Page 1

SPORTS <ےي<

Page 2
in ancient Society were more
commonly indulged in during
periods of leisure either at the
end Of tije har Vest Sea SOn Or On
special festive occasions. On
Such occasions contests Were
common, sometimes associated
with work and occupations of the
people as the two pictures at
centre illustrate - Contests
among women weaving coconut
leaves and carter's racing their backeries. At bottom is a. contest
in a more modern version of
popular travel - the cycle race.
In all three instances there is
a distinct emphasis on a high
level of participation as well as
spectator interest. The Other
game illustrated above is **elle’
regarded as the only one of local
origin among todayS officially
recognised sports. Here too, as
in other activities illustrated,
participation is simple and
popular and spectator interest
greater than in most of the no
dern 'sports'.
 
 
 
 

POPULAR SPORTS AND GAMES IN SRI LANKA
Sri Lanka too has had its share of Sports and games as in many other ancient civilizations. The evolution of sports in Sri Lankan society has resulted today in two types of activity - the Once popular national Sports as was played or enjoyed by wide sections of the people and connected in some way with national traditions, social habits, pastimes, amusements and games; and the more recently introduced games, generally associated by today's mass media with "Sports", many of which have their origins in the hitherto coloniser's lands and are generally centred around the "clubhouse" and all its associations of 'club life.
The sporting activity and recreation illustrated on this page, however, belong to the former category. Games

Page 3
ONOM REVIEW
Published by the People's Bank Research Department Head Office. sir chiampalam A. Gardina Mava
Colombo 2. Sri Lanka
the EconoVic REVIEW is intended to promote knowledge of and interest in the economy and economic development process by a many sided presentation of vvs eportage, facts and debate
HE ECONOMIC REVIEW is a connunity service project of the People's Bank.
its contents, however, are the result of editorial considerations only and do not necessary refect Bank policies of the officia viewpoint. Signed feature Prices also are the persona the authors and do not represent the
institutions to which they are attached Sina contributions aS VIV e as comments and viewpoints are welcome HE ECONOMIC REVIEW is published monthly and is available both on
Volume 8
S. TI
Tilak
Jean
NEXT ISSUE
* Tobacc
* Foreigr
* Japan c
* Energy
* Educati
COVER ARTIST
S. H. Sara
 
 
 
 
 
 
 

D
Number 1 April 1982
CONTENTS FEATURES
. G. Fernando 16 The Value of Money, A Generalised view of 'Both Sides of the Rupee'
Samaranayake 20 Effects of Inflation on Income Distribution
7. J. G. Mendis 27 The Large Towns in Sri Lanka
-Pierre Schaefer 31. The Use of a Desk Computer for
Writing Vernacular Languages
■-置
SPECIAL REPORT
3 SPORTS
COLUMNS
2 Diary of Events: February 1982
13 Science & Society: Recombitant DNA- 'Gene Splicing '-A new high flying technology
14 The Economy. Economic pros
pects for 1982
): Economy of tobacco smoking in the Sri Lankan context
Currency Banking in Sri Lanka ominates trade in imports planning and management in Sri Lanka onal opportunities in science education
h

Page 4
Feh),
O
1.
2
5
16
17
18
Diary
The I.M.F. approved a $68 million loan to assist Bangladesh hard hit by a decline in the market value of its major exports, due to lower prices for new jute and jute products which accounts for almost 70 percent of the country's total exports,
Sweden will grant India $56 million for building a forestry project in Southern India under an agreement signed in Delhi between officials of the two countries, stated a Reuter report.
The continuing entry of more banks in the international market is resulting in more competition and less profits for multi-national banks, two prominent bankers told a conference of international bankers in Manila. They told the conference international banking had become so risky that few could sustain any expansion and that the international market is overbanked and is generating declining returns. The Investment Protection agreement between Sri Lanka and Switzerland which was negotiated and signed last year, came into force by an exchange of notes between the two governments, stated a Foreign Ministry announcement.
The President inaugurated the Sri Lanka Rupavahini (Television) service in Colombo.
Signs of a slowdown in the Swiss economy are growing, Credit Suisse Said in its latest economic report. It noted that for the first time in two years the number of vacancies is lower than the number of unemployed. A growing number of companies is having to introduce short time working; although Switzerland's unemployment rate of 0.4 percent at end of January is still the lowest in the world. The Government decided to award a tender for Rs. 86.4 million to the Sumitomo Corporation of Japan for rock blasting and deepway construction in the Galle harbour. A memorandum of understanding between the Australian government and Sri Lanka, was signed by Finance Minister Ronnie de Mel for an Australian grant of Rs. 300 million to help in the development of zones one and five of systems B of the accelerated Mahaweli Development Scheme. World Bank President Tom Clausen said in Washington that reduction in aid this year by the United States and the industrial countries had dealt a blow to the neediest nations of the World. As a result the IDA which makes interest free loans to poor countries will be able to lend only $2.6 billion this year instead of the $4.1 billion dollars it was counting on. The price of rubber fell to its lowest level in four years before recovering slightly in later trading. Prices have been declining since February 1980 due to a world-wide fall in demand resulting from the effects of recession. Rubber sold in advance on the London Market for delivery between October and December dropped to 53.6 pence a kilo its lowest since April 1978; and was at its peak in February 1980 when rubber sold for just under one pound sterling a kilo. -
(

of Events
9 The Reserve Bank of India announced a downward revision of the rupee by 0.858 percent in relation to the pound sterling.
23 Gold fell to its lowest level in two and a half years but stock markets moved higher, boosted by the fall in U.S. money supply and prospects of easier interest rates, according to Reuter reports. Gold was fixed at $364.25 dollars an ounce in London up fractionally on the previous day's 364 the lowest since September 1979. In Zurich it recovered to 364,50 dollars after falling to a low of 362.50. Delegates from 44 developing countries began, discussions in New Delhi on co-operation among themselves and aligning their positions to negotiate with the rich 'North' to transfer resources to poor countries.
24 The Government approved a proposal of the Minister of Finance for 12,860,000 dinnars from the Kuwait Fund for Arab Economic Development for construction are other works of the System C of the Mahaweli Development Project, The President of the ADB said in Manila, that a bid by the Bank to raise $4.1 billion in fresh funds to lend interest free to the poorest nations of the region over five years had become unrealistic due to poor response from the US, stated a Reuter report. India's Finance Ministry's annual Survey presented to the Parliament in advance of the National Budget reveals that its balance of payments position will remain under pressure over the next few years and the government will have to raise commercial loans to meet payments deficits. Also, India's trade gap in the current year, ending in March would amount to about Rs. 56 billion ($6.22 billion) against last years Rs. 57.56 billion rupees ($6.39 billion).
25 Shipping recorded the smallest increase in 46 years last year, according to the latest Lloyds Register. There was a sharp rise in bulk carrier tonnage but fall in oil tankerage. Liberia remained the biggest flag carrier with 74.9 million tonnes, Greece moved to second place with 42.0 million tonnes and Japan was third with 40.8 million tonnes.
26 The EEC accepted a hard fought international Textile Trade Pact that attempted to impose curbs on imports from the Third World countries, stated a report from Brussels. The British Secretary of State and Industry said the Ministers agreed to ratify the new multifibre arrangement (MFA) and gave the EEC Executive Commission the goahead to start negotiations with 28 individual Third World textile suppliers on the level of their sales to the community.
27 The World Bank and its affiliate the IDA have approved aid totalling $386 million to India and Sri Lanka for agriculture and power projects. A Reuter report from Washington stated the Bank would give $36 million IDA credit to Sri Lanka. to assist the construction of an electricity transmission line to serve the Colombo area.
ECONOMIC REVIEw, APRIL 1982

Page 5
SPORTS
Organised sport has gained much prominence in Sri Lanka in recent months. There are many interpretations to this trend but one provocative viewpoint is that it is Overshadowing some of the more urgent problems facing the country at this juncture. Games, like many other socio-cultural facets in the lives of peoples have alWays been an essential part of the communal life in Our society. Today, however, games and particularly Organised Sports, have been propelled into a position of priority well beyond those of all other aspects of cultural life. The situation is taken very seriously by some decision makers at various levels and certain Sections of the population and was Summed up strongly (Daily News' March 10, 1982) by a promiment politician at Nattandiya, who is public occasion "We are deeply inreported to have told the people on a public occasion. “We are deeply involved in tine international arena. Of politics and Sport'.
There is no doubt that the traditional games in Sri Lanka, which were an essential part of the cultus ral life and leisure-time activity of
Economic REVIEw, APRIL 1982
ancient communitie ally relegated to ( those introduced by rulers in more mo given full patronag nistrations of the di Sult was that by th century with the e western concepts an facets of local life, be regarded as Spo ganised ball' and 'combative' contests. and 'indoor sports a lly in Western Societ
What is S.
There is no int cognised definition 'sport. The result kinds of human Specific administrat) the hisa Orical backg customs which defill and limit the patte haviour' and invo and is definite Outcon physical skill' are sport. The mind-bo received the attenti C of ancient. India, Cl More recently cons
 

S, Were gradu
obscurity While
the colonial dern times were e by the admiay. The end rele mid-twentieth ntrenchment of d values in many what came to rts were the Or'racket games, 'athletic games s practised widele S.
Orts? ernationally re
of the Word is that ΥΥ13.ΙΩΝ ctivities “With
ve Organisation, round of rules Or le the Objective in of human belving “challenge e determined by
all considered iy problem has
n of philosophers
ina, Greece etc. derable
atten-:
Modern' sports in this country came into is own in 1948 when Sri Lankan athlete, Duncan White, came c lo se to winning “Gold' at the Olympic Games and later won “Gold' at the Commonwealth Games White's feats over the hurdles were a major achievement for Sri Lanka, in the Sphere of international sports. Not till Edhiriveerasingham Rosa and Wimaladasa won gold medals at the Asian Games did Sri Lankan again achieve such international recognition. (See page 8). The Only other major achievement in international sports was M. J. M. Lafeer's a world's billiards title in 1973.
tion to various Scientific aspects of the phenomenon of Sports has been receiving the attention of academicians not only in departments of physical education, but also in departments of philosophy or cultural studies, Sociology, psychology, eco
nomics, medicine etc. of various institutions of higher learning. However, one has to accept the fact that “there are few words in the English language which have such a multiplicity of divergent meanings as the word “sport'. A glance through the sports pages of the daily newspapers indicates clearly the variety of activities which are now covered by this WOrd.
The Origin of games can be traced as far back as the beginning of man's development as a social being, particularly his interaction and relations with other individuals and groups. His behaviour was influenced by his own particular civilizatiOm and culture and SO tOO ¥é his leisure habits, recreation and
Olay.
Games had many functions though among the most important were: to keep under control or rid participants of their animal spirits and exceSS emotions by playing rough and strenuous physical contact games; to excite admiration and give pleasure to players and others by demonstrating skills. (particularly in display games); to offer an emo
3

Page 6
emotional outlet to large numbers of people through spectator sports, compensating for the lack of opportunity for all to take part and satisfying the enjoyment of people in being part of the Crowd at such occaSions; to help in defeating boredom; the social function of bringing men and Women together and prOmoting human contact; and enabling people to keep fit; and COmmon to many of these factors the inborn Spirit of competition among individual participants and Spectators alike. The primitive forms of Sports among men can be traced back to neolithic and palaeolithic times and these formsdeveloped through the ages until about 3.350 years ago; when in the ancient world the Olympic Games were organised at Olympia in Greece. The indications are that apart from the traditional indoor and community contests in ancient oriental societies, throwing, s ning. jumping and swimming were the first sports activities to be develgped and later organized into competitive forms in the early classless Societies in various parts of the world until slavery developed in India, China, Egypt, Babylon, Crete, Persia, Greece and ROme.
Class Character of Physical Culture and Sports in the Slave
Holding States
Sports was not for the slaves. It was for the free citizens. During this stage a class-character in sport became evident and games and sports festivals were organised showing that a high level of social development had been reached. Further proof is to be found in bathing systems, medical-gymnastics, techniques and methods of physical exercise and the development of sports and reCreation such as dances, archery, fencing, wrestling. fist-fights, swimming, foot-ball, golf, polo and badminton. These sports however, were not for the masses though their origins can be traced to the classless §ಲ್ಲಲ್ಲೇties of the oriental states. (See
OX) ,
Management of Sports in Sri Lanka
Many of the traditional sports coming down from ancient times, had fallen into neglect over the centuries of Colonial occupation, and in the period of the British colonisation Western 'modern', sports were introduced into Sri Lanka. It is these games such as cricket. rugby, hockey or football which are asSociated most with sports today, particularly by the media. Voluntary Sports ASSOciations were established to develop these games and, under the auspices of the colonial rulers they took a firm hold over influential sections of the population. These sections ... were essentially from among the affluent classes who owed their positions to the rulers. Some of the
4.
THE ORI
NDA
India, has and games de' tory of physic: culture. The Ramayana, S) and games use the youth fo education obta. Buddha. Prin the hand of P ing won a spo festivals had many centurie that time ridir. been common. away from his in the first sta Yoga had be ages ago for mental growth lopment of the was a feature ing in the Faj India, China, sided physical pean and mid of old.
JAPAN
The Old Sumo-wrestling nally with sl later with stic Jutsu), Archer ing). Badmint ferent forms modern) and been popular.
SRI LANK Sri Lanka, Sports similar ent Civilizatior tation to thos
East. These jumping, wrest back, archery, traditional sp have been rep introduced by
EGYPT
In Egypt t loped systemat very early tin and Roman of gymnastics, tics, fighting s boxing, fencin Sports, includil Chariot, races. practically all found in mod
tħej8
CRET TE
Cret8 bel favourite spor foot and they ry and throw fist-fighting, ing were po games in wh jumping off bulls, off the

GINAL SPORTS AND GAMES
evidently had sports eloped in its long hisexercise and physical Maha Bharatha, and Bak of hunting sports for the preparation of
warfare. Multi-lateral ned at the time of the 26* Siddhartha T WOn incess Yasodhara havits contest. Mass-Sports een organized in India, before Christ. At g and horse racing had Prince Siddhartha rode palace on horse back ge of his renunciation. in developed in India, harmonic physical and . This cohesive deve| mind and the body of the systems obtainEastern countries, i.e. 2tc. as against the One preparation in Euroille eastern civilizations
Japanese sports were , Kendo-fencing (origiharp implements and ks) Judo, Kyodo (Juy and Sui-ei (swimmon and Foot-ball (difof play as against the
horse-riding had also
A.
too had its share of to those in other ancins, but with closer orieno” e practiced in the Far consisted of acrobatics, ling, fighting on horse fencing, etc. These drts (see box On page 6) laced by modern sports the colonial rulers.
here was a highly deveic physical-culture from es, even before Greek :ivilizations, comprising
light and heavy athle ports such as wrestling, g with sticks, waterng rowing, anchery, and
Their gymnastics had the forms and exercises rin gymnastic program
g a hilly country the had been hunting on were famous for archeIng. Boxing, wrestling, orse racing and dancpular. They had also ch bulls were used - the back of galloping
from the side, etc.
BABYLON- (Iraq and Syria)
The fertile lands of Babylon had been subjected to many invasions and warfare. It became necessary for its people therefore to be highly physically prepared for defence with the result that physical training and sports were oriented in that direction. Wrestling, fist-fighting, running, horse-riding have evidently found favour here. But there appears to have been no sports activities at school level.
PERSIA (Irann
The Persians taught their children aged of 15 to 20 years riding and archery. Later they participated in gymnastics, marching, running, horse tracing, hunting etc.
GREECE - (Athens)
In Greece gymnasiums were built for "the sons of the rich class for exemplary, harmonic and cohesive development of their physique and psyche and for moral education.
The ancient Olympic Games had been held from about 1370 B.C. to the 9th century B.C. when there was a lapse. In 776 B.C. the Games were revived at Olympia and held regularu ly every four years until the Roman conquerors abolished them in A.D. 393. Over this period of 1169 years the number of events at the ancient Olympic Games increased. There were different competitions, in running events. Boxing and wrestling, pentathlon, chariot races, horse races, armed races and Sometimes art competitions. However, athletics always took pride of place. Only the free born participated. The winners received an olive wreath and also great honour. ProfesSlonalism entered the Games later and in addition to the olive wreath there were rewards in kind, cash and penSiOS.
ROME
Towards the end of the supremacy of the Greek city states, Rome had pecome a powerful slave owning state where military physical exercise took precedence over other forms of sports. War-games and exercises for the Soms over 18 years of the free citizens were organised. They also had circuses where chariot races and fights beta ween gladiators, who were all highly trained slaves took place. The times of the Roman emperors found an abandonment of the military physical training as armies of soldiers were established. Physical education went out of the education system and also tha life of the adults, except for curative purposes. The rich leading luxurious and unhealthy lives had to find remedial measures in warm baths and exercises in bali houses. Their pleasure in pitting human beings against wild animals such as Lions exhibited the standards of moral depravity the Romans had descended to.
EconoMIC REVIEw, APRIL 1982

