According to the Chairman, Sri Lanka Bureau of Foreign Employment (SLBFE), Kingsley Ranawaka, they have taken steps to inform all Middle East countries to
increase the minimum wage of Sri Lanka domestic workers to Rs.20, 000. The Bureau has issued a circular to this effect from January 1, which has been forwarded to all embassies, Ranawaka said.
He said Saudi Arabia which was reluctant to impose this salary structure earlier, had agreed to do so as a result of fresh initiatives from Rambukwella.
The new clause envisaging the revised salary structures would be included in all new contracts signed by prospective migrant domestic workers prior to their
departure, Foreign Employment Bureau sources said. The Bureau has taken effective steps to uplift the living standard of the migrant workers while introducing fresh
initiatives to protect rights and uplift their welfare.
====================
Paddy debate turns personal
Paddy debate turns personal Friday, February 08,2008 COLOMBO: A Parliamentary adjournment debate on the prevailing paddy crisis turned ugly and personal Thursday, with Agriculture Development Minister
Maithripala Sirisena accusing JVP MP S.K.Subasinghe of obtaining ‘cash inducements’ from his brother Dudley Sirisena, a leading mill owner in Polonnaruwa, after
the JVP MP launched a personal attack on him. Subasinghe charged that a few leading mill owners and some rice importers had monopolised the rice industry, exploiting both farmers and consumers, and demanded
that the government declare a minimum price of Rs. 25 per kilo of paddy. He said rice millers of ‘the famous Maradagahamula area’ were forced to choose the coir
industry today due to the monopoly enjoyed by a handful of leading millers with strong political connections, who determine paddy and rice prices according to their
whims and fancies. “In Polonnaruwa, small and medium scale mill owners have started growing cloves and pepper instead of paddy,” he said. The JVP MP charged paddy is purchased at Rs. 18 per kilo in the Ampara district, and tabled a bill of a farmer in Anuradhapura who had sold his harvest for Rs 20
per kilo. The MP said the cost of cultivating a kilo of paddy was Rs 18, and questioned how a farmer could make a proper living in such a context. “During harvesting these leading mill owners, who enjoy political patronage purchase paddy from farmers for such a pittance. Thereafter precious little is left for small
and medium scale farmers to purchase,” he said. Despite this situation, he said rice prices are high in the market place today. “Rice is sold at Rs. 65 to Rs. 75 per kilo today. Dudley Sirisena confessed recently he has a stock of 80,000 bags of paddy. According to him this stock of paddy
can be milled within a month according to the capacity of his mills. Yet, he mills only 1000 bags a day. He is using only one third of the capacity of his mill,” he said.
The MP charged mill owners deliberately engineer a rice scarcity by stocking paddy and not releasing it to the market, in order to control market prices and retain a
higher profit for themselves. Subasinghe claimed according to the Hector Kobbekaduwa Agrarian Research Centre a kilo of rice could be released to the market for Rs.37.50 inclusive of costs,
when paddy is purchased from farmers at Rs.18 per kilo. “But, rice is Rs.75 in the market now. This is despite paddy being purchased at such a low price in the first
place. But if paddy was purchased from farmers at Rs 25 per kilo it can still be sold for Rs 50 or 55, and a group of small mill owners have agreed to this” he said. In response, Minister Sirisena, seemingly annoyed at the personal attack on his brother in Parliament, shot back at the JVP MP saying he spoke with a political
agenda to win preferential votes in Polonnaruwa by undermining him and Minister Siripala Gamlath, who is also a leading mill owner in the country. He said Mr.
