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China-Ceylon Rice Rubber Pact: Following up on the landmark agreement of 1952

05 Jan 2022

By Anura Fernando  1952 was when the historic agreement between China and Sri Lanka (then Ceylon) was signed, which was called the China-Ceylon Rice Rubber Pact.  The late Dr. J.B. Kehelgama, when he addressed an August assembly in 2002 on the 50th anniversary of the agreement, said: “This agreement was the most useful one signed thus far with Sri Lanka and the most durable and successful in the world.” Minister of Trade and Commerce at the time R.G. Senanayake, played a key role in negotiating this agreement, and saw it to fruition.  The necessity for this agreement  At a time when Ceylon was economically challenged in the early 1950s by an economic crisis due to a lack of foreign exchange, shortage of rice, and reduced exports of commodities, coupled with political upheavals, a far-thinking Minister of Trade and Commerce formulated this plan.  Sri Lanka was importing rice at the time from Burma, Thailand, and Indo-China, as she had to give her citizens two measures of rice per person, per week at a subsidised rate.  Shortage of foreign exchange The Korean War had ended, and the demand for rubber from the US and the world had decreased by 38%. Due to global crises, the demand for tea and other commodities like coconut oil also decreased. Our foreign exchange reserves were dwindling.  1952 was therefore a challenging time. There was political upheaval. The father of the nation D.S. Senanayake had passed away. The young greenhorn Dudley Senanayake had to form a government. R.G. Senanayake, a Cabinet Minister of Trade, had a dire need to import rice. There was a lack of funds.  China could not obtain its requirement of rubber due to prevailing restrictions. Thus, the agreement was formulated and signed as renewable every five years with conditions for balance of payments to be met in forex. We exported rubber to China, and China gave us rice in return. Similarly, today, the country faces a forex shortage due to the global pandemic. It is time that we take a closer look at the pending Free Trade Agreement and execute it, as it has been long overdue. Globally, a majority of nations conduct trade under Free Trade Agreements (FTAs) with the World Trade Organisation (WTO) overseeing trading activities.  Strengthening diplomatic ties In 1957, the friendship with China was further strengthened with Sri Lanka opening its first mission in Beijing, China. Wilmot Perera was the first Sri Lankan Ambassador to China. In February this year, Sri Lanka and China will celebrate 65 years of diplomatic ties, which further embodies our friendship. We herald the visit of China’s Foreign Minister to Sri Lanka this week. The extension of the hand of friendship has been constant.  During the first few months of the pandemic China donated approximately 2.7 million vaccines to Sri Lanka – a gift we will always acknowledge with thanks. We have imposing monuments in the city of Colombo which are outright gifts by the Republic of China.  The Bandaranaike Memorial International Conference Hall (BMICH) was gifted in 1976, which was the largest conference hall in Southeast Asia, and hosted the Non-Aligned conference in 1976 with over 86 countries participating, putting us on the global stage. Similar to this is the Nelum Pokuna, a theatre that can house 1,269 persons in the audience and possesses state-of-the-art facilities. The Nelum Kuluna – a look-alike of the Oriental Tower in Shanghai – houses offices in the Sri Lankan IT sector, restaurants, and leisure areas, and is a landmark feature in Colombo’s skyline today.  Like China, Sri Lanka also boasts of an ancient civilisation of over 2,500 years (China’s history dates back over 5,000 years). Evidence of this was when excavation was carried out in archaeological sites and Chinese coins and other artifacts were found, further evidence of trade in those early days between the two countries.  The time is ripe for the signing of the Free Trade Agreement between our two countries, and the launch early this year of the Financial Centre in the Port City of Colombo.  (The writer is Consul General of Sri Lanka at the Sri Lanka High Commission in Shanghai, China) ………………………………  The views and opinions expressed in this column are those of the author, and do not necessarily reflect those of this publication.

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Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!


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