Page 7
Associations established over 50 years ago are the Ceylon Rifle ASSociation (1890) the Ceylon Schools BOXing ASSOciation (1914) the Ceyl0n Lawn Tennis Association (1915) the Ceylon Rugby Football Association (1920), the Ceylon Amateur Athletic ASSOciation (1920) and the Ceylon Golf Union (1929). The Boxing Association and the Football Association (1932) were followed by many national ASSOciations formed particularly in the post independence era in Sri Lanka. A majority of the sports introduced by the colonial masters were intended to serve their Own purposes such as selection and reCruitment to the gOvernment Service, the armed forces and the mercantile and plantation SectOrs and propagate and maintain British norms and values.
The masses of the country had no opportunity, due to poverty and other Social considerations, to participate in these Sports and many probably kept away for good psychological realSOnS from the apparently boring ones such as cricket. Furthermore, it was useful from the rulers point of view if these sports were inculcated among thOSe Who served them directly. A false ideology of fairness as elgrained in British sport (“it is not
cricket Old chum') was also fed in through the Col Onial SchOOls System whilst Sri Lanka was Lll
fairly held under the British by the same people. On the other hand the indigenous games and recreational activities, like many other cultural events, did not find a place in this scheme of thinking. Therefore the sports that grew popular and came to be recognised were mainly those introduced by them. When a Sports Ministry was finally established in this country, and in 1974 a list of 38 Officially recognised sports was issued, about 90 per cent of the Sports
SPORTS ORGANIS
Apart from the National Sports ASS other ASSOciations W
ng powers Such Olympic, Commonw (iames Association respective controlli various sports are af Sports organisations fOrS Of Unational lif as follows: - The School SYOO1 -- The Government
Associations - The Mercantile
Associations - The Nationalised
Associations - The Defence Se
trol Brard - The Inter Unive
ciations
listed here W7 ere thO them. (See ESOx belo" is of local Origin.
Reasons for the g can be traced to ba patronage. With thi Of development’ spOr" pushed lOwer and lO" Scale of priorities ovi decades by successive Generally. When spor. Official patrOnage, ances, it Vas mad that there were far Such as food, health Other Social Overhead recOgnised sports ha mOre and more CO) Who could afford to them. The Ministry O in 1965, was given t ponsibility for the n development of SpO) country. It cannot b
Schedule of National Sports Associations (Gazette of the
20. Karate 21. Lawn Tennis 22. Motor Sports 23. Netball 24. POWer Boat Raci 25. Physical Culture 26. Rugby Football 27. Rowing 28. Softball Cricket 29. Swimming 30. Surf Life Saving 31. Angling 32. Table Tennis 33. Volleyball 34. Water Sking 35. Weight Lifting 36. Wrestling 37. Rifle Shooting 38. Yachting
THE 38 OFFICIALLY RECOGNISEO SPORTS
Lanka (Ceylon) Extraordinary No. 110/3 of 7-5-74)
1. Archery 2. Athletics 3. Badminton 4. Billiards 5. Baskethall 6. Bridge 7. Boxing 8. Cricket . 9. CarrOm 10. Cycling 11. Chess 12. Draughts 13. Elle 14. ASSOciation Football 15. Golf 16. Gymnastics 17. Hockey 18. Women's Hockey 19. Judo
EuONOMIC REVIEW, APRIL 1982

ATIONS
approximately 30 )ciations there are hich have controllS the Sri Lanka ealth and Asian to which the g bodies for the filiated. The major in the various Sece can be grouped
t;S ASSOciatiOns
Services Sports
Services Sports
Services Sports
rvice Sports Con
rsity Sports ASSO
In these sports organisations there are associations for different sports such as Cricket. Tennis, Football, Athletics, etc. Most of these associations cater to the needs of their particular sectors of influence. They have, their own competitions and they also compete at sports competitions organised by the national controlling bodies. The national controlling associations have a right to- control their respective sports - provide for affiliation of associa
tions, clubs etc. -- make and enforce laws and rules
- conduct tournaments - take desciplinary action, etc. - Select teams for international COIn
petitions -- organise coaching camps and other
activities for the promotion of their respective sportS.
se introduced by w). Only *Elle''
present situation Sically One Of 2 "growing pains tS have been Wer dOWn in the er the la St three 2 governmentS. its bodies sought particularly fine clear to then greater priorities l, education and iS. Access to the us naturally got Infined to those participate in f Sports, created he overall reshanagement and it in the entire e Said that this
Republic of Sri
ng
function had been satisfactorily discharged during the last 17 years for nearly all Sports. Management in the State Sector has failed for various reasons. There is a multiplicity of Sports organisations both in the state sector and the private Sector which function independently. (See BOX above). One result is that it has not been possiple to develop sports in the country On a co-ordinated, Systematic and planned basis. Nor has it been possible to encourage equitable participation or maSS enthusia Sm. for Sports; perhaps due to the prevalent conditions in society. The end result has been a Stagnation or deterioration in standards Of many sports and a low degree of achieve ment particularly at international levels.
So too with the organisations that manage the Wallious Spolts. "L'ney are generally controlled by officials who coud weild SuIIlcient inī1uence and afford the time for the running of their affalrS. The pattern in une main associations, clubs etc. is that they are run by voluntary officials and often cented in or around Colombo. Inevita ply facilities have tended to be centralised and activity too has centred round the metropolis, while Other areas Suffer COmparative neglect. It is no surprise, therefore, that interest in most Organised Sports has not reached the masses of the COuntry, particularly those in the rural areas where the majority of the people live. It is obvious that some sports are now receiving and spending large sums of money for materials, equipment, playing facilities, etc. The benefit of these are not directly reaching almost the entire 80 per sent of the population living in the rural areas. If an attempt is made to involve large sections from among them in active participation in sportS, it is necessary that other forms of sports are introduced that will not
A.

Page 8
From Some Sinhala Combative, Field and Aquatic Sports and Games' - P. E. P. Deraniyagala; published by National Museums Of Ceylon - 1959. (It should be noted that “Sinhala Sport belonged to common local Sports Of Southern Asia, specially South India. Thus, Tamil Sports, even of India - WOuld not be very different from this list).
1. Combative Sports
(a) Men versus Men:
Ang am Pora (Human Combat) with or without weapons; - taught at centres of military
training - Saramba Sala WaS. Mushti Yuddhe, 1Malla Pora or Malla UCI POîra - w 6 w Fist fights, all in fighting, hitting & grappling. Ura limdhe Angam, Pora (Well Wrestling) Asti Pora – Fore-arm fighting) Combat Uith DedipOnS Polu Haramba – Quarter Staff
(6' Staff). IMIuguru, POra - Mace (wOOd, irons, bronze, silver, gold) combat.
Ura lindhe Angam Kelima —
(Gladiatorial contests between individuals from military ClainS).
(b) Men Vs. Animals
Gladiators assisted by dogs
again St leOpard S Unarmed wrestler vs. sloth bear.
(c) Mammals in Combat
Gaja Kelia — (Elephant fights) Gom. Pora (Bull-fightS)
Migon Pora - (Buffalo fights)
Batalu Pora (Ram fights). Elul Pord - (Goat fightS). Mongoose & Cobra fights
(d) Birds in Combat
Kukul Keliya - cock-fighting).
Haban Kukula or Spur Fowl. Koʻm.dagya, Or Red-vented Bulbul.
(Cocking Or
Some Ancient Sports a
Games of Sri Lanka
2. Field Sports (w
(e) Hunting (Sl capturing an elephants fo bOWS and ar. and later gu
(f) Falconry (g) Horse racing (h) Bull racing
3. Field Games (F
(i) Pora Pol G (i) An-Keliya
4. Field Games
(k) Buhl (l) Thattu (m) Gudu (n) Rata allana
720.2DO (O) Swings
Katuru Onc) Bambara Or
5. Aquatic Sports
(p) Jala Kreeda
Canoe racing face, under high, deep,
Jala pora o Water fightS.
6. Sports Traini
Sports training co ba. Salabas for m
Potr & P and a CrObat.
Mallot. Or uprestling &
Lee Haramb POll Hardim Mulguru port
Kadal-POlli and Shield
Ahlin haram horse back
Khatg silpe Hasti silpe Dhanu silpe
(α)
require playing areas and involve large amounts of expenditure etc. In this regard the feasibility of revival of our traditional sports could be explored for the benefit of our rural population. It does not seem
*
O
to be just that of our people, wil high percentage tional product, a the few enjoy th monies raised by

nd
with animals)
aughtering game/ imals - buffaloes / r tanning) with
OWS, spears, knives
S.
Religious)
lhelma — COCOn ut
Da Or Lintl Panti
hillawa
chillawa,
or Diya kceli
, SWimming at surWater, diving - floating.
or Diya gаһит —
g inducted in Saramartial clans etc.
inum - jumping ics ZMallazuba pOʻra —
bOαιηρ Ta — Single stick ba - quarter staff - Inace COmbat 2d ramba - SWOrd 2Ombat
ba - fighting from
- fencing
managing the - archery.
------
the large sections no produce a very
Of the gross natre left Out Whilst e benefits from the their sweat.
MASS PARTICIPATION IN SURTS - Schools
The British Government established a Department of Public Instruction in Sri Lanka in 1870. "Drill' was introduced to the Schools in Order to teacn disclpline and improve the physique and precision in movement. Drill and physical training had become a part Of the School Curriculum by 1891 and by 1900 inexpensive games were introduced. Cricket was played with local materials. By 1902 physical training was compulsory in all Schools. The Schools BOXing ASSOciation was the first of the schools associations to be formed,
i.e. in 1914. However, it was not until
1938 that the Education Department appointed its Boxing Instructors. Physical training two hours a week was made compulsory for all school children by a law passed in 1920.
At the beginning of this century Cadeting was introduced to government Schools. A volunteer Cadet Corps and a Boy's Brigade were formed. In 1918 the Ceylon Cadet Battalion was formed.. The formation. Of these Organisations at school level was intended to give premilitary training with a view to recruitment of Suitable boys for the armed forces and the Police. Scouting was also introduced about 70 years ago and the Boys Scouts ASSOciation formed later. This was followed by the Girl Guides Association. These ASSOciations encouraged camping, local tourism and acquisition of various skills which were recognised by the award of badges. In 1972 a. Police Cadet Corps was formed at the School level. The total number of children participating in the activities of these organisations is well below 75,000. At the camps held by these Organisations sports activities also find a place. In fact, the Public Schools Athletics Association n nW called the Sri Lanka. Schools Athletic Association was a direct development Of the athletic competitions held at the Ceylon Cadet Battalion Camos.
Physical training in the Schools received a change of designation to physical education in 1947. Instructors in physical training were 3 Οpointed to Teachers' Training Colleges to give instructions to teacher trainees. Schools sports competitions also came into being On a circuit, district and all-island basis. In 1952 the Ceylon Schools Netball and Volleyball championships were started. In 1957 the Central and Senior Schools Track and Field Athletic cominetitions and in 1958 the first All-Island Physical Training and Wrestling competitions were held. Today at 8 such all-island competitions. in various sports and games organised by the Ministry of Education, Schools teams compete at cira 11it, district and national laval. While these competitions are held under the direction of the Ministry Of
ECONOMIC REVIEw, APRIL 1982

Page 9
Education, other such competitions are also held by voluntary Schools Sports Associations such as the Sri Lanka Schools Athletic Association. In the latter competitions children from a few schools affiliated to this Association take part. However, they receive greater publicity and recognition than the competitions conducted by the Education Ministry. Factors such as this tend to create a class distinction among the groups taking part in the different competitions.
The Ministry of Education had a scheme to give specially talented children small scholarships to enable them to attend schools with training facilities. However, the numbers receiving such assistance, if any, are an insignificant number of the nearly 3 million children attending about 9,500 schools in the country. There are a few schools sports aSSO
ciations such as for Boxing, Basket
ball, Cricket, Athletics, Hockey, Football, Badminton and Table Tennis. They are affiliated to the national controlling bodies. Unfortunately, less than 5 per cent of the schools in the country are members of these
associations. Here again it may be
observed that excepting for a small minority, sports have not reached the masses of the children attending Schools. The education reforms introduced in 1972 made physical edulcation compulsory in Grades 6, 7, 8 and 9 and a compulsory examination subject was introduced at the NCGE on physical education and sports with a theory paper and a practical test. This resulted in a recognition of the need of physical education and sports for every school going child. However, in 1978 the educational system was changed and this programme is now defunct.
SOrne efforts have been made to coordinate the work of the Ministry of Education and the Ministry Ωί Sports in regard to the development of sports. These efforts have by and large proved ineffective. There is now no co-ordinated development planning for sports and recreation at the school level. Sports as a co-curricular activity is indulged in still mainly by a small minority of affluent children as in the past. Unless there is a programme to encourage and develop sports at the school level, where the talent has to be found and guided on a long term basis, the hopes of Sri Lanka's achieving success at international levels is remote. Our comparative success at international Cricket proves this point. All our cricketers now representing the country have been the products of a very small number of schools where Cricket is played and for which game considerable sums of money have been set apart by the authorities. The funds for these have enme mostly from the facilities fees etc. paid by all the children at the school. Though a vast majority of these school children pay facilities
ECONOMIC REVIEW, APRIL 1982
lack Of
fees for cocurricular monies are utilized ment of talents of a these schools. Universities Participation in SpO) sities and other tertiary education is a voluntary basis. T and management of in these institutions to the Other. The Ur Organisations are giv SentatiOn On SOme N tions for SpOrtS. TI have a co-ordinating Organises inter-Uni tions in some Sport facilities available at vary considerably. Campus, built as a facilities for physica sports activities; V campuSes do n0t hav lities. Even at
participation of the students in sports : much limited, if at the University sport standing in the Υ area; but today, that some outsta. sportsmen have ent( sites, very few seen in the national spo investigation, to find
interest (Jniversity students Other institutions O tion in participation vities during their very revealing. (See In some countries, Sociali St COuntries I tion in Sports is CO Students at the Uni NOme Of the Uni Lanka, have physic: partments where col ducted in physical SpOrtS. It appears neglected in the F cation, with the
REASONS FOR, IL
Reasons for mot
taking part
Hindrance to studies
Not getting satisfactory food
Generally disinclined, laziness etc.
Total
The above table Peradeniya, Campus ) Participation in Spor our May 1982 issue.

activities these for the developSelected feW in
it in the Univer
institutions of
S eSSentially On The organisation
Sports activities
varies from One liversities Sports ven direct represational ASSOCia:S
he Universities
body which iversity competiS. The types of the Universities The Peradeniya model, had ideal l education and while the other 7e adequate facilPeradeniya, the 2 naSS Of the activities is very all. In the past, Smen were Outnati Onal sports despite the fact nding School-bOy 2red the Univern to find places rt Scene. Deeper reasons for this On the part of and those in f higher educah in sports acticareers, can be table bellOW).
particularily the egular participaimpulsory for all Eversity level. versities in Sri all education delISeS 2.re,
education and to be even aculties of Eduresult that O
scientific Work has been undertaken in regard to physical education and
development Of Sports in the
COuntry.
YOUTH COUNCIL
More recently, the GOVernment
created a Ministry of Youth Affairs which carries out implementation Of programmes among groups of youth through the National Youth Services Council. It is interesting to note that the Ministry has given a certain amount of importance to organizing sports activities, and the National Youth Services Council has been Organizing sports competitions among youth at the grass root level. However, here again it would appear that their work is not co-ordinated with the Ministry of Sports. The numbers participating in the . Sports activities Organised by the National YOuth Service COuhci1 aire not available. LOCAL GOVERNMENT
Although the Local Government Ministry has not been directly involved in development of sports activities in the country, some urban authorities like the Municipalities and Urban Councils, coming under this Ministry, have organized spOrts activities and provided playground facilities and instructors in their
areas for the youth and children for
Organized and un-organized sports activities and recreation. No statistics are available of the numbers participating; though some of these authorities have also been recruiting outstanding sportsmen to their ranks of instructors. SPORTS IN THE ARMED FORCES ETC.
Reference has already been made as to how sports had been utilised by the British colonialists to recruit Suitable candidates to the armed forces of this country. Indeed from ancient times the training for sports had been part and parcel of the recruitment and training programmes for military purposes. Conversely,
ACK OF PARTICIPATION IN SPORTS BY UNIVERSITY
STUDENTS
Students who took part at school level
%
49
42
9
100
is from a study of University Students in by H. L. Hemachandra.
Students who did not take part Total
at school
level
% %
41 47
34 40
25 13
100 100
residence at
His paper on “University Student
ts' is held over for lack of space and will be published in