Subasinghe had been carrying out this campaign with the support of a few small mill owners. “I have a great respect for JVP leaders including General Secretary Tilvin Silva, and senior MPs Wimal Weerawansa and Anura Kumara Dissanayake. Yet, MP
Subasinghe is speaking with animosity against me and my family. It is to undermine me in preferential votes. Because of this I am compelled to say he has obtained
money from my brother even though he criticizes him now,” the Minister said. However, the Minister blamed the UNP for the present paddy crisis citing it as a long-term result of the abolition of the Paddy Marketing Board 25 years ago. Subasinghe then challenged Minister Sirisena to make the same allegation outside the House, without hiding behind parliamentary privileges, to which Minister Sirisena
agreed. JVP MP Vijitha Herath then complained that Minister Sirisena had made a serious allegation against an MP without producing any proof and this was against
the standing orders of Parliament.
Maithripala Sirisena accusing JVP MP S.K.Subasinghe of obtaining ‘cash inducements’ from his brother Dudley Sirisena, a leading mill owner in Polonnaruwa, after
the JVP MP launched a personal attack on him. Subasinghe charged that a few leading mill owners and some rice importers had monopolised the rice industry, exploiting both farmers and consumers, and demanded
that the government declare a minimum price of Rs. 25 per kilo of paddy. He said rice millers of ‘the famous Maradagahamula area’ were forced to choose the coir
industry today due to the monopoly enjoyed by a handful of leading millers with strong political connections, who determine paddy and rice prices according to their
whims and fancies. “In Polonnaruwa, small and medium scale mill owners have started growing cloves and pepper instead of paddy,” he said. The JVP MP charged paddy is purchased at Rs. 18 per kilo in the Ampara district, and tabled a bill of a farmer in Anuradhapura who had sold his harvest for Rs 20
per kilo. The MP said the cost of cultivating a kilo of paddy was Rs 18, and questioned how a farmer could make a proper living in such a context. “During harvesting these leading mill owners, who enjoy political patronage purchase paddy from farmers for such a pittance. Thereafter precious little is left for small
and medium scale farmers to purchase,” he said. Despite this situation, he said rice prices are high in the market place today. “Rice is sold at Rs. 65 to Rs. 75 per kilo today. Dudley Sirisena confessed recently he has a stock of 80,000 bags of paddy. According to him this stock of paddy
can be milled within a month according to the capacity of his mills. Yet, he mills only 1000 bags a day. He is using only one third of the capacity of his mill,” he said.
The MP charged mill owners deliberately engineer a rice scarcity by stocking paddy and not releasing it to the market, in order to control market prices and retain a
higher profit for themselves. Subasinghe claimed according to the Hector Kobbekaduwa Agrarian Research Centre a kilo of rice could be released to the market for Rs.37.50 inclusive of costs,
when paddy is purchased from farmers at Rs.18 per kilo. “But, rice is Rs.75 in the market now. This is despite paddy being purchased at such a low price in the first
place. But if paddy was purchased from farmers at Rs 25 per kilo it can still be sold for Rs 50 or 55, and a group of small mill owners have agreed to this” he said. In response, Minister Sirisena, seemingly annoyed at the personal attack on his brother in Parliament, shot back at the JVP MP saying he spoke with a political
agenda to win preferential votes in Polonnaruwa by undermining him and Minister Siripala Gamlath, who is also a leading mill owner in the country. He said Mr.
Subasinghe had been carrying out this campaign with the support of a few small mill owners. “I have a great respect for JVP leaders including General Secretary Tilvin Silva, and senior MPs Wimal Weerawansa and Anura Kumara Dissanayake. Yet, MP
Subasinghe is speaking with animosity against me and my family. It is to undermine me in preferential votes. Because of this I am compelled to say he has obtained
money from my brother even though he criticizes him now,” the Minister said. However, the Minister blamed the UNP for the present paddy crisis citing it as a long-term result of the abolition of the Paddy Marketing Board 25 years ago. Subasinghe then challenged Minister Sirisena to make the same allegation outside the House, without hiding behind parliamentary privileges, to which Minister Sirisena
agreed. JVP MP Vijitha Herath then complained that Minister Sirisena had made a serious allegation against an MP without producing any proof and this was against
the standing orders of Parliament.