Page 10
the armed forces, including the Police, have made contributions toWards the development of sports in the country particularly at the top level, that is at international competitive Sports. In many competiti Ons Such as Football, Rugby. Athletics, Hockey. Wolleyball, etc. the armed forces have provided individual and
team champions. The armed forces -
have shown partiality for fighting sports or the martial arts, such as Boxing, Judo, Wrestling, Karate, which are specially used du Xing
their training period for development of physical fitness. Such activities have brought to light many talented youths, who later blossomed into international stars. Starting from - Duncan White in 1948 (Olympic Games Silver Medallist and Commonwealth Games Gold Medallist) S. L. B. ROSa and W. Wimalada Sa (Double Gold Medallists at the Asian GameS)
Unfortunately such successes have been rare and far apart.
There is a Defence Services Sports Control Board that CO-Ordinates the inter-services Sports activities and each of the Forces has its own Sports control board With different OrganiSations for the Various Sports activities. The Police Force is served by the Police Sports Club. These Organisations are generally represented at the National Sports Associations. The service personnel are expected to maintain a high degree of physical fitneSS and therefOre Sports activities form an integral part in their day to day activities. However, the armed forces are not in a position to assist in the development of sports among the masses due to the character of their services. Moreover, this is not expected to be their specific sphere of interest.
The private sector
The mercantile sector organised its sports for those in their services through the Mercantile Servica Sports ASSOciation which also Orgamises COmpetitiOns anOng the mercantile establishments. Such activities are Once again essentially centred in and around Colombo, so that the masses of employees in the private Sector outside Colombo are generally left out of active participation in sports and such competition. There is a new development in that some mercantile organisations have taken to the employment of OutStanding SpOrtSmen, particularly Cricketers and Rugger players, in their establishments and also sponSoring sports tournaments. Even the recently concluded Cricket Test Match between Sri Lanka, and England was sponsored by a mercantile establishment. While this augurs well for the development of the talents of a very selected few and One or two glamour spectator Sports there is hardly any encourage
8
ASIAN GAMES
VEDALSTS
Two talented y
international st and W. Winal
ment even for the cipation in Sports ployees. The spOn appeared essential with their advert and their own CO and motives. How cialisation of SpOrt development of sps the active parti people, has yet to
In this Sector
Scientific aims an development of Sp gl’ammeS aire Orgé and Often. On th viduals but ther signs of long t The private sectC pects of its empl of productivity W dependent OI)
strength of its v necessary that th fore appreciate t in the developm and well being ( Which WOuld co their Willingnes mOre inten Sive V their productivity the inter-personal Ween employer a Supervisor and wi
 

DOUBLE GOLD
outh who blossomed into urs. S. L. B. Rosa (right) dasa (left).
mass active parti
Oi their OWn emSOrship programme iy to be tied up Sing programme:S immercial interests far the Commeris will result in the orts. particularly in cipation of the
be seen.
too there are n0 d objectives in the port S... The prOanised haphazardly se whims of indiare O visible term development. ir generally θXoyees a high level hich is essentially the health and yOrk forCe. It is e employers therehe role of sports 2nt of the health of its employees, ontribute towards is to engage in work and increase and also improve relationships betund employee and Orker.
SOCIAL ORGANISATION IN SPORTS
The Social Organisation in sports at tine 11ational level is composed Of tine cOn trOlling ASSOciati Om S. TheSe ASSOCiations are made up Of repreSentatives Of affiliated SpOrtS aSSOciations, clubs etc. ne Ofilicebearers are all Voluntary Workers and according to the regulations issued by the Ministry of Sports, in terms of the Sports Law, they can function in their office continuously for a period of two years. Looking back at the leadership of these organisations it is observed that tne names of particular people or their close associates keep appearing time and again in one office or another. It is not unknown. that Some of these officials have been holding office in more than one such sports association thus restricting participation at the Organisation levels too. It is also a fact that most of these leaders in the various sports movements all are from or around Colombo. Such factors have hampered the development of sports among the masses. The sports movements have not reached Our villages and towns outside Colombo, to enable the organisation of sports activities on a truly mass basis. The motivation of a large number of those who
EconoMIC REVIEw, APRIL 1982

Page 11
hold office in these various associa
tions can thus be suspected to be Selfish and not in the real interests of the development of sports in the country as a whole.
It is said that many in Sri Lanka. have the potential to reach international levels in sports. To do this there should be a high degree of participation. 100 per cent participation has not been achieved by any country in the world, though socialist countries like the GDR and recently Singapore has been able to reach a high level. It would be clear, that this is the main reason why a small country like the GDR has been SO highly successful in the achievement of the second position at the Olympic Games and also shown massive successes in other Regional and World Championships, as is illustrated by their performances in winning medals at these various competitions (See table below). The GDR has a population of only 17 million people and as a country has been taking part in international competitions since 1956. The levels they have I1OW, reached in some international sports have not been surpassed by even the USA or the USSR. The reasons are to be found in the application of modern science to sports, mass participation of the people, the almost 100 per cent participation of the school children in the schools, compulsory and co-curricular sports programmes, and the selection and development of the outstanding tallent to reach international levels, the scientific training programmes conducted over period of eight to twelve years. This emphasis ΟΥ physical perfection has become part of the system.
LESURE-TIME ANC RECREATION SPOR
One of the major development of sport the other developec the availability of f the working populat abOut With the indul The working mass sports for recreatior free time. With the Science and technol mOre people have f available to them in leisure time acti work they have to their working days necessity for recreat week-end. The mac become part and day life requires a physical and mental it is necessary to balance between the efficient performanc day activities.
It haS not been í that regular partici matic physical traini proves health and { also contributes tO I relaxation and incr pectancy. Such activ indulged in individu \ively though regula for beneficial effect;
Leisure time 8. Ω sports are not orga) baSiS in Sri Lanka. done with very li using the many CO and other activities variety of disciplines have many possibilit for leisure time and ) pOSes.
MEDALS WON BY G.D.R. FROM 1948-1978
World Championships Men
Women
Mixed Total: 1,182 medals. European Championships Men
Womes
Mixed Total: 2,706 medals. Olypic Ganies Summer
1956
1960
1964
1968
1972
1976
1980
Vinter"
1956
1960
1964
1968
1972
1976
1980 Total: 295 Medals.
EconoMIC REVIEW, APRIL 1982
Gold
3. 3 9 20
9
Gold
233
171 5
ÖGold 272 170
Siler Bronze
i

BTS
reasons for the 2S in Europe and il COuntries was 'ree time amOng ion that came Strial revolution. es turned tO
during their development of Ogy more and
ound more time or participation vities. The hard perform during has created the iOn Over the hinery that has barcel of everyhigher degree of efficiency. And
maintain 8, se two for the e of one's day to
fully appreciated pation fin Systeng exercises imefficiency, and 'ecuperation and eases life 一6区 rities can be tally and collecarity is essential S.
d recreational nised on a wide This could be ttle expenditure mpetitive sports
with their which generally ies for their uSe recreational pur
Silver Bronze
248 271 25 2 9 8
Silver Bronze
354 425 60 23 3 7
Total Positions
7 15 5 O 19 9 25 3 66 3 90 2 26 2
16 3 11 4 8 5 O 4. 2 19 2 23 2
Though the Ministry of Sports through its sports programmes Organised on an inter-gramasevaka, inter-D.R.O. Division and inter-district basis attempts to reach a wide public, little success has been achiev器 in obtaining extensive participa
ΟΙΩ.
Neither the Ministry of Sports nor the Ministry of State, responsible for tourism, has yet drawn up plans for making use of the country’s natural assets and facilities for the development of Sports and tourism among the masses. Movements like "Run For Your Life' organised in the USA, Canada, the Scandinavian and other European countries, Australia, New Zealand and Japan could easily be organised locally with hardly any expenditure and literally thousands could take part simultaneously in these activities. Unfortunately, according to past experience when sports and recreation are thought of, only a few come to be considered. The large mass are often expected to remain inactive Spectators.
Leisure time and recreational sports
activities need no longer be neglected. The recently concluded Cricket matches between Sri Lanka, and England proved to be of interest to wide Sections of the population even in the remotest corners of the island. These matches were watched by many, on Television, who even neglected normal Work and house hold functions. Interest such 2S this could be converted into active participation by the masses in Sports and allied activities although in its present form it had tended to make a mass of passive observerS.
Habit-forming activities such as sports and physical fitness are best Organised for children, so that they will appreciate its value and make it a life-long habit. The working population too could be encouraged to take holidays on sites provided at lOW COSt While government agencies, trade uniOnS, employers organisations etc. could facilitate participation of the working masses in leisure time and recreational activities. COordination of the various Organisations would become necessary so that there would be such development On a national basis.
SPECTATOR PARTICIPATION
Internationally football has the largest spectator participation in the entire world. However, it has been observed, that there is a class character even in Sri Lanka, in regard to various games and sports. Cricket has been slowly and steadily spreading out in the Schools system since it was introduced into the COuntry about a century ago. However. Of the 9,500 schools in the country, less than a 100 participate in this sport.
9

Page 12
Our success internationally at cricket has helped in developing a large spectator following all over the country. Mass-media, particularly the recently introduced media of television, has brought this sport home even to villagers in the rural areas.
On objective grounds a boring game which even the British ae losing interest in, judging from at
tendance at matches. Cricket has Spread On a class basis and the more affluent schools' efforts (including their "Big Match' hooli
ganism) has spread to major regional schools, a trickle down effect irom the national elite to the local elite. The rest of the population remains a supine mass watching their antics; now on TW at the local tea, mudalalis. Despite the interest iI cricket generated recently, it was observed, that a large number of seats available to spectators at the cricket test between Sri Lanka and Ingland Were un Occupied throughOut the four days of play. The rates charged for the seating accommodation and even the open stands did not permit the majority of the people, who may have been interested in personally watching this event, from participating as spectators. Cricket appears to have gained a greater attraction among most Sections of the population unlike football rugger etc. which have an appeal to particular strata of the Comnunity. Though football has the greatest appeal among all Sections in other countries, particularly Europe, in Sri Lanka, it has become the poor man's game as against rugger which has a following more Confined to the elitist sections of Sri Lankan Society.
The development Of spectator participation (particularly youth) it is hoped, will in due course generate their active participation in SportS. Therefore, it is essential that School children and youth attending institutions of higher education etc. should receive special consideration for admission as spectators. SpectatOr participation is a motivating factor for active participation.
It is clear that material technical conditions. Such as playing fields, playing equipment and gear, sports clothing, finances, etc. will not be available in most parts of the country as in Colombo Or the other major cities. When cricket was introduced into Sri Lanka's schools, in the absence of imported gear local materials and equipment were used for the playing of the game. Even today one sees children in playing yards or the Streets and in the villages playing cricket with local materials and Sometimes even fruits (kaduru) used as a ball and bat carved from a piece of wood or a coconut branch. What is important is participation, not the use of materials and equipment that have priced themselves out of the reach of the common man.
10
PARTIC
In the an cities of Gre participation modern Olyi 1896, and w; it is known
men of tWO Indian Wres dern intern the Olymp: inter - Country tion. The gr Where there inhany thousa, Excepting foi Saave been ne
er of states pating at the took part in can White W. then existing represented åt, single cor Montreal, Ca ThiS vya S m country had Games; a sa internation physically ar. 1i 110Wernet. material - t talent availa tOir. TThe co have been al for the Select ch very high on a system: 'top' countrile picuous by t
URTHER, DEW THE MANAGEM SRI LANKA
Sport include as participation competition, exe children and yo physical trainin recreational spo tant factOrS th development of work of Social (anagement Or process, cadre, and technical Sports medicine, vironent. In Si context. Of deve received very lov
According to ri Lanka, the establish in S. cratic socialist tives of whic realization by adequate stand themselves 3. including ade thing and hou improvement of and the full emic

IPATION IN INTERNATIONAL SPORTS
Cient Olympic Games contests were held between the big ‘ece. International Sports, in its present sense, with maSS of Sportsmen from many countries is of recent origin. The mpic Games were starte di less than 100 years ago, i.e. in as the beginning of modern international sporting contests as oday. However, there are reports of contests between sportscountries, as in the case of contests between Sri Lankan and tlers, etc., centuries before the commencement of moational contests. The international sports contests at ic Games, World Championships, Regional Games and 7 Games provide opportunities for mass spectator participaeatest of these international competitions is the Olympic Games is competition in a large number of sports and games and inds of athletes from over a hundred countries participate. a break during the World Wars No. 1 and 2 these contests ld every four years. With the grant of freedom to a large numafter the Second World War the number of countries partici. Olympic Games have kept increasing steadily. Sri Lanka the Olympic Games for the first time in 1948 when Dunton the Silver Medal in the 400 metres hurdles and broke the Olympic record. Since then, though Sri Lanka has been in all the Olympic Games we have achieved no success. Not mpetitor was even sent to the 1976 Olympic Games held in nada, though a Chef-de-Mission was there without a team ainly due to the fact that not a single sportsman in the reached the required levels for competition at the Olympic d reflection on the standards of Sport in this country. all competition requires competitors to be trained both ld mentally to the highest levels of efficiency and perfection Unfortunately Sri Lanka has not been able to provide the echnical conditions and the know-how for the training of the ble in the country to reach international levels of competiuntries that have reached 'top' levels in the various sports ole to achieve this through the application of modern science ion and training of the talented children and youth to reaa levels or performance at given ages. Long-term training atic and scientific basis is the secret of the success of the is in the field of sports. In Sri Lanka, such systems are consheir atoSence.
ELOPMENT OF ENT OF SPORTS IN
s many areas such at highest levels of rcising and training, uths' sports, military g, leisure time and rts, etc. The imporat determine the sports in the framedevelopment are the leadership of the
science, material conditions, finances, and the natural eli Lanka, in the total lopment, sport has W priority.
the constitution of state is pledged to ri Lanka, a demoSociety, the objech includes - “the all citizens of an
ard of living for d their families, :duate, food, ClO
sing the continuous living conditions )yment of leisure and
SOcial and cultural opportunities' and also raising the moral and cultural Standards of the People, and ensuring the full development of human personality'.
The application Of these principles of politics of the state, would require a consistent development of Sports in the country in the context of multi-lateral development. In a social democratic society the leadership has to take steps in the development of total personality of the individual citizens. In this context the development of sports which would permit the majority of the people to participate in active Sports individually and collectively has to be planned for. Such a programme has to be planned on a long term basis and also requires that particular attention is paid to the leadership and management of sport in all the sectors. The management of sport in the state and the private Sectors has already been discussed, where it was established that there is no clear state policy of aims and i objectives for the development of sports on a national basis. It is therefore necessary that early attention be paid to the management of sport and
ECONOMIC REVIEW, APRIL 1932

Page 13
the leadership of the Organisation both in the state and the private Sectors with a view to co-Ordinating the total proceSS.
The Ministry of Sports is essentially the most responsible authority in the COuntry that WQuld need to take the leadership, in this field, particularly in the overall planning and co-ordinating and financing the sports movement Of the country.
It has been already observed that a few clubs and aSSOciations Centred around Colombo influence and control the entire Sports movement in the country with the result that the mass of the people in the provinces have not had a Say in its development. It is therefore necessary that there should be a clearer definition of the functions Of these Sorts Organisations and new Organisations brought into being at the levels of the villages and towns building up to divisional, district and national level Organisations. The elected representatives to Sports Clubs/Societies of the people at the village and town level and also inStitutions such as schools, fact Ories etc. could elect their representatives to the divisional sports organisations, the divisions electing their representatives to the district organisation and from the district to the national level. Far more people would then have a say in the management of sports in the village, town, division. district, and ultimately in the whole country. Such a structure will allow the people in those particular areas to decide on the sports and other allied activities to be developed in their areas according to their own wishes,
A project which would help in a scientific analysis of the state of development of sport and allied activities in Sri Lanka and the needs of the masses for recreation and sports and also give information for the management of sports appears necessary at this stage. Such research projects have generally been undertaken so far mainly in developed countries. Sri Lanka is a small country with a high rate of literacy and provides ideal coinditions for such a scientific undertaking which could give leadership in this direction to Other developing countries. There is no doubt that it is within the scope of the country to uplift the sports performances of the mass of the people and also reach international levels if the issues are viewed Scientifically and the co-operation and assistance of all sections of the ComYmunity could be harmeSSed.
Some of the countries that have been able to afford it, have adopted a more enlightened approach and appreciated the necessity for much activities and developed them, providing facilities and the necessary finances and motivated the entire population to actively participate in sport and recreation for the socio
EconoMIC REVIEW, APRIL 1982
economic benefit of Other COuntries are to take action in Such has been found that tion has improved the working populati creased their produ iight of these finding tries such as Japan Kong, Singapore and Far East are joining Such as the Socialist Australia, and New ganising mass sport eựen at the Work Si provided for sport : di Ulring Working hOurs i Sri Lanka mer lishments have been standing SpOrt:Smen title off for training tions. There are bel cases though limited suggested that state extended on Similar li ing Outstanding tale less priviledged be necesSary OppOrtunit portant in this cont to draw up a plan
Mient of Sports and r vities for the adult COld be Organised – in individual Sports activities. with the community and fam - in organised exercise, competitions in Spo factories or Workin outside - in Organised and reg competition in sport i{g areas The natural conditio: anka, permit such for hopinent. It is neceSSar -- the state take resp leadership of leisure tional Sports progra1 - the role of the Sp and sports for tr government instituti should be fixed
- games and compe groups and teams organised
--Jew SportS moveme for your life” “rum etc. be organised fo tion - recreational centres
living areas - the working popul: families be assisted outdoor recreation camping, undertake |- the participation of individual sports act cal training groups through the radio, vision. “A'). LEVEL, SPORT In the area of S. level or highest level, there is nO doubt ré portance at national
national levels. Top
a special meaning f

the country. now beginning programmes. It Such participathe health Of On and also inictivity. In the S many COunChina, HOng Malaysia in the other countries countries. USA, Zealand in or S programmes tes. Time-Off iS activities θΥθΥι
cantile estabrecruiting outand allow them
and competinefitS in such It has been
patronage be
ines for develop
nt and that the provided the ies. MOre imext is the need for the develooecreational actipopulation. This
and recreational Working groups, ily groups
S and training and rts grOupS in 용 places and
gular training and s Societies in liv
ns existing in Sri ms for easy devey that - onsibility for the time and recreaΥΥΥ1θS Orts OrganisationS ade unions, local ons, factories etc.
:titions for sportS ; be regularly
ints such as "run for your health' br mass participa
be provided in all
ation and their to participate in all activity, go local tourism etc. : the people in tivities and physibe organised press and tele
['Sʼʼ ports at the “top s of competition, egarding its imand interlevel sport has or all countries.
It is closely connected with the other areas of physical culture and Sports, physical education in the Schools and institutions of higher learning, aSS Sport and competitive Sport. In top level Sports children, youth and adults strive to achieve OutStanding performance. The levels of high performance at international competitions have been rising in the recent years as a comparison of the performances at the Olympic GameS and World Championships in Athletics and other Sports over the years will show. In comparison to these standards, performances of top level sportsmen in Sri Lanka, and Asian Sportsmen in general (with a few exceptions), are at the bottom end of the scale. For instance, at the Worldcup Athletic meetings on the last two occasions. Asia as a region came last out of eight regions/countries participating at the championships. Sri Lankan athletes found no place in any team.
Top level Sport requires reguliar training and full engagement of all physical and psychological abilities, strong qualities of character and Will pOwer, InOfal C0ÎìVictions and disciplined habits. In addition the COIrect environment and facilities need to be provided. Success of top-level Sportsmen provides encouragement to Others and Otivates then towards active participation and enthusiasm in the sport. The participation in “top level and competitive sports also motivates children and yOuth to train more earnestly their groups and individually or collectively and gives them the Opportunity to test themselves at competition. It also helps to develop the physical efficiency of men to high levels, to further cordial international relations and brings to light the efficiency of the total population in reiation to the country's culture. If Sri Lanka is to aim at Success at international competitions and top level sports, it is necessary to apply Scientific technical knowledge and to select and develop systematically the talent of the younger generation. It is also necessary On a long term basis to develop sports science, and produce more specialised technical staff like sports medicine specialists. sports scientists, coaches, physical educationists etc. who are in extreme short Supply now.
It has been the practice in the recent years to accept offers of assistance from some countries by way of coaches and sports teams with a view to developing competitive sports. However, these periodic visits lasting a few days or weeks have failed to produce the results expected. There have also been coaches coming on extremely long term assignments tO Sri Lanka, Ostensibly with a view to assist in the development of particular sports. They have been welcomed with Open arms. However, it is not clear whether
11

Page 14
they have been successful in assist. ing the development of sports in Sri Lanka. On case in point is the Football project where a coach has been in this country for 3 to 4 years and vast amounts of money have been spent. No significant results have been forthcoming from the plans and programmes of training introduced. In fact some of the teams that have been trained have ηOί brought the country renown at international competitions. On the other hand there are many Sri Lankan footballers who have been trained in coaching who have not had a significant say in local sports.
The Sports Law was originally intended to be the official instrument for encouraging and developing sports in the country, but certain regulations framed under this Law have been criticised as taking away important powers of the voluntary National Associations and placing them in the hands of the political and bureaucratic authorities. Eg. the final sanction of office bearers of National Associations and selection of a national team, rest with the Minister who is advised by his officials. On several occasions sports bodies have maintained that the whole set of regulations needs to be re-examined and the obnoxious regulations eliminated; while thought should be given to a new leadership structure, if “top level' and competitive sports are to develop in the country. It is essential that priorities be established here and Sports and games selected where Sri Lanka can reach the top and obtain good results quickly. PriOrities have al SO to be established in the light of the obtaining economic conditions.
THE DEVELOPMENT OF CADRE
The study of the cadre situation, in the state and private sectors, engaged in the development of sports shows that a majority are not adequately qualified for the performances of the duties assigned to them. The Ministry of Sports has a small cadre consisting of a Secretary, Additional Secretary, Director, Assistant Secretaries. Assistant Directors, many of whom are from the administrative service and have no special qualifications to function in the specialised area of Sports. At the lower levels there are coaches, Some of WhOn have undergone short term training abroad and Sports Officers who are in charge of sports in AGA’s diviSions. These sports officers are also given brief training on appointment and follow coaching CampS later. Practically the whole island is (Overed through these divisional organisations. However, excepting for the Organisation of inter-Grannasevaka, Inter-division and Inter-district sports competitions not much has been attempted to raise the standards of performance at the grass-root level. The coaches are
12
assigned to dis t0 COW er Sever scheme alone C provide much el and even adeq Systematic coa quent upliftmen
The Ministry about 9,500 sch education and have to be Orga tOrs in Physi "Tea Cher S. "Ter qualified teache tion in the ent far Short Of Ire are to be achie The local gov der the Minist) ment employ a playground inst qualification is participated in sports, some at expected to Org youth attending Some of these ed outstanding their potential quately tapped. specialised activ fact that One sports does not coach.
Particular att to be paid to th quate cadre of etc. if SpOrts ar land-wide whicl raise standards levels and to at cesses internat necessary that cadre Should b. the leadership SportS is distribu phery and sports ing tO the level. MATERAL-TEC CONDITIONS
The building o the big cities su linternational lle' are undertaken The Ministry of Government fur ment Of play grC of the Country. of majority of being met.
Type plans sh for play ground villages, town
areas Schools e facilities are p) changing rooms plans should b the Ministry of pective areas S. sible may obtail Sulch as the di COuncils for the play grounds on The play grou the equipment pective Sports :

ricts and Some have
al districts. Such a annot be expected to hthusiasm for sports late regular and ching and a conset of the standards. Of Education has Lools where physical Sports programmes nised by the Instruc2al Education ΟΥ are less than 500 ('S in physical educa|re country, which is quirements if results ved. 2rnment bodies unty of Local Governctive SportSmen aS ructors. Their main that they have their respective top-level. They are anise and coach the their playgrounds. entres have producsportsmen, though has not been adeCoaching is a highly ity and the nece has participated in qualify one to be a
ention has therefore e training of an ademanagers, coaches, e to be developed isin ultimately help to
tO international chieving SpOrts Sucionally. It is also
the management be trained so that in eSOect Of lted to the periis Organised accordneeds at grass-root
HINCA,
f sports complexes in lch as grounds for vel Cricket matcheS at very high COSt. Sports also allocates lds for the developunds in various parts
HOWever the needs the people are not
Lould be drawn up S and facilities for and urban council tC. Where minimum 'ovided in regard to and toilets. These 2 made available by Sports to those res) that those responfunds from Sources istrict development establishment of a unifOrm baSis. nds should also have 2SSential for the res[Ind gameS, 直t
necessary, that action is taken to produce locally as much of the equipment as pOsSible as the cost of imported materials is beyond the reach of many. At the same time it should FENANCING
It is often Said that the development of sports in the country is hampered by the lack of funds. In the light of low priority given by governments for development of sports, funds allocated to the Ministry of Sports are very limited. The President Of the Board of ContrOl for Cricket in Sri Lanka found that there was urgent need for the establishment of Suitable venues for linternational Cricket. Funds had to be raised and he established a fund for this purpose. With a great deal of initiative he has been able to collect the necessary funds. This in itself vas an achievement. Hils strong efforts helped in creating a good 1mage and winning the confidence of philanthrophists and the business sector. There are many means of collecting monies for the development of sports. One is to get it from the business SectOr, as We have seen; or through the organisation of a Sports Lottery etc. Funds are vital for Sports development and it is important that every effort should be made to obtain adequate finances for specific projects.
Unfortunately when it comes to government funding the priority for sports has always been low. Since the establishment of a separate Ministry for Sports in Sri Lanka, in the 1960's, the annual expenditure voted by government has not exceeded R.S. 3 milllion. In contrast we have India. Or Malaysia, where the Government Votes for Sports have kept increasing over the years. In Malaysia for instance, a comprehensive sports programme has been planned under the Fourth Malaysia Plan for 1981-85, and an amount of $70.35 million of public development expenditure has been allocated for SpOrts. This is an improvement over the allocations of previous years of $7.29 million for 1971-1975 and $21.39 million for 1976-1980. In a country like Singapore too, which can afford both the funds and the leisure, more than half the population is engaged in some form of sport and officially "physical fitness' has been declared a priority objective in the country. Sports facilities here are therefore being constantly improved and expanded.
When no serious official initiative is taken to bring the benefit of participation in Sports to the mass of the
population it is only natural that Only those who have access to the facilities or can afford them will
participate in sports. It was in such a Situation that Pierre de Courbetin, the founder of the Modern Olympic Games, bluntly posed the question: “Sports in the ancient world excluded the slaves. Its modern sport only to be the priviledge of the rich?'
ECONOMIC REVIEW, APRIL 1982

Page 15
SCIENCE
AND SOCIETY
Recombitant DNA-Gene Splici
A New High Flying
Research during the last decade has paved the way for a new technology that would in very many ways have, in a literal biological sense, an immediate impact On human life. It is also scheduled to be a high-flier technology in the 1980's. This is the new technology Surrounding manipulation Of genes. Its growth during the rest of the century would have as much economic importance as micro processors since the mid 1970's and electronics in general Since the 1960's.
For millenia humans have been using micro Organisms to make deឆ្លុះble products for example, alco
O. from nature particular micro Organisms that would do a given job - for example produce alcohol - the new technology would by introducing new genes into the micro organisms tailor-make the micro Organisms to give any characteristic. These new genes Operating through their micro Organisms would then produce the compounds that are desirable.
In 1973 Stanley Cohen and Herbert Boyer of the United States discovered a new and powerful technique for manipulating the genetic basis of life. This technology has come to be known as recombinant DNA or gene Splicing. Using these techniques it is now possible in theory to cut precise Sections of DNA from a given Organism and insert it into another in a similar manner that recording tapes are Spliced. It therefore, in theory becomes a technique for changing the properties of living matter in almost any given direction. The genes which are grafted to change
micro organisms could come frOm plants, animals Or humans. Already researchers have produced several
new compounds using these techniques for research purposes while commercial companies have produced such diverse products as human in
terferon, industrial SolventS. insullin and growth hormones.
These new products have be
come patentable in the United States, the US Supreme Court declaring in 1980 “the live human made micro organisms as patentable subject matter" and awarding the first patent to an Indian born biologist Anand Chakrabarty of the University of Illinois. This has now reSulted in a high degree Of commercial interest in the field. Although
ECONOMIC REVIEW, APRIL 1982
HOWever, instead of Selecting
Technology
business interest in Was slow at first it entum, So that by 1 Companies involved had the most sough A company that h; mhexatiOned is Gement 1976 by a 28 year banker and Boyer, t Of gene-Splicing. C include Cetus, agair Biogen a Switzerlan With both American interests. However leading chemical ma begun an involven engineering (see box Of the three hum ducts which have c gination are insulin. grOWith horn OneS. H. which is the body's against viruses is bel useful against cance techniques have been tech to produce hu In Sulin ul Sed again normally obtained : Of pigs and cattle. T to be limited and fur and cattle insulin ( from human insulii
Most leading che gineering . . . . at
Dow Chemical
Invested $5 mill ing in-house prog lines, and catalys Du Poit
Large in-house interferon. Colla scientists and S Nuclear. Gulf Oil
Modest ill-house with unspecified university consul Morasanto
Extensive progra 1ng close co-ope: Genentech involvi minor equity hol building in-house Philips - Petroen Company consid UInCOnfirmed re She Oi!
Has contract wit Standard Oil (Ind Variety of proje photosynthesis, siders all of th search center. C.
 