Paddy marketing and price of rice
by I. K. Weerawardena
Commissioner of Agrarian Services (Rtd.)and longtime member, Paddy Marketing Board
This country is today facing a crisis regarding' the rising price of rice and the Government is finding it difficult to control this trend. It is time we studied this question for
a solution to the problem without blaming each other and to ensure both farmers and consumers got a fair deal without being exploited by a handful of middlemen or
rice mill owners. Production statistics reveal, of the total production only about 21.4 percent is consumed by the producers (farmers) while the balance, nearly 78
percent goes to the market to feed the consumers. If someone says the international price pf rice will come down within the next few months so we can import cheep
rice and feed the people, it is a foolish dream. The reasons for this is fourfold. Firstly there is rising inflation that is the value of our rupee as against the Dollar is going
down. We have to pay more to buy rice in the international market so it's not going to be cheap.
Secondly there is the case of two large countries India and China, whose fast emerging development has affected food prices. The buying, capacity of the people in
these countries is growing and their consumption patterns have changed, there is a higher demand for grains, milk, butter, cheese etc. This will keep the price high.
Thirdly due to high price of oil in the world market, countries like the USA have started converting grain into fuel (ethanol). 'This will keep the grain prices up and
there would be no surplus grains available to be given to poor countries like ours in tile form of food Aid.
If we understand the above factors and trends, we will realize that there is a very poor chance of importing food grains at lower prices. Therefore, we have no option
but to produce our own rice and other food needs without depending on imports. There must be an immediate need to start a dynamic drive and to restructure paddy
marketing and the other farmer servicing systems and set up a new institutional framework to ensure food at reasonable prices while at the same time protecting the
farmers and consumers from being exploited by a few private traders and millers.
How it was once done
The intention of the author in this article is only to discuss the paddy marketing aspect and the institutional framework needed and not to deal about the food drive. Till
about 1996 the State under the Paddy Marking Board purchased paddy under the guaranteed price scheme. Paddy bought from farmers were given as rice to
consumers at a subsidized price. It is important to know how this system worked and why it broke down. The present day politicians and the bureaucrats should
know how the system worked. Some think if sufficient money is given by the Treasury, everything else will work. This is what is not happening today.
The Paddy Marketing Board was scrapped by the government in 1996 on the advise of the IMF/World Bank backed by our theorists arguing that market price of
paddy and rice is determined by supply and demand forgetting that there are imperfections in outmarketing system with large scale traders and private millers who can
control the market right from the village level upwards. The farmer was a mere pawn in the hands of these middlemen, who stored up both the paddy and rice and
then controlled the price to their benefit.
What the Paddy Marketing Board did then, was to purchase as much paddy as possible from farmers and compete with the private traders with a view to keeping
the price stable. The PMB purchased about 10 to 15 per cent of the total production keeping the price fairly stable and made available and allowing the farmer to sell
his paddy at any time preventing the traders manipulation of the price to their benefit. Once the paddy was purchased by the PMB there was a circle of operations
helping paddy to move out of the stores fast, allowing them to continue buying. This is what we do not have today.
This system worked
as follows:
Once the paddy purchased was given to the registered millers to be milled, a fee was paid for the milling. For this purpose there were registered paddy millers, each
allocated a given quota based on their milling capacity. The paddy given has to be milled within a specified date for he handover of milled rice to the Food
Commissioner’s store. The food commissioner thereafter -released this rice to the market and compete with the other traders. There was no shortage of storage
space at any time as this circle worked well. The co-operatives were the purchasing agents at village level. They were paid for their purchases and transport for
bringing the stocks to the PMB store. Some co-ops had their own mills. There was strict quality control. Today, this circle is not there.
The paddy purchased, is sold to traders and when the stores get blocked, purchasing ceases till the stocks are cleared. The quality of paddy detiorates due to long
storage. We must not forget that the farmer needs cash as soon as he finishes harvesting his paddy. He has waited for 4 to 5 months and his immediate needs are
urgent. He has no storage space in his house and above all if he keeps the paddy, it will detiorate and will fetch a lesser price. Thus, we see paddy price in the market
does not depend purely on supply and demand. There are a number of other factors too behind it.
What should be done
1. The government should re-establish the Paddy Purchasing Authority and appoint knowledgeable marketing people who have sympathy towards the farmers.
2. This authority should operate on the, above mentioned cycle and not merely buy and dispose paddy to the trade (millers)
3. It should set up retail co-ops to buy the paddy. This is a wonderful opportunity to revitalize the dead co-op movement. It should be people oriented like the earlier
coops which were run by the farmers themselves.
4. Start registering new millers who would mill for the state. This too is an opportunity to encoverage new small time investors in the rural sector with a new loan
scheme for this purpose.
5. Import small scale paddy mills from India and China for the rural sector making use of an Aid programme for this purpose.
6. Above all organize and mobilize the farmers. At one time it was the farmer coops led by local farmers who did the retail purchasing in all paddy producing districts.
Also organize the farmer organizations (cultivation committees) and make them vibrant local institutions.
7. Start a massive Food Drive. Do not let the present bureaucracy to mislead the government by using mere gimmicks such as field service for one week per year or
get prisoners to work in farms or cultivate abandoned swamps with paddy. (These swamps are mostly below sea- level and not suitable for paddy. Let them be used
for inland fisheries or anything else).
8. See that all agriculture officials from Assistant Commissioners, Assistant Directors) Divisional Officers, Extension Officers and so called Research Officers work in
the field for 4 days a week and one day in their offices.
9. Organize farmers meetings and training programmes and see that the Agrarian centers are stocked with inputs. Let each Agrarian centre start a demonstration
centre for the farmers.
10. Finally ensure that the newly appointed boards and, coordinators are manned by people with merit with a background of efficiency, discipline and above all
honesty to prevent them from being ending up as hot beds of corruption.
Commissioner of Agrarian Services (Rtd.)and longtime member, Paddy Marketing Board
This country is today facing a crisis regarding' the rising price of rice and the Government is finding it difficult to control this trend. It is time we studied this question for
a solution to the problem without blaming each other and to ensure both farmers and consumers got a fair deal without being exploited by a handful of middlemen or
rice mill owners. Production statistics reveal, of the total production only about 21.4 percent is consumed by the producers (farmers) while the balance, nearly 78
percent goes to the market to feed the consumers. If someone says the international price pf rice will come down within the next few months so we can import cheep
rice and feed the people, it is a foolish dream. The reasons for this is fourfold. Firstly there is rising inflation that is the value of our rupee as against the Dollar is going
down. We have to pay more to buy rice in the international market so it's not going to be cheap.
Secondly there is the case of two large countries India and China, whose fast emerging development has affected food prices. The buying, capacity of the people in
these countries is growing and their consumption patterns have changed, there is a higher demand for grains, milk, butter, cheese etc. This will keep the price high.
Thirdly due to high price of oil in the world market, countries like the USA have started converting grain into fuel (ethanol). 'This will keep the grain prices up and
there would be no surplus grains available to be given to poor countries like ours in tile form of food Aid.
If we understand the above factors and trends, we will realize that there is a very poor chance of importing food grains at lower prices. Therefore, we have no option
but to produce our own rice and other food needs without depending on imports. There must be an immediate need to start a dynamic drive and to restructure paddy
marketing and the other farmer servicing systems and set up a new institutional framework to ensure food at reasonable prices while at the same time protecting the
farmers and consumers from being exploited by a few private traders and millers.
How it was once done
The intention of the author in this article is only to discuss the paddy marketing aspect and the institutional framework needed and not to deal about the food drive. Till
about 1996 the State under the Paddy Marking Board purchased paddy under the guaranteed price scheme. Paddy bought from farmers were given as rice to
consumers at a subsidized price. It is important to know how this system worked and why it broke down. The present day politicians and the bureaucrats should
know how the system worked. Some think if sufficient money is given by the Treasury, everything else will work. This is what is not happening today.