 
 

f
Դց :
the technology gathered mOn. 981 Some of the in gene-Splicing ut after Stocks. as been Often tech founded in old investment he c0 - di Scoverer )ther companies Of the US and d based firm and European by 1981. most nufacturers had lent in gentic
Lan Oriented proaught the imainterferon and Luman interferOn natural weapon lieved to be also r. Gene splicing uSed by Genentnan interterOn. St diabetes is from the glands "he Supply tends ther because pig differ somewhat l, it SOmetimes
has un Wanted Side effects in patients. Human insulin has also been commercially produced by Genentech. Similar results have also been obtained in the case of human growth hormones which had earlier been obtained from cadavers.
Apart from these medical ap
plications there are several ones of commercial importance which could also use recombinant DNA.
These include traditional areas where micro organisms have played a role such as the manufacture of antibiotics and of ethenol – which is increasingly becoming important as a fuel. Genes splicing could also be used for modifying the genetic rnaterials Of plants. Plants are more maleable in this sense since the whole plant could be propagated from a single cell. With suitable gene splicing techniques, it would be possible to include particular characteristies into plants Such as higher yields, thicker stalks, resistance to disease and even the capacity to
fix nitrogen by introducing proper geneS.
New manufacturing innovations
have also been reported such as development of 'gene machines' which according to its developer, a Canadian Company, is expected to carry out in a few hours tasks that would take chemists several months. In these gene machines, micro processors control the introduction of chemicals in the right amounts and at the right time so that the particular desired chemical chain would be created. The new companies that have been formed have created a
:mical manufacturers now are involved in genetic el
mong them are:
ion in Collaborative Genetics of Waltham, Mass.; buildgram in human health.
tS.,
program with specific interests in plant genetics borative effect with California, Institute of Technology izable program through acquisition of New England
program plus co-operative agreement to develop biomass Japanese company. Also some research contracts with
tants.
lms, including $20 million investment in Biogen involvrative scientific efforts, a jing animal nutrient products (growth .dings through innoven of Genentech and Genex.
2 capabilities.
3rs area “highly proprietary' and says it's not involved. ports of recruiting activity
h Cetus sponsoring development of interferon.
..) xts, 1ncluding single-cell protein, edible fat
production, health-care products industrial processing – and conem “highly proprietary' - out of Naperville, III., re
incomfirmed recruiting activity. Equity hoding in Cetus.
agriculture, industrial-use enzy
and
with and Also
agreement
factors),
contract
13 ܥܡܬܼ

Page 16
high degree of commercial interest. Thus Genentech. Cetus, Biogen and Genex had by the end of 1979 a. paper value of more than 225 million dollars. It more than doubled to 500 million dollars by May 1980. Investors in these new small companieS included large multinationalS. When some of the shares of these firms Went public, there was a conSiderable demand. ThuS When Genen
tech went public in October 198with an initial price of $35 per share, the share prices boomed
Within 20 minutes to $69. Genentech in 1979 without yet having a Single product on sale had a paper Worth of $529 which was almOSt. Onetenth value of the very large commercial company Du POnt.
Firms that have started on this innovative technology are small ones with a few people involved in them. (Athough large companies have later come into the field). This is a phenomenon generally in high technology fields, a clear precus or to this being the development of the micro processors and computer technology in the 1970's by small firms in the so called “Silicon Valley of California. Here tens and hundreds of small manufacturing units grewup, whose products fitted into the new. ly developing technological nitches.
Many Third World countries have traditionally been followers of technology largely because the capital equipment required for industrialisation of the 19th century heavy industry variety was very high. There is now a partial re-division of labour underway resulting from some of those industries becoming uneconomical in the developed countries and are being relocated in the Third World specially in repressive regimes which provide a reserve army of quiescent labour.
However, the new bio logy - as well as the other high flier of microprocessors and COmputer hardware and Software - are areas where newcomers possibly have new Windows for technological leadership. At the least to some technological equality India has designated these frontier areas of gene splicing and micro processors 8S wital ones for its technological leap ahead and is planning with these considerations. In Sri Lanka, there is no such formal planning Of science and technology like that which occurs in the Indian scene, (the Indian CSIR being in the forefront of much of this planning), It is but appropriate that Sri Lanka. should look at these new technologies with bold and open eyes and identify avenues of development. This could be done specially by associating University departments in such efforts as centers of commercial development because of the knowledge intensive nature of the new techno1Ogy
14
techno
Economic
Sri Lanka’s rate averaged 6. 19(7-80 and the has been estimat per cent. Accord term perspective ment, the ec0n0 gIOW at an a Ver 5.7 per Cent durin tain the average the past five yea lise the medium government, the achieve a grow 6 per cent in 19 growth of 6 pel target for 1982? formance fall sh It is ea Sier to r than to answer t sent indications growth performal to identify any m economy which ( t0 show a Subst: fOrmance Over th
Agriculture:
largest COntributC DOmeStic Produ (In 1980 its contr Over 22 per cent ture, the most il tOr is paddy and
(which accounted Of the GDP in 1 plantation crops for Only a little Cent). Hence the paddy and subsi important determ all growth of th has been a very in paddy product years with a pro about 30 per cen hand, the growth sidiary crop sect. tively low in the ducer margins from competing improvement was,
about 1980. In 19 of the paddy an sector is likely t fected by several One thing, the se has prevailled si adversely affected particularly in A. parai and Hamba
example, it has in the Amparai per acre has dro third and that th for the district lised.
 

Prospects for 1982
Many of the peasants in the Dry Zone alst Ilicts, incluuli 1g maily of t I ue neW SetteAers in tine Manavelli irrigated laids, have become vlctims
economic growth per Cent during growth rate of 1981 ed at just under 6 ng to the medium s of the governmy is projected to age annual rate of g 1981-85. To maingrowth trend Of 's as well as to reaperspectives of the economy must th rate of around 82. How far is a cent a realistic Will the actual perOrt Of this figure? ise these questions hem. However, prepoint to a modest lCe. It is In Ot ea Sy ajor Sector in the sould be expected antial growth pere year.
Agriculture is the )r to the GroSS Ct Of Sri Lanka. ibution was a little ). Within agriculimportant Sub-Seci Subsidiary CropS i for 17 per cent 980) as against the (which accounted more than 5 per performance Of idiary crops is an inant of the Overe economy. There encouraging trend on in the past five duction increase of t. On the Other trends in the SubDr remained relacontext of low pro(resulting partly imports); SOe however, seen since 82 the performance di Subsidiary CrOp o be adversely afdevelopments. For
rious drought that Ce late 1981 has the Maha crop nuradhapura, Am
in total districts. For been reported that district the yield )ped by about onee official target set LaS not been real
Os time CrOugnt and are nOW SuoSlsting On a 4 Oug nt rellef and SpeClal IOOd Coup01 as provided by tine government. ''ne number depending Oil Sucn relief has increased Over tne montns. Several donor agencies and countries have come in ίΟ assist the drougt Stricken peasantry. The drougnt is bound to affect the Suosidiary food CrOps as Well. In tnis context, the paddy and subsidiary food crop sector (at least Mana crop) cannot be expected to make a contribution to the economic growth prospects of 1982.
A further disturbing trend has been the snarp decline in the fertilizer usage in this sector, following the fertilizer price hike of February 1981 (which raised the prices of most varieties of fertilizer by well over 100 per cent). (See table On Oage 15). In 1981, fertilizer sales to the paddy sector has recorded a drop of 20 per cent and for other crops the drop has been as high as 40 per cent. Reduction in fertilizer usage was an important factor in the low growth of the 1981 Yala paddy crop (a. growth rate of Only 1 per cent Over the Yala of 1980). UnleSs the fertilizer prices are reduced (which Would mean a higher subsidy which may not be practicable in the present context of government finance) the decline in fertilizer usage is likely to continue into 1982 (at least no increase in usage can be expested) thereby compounding the effects
of the drought on agricultural prodUCtion.
It may also be noted that
there has been a marked decline in rural credit for cultivation purposes Since 1979. Although the statistics for 1981 are still not available, there are no grounds to believe that the trend has been arrested last year; and the situation would probably continue into 1982 (unless some policy changes are made to increase the volume of rural credit). In this situation, reSOrt to non-institutional Credit Sources, namely, money-lenders and traders, at exOrbitant interest rates would have increased. This situation coupled with the adverse effects Of the drought on the peasantry cannot but cause serious implications on
ECONOMIC REVIEW, APRIL 1982

Page 17
FER.T.ZER ISSUES BY
Cren '8ä. Kubizer" OOCOYl1ί Paddy Minor food crops Minor Export crops Other Total
*Provisional
Sources: National Fertilizer Secretariat
poverty and indebtedness in the
rural SectOr.
'ine drought could also cause adverse eiectS On tine piantation tờutplät, lin particular on tea and coconut output. "l'ine tea, production Which rOSe mar Kedly in 1981 (by nearly 10 per cent) may mot be able tO Sustain the growth trend if adverse weather (which has already brought down the production in January and February) continues for a few in Ore months. It would take about a year Or even more before the current drought makes an impact (in the form. Of 10Wer harvestS) on COCOnut production. Rubber production was affected by a decline in prices last year but a recovery in prices is seen frOrn about November. Fertilizer usage in rubber and coconut has recorded a marked drop in 1981 (by 18 per cent and 30 per cent respectively), and within the tea industry, the fertilizer usage of smallholdings has recorded a sharp decline. These trends, unless arrested by policy changes are likely to continue into 1982 and they do not augur well for the prospects of future plantation Output.
In summary, the forces at work in the agricultural Sector prevent it from being a significant source of economic growth for 1982.
Manufacturing: This sector COnprises plantation processing industries, factory industries and small industries, and has contributed 14 per cent of the Gross Domestic Product of 1980. Any drop in plantation crop production Would have its consequences on the processing industries, meaning a lower level Of prOcessing activity. The output in the factory and small industries is not expected to show a marked change over the trendS in 1981.
The Katunayake Investment Promotion Zone has currently about 41 factories in Operation (with almost 20,000 employment) and some 30 more are in various Stages of implementation many of which should commence commercial production in 1982. Garments continue to be the main item of production in the Zone but non-garment factories
are gaining in importance, TWO leading transnational firms have signed contracts with the GCEC
ECONOMIC REVIEw, APRIL 1982
CROPS 1980 AND
980 Ol. 21.5 55.8 88.8 23.2 5.0 37.2, 433.
and Ceylon Fertili,
for the manufactur components at least is expected to COm cOrnStructiOn WOrk this year.
Construction: C vity had slowed dow 1981. In the face pressures and finant Some government be Scaled down anc ed. Decline in hOu values and also a rentS have accompa, opment.S. Howevel. velopment in the p particular the COinSt) and shopping comple continue through 198 keep the Overall C tivity at a modestly
Service (12 dustries the service Sector h signs of Slowing do the situation cannot show any marked c The transport sector port in particular) í reached a Saturation number Of new regi tOr Vehicles recOrdin over the months. Th ber of monthly reg Iran Over 5000 in 1 to less than 2500 in Of 1981 and this dec pected to COntinue
The year 1981 a much slower grOW (hence in the Over eCOn Omny) than dur: two years. This ma tion that the rush
neet the u Insati Sfied pre-1977 period is down. Further evic likely to be forthc Continued expansi (though at a reduct previous years), su tances from migrant East, expansion of network to cover t try, activation of ket (with more a companies offerings. lic), and the contin the economy are fa the Service Sector of

1981
198旦* 10.
16.9 37.7 151.5 14.7 3.2 39.9 365.6
Ser Corporation
e of electronic , one of which factory
April
.IIՈ8ՈC6
ar Ollind
OInstruction actil by around midOf inflationary 2ial constraints, projects had to l Some postponSe and prOperty decline in house nied these deve, real estate derivate sector, in ruction of hotel Xes is expected to 32, which should OnStruction a Cgrowing trend.
i: The growth in as also shown Wh in 1981 and be expected to hange in 1982. (private transappears to have point with the strations of mog a sharp drop e average numistrations which 980 has dropped the final months line can be ex
through 1982.
lso witnessed a th in imports all trade in the ng the previous y be an indicafor imports to demands of the gradually dying esh Ce Of thiS iS )ming in 1982. ΟΙ Of tOuri Sm 'd rate than in 2stantial remitS in the Middle the television he entire counthe share marld more Υ1ΘΥΝ hares to the pubued Openness of ctors favouring the economy.
While the growth of imports is likely to slow down, prospects for export growth (Outside the free trade Zone) appear modest. Hence the balance of trade deficit will continue to remain high but the magnitude of the deficit could show. Some decline (it was R.S. 14.6 billion in 1981 as against Rs. 16.2 billion in 1980.)
Domestic resource mobilization from non-inflationary (non-bank) sources for the financing of growing budgetary gaps will continue to figure - as a major problem in the fiscal sphere. Heavy recourse tO inflationary financing (mainly from the Central Bank) characterised the fiscal picture of 1980; recourse to inflationary Sources has been conSiderably reduced in 1981. It remains to be seen how far the government could avoid resort to inflationary financing in 1982. Much depends on the ability of the government to restrain the growth of government expenditure over the Originally budgeted levels.
Employment generation which continued at a high level in 1978 and 1979 has slowed down since 1980. Prospects for any substantial θΥΥ1ployment growth appear modest in 1982. The unemployment level currently stands at over 15 per cent of the labour force.
Inflation which ran well over 30 per cent in 1980 appears to have slowed down in 1981. The cost of living index rose by 18.3 per cent during January - December 1981. This index, given its well known shortcomings, presumably understates the actual rise in living COStS. It may be noted that food prices in this index rose by 22.4 per cent in 1981. ihe fact that petroleum prices did not record any substantial change in 1981 was a favourable factor which slowed down inflation. But the depreciation of the Rupee vis-a-vis the US dollar by almost 12.5 per Cent was an important contributory factor (by raising the rupee cost of imports) to the inflationary situation of 1981. In 1982, however, the possibility of a rise in the domestic prices of petroleum products (resulting partly from the rise in international prices and partly from the depreciation of the Rupee) cannot be ruled Out. Inflation will continue to remain high in 1982 though perhaps at a lower level than in 1981. The actual level of inflation will depend on a number of factors such as behaviour Of international prices of imports, extent of further depreciation of the Rupee, the inflationary pressures emanating from the budgetary financing, extent of the petroleum price increases, and the harvests of principal food crops such as rice, chillies, Onions and others,
15

Page 18
The Value of Money, a Gen View of 'Both Sides of the
S, T. G. Fernando
ther the price level.
foreign exchange management', he
he assumed duties as
In this generalised discussion on the value of money nando shows how crucial money is to modern economic phasises that the proper control of money is a vital exer how its value is dependent on both domestic policies an nal trade and payment policies persued; while measures a tity, price and velocity of circulation of money affect in
“Maintainling the value of the rup matter for Synchronised policy action in domestic/moneta
concludes, Dr. Fernando was Director of Economic Research, Cen
Chairman, People's pressed in this paper are those of the author and do not i sent those of either the People's Bank or the Central Ban
Bank. '
“Money is the root of all evil' SO goes the age old saying. Present day society based on specialisation and production for the markets can barely survive without money and monetary transactions. Unless We view Society as isolated and functioning at a very low level of economic development, the fact has to be accepted that money is central to modern economic society and the control of money is a vital exercise to be performed by a body whose standing and integrity is beyond question.
There is no general agreement among economists upon what COnstitutes money. Modern economics has tended to widen the definition to suit the times, policies and COntrols. Basically, as with most economic terms it does not matter Cruclally to the agreement what meaning we adopt as long as one adheres
to a definition and refrains from
changing it halfway through the
argument.
Money is defined in most text
books as “anything which is widely accepted in payment of goods Or in discharge of other kinds of business obligations'. The property of being widely acceptable invariably involves another attribute, namely the property of being expressed in units. in terms of which the values of other exchangeable items ae measured. These two properties of money are what are referred to as “Medium of Exchange” and “Measure of Value'. There are two other intrinsically useful and important functions performed by money, namely as a 'Store of Value' and as a 'Standard for deferred payments'.
The Use of Money
In a discussion of the value Oİ money, due emphasis should be placed on the benefits resulting from monetization of transactions. Money Overcomes the difficulties of barter and the associated “double coincidence of wants', by serving as a general medium of exchange or means of pay
16
ment. Money, W role as Ordina SOmething whic, everybody within in exchange for discharge of deb tant distinction other commoditi required not for is true especially mOney) but becal lic is prepared t return for goods then becomes a Of the people, a tra StS With a “StC ing a quality of ceptable purchasi the public With C. the facility of co gOOds if neceSSar
The Wider us above Sense logic amination of th money, namely a ie. to make cont counts and to p future. According by the Governm Bank or the ban of money affects Changes in these income, producti tations and the ple. Looking at th from the standp0 given a certain COne and a Set he is interested gency of his w to make his purc tion. On purchas taken as a who producers by pla ries, demand for ducers in turn a tiÖnS tO meet f and depending C tivity generated prices is influenc in the latter ar. Strength Of dem mic activity - W period or not, t shortages of factC

eralised Rupee'
Dr. S. T. G. FerSociety and emiClse. He explains d the internatioffecting the quanOne Way On anoee is therefore a
ry policy and in
tral Bank before
The views exn any way repreK of Ceylon.
when it performs its rilly expected, is
h is accepted by
national territory. goods, services and tS. The one imporbetween money and es is that money is its own sake (this in regard to paper use the general pubO accept money in and services. Money “flow' in the hands Currency, and COnck' concept assumbeing “generally acng power” held by Onfidence as regards nverting it back to y.
se of money in the ally leads to an exe other quality of s a measure of value GractS, to keep aclan Outlays for the ly, any action taken ent, the Central KS to alter the value these calculations. calculations affect on, prices, expecSavings Of the peoe issue more closely int of the consumer. flow of money inof prices for goods in, guided by the urints, he is enabled nases. The informaes by households le is transmitted t0 Cement Of inventOmore goods etc. Prodjust their OperaLture requirements in the level of acthe level of future d. The movements induced by the ind, level of econohether it is a boom Le availability Or 's of production and
extant plant capacity. The mechaal Sim Winlch Signals pU0llcers and consumers aid eventually tine composition of the national product available to society. is based on te fuctional (direcU1onal) role of II lOlney aS a meaSulire Of Value. COmcern over the value of money stems from tine signallung process which linI1luences resOurce explOltation, reSOurce use, resource development and eventually the pace of economic grOWitn. In a period of rising priCes and near Stable production, the value of money falls and the converse holds valid when the general level of prices fall under condltions OI Staple production. The expresSi Ons u Sed to describe these mOvements are in terms of the purchasing power of the currency; in time Of Irisling pruces as meaSured by tam index number of general prices, the phenomenon is labelled as a situation OI inflation and the purchasing power of the monetary unit falls; in times of falling prices also measured by an index, the situation is named deflation and the purchasing power of money increases and the principal beneficiaries are those with fixed money incOneS.
Why do people accept money even when they observe changes in the purchasing power? The answer is quite Straight for Ward; there ls m0 substitute for money in a “closed economy', having the same degree of acceptability despite Observable di Sadvantages.
While moving into the field of monetary economics to answer the question "what determines the value Of money', it is important to mention that one is in fact attempting to find the reasons for changes in the purchasing power Of money Over things in general, because the value of money is the reciprocal of the general level of priceS. MOre Specifically, if the general level of prices has doubled in a given period, the value of money has fallen by 50 percent during the same period.
The forces affecting the value of money, as of anything else in value theory, can be discussed under the two headings of Supply and demand. The Supply of money in a particular country depends on its monetary and banking structure and the conventions which have been foStered. The demand for money, as for anything else, depends largely on the alternatives available for SubStitution and the purposes for which money is demanded. Although in fact the demand for money and the supply of money determine the price and value of money, money belongs to a special category because we cannot express the value of money in terms of itself. There is no way in which we can express the value of a rupee except by enumerating one by one, all the different arti
EconoMIC REVIEW, APRIL 1982
price