The Paddy Marketing Board was scrapped by the government in 1996 on the advise of the IMF/World Bank backed by our theorists arguing that market price of
paddy and rice is determined by supply and demand forgetting that there are imperfections in outmarketing system with large scale traders and private millers who can
control the market right from the village level upwards. The farmer was a mere pawn in the hands of these middlemen, who stored up both the paddy and rice and
then controlled the price to their benefit.
What the Paddy Marketing Board did then, was to purchase as much paddy as possible from farmers and compete with the private traders with a view to keeping
the price stable. The PMB purchased about 10 to 15 per cent of the total production keeping the price fairly stable and made available and allowing the farmer to sell
his paddy at any time preventing the traders manipulation of the price to their benefit. Once the paddy was purchased by the PMB there was a circle of operations
helping paddy to move out of the stores fast, allowing them to continue buying. This is what we do not have today.
This system worked
as follows:
Once the paddy purchased was given to the registered millers to be milled, a fee was paid for the milling. For this purpose there were registered paddy millers, each
allocated a given quota based on their milling capacity. The paddy given has to be milled within a specified date for he handover of milled rice to the Food
Commissioner’s store. The food commissioner thereafter -released this rice to the market and compete with the other traders. There was no shortage of storage
space at any time as this circle worked well. The co-operatives were the purchasing agents at village level. They were paid for their purchases and transport for
bringing the stocks to the PMB store. Some co-ops had their own mills. There was strict quality control. Today, this circle is not there.
The paddy purchased, is sold to traders and when the stores get blocked, purchasing ceases till the stocks are cleared. The quality of paddy detiorates due to long
storage. We must not forget that the farmer needs cash as soon as he finishes harvesting his paddy. He has waited for 4 to 5 months and his immediate needs are
urgent. He has no storage space in his house and above all if he keeps the paddy, it will detiorate and will fetch a lesser price. Thus, we see paddy price in the market
does not depend purely on supply and demand. There are a number of other factors too behind it.
What should be done
1. The government should re-establish the Paddy Purchasing Authority and appoint knowledgeable marketing people who have sympathy towards the farmers.
2. This authority should operate on the, above mentioned cycle and not merely buy and dispose paddy to the trade (millers)
3. It should set up retail co-ops to buy the paddy. This is a wonderful opportunity to revitalize the dead co-op movement. It should be people oriented like the earlier
coops which were run by the farmers themselves.
4. Start registering new millers who would mill for the state. This too is an opportunity to encoverage new small time investors in the rural sector with a new loan
scheme for this purpose.
5. Import small scale paddy mills from India and China for the rural sector making use of an Aid programme for this purpose.
6. Above all organize and mobilize the farmers. At one time it was the farmer coops led by local farmers who did the retail purchasing in all paddy producing districts.
Also organize the farmer organizations (cultivation committees) and make them vibrant local institutions.
7. Start a massive Food Drive. Do not let the present bureaucracy to mislead the government by using mere gimmicks such as field service for one week per year or
get prisoners to work in farms or cultivate abandoned swamps with paddy. (These swamps are mostly below sea- level and not suitable for paddy. Let them be used
for inland fisheries or anything else).
8. See that all agriculture officials from Assistant Commissioners, Assistant Directors) Divisional Officers, Extension Officers and so called Research Officers work in
the field for 4 days a week and one day in their offices.
9. Organize farmers meetings and training programmes and see that the Agrarian centers are stocked with inputs. Let each Agrarian centre start a demonstration
centre for the farmers.
10. Finally ensure that the newly appointed boards and, coordinators are manned by people with merit with a background of efficiency, discipline and above all
honesty to prevent them from being ending up as hot beds of corruption.