Page 19
cles and Services a rupee could buy and the process of determining same would be practically a tedious and impossible task. The changes in value of money, the value of the rupee, is therefore expressed as the reciprocal of the changes in the general level of prices and it is by measuring the latter that the value of money is determined as a derived result.
Measuring Price Levels Changes in the value of money are therefore measured indirectly by another standard, namely the general level of prices. Although the meaSurement Of the general level Of priceS is Of COnSidera Ole practical intereSt, it is One exnloiting Some theoretlcal diifculty. It is common knowledge tinat One dis Cinguished mathematical economist Conducted an examination Of 44 algebraical formulae of increasing complexity representing different methods of measuring the changes in the value of money. The choice of the one which is most representative is guided by the degree of emphasis to be laid on particular
price movements for groups within Society.
HOW do we measure changes
in prices Or for that matter "the general price level'? This is done by recourse to a statistical device called - “index numbers”. An index number is an artificial number which represents another number Or Set Of numberS facilitating comparison. We can list Out a group of commodities and ascertain the extent of the price movement for two distinct periods not too far removed from each other. There are several different ways in which we can compress or bring together all the changes into one single figure showing the percentage change between the two dates. As there are different wavs of doing this exercise, the results invariahly differ and the indices provide different measures of the value Of changes in money.
Can we list out the possible areas where different results could emerge when measuring the same phenomenon of the purchasing power of money (value of monev) by different technioues? Such a listing would provide the reader with the knowledge to be on the defensive Wher handling index numbers.
The more important areas to nOtte are:
(1) the mathematical method employed to measure, i.e. the type of the index number calculated. There are three calculations, a 'Paasche Index', 'Laspayre Index or a "Bowley Index' all commonly in use, but providing very different results; (2) The 'base year' chosen for evaluating price changes and reasons for its choice: (3) The “Normalcy' of the cur
ECONOMIC REVIEW, APRIL 1982
rent year. that both th tne current y normal years abnOrmal cha (4) The composit
Sentative C bas Ket Of goc OrlCe Change (5) Technical in COrpOrated in years. Which quately prov tinguished in feature of tec ment Of later COmpariSon Oj difficult and t misleading u is given. (6) Taste change
the demand thus register leading weigh a CCOrded in t (7) The range ar - quite apart C€S COuld be ( periods and utility of mor the real resu and choice SUlmer.
Supply of M The supply of n fluences prices in ge value Of the purcha money, is determine ing System. At 1 the monetary systen Bank which is ent] formidable task of f carrying Out the mo the country. As the e stances change, mon is changed and the has periodically to which are appropriat the tempo of economi resulting general pri and the changes in power of money 2 cord with the desired tary movements.
Two ideas have in detail when concer ply side of the eduati (a) HOW is the Su
determined? (b) What sort of
should be foll the target res (i) Stable prices,
(ii) Stable relative (iii) A Slowly risin (iv) A slowly falli
which is in
Government In modern comm ply of money consists and coins put into the Central Bank a credit extended Or C
commercial banks. ditional concept of n notes and coins whic.

is important base year and 2ar should be without sudden,
geS; on and reprearacter Of the is measured for
provements ino goods of later cannot be adeided for or disa formula. This hnical adva11Ceyears makes the two baskets he interpretation nless due regard
s which alter for goods and Wrong or mistage to goods he index. d flow of goods ; from their priLifferent between his affects the ey outlays and Lt of purchases before the COn
(oney noney, which inneral and the
sing power of d by the bankthe apex of n is the Central rusted with the ormulating and Inetary policy of cOn Omic circumetary policy too Central Bank take meaSures e to ensure that lic activity, the ice movements the purchasing are fully in acgoals of mone
to be spelled Out "n is on the SupΟΥ1:
upply of money
monetary policy Owed to ensure ults of -
prices, g price level or ng price level harmony with Policy? unities the Sup; partly of notes circulation by und partly of reated by the While the trahoney is that of h are legal ten
der, the deposits of these monies in the commercial banks and lendings of these by the banks to the public have enabled the stock of money to increase by a multiple of the initial deposits. Over the years, the banks have found out that the public does not withdraw all its deposits, and that banks could safely lend more than the initial deposits.
Some additional lending is done by way of loans and overdrafts and tne growth of this technique Of Supplementing the notes and coins base has been greatly facilitated by the wider use of cheques for settling payments. The latter is now the principal source of money growth in developed communities with widespread banking habits. By maintaining certain statutory or conventional fractional reserves With the monetary authority of the Central Bank, commercial banks have, in general, acting with considerable foresight in the matter of their own standing, developed and fostered public confidence in the acceptability of this new form of money. The business community, likewise has responded well to this development. In mist monetary legislation, Central Banks in the control of money Supply have provided specifically monetary reserves/ratios to be maintained by commercial banks. These reserves (ratioS) are in respect of till cash, demand deposits, savings deposits, loans and advances and where necessary, overall liquidity. One of the tasks of the Central Bank is too see that some or all Of these reserves / ratios are maintained. The statutory supervisory function performed by the Central Bank enables the commercial banks to increase money supply in the hands of the public by an amount, larger than the banks aggregated capital and reserves as Well as cash holdings. The acceptability and stability of the new money created by the banking System depends on -
(a) the Supervision exercised by the Central Bank over the banking system, (b) the strict adherence by banks to the ratios prescribed by the Central Bank, (c) the wide acceptance by the general public of cheques as a means Of payment,
the use of loans and drafts for financial accommodation and the prompt payment of these to the banks on due dates, and (e) fostering a close and SucceSSful dialogue between the Central Bank and the COnmercial banks whenever the growth of money supply is in excess of economic requireImentS. - The control of money supply is a vital aspect in an exercise which attempts to regulate the value of money, because the value of money
17
(d) Ογe) -

Page 20
is linked closely to the supply and availability of money. An excessive and continued growth of money Supply, in relation to output increases, causes the general price level to rise and the value of money to fall. There is a convenient formula arrived at which relates money supply, in relation to output increases, volume of Output (T); if M (defined to include velocity of transactions v) is increased and T is static or near constant, then P should rise and when P increases the value of money falls. The equation is both simple and explanatory and has a basic validity which cannot be brushed a Side,
How best can the supply of money be controlled in Order to maintain the value of money? What techniques are there which the monetary authority could use to ensure that the value of money is “What it should be' that is, as targeted and where necessary to bring back the monetary System to a regulated course Financial discipline and a deep commitment to its role of providing stable expectations is by far the most important factor helpful in controlling the growth of money supply and avoiding the results of falling money values. Huge budget deficits, high and unrestrained consumer Spending, excessive liquidity both in the hands of the public and in the banking system and the frequent recourse to financing of budgetary requirements from new money issues (i.e. Treasury bills) all enable the commercial banks to exrand credit, while maintaining required conventional ratios, without running the risks of a draw down of cash and painful readjustments from monetary squeezing. A commitment to financial discipline is a sine qua non.
Given this attitude and acceptance, there are several monetary weapons available to the Central Bank to control the growth of money Supply to match same to reouirements of economic growth and therebv to prevent, a serious fall in the value of money. These measures are known as monetary stabilisatinn mea suures and some of the more widelv used techninues, which have proved sticcessful, are given below: The principal monetary instruments
USed ae -
(a) Manipulation of the Bank rate i.e. the rate at which the Central Bank would grant credit, to the ΟΟΥΥ1mercial banks. A high bank rate implies a high cost for borrowed funds and tight control which is a signal for commercial hanks to be cautious in lending. The reverse is valid when the bank rate is red11 cer and spending is encouraged.
18
(b)
( C)
(d)
(e)
(f)
Structurin borrowing mOdation These rate increased of borrowi and more pensive f( borrow th Of their SI Sale and ernment ! by the Ce. the latter level of Ca banks with This parti ed “Open and is freq the purch tions can cretely t kers or op Bank at it dow'. Th expand Or liquidity a Create cred mOre Or le COmmercia On the di guired by Changes O. ratiOs Or C Special rat a Chievemel Serve rat. ability an bank's pro I*eSeľVeS Il Central B. an income bank. Issue of S Stabilisatio Special monetary banking sy rities have “rights' as nent fOT Selective c specifically fOr di Scrim Restriction ing, hire Overdrafts holding of tive and lO Struction a reSOrted to reduce mo) and damp mea,SU1reS : as there is COntrols in
The di Stinctio: ween Monetary p policy' is a hazy (Where the diffel introduced) serve moderating and tendencies. . flation has becom Occupation of Gov tral Banks. If th
infla

g of penal rates of beyond the accomgiven at bank rate. es are prOgressively to affect the COSt ng, making it more
difficult and )r the banks tO
ll'Ough placement
ecurities.
purchase of GOV
ills and securities
ntral Bank enables to influence the lsh deposits of the the Central Bank. cular device is callMarket Operations' uently uSed becauSe ase or sale Operabe done either dishrough money broenly by the Central tS 'discount Wiine aim here is to contract the bankS und its ability to it. Lending is made SS difficult for the 1 banks depending rectional trust rethe Central Bank. f prescribed reserve lirect stipulation of ios over base period htS. Higher reios reduce lending il also affects 3.
ofitability as the naintained at the ank do not earn
for the commercial
pecial short period n Securities under orOvisions of the law governing the stem. These secu
very restricted regards lodgediscounting.
ontrol of credit by singling out areas inatory treatment. S On consumer lendpurchase lending,
for Speculative Stocks, specula11 g draWn Out COnctivity have been as mea Sures tO ney supply growth an activity. These are widely adopted selectivity in the posed on lending. in Often drawn betolicy and 'Credit one. Both policies
'entiation can be the same goal of tionary pressures
The control of inhe the chief preernmentS and Cene authorities are
θX
anxious to contain inflation, they cannot give time panks a free hand to expand credit. To achieve the reSult of Stable prices (Staple relative prices) monetary discipline, has to pe accepted at all levels and from all quarters. “Bad budgeting, "Weak financing, "liberal' lending by the commercial banks all tend to inCrease (M) in the Simple equation referred to earlier. Unless (T) is increased by more than the proportionate increase allowed for (M), the result would be an increase in (P). While Sophisticated refinements can be introduced by way of “leads and lags', adjustments for velocity of circulation, monetization of rural areas, hoarding etc. the casual links mentioned above between M, P and T holds good for a large range of situations where output is inelastic.
Demand for Money What l1.111ueices tishe "demand’ fOr mOney? " 'onis 1 s the Other pola, de QI tne SulSSOr. AS ment:10med earlier, İmOney has a Cerrived demand araldi time total am Ouliant Of money balailces tinat tne puolic Wishes to hold İOİ" ali il COImamercial and household purpOSes is called the demand functiOn fOr mOney. There is a cOSt Of holding any mOI'ley balance because an income is Oregone wine1) a balance is held in the form of cash Or as a demand deposit. From here it is easy to distinguish the reaSOns for holding cash balances. Money balances held for meeting day to day transactions are classified as transaction balances and the desire to do SO is called the "transactions demand for money'. People require balances because of the time lags between receipts of income and calls for payments. As a general prOpOSitiOn, money held for transactions will be higher. (i) the larger the national inCOme aS measured in Current priCeS and (ii) the greater the time lag between receipt of income and planned outgo.
Another motive for demanding money is to provide specially for time lags in receipts and payments and to cover for contingencies. Additional cash balances in excess of transaction balances ae held which cater for precautionary requirements, that is for playing safe. The higher is the eStimation Of uncertainity in economic outturn, the larger are the balances held as “precautionary balances'. There is one other source of demand for money, that is the direct provision for uncertainity and expectations of risks concerning the future. Provision here is categorised as “Speculative balances' and the motive for holding Such balances is termed the Speculative motive. Were all these separate functions added, these often overlap, the result is a total” deryn and function for monev Which is in turn a general function Of
ECONOMIC REVIEW, APRIL 1982

Page 21
both the level and rate of growth of real national income and the rate (s) of interest maintained.
In attempting to staollise the value of money from the demand side - a far more difficult exercise than attempting same from the supply side - concern is principally Witn regard to matching transaction
demand for money with the level of output and its flow. The very SCC eSS achieved in keeping the
price level stable, helps in reducing the total demand for money; similarly, an increase in the price level with the stock of money held constant and the real national prOduct stable, produces the result of an excess demand for money at that level of economic performance; this is what is commonly termed as an “inflationary gap’. To reduce an inflationary gap, the flow of output nas to be increased either domestically (internally) by higher production or by added inflows of imports (reducing the country's foreign exchange reserves) and allowing in the process for domestic money to be sterilised at the Central Bank as foreign currency is exchanged for domestic currency for payment of 1mportables.
Excess demand, it would appear where domestic output is slow tO respond, is better controlled by runthing dOWn eXterInal reserves and adjusting to a low equilibrium than by seeking generous foreign grants
and soft loans to Supplement the flow of output and alloWing purchasing power to remain in the
hands of the public till counterpart funds are created. Further, there is the possibility that counterpart funds would be used to finance extra budgetary outlays and add to demand OreSSures.
The two sides of the coin The value of money depends On both domestic policies influencing the demand for and Supply Of money and through the exchange rate the international trade and payments policies pursued. Measures affecting the quantity, price, and velocity of circulation of money affect in one way or another the price level. Maintaining the value of the rupee is therefore a matter for synchronised policy action in domestic/monetary policy and in foreign exchange management. The latter should take into account the service payments falling due from foreign debt obligations. Measures affecting the volume, purcha Sing pOwer, and velocity of circulation of money, all of which have a bearing On the domestic value, are bound to react on foreign exchange rates as well. Likewise, a continued decrease in the country's foreign exchange reserves to supplement import avail ability and output, is liable to react ʻʻfavourablyʼ On the internal mome
ECONOMIC REVIEW, APRIL 1982
foreign
tary situation with effect it has on grow ply as rupee funds the Central Bank sion of rupees for f Indeed, the inter aspects of the valu inseparable aspects thing, the proverbi the Same COin. Tİ level and the exch ence each. Other and it imperative for th O determine the t ly. Beyond doubt, fc COuntry, eXCIn ange and the level and reSerWeS pI wealing and sensitive ternal value of the C litative Counterpart tative domestic pl index.
DOmestic monet not afford to ignor exchange rates and to influence foreign character of the exc adopted, whether f. ing, open floating, or crawling peg, ha bearing on the int situation and dome The value of th mined both by the racter Of the mOrne' sued by the Centra appropriateness of t adopted and the fo StabilisatiOn progral The draw dOWn. Of is guided by the leva safety margin for and payments and 1 petus given by prov Sential in pOrt cOnte thereby strengtheni the currency. LOOk way, the “other side the external value the exchange rate it. One cannot of CC domestic (internal) rupee if the extern rupee is left open sion as to whethel provide for "more' luation for a ruling “more' or “less' rew; portant and difficul be consciouslv writt lisation equation of rupee. The Succ estic stabilisation p crucially on the ex tion programme an rate adopted. The rupee' has a far no to be figured Out b is eSSentially a chal cialistS. The causa the balance Of pay the terms of trade, and the meaSures t directly inyisible inter-related issue

the dampening th. Of money Supget sterilised at with the converoreign currency. hal and external e of money are Of the S3. ΩΕ all two sides of he internal price ange rate influd together makes le Central Bank WO SimultaneOuSor a developing rate movementS drawdown of 'ovide a very re2 index of the exuII'eÍìCy, the quâof the quantiJurchasing pOWer
ary policy Cane movements in decisions taken payments. The hange rate policy ixed Or fluctuatadjustable peg is a very strong ernal monetary estic price level. Le rupee is deterform and chatary policy purBank and the he exchange rate breign exchange Ω1ΙΥ1θ. accepted. 2xchange reserves el of reserves, the covering imports b0 the export im"iding for the eSnt in exports and ing the value of Ked at in this of the rupee' is determined by maintained for purse stabilise the value of the all value of the ended. The decipolicy should Or “leSS” dewaexchange rate Or aluation is an imt one, and has to en into the stabithe value of the eSS Of the dOmrOgramme hingeS ternal stabilisad the exchange “other side of the re complex puzzle v economists and lenge to the Spel links between ymentS Outturn, the exchange rate aken to influence payments from
s for policy de
CiSiOinS.
The internal value of a currency becomes the sole concern of policy makers Only in the limiting situation of the hypothetical “closed economy' with no outside trade and payments. But as economies gain from product specialisation, factor movements, international trade and capital movements, the external value determined by the exchange rate and terms of trade has to be explicitly reckOned.
International trade is fostered on the basis of production grounded on comparative advantage. The ratio of exchange of internationally traded items is expreSSed as the “net parter tems of trade'. he terms of trade neaSure the external purchasing Power of tne rupee, and is tine opportunity cost Of obtaining goods tnrougn international trade. The exChange rate is the price at whicn purCnases and Sales of foreign currency ta Ke place and therefore the rate Of eXC:n ange and the net barter term S Of trade should be taken together. These are related tO One an Other and Simultaneously determine external value.
The relationships between the exchange rate and the terms of trade are embodied in two quite different theories, the "elasticity theory' and the “Scandinavian model'. Both theories state that the net effect of a change in the exchange rate is a change in relative prices and switching of expenditure and following from this premise a change in the exchange rate is referred to as a policy for "expenditure switching'. In the elasticities model which is more applicable to developed large trading economies, and thus better represented in text books, the absolute price levels of trading OOIΥ1munities are given by their respective domestic circumstances and the exchange rate for the demand and Supply for each others currencies determine the terms of trade. The Scandinavian model asserts that internationally traded goods have prices which are internationally set and these prices are not affected by exchange rates. The effect of a change on the exchange rate is to change the relative price of internationally
traded commodities. On the One hand and domestically produced non-traded commodities on the
other. It is now conceded that this model is more applicable to 3. country like Sri Lanka whose export and import activities do not affect the level of international prices. But it is the elasticity model which is more generally discussed and its central proposition can be Slummarised that a country's terms of trade worsen when its exchange rate depreciates and improves when its rate appreciates. Relative prices change to equilibrate international payments by switching ex
19

Page 22
penditure away from imports in depreciating countries and towards imports in appreciating countries.
If the domestic price level of a country rises faster than that of its trading partner, the value of the first COuntry's currency will be falling relative to that of its partner. Domestic price level increaSeS Will impinge on the external positiOn. Inflation in a country dependent On exports for earning foreign exchange and on imports for Supplementing essential items (COnSumer, intermediate and capital goods) poses to policy makers a difficult task of remaining competitive in international trade by lowering the exchange rate (i.e. through devaluation) yet bearing an equally painful increase in the import price level and the general price level. The latter result could self defeat the initial act of depreciation and produce a “ratchet, effect'.
The price levels internally of tWO trading partners are determined by the internal monetary policies of the two countries and the external purchasing power Of the currencies as conditioned by the terms of trade and the exchange rates. The question whether the internal price level influences or determines the appropriate level of the exchange rate Or whether the latter determines Or influences the allowable rate of increase of the internal price level in a competitive trading position is One which cannot be answered conclusively, even by specialists in this field. Yet in Seeking an answer, One should note that the extent Of international trade figuring in national Output - the import content in consumption and exports, and numerical values Of the foreign trade elasticities (there are four Such trade elasticities for a country) are of decisive importance in assigning the relative importance to the selection of the determinant variable. Here we have another classic example of circular economic causation; the internal value of the rupee being influenced or determined (partially) on the external value and the external value likewise being in
fluenced or determined (partially) bv the character of the internal monetary - (and fiscal) policies purslied.
No wonder the debate on the efficacy of devaluation as a means of correcting a passive external balance is still inconclusive and domestic stabilisation policies which provide for exchange rate management are subject to criticisms which 2re hard to counter. This is becauSe the State of the Subiect is itself inconclusive and emoirical verification of a programme is difficult. There is a mole room for more than one view point to be expressed and alternative arguments to be introduced.
ܠܘ 20
Effects o' Distributic
Tilak Samaranay
In this pape inflation, and in Sessing the effect
He concludes th facilitate the inc process so that to the low incol adverse effects O
Inflation and are two separate but are highly in complexly inter-l plex inter-relatior pal reason for q appropriateness monetary policies mobilize domestic ance ecOnOmic g) possibility of i. accumulation, a for economic gro pansionary monet rally accepted, because there are adverse developme Such as regressiv tion emerging fI policies through However, inflatior cause for adverSI income distributic reports the findin ber of empirica. support the hyp ing inequality in in the early st growth followed in inequality. TI tributi On is adve inflation as W growth. This i confronts many tions since ex tary policies, alth. means to induce lead to high inf. conne distribution exacerbate inequa tribution through
The purpOSe Oi! examine the effe income distributi According to Stat there has been a inflation in Sri I corresponding to latively impressiv mance in the eco 1977. Given the ex income distributio widespread pOvert of study is impor policy standpoint conclusions have due to serious sh bases, the tent emerging from th helpful for maki. and designing pro

inflation on income
)
ake
c Tilak Samaranayake, an economic consultant, discusses 3ome distribution in Sri Lanka with the objective of ass of inflation on low income groups within the country. at development policies must focus on areas that will reased participation of the rural poor in the development benefits of economic growth activities will directly accrue ne groups. This, he maintains, will help to minimise the f rapid economic growth and high inflation.
income distribution fields in economics, terdependent and elated. This COmship is the princiuestions as to the of expansionary as a means to resources to finOwth. While the increasing capital COndition neceSSary owth, through exary policies is genequestions arise also possibilities Of Ints in the ecOmOmy e income distribuΟΙΩ1 expansionary increased inflation, is not the Only e developments in Din. Thir Wall (1974) gS Of a large numinvestigations to Othesis of increasin come di StributiOn ageS of ecOnOmic ater by a decrease hus, income disrsely affected by 7 ell as economic S a dilemma that
developing napansionary mOneOugh useful as a economic growth, ation affecting inand, in addition, lity in income diseconomic growth.
this study is to 3ts of inflation. On on in Sri Lanka. listical information, sharp increase în anka mOre Or leSS the period of regrowth perfornomy begun after isting inequality in in coupled with y, the chosen area Gant from a public
Although firm lot been attempted )rtcomings in data ative COnclusions is analysis will be (g policy decisions jectS.
In this study, income distribution is taken as the core of the analysis and no attempt is made to provide comprehensive coverage of the many facets of inflation. However, inflation enters the analysis in so far as it directly affects income distribution. In other words, only the end result of inflation on income distribution is considered and it does not explicitly deal with the complex process that led to the sharp increase in inflation 1/. The approach taken here keeps the analysis within manageable limits.
The rest of the Paper is divided into three sections. Section I briefly reviews the recent inflationary experience in Sri Lanka, followed by an analytical description of income distribution in Section II. In this section comparisons are made between the latest income distribution data, with the previous data in order to highlight the major trends in both national and regional income di Stribution. Secti On III deals With effects of inflation on income distribution and, due to data limitations, this section concentrates only on the effects of increasing food prices on income distribution with particular emphasis on food consumption and nutritional status of low income groupS.
DEFINITIONS ANT) MEASUJIRE. MENTS OF INFLATION
(a) Definitions
Inflation is commonly defined as a general rise in prices. However. since there is generally a tendency for prices to rise over time, a more precise definition is necessary to distinguish inflationary price increases from non-inflationary price încreases. In economic terminology, inflation is a consequence Of COntinuing trend of income growth at 8, more rapid rate than the output of goods and services 2/. When an economy is characterized by this phenomenon, a process of upward Surge of prices is initiated, pushing up all prices' together, leading to a rapid and continuous increase in the general price level. Broadly speaking. therefore, inflation is a consequence of rapid growth in income, but reflected in an increasing price level.
ECONOMIC REVIEW, APRIL 1982

Page 23
: The rate of inflation, which is defined as the rate at which general prices are changing, is the indicator showing the degree and magnitude of inflation, Most economists believe that a general price increase of around 5 per cent is not inflationary, but a condition necessary to avoid economic stagnation. In fact, there is empirical evidence to support the hypothesis that a mild inflation -an inflation rate below 10 per cent - provides a strong stimulant to economic progress. As Kaldor (1959) pointed out: "A slow and steady rate of inflation provides a most powerful aid to the attainment of a steady rate of economic progress...' This argument is based on the premise, which has been supported by emipirical evidence in a wider number of historical studies. that inflation is a Stimulant to maintain a high rate of profit which gives rise to a higher rate of capital accumulation than would otherwise have occurred 3/. However, when the rate of inflation exceeds this critical level passing from mild to high inflation, the need for stabilization policies to control inflation is frequently stressed and becomes a leading policy issue. This concern stems from the fact that high inflation not only destroys the Social fabric, but also threatens both the political and economic stability.
(b) Measurements
The rate of inflation in Sri Lanka accelerated sharply after 1977. The Inagnitude of currently prevailing inflationary tendencies is clearly manifested in comparable rates of inflation. Table I presents rates of inflation for the 1960-80 period computed in terms of four indices. 4% The average price increase during the 1960-70 period was between 3.3 per cent and 4.1 per cent, compared to 8.5 per cent and 14.2 per cent during the 1970-75 period, and 14.5 per cent and 17.3 per cent during the 1975-80 period. A comparison of inflation rates before and after 1977 makes it clear that there has been a substantial acceleration of inflation after 1977. The rate Of inflation in 1980, in particular, was
TTable -------EST
Type of Technique
Colombo Consumer Pric Unpublished Consumer Wholesale Price Index GNP Deflator (Market P
Source: Central Bank o
quite unprecedented 8-10 fold increase 1960-70 period.
All these indicles trate that there has crease in the gener: especially since the However, the exten tion affects differel largely depends On tion preferences ar as their income le the 30 per cent inc prices and the 77 ) in energy prices b compared to the 26
Tale 2-PERCENTAG
Quintile
First 20 percent Second 20 percent Third 20 percent Fourth 20 percent Fifth 20 percent
Source: Constuimero Fina
rage increase recor Sumer Price Index
creasing difficulti groups. Accordingly, of basic necessities greater attention a inflation because of lowering the living
majority of the poo
TRENDS IN INCOM
DISTRIBUTION
The concept of in simply deals with i or households and they receive. It is t commonly employe
1/ The Box on pages 22 and 23 provides a
fairly detailed exps
citing examples from the Sri Lankan experience.
2/ The underlying cause of the consequence of inflation are
of: (a) excess aggregate demand over aggregate supply and/ production costs of goods and services. The impact of risi most predominant cause for inflation in recent years, is als these categories. See Box on pages 22 and 23 for details.
3/ For a comprehensive review of the empirical findings of t.
ween inflation and capital accumulation see Thirlwall (1974).
4/ Among the several computational procedures measuring pr1 Consumer Price Index (CPI) is the most frequently emplo, however, the CPI is based on the Colombo City prices and, really representative of the rate of inflation throughout the cause of this limitation of CPI that a few other statistica. the Wholesale Price Index, the unpublished Consumer Price
Gross National Price (GNP) inplicit deflator are
measuring inflation.
ECONOMIC REVIEW, APRIL 1982
frequent

MATES OF AVERAGE ANNUAL INFLATION RATES
e Index - - - 3.3 Price Index ---
Period 1960-70 70-75 75-80) 1977 1978 1979 1980
8.5 14.5 1.2 2. 10.7 26. 37.8 9.0 9.2 .5 Ο ܚܚܫܚ --- --- O.9 15.8 9.5 33.8 14.2 17.3 9.0 8.0 15.9 18.2
rices)
f Ceylon.
representing an compared to the
clearly demonsbeen a sharp inall price level, 1977-78 period, to which inflant 1ncOme gIrOupS their COn Sumphd needs as well vel. For example,
rease in food per cent increase etWeen 1979-80,
3.1 per cent ave
4.
tion of the degree and magnitude of income inequality and absolute pOverty. A common method employed in the analysis of income distribution ls to divide the population into successive quintiles and then determine the proportion of income received by each quintile.
(a) National Income Distribution
Table 2 presents the computation of llcome shares for 1973 and 1978. The distribution depicted in the relative income shares bring out two important issues: firstly, there is enormous disparity in income distri
E OF TOTAL INCOME RECEIVED BY DIFFERENT IN
GROUPS NCOME
tnce Survey's, Central Bank of Ceylon.
ded in the Con(CPI) causes ineS t0 OW nCOmne the rising prices frequently receive st times of rapid the likelihood of standards of the
.
come distributo individual persons the total income he measure most di in the descrip
osition to inflation
defined in terms 'or (b) increasing ng oil prices, the so included under
he relationship bet
ce increases, the yed. In Sri Lanka,
therefore, it is not country. It is bemeasures Such as
Index and the ly employed in
| 973 Sfäre 978 Share
4.穿 3.9 O. 8.4 15.8 3.3 23.2 20.3 45.9 54.
bution among different income
groups; and secondly, there is 3, tendency for increasing disparity in income distribution over time.
In 1978, for example, the bottom 20 per cent of the population received 3.9 per cent of the national income against 54.1 per cent of the upper 20 per cent. If the proportion of income received by different income groups is an adequate yardStick for measuring relative living standards, the magnitude of difference in living standards between the rich and the poor income groups can be easily comprehended since the income of the upper 20 per cent is almost 15 times greater than the bottom 20 per cent. It has frequently been observed that the high degree of inequality in income distribution coupled with low incomes is the primary cause for the concentration of a substantial proportion of population below the absolute poverty line. Studies carried out regarding income distribution and absolute poverty in Sri Lanka enumerate approximately 40 per cent of the population in the category of absolute poverty. (For example see Marga, (1980).
Another characteristic depicted in the relative income shares is the deterioration of income distribution between 1973 and 1978. This appears
21