====================
Tigers seize SLA weapons in Naakarkoayil clash[TamilNet, Thursday, 07 February 2008, 15:57 GMT]
Tigers seize SLA weapons in Naakarkoayil clash[TamilNet, Thursday, 07 February 2008, 15:57 GMT]Heavy fighting erupted between the Sri Lanka Army and the Liberation Tigers of Tamileelam Thursday morning at 5:00 a.m. when an SLA unit, using tanks with
artillery support fire, attempted to move towards LTTE Forward Defence Line at Naakarkoayil in Jaffna. The SLA sustained heavy casualties in the one-hour
fighting, LTTE's Northern Forces Operations Command told reporters who were taken on a tour to Naakarkoayil FDL where the Tigers displayed ammunition and
an assault rifle seized by them.
One T-56 assault rifle, ten Rocket Propelled Grenade (RPG) shells, four torpedoes (land explosive devices), twenty-five hand grenades were among the military
hardware seized by the Tigers.
Casualty details were not available.
artillery support fire, attempted to move towards LTTE Forward Defence Line at Naakarkoayil in Jaffna. The SLA sustained heavy casualties in the one-hour
fighting, LTTE's Northern Forces Operations Command told reporters who were taken on a tour to Naakarkoayil FDL where the Tigers displayed ammunition and
an assault rifle seized by them.
One T-56 assault rifle, ten Rocket Propelled Grenade (RPG) shells, four torpedoes (land explosive devices), twenty-five hand grenades were among the military
hardware seized by the Tigers.
Casualty details were not available.
Devananda says ready to give up portfolio to take up IAC Chair
By Sandun A. JayasekeraEPDP Leader and Social Services Minister, Douglas Devananda yesterday said he would consider it if an offer was made by President Mahinda Rajapaksa to him to
take up the post of Chairman of the Interim Advisory Council (IAC) to be set up in the North.
Asked when he was going to tender his resignation from his ministerial portfolio, the EPDP leader told the Daily Mirror it would depend on the response of the
President. “I have a vision and a mission to serve my people in the north-east who have suffered under the LTTE for decades. As one of the mainstream democratic
political parties in the North-East the EPDP has an obligation to liberate not only the Tamils but also Muslims and Sinhalese from the grip of terrorism. Hence, I am
willing to face any challenge and take any responsibility to achieve that goal,” Mr. Devananda said.
Commenting on the composition of the IAC he said though the APRC proposed a five members the President has the discretion to appoint any number of members
to the council
However he said he hoped the EPDP would have a say in nominating members to the IAC.
Asked about the delay by the government to nominate members to the IAC, Mr. Devananda said President Rajapaksa was in the process of consulting all the
stakeholders before naming members to the Council. “President Rajapaksa had a genuine desire to bring civil administration to the north and restore peace, law and
order in the province,” he stressed.
He maintained that President Rajapaksa would constitute the IAC soon as a delay in nominating the members to the IAC would not auger well for the momentum
created with the presentation of interim proposals of the APRC by its Chairman, Minister Prof. Tissa Vitharana more than a fortnight ago should be maintained.
Meanwhile, Transport Minister Dullas Alahapperuma told Daily Mirror the President would definitely constitute the IAC this month. The SLFP Central Committee
meeting scheduled for last afternoon was to discuss matters pertaining to the IAC and to submit the outcome to President Rajapaksa.
By Sandun A. JayasekeraEPDP Leader and Social Services Minister, Douglas Devananda yesterday said he would consider it if an offer was made by President Mahinda Rajapaksa to him to
take up the post of Chairman of the Interim Advisory Council (IAC) to be set up in the North.
Asked when he was going to tender his resignation from his ministerial portfolio, the EPDP leader told the Daily Mirror it would depend on the response of the
President. “I have a vision and a mission to serve my people in the north-east who have suffered under the LTTE for decades. As one of the mainstream democratic
political parties in the North-East the EPDP has an obligation to liberate not only the Tamils but also Muslims and Sinhalese from the grip of terrorism. Hence, I am
willing to face any challenge and take any responsibility to achieve that goal,” Mr. Devananda said.
Commenting on the composition of the IAC he said though the APRC proposed a five members the President has the discretion to appoint any number of members
to the council
However he said he hoped the EPDP would have a say in nominating members to the IAC.
Asked about the delay by the government to nominate members to the IAC, Mr. Devananda said President Rajapaksa was in the process of consulting all the
stakeholders before naming members to the Council. “President Rajapaksa had a genuine desire to bring civil administration to the north and restore peace, law and
order in the province,” he stressed.
He maintained that President Rajapaksa would constitute the IAC soon as a delay in nominating the members to the IAC would not auger well for the momentum
created with the presentation of interim proposals of the APRC by its Chairman, Minister Prof. Tissa Vitharana more than a fortnight ago should be maintained.
Meanwhile, Transport Minister Dullas Alahapperuma told Daily Mirror the President would definitely constitute the IAC this month. The SLFP Central Committee
meeting scheduled for last afternoon was to discuss matters pertaining to the IAC and to submit the outcome to President Rajapaksa.
Sinhala woman who brought Dambulla bomb arrestedSuspect says bomb intended for Anuradhapura
By Kanchana Kumara Ariyadasa
The woman who had brought the bomb which exploded in a private bus at Dambulla on Saturday, was arrested by Dambulla police yesterday, while she was
undergoing treatment for burn injuries at the Dambulla hospital.
Police investigations had revealed that the suspect, who is a Sinhala woman, had been born in Kengalla, Kandy, but had lived in Killinochchi since the age of 14.
Dambulla HQI, Tissa Lal De Silva, said that although the suspect was Sinhala she could not speak Sinhala properly and it was suspected that the bomb had exploded
while it was being taken to Anuradhapura to be set off near the Ruwanweliseya.
Police said that the suspect had come with her mother. She had kept the parcel at the front of the vehicle. She and her mother had not sat next to each other on the
bus. Both of them had sustained injuries due to the blast and been admitted to the Dambulla hospital. Police said that the suspect had been identified as 48 year old
P.G. Hemalatha.
The suspect had told police that she went to Killinochchi with a Tamil youth at the age of 14 and that she has two sons who are members of the LTTE. Police said
that the woman’s first visit to Kengalla, after she left, was eight years later. Thereafter she had visited her village on several occasions and had even constructed a
house there. She had come to Kengalla this time on January 24.
Police said that her mother, who is aged between 65 and 70, was undergoing treatment at the Kurunegala hospital. Police also said that this bomb had exploded in
the bus by accident. It had been intended for a target in Anuradhapura.
Three arrested over Tiger ties
By Srinath Prasanna Jayasuriya
An army captain, a soldier and a Buddhist monk were taken into custody for having close links with a top LTTE leader named Ramesh, alias Charles, who was
reportedly involved in the recent bomb blasts in Colombo and the suburbs, police said.
A senior police official said that Ramesh, who was arrested along with three other LTTE suspects in the Mattakkuliya area, had revealed the connection with the
captain and other two arrested persons, who are all Sinhalese.
It was revealed that these three Sinhalese suspects had been promised seven million rupees by Ramesh if they helped the LTTE to carry out bomb blasts in Colombo
and the suburbs.
The arrested monk, who is from Colombo, had reportedly given shelter to LTTErs, who were in Colombo to carry out attacks.
By Srinath Prasanna Jayasuriya
An army captain, a soldier and a Buddhist monk were taken into custody for having close links with a top LTTE leader named Ramesh, alias Charles, who was
reportedly involved in the recent bomb blasts in Colombo and the suburbs, police said.
A senior police official said that Ramesh, who was arrested along with three other LTTE suspects in the Mattakkuliya area, had revealed the connection with the
captain and other two arrested persons, who are all Sinhalese.
It was revealed that these three Sinhalese suspects had been promised seven million rupees by Ramesh if they helped the LTTE to carry out bomb blasts in Colombo
and the suburbs.
The arrested monk, who is from Colombo, had reportedly given shelter to LTTErs, who were in Colombo to carry out attacks.
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