Page 24
to have occurred from disproportionate growth in income resulting in a greater proportion of income accruing to upper incomes households. This suggests a complete reversal of trends in income distribution compared to the 1963-1973 period during which income distribution was considered to be progressive, since there were noteworthy improvements in relative incorne shares of low income groups.
The improyement in income distribution between 1963 and 1973 has frequently been explained as outconnes of egalitarian policies pursued by respective governments which resulted in a considerable transfer of inconne towards low income groups. 'i'he implementation of these policies required a greater allocation of
public expenditu education, in add Sumer subsidies food and trans given the precede ecOmOmic growth, economic Stagnat gent resulted. It gued that eCOn Om. ployment had to to obtain relative distribution du period.
sin the face of tion, high unemp. ly increasing labC Surprising that ec employment rece priority in develo 1977. The policy
Causes and Types
inflation can be originated from different sources due to a wide variety of factors. All these sources or factors are generally grouped into two: (a) excess of g-ggregate demand over aggragate supply, and (b) increasing production costs of goods and services. These two categories or types are commonly referred to as 'dienna,2nd-pull' and 'cost-push' inflation. In practice, when inflation is underway, with both costs and prices rising, it may be extremely difficult to distinguished between these two types of inflation, Furthermore, when inflation is sustained over a considerable period of time, interaction between demand-pull and cost-push inflation is likely to occur resulting in several other types with combined elements causing further dif ficulties in the determination of true causes of inflation. The following brief review highlights major features of these types with examples.
(1). DEMAND-PULL INFLATION
Line demand-pull inflation arises from excessive demand over Supply. This type of inflation is quite common in most developing nations and is usually gene. rated by accelerated development efforts, Thorp (1971) in reviewing growth efforts and inflation in several developing nations concludes that the rapid inflation that followed development ef forts is a consequence of a number of structural constraints found in develop ing nations generally taken to be: (a) the inelastic supply, (b) the foreign exchange bottleneck, and (c) the financial constraints. The financial constraint or the lack of internal financial resources to finance economic growth is frequent ly solved by recourse to deficit financing with rapid income growth and inflationary consequences. Given these COStraints in most developing nations, along with expansionary policies to finance economic growth, inflation is inevitable when the demand for goods and services is rapidly increasing.
Inflationary experience during the tast few years in Sri Lanka, provides
22
of inflatio
thunerous example: flation. Perhaps th from the construc the growth oriente pursued since 1977, truction materal AS ER COinSequence C and also due to t for increased pro run, the prices of
nore than doubled Although imports helred to partial domestic demands material (eg. cem ntices of building troduced domestic: crease very rapidly price of domestica, appears to have
hy the influence C prices of imports
Sometimes count sile expansionary ) induce demand-pul jective for rapid frequently found i which are charact ployment low econ of financial resourc dtte tO loW revenu limited and unrelia flows. Since econor ing economies is la capital accumulati fall or financial re: act as a Serious nomic growth. It
TTa
Revenue Expenditure Budget Deficit Financing the Deficits
(a) Non-Bank Mark (b) Non-Market Bo1 (c) Banking System Foreign Finance
Source: Annual Bud

‘e On health and tion to direct COnOn Such areas as port. Unfortunately, 1ce On Welfare Over a high degree of On and unemployOften has been aric growth and embe Compromised ly better income ing the 1963-73
economic stagnaoyment and rapidIr force ... it was not Onomic growth and lived the highest pment policy after makers conceived
that a better income distribution is Compatible with rapid economic pro
gress provided that avenues are opened to the target poverty groups to accelerate their income
growth. It was this recognition that ied to the formulation and implementation of development programs, including the Accelerated Mahaweli Program where the major emphasis is on agriculture and rural developΙΩenί
A deterioration in income distribution is a phenomenon frequently observed in developing countries following a rapid expansion of the economy. Thirlwall (1974) reports, on the basis of empirical evidence of the relationship between econOmic growth and income distribution, that
s for demand-pull in e best examples comes tion sector. Following d development policies the demand for consIncreased considerably, f increased demand, he capacity limitation duction in the short most building material within a short period, of building material y offset the growing for certain building ent iron and steel), imaterial, even that ally, continued to in". The increase in the lly produced material been partially caused if the World market into the economy. ries deliberately purmonetary policies to Il inflation as an obgrowth. The policy is in developing nations erized by high unemomic growth, and lack es. The latter is partly e bases and partly to ble foreign capital innic growth in developargely a function of )n, the capital shortOurce limitation could impediment to ecois often argued, how
ever, that monetary expansion could eliminate this constraint through increased money supply to bridge the deficit arising from the difference between planned investments and anticipated revenue. The link between increased money supply and potential for economic growth occur since increased money supply can provide enough saving to achieve the desired capital (Tobin, 1965. Ennipirical studies provide substantial evidence to support this proposition as indicated by strong correlation betWeen money supply and real Output growth as well as the ratio of investment to income and the growth of per capita income (Fan, 1970)
Monetary expansion has been a leading source of financing budget deficits in Sri Lanka. As Table 3 bears evidence, its importance has grown steadily in recent years. In 1978, only about 23 per cent or Rs. 167 million of the total budget deficit of Rs. 7.165 million was financed by expansionary means while in 1980, the proportion has increased to 46 per cent or Rs. 7,077 million of the total deficit of Rs. 15,270 million.
Financing public expenditure through nonetary expansion has favourable Outcomes on economic growth only if the production of goods and Services is feasible in the context of increasing demand or, in economic terminology, the supply of goods and Services must be elastic with respect to demand aCcompanied by monetary expansion,
Otherwise, inflation is inevitable. Further, if supply does not respond favorably to increasing demand, the im
ble A 1-FHINANCING BUDGET DEFICTS-1978 to 1981
Domestic Sources st Borrowing rowing
ets for i79, 1980 and i81.
1978 1979 1980 1981
11,688 12,730 13,756 6, 176 18,853 21,521 29,026 30.407 7,165 8,791 15,270 14,231 2,653 4,582 8.885 5,962 2,033 2,086 2,692 2,550
453 1,096 884 - 167 680 7,077 3,412 4.454 4,237 6,253 8,269
ECONOMIC REVIEW, APRIL 1982

Page 25
because the factors of production are largely concentrated in the hands of the rich, the direction of income flow is necessarily towards the upper income groups. The Central Bank Report (1979) commenting on the trends in income distribution Ohserved similar reasons for increasing disparity:
“It is also noteworthy that, although all incOne deciles gained (in absolute terms), the only decile that improved its share in 1978 was the highest. This was probably inevitable, at early stages of rapid growth, when accrual of profits to new nveStOS WhO made an early entry into business are relatively greater, on account of eSSe
competition in initial competit larger spillower economic activi COne grOups C but this may h ported by ap policies...' AIUther reaSOn fO terioration amOng l{ is the inflationary : ed by development is also a common developing nations. veloping countries and NixOn (1976) characterized by tions, poorly integr the economy, diffe) ticities, financial res
pact on unemployment is virtually insignificant. Thus monetary expansion, as a policy objective to achieve economic growth, more employment and improve living standards, has serious limitations, if the eonomy is characterized by structural constraints. This is the main reason for so much controversy and theoretical conflict among economists about the appropriateness of monetary expansion policies for developing nations, It is often argued that the economies of developing nations are characterized by Supply inelasticity aising from resource constraintS, ecOnOmic dualism, imperfect financial systems, disparities in income distribution, etc, and under these conditions monetary expansion only generates inflationary tendencies without any beneficial effects on either economic growth or employment.
In spite of highly impressive growth performance and increased employment opportunities accompanied by growth oriented policies during the last few years, the Sri Lankan experience, especially in the context of more recent developments, does not sharply contrast to the dangers and unfavourable con sequences of monetary expansion des tribed in the previous section. This can be demonstrated quite convincingly, in addition to the declining economic growth rates and slow growth of employinent in near perfet supply inelasticities of the three most vital Sectors of the economy presented in Table 3. Although these elasticities are based On aggregate data, they nevertheless provide ample evidence of resource constraints and perhaps the existence of institutional rigidities negatively influencing the ability to respond favorably to increasing demand gccompanied by expansionary policies. Thus, one of the major sources of increasing inflationary tendencies in recent years appears to be the capacity limitation of the economy to increase the production of goods and services, following the extensive demand brought about by inflationary measures.
(2) COST-PUSH INFLATION
Theoretically 'cost-push" inflation originates from increased production
Economic REVIEW, APRIL 1982
Tale A 2-SPP
1972 1973 1974 1975 1976 1977 1978 1979 1980
Source: Own Computa
costs attributable eitt creases or to a ris The increased cost C vices are transmitted which in turn results
The argument tha cause inflation freque severe criticism espe non leaders. While lag relation between inflation and Wage a claim that wage incr catse, put a conseq There is little evidence Wage increases are C flation by a considera fact, except in the Sector and specialized gories, the wage incre below the annual rate Policy makers cons cent inflationary tende are primarily a cauS price of imports. D period, the prices of creased by approxima while the prices of e: increased by 26 per highly unfavourable te sidering the price inc ports and imports in te claim that the dC largely caused by the national prices beyon domestic economy is
(3) COMBINED ELE EMAND-PULL AND FACTATORS
As stated previous
密

the economy, a On. With greater pf benefits of new ty to lower inould take place,
ave to be Suppropriate fiscal
r income de
ow income groups spiral accompaniprograms. This development in since most dè, as Kirkpatrick point out, are market imperfecated sectors in rent supply elasjource limitations,
Y ELASTICITES OF THREE MAJOR SECTORS (972-&G
Agriculture
tioiii.
her to wage ine in import prices, if goods and Serinto the economy in higher prices. it wage increases ntly comes under cially from trade emphasizing the annual rate of djustments, they eases are not 3. uence of inflation. : in Sri Lanka, that ontributing to inble magnitude. In organized private i manpower cate2ases appear to be
of inflation. ider that the reencies in Sri Lanka, ation of increased uring the 1978-80 imports have intely 117 per cent, xports have only cent leading to orms of trade. COKì= :reases of both exa joint perspective, mestic inflation is increases in interd the control of rather convincing.
:MENTS OF
COST-PUSH
ily, when inflation
high propensity for imports and adverse balance of payments. Under these circumstances, increased public Spending aimed at increasing econoinic leads to rapid inflation and reಟ್ಗ În regressive income distribu
lOn.
(b) Regional Income Distribution
Table 3 presents household income distribution in terms of urban, rural and estate Sectors for 1973 and 1978/79. Again, there is evidence of increasing disparity in income distriution. The relative income shares of low income groups declined sharply between 1973 and 1978. The bottom 60 per cent Of the population in the urban sector, in particular. received 32 per cent of the total in
Manufacturing Consiriction
31 - 10 .4 .08 22 .12 --- 23 25 O - 2.04 2
.08 .13 O 05
is underway, it is difficult to attribute inflation to any specific cause; frequently a process of interaction occurs bringing together elements from different causes. For example, rising import prices have undoubtedly contributed to recent high inflationary tendency in the country. The increase in volume of imports, which can be attributed mainly to expansionary policies, also has played a significant role suggesting that current inflation is largely due to combined effects rather than to one cause in particular. While import prices have increased by 117 per cent during the 1978-80 period the volume also has increased appreciably by 40 per cent. The export volume, on the other hand, has declined by one per cent during the same period while there has been a 26 per cert increase in prices. This suggests that monetary expansion as a means of financing public expenditure has serious linitiation in developing countries like Sri Lanka, because it leads to adverse effects on balance of payments, especially under conditions of increasing volume and prices of imports, relative to exports and scarcity of foreign exchange reserves. Consequently, a vicious circle develops requiring further expansion of the money supply to finance increasing public expenditure due to inflation which in turn results in excessive demand, 1ncreased expenditure on imports, and further inflation. In fact, Sri Lankan’s experience in more recent years can be appropriately described along these lines.

Page 26
come in 1973 compared to 25 per cent in 1978, while in the rural sector. the share of the bottom 60 per cent declined from 35 per cent in 1973 to 27 per cent in 1978/79. Among the estate sector households, on the other hand, there appears to be an improvement; the bottom 60 per cent of the population received 38 per cent of the total income in 1978 as against 34 per cent in 1973.
rage income garoW the 1973-78 peric of income data f Only possible Opt come distribution approach has Seri
Between 1973 of income growt Ween 13.7 per cen low income group the upper income
Table 3-PERCENTAGE OF ENCOME RECEIVED BY DEFFEREN N. URBAN, RURAL AND ESTATE SECTOR
1973
Urban Rural Estate Urbt
First 20 percent 5.1 5.3 7.5 3.8 Second 20 percent O 3 1.8 8.4 Third 20 percent 16. 8.0 重4.9 13.1 Fourth 20 percent 22.4 23.0 20.7 9.4 Fifth 20 percent 45.4 42. 45.1 55.3
Source: Constainer Finance Surreys, Central Bank of Ceylon.
The regional variation in income distribution as well as increasing disparity over time is another likely outcome in the early stages of rapid economic growth. Although economic growth activities are largely concentrated outside urban centers, the direction of income flow in most developing countries is in favor of urban households. After examining a number of empirical studies. Chenery (1974) concludes that rapid economic progress follows a transfer of income tO urban centers because of the concentration of institutional, financial, administrative and business and commercial activities in urban areas.
MEASUREMENTS OF
NFLATIONARY EFFECTS ON INCOME DISTRIBUTION
The paucity of data with sufficient accuracy and continuity is a majof limitation in an analysis dealing with inflationary effects on income distribution. For example, the latest data. On income distribution in Sri Lanka refer to 1978 whereas the inflationary tendencies became particularly prOn Ounced only after 1978. This demonstrates as to how data could be a limiting factor in measuring inflationary effects on income distribution. Due to this limitation it was necessary to adopt a rather disjointed approach in order to extend the effects Of inflation on income distribution beyond the period where data are available.
Table 4 presents the quintile mean incomes (for 1973. 1978 and 1980. While the 1973 and 1978 quintile mean incomes have been computed from the respective consumer finance surveys, the 1980 were derived by inflating the mean incomes Of different income groups by the annual average growth rates of respective income classes between 1973 and 1978. In other words, the 1980 income distribution has been projected assuming the continuity of ave
24
try as a whole. F disaggregation in rural and estate much wider rang cent (bottOn qui sector) to 22.0 pel tile in the urban growth increases to upper income ban and rural se estate Sector the creasing up to the turns into a dec after.
In Order to dira the effects of infla tribution, the rate is compared agail flation. In the abs flation index acc( price increases in comparison is ma, Colombo Consume the GNP implicit measures frequen measuring inflati growth Of Colom findex averaged 9. num during the 19 the GNP deflator rage rate of 13.6 num during the
Rates Of Inc.On Table 4 indicate
Table :
First 20 percent Second 20 per cent Third 20 percent Fourth 20 percent Fifth 20 percent
Notes: r-(115) In (Y
Y-r (Y, 197;
Source: Consumer F

sh prevailing during d. In the absence or 1980, this is the on to estimate ineven though this Ous limitations. and 1978, the rate h has varied bett per annum in the to 21.4 per cent in group for the c0 un
INCOME GROUPS
1978 f Ruir al Estate
3.7 8.1 8.7 3.2 4.2 16.7 20.8 22.1 52.7 39.9
Iowever, a regional
terms Of urban sectors indicates a e between 10.9 per ntile in the urban * cent (upper quinsector). The rate of
from low income groups in both urctors, while in the growth rate is in2 third quintile and ining trend there
W COnclusi Ons Of tion on income disof income growth ast the rate of inence Of a single înpunting for Overall the economy, this de in terms of the r Price Index and deflator, the two tly employed ilin Dn. The rate of O Consumer Price 3 per cent per an973-78 period, while recorded an aveper cent per anSame period.
2 growth shown in hat all income
tor, however,
groups are above the average annual flation rate between 1973 and 1978 When measured in terme of CPI. Income groups in the upper quintiles at national level (as well as in all three sectors) experienced a signficantly impressive growth rate compared to the CPI. However, when the comparison is made in terms Of GNP implicit deflator of 13.6 pero cent per annum, the average 1ncome growth of the lowest 20 per cent barely kept pace with the average inflation rate. When income distribultion is di Saggregated in terms of the three sectOrS, and about 55 per cent of the urban Sector fell below the average rate Of inflation. This mplies a reduction in real income of the households in these categories All income groups in the estate secmaintained incOne growth rates above the average annual inflation rate.
The rate of inflation accelerated after 1978 and all indicies depicting the rate Of inflation recOrde. Ulri precedented încreases ranging from 9.5 per cent per annum to 19.0 per cent per annum for 1979 and 26.1 per cent to 37.8 per cent per annum for 1980 (Table 1). At 9.5 per cent per annum în 1979, inflation has not adversely affected any particular încome group, but at 19.0 per cent per annum a number of income groups appear to have suffered and their income levels have heen reduced by varying degrees. With the rate of inflation for 1980 varying between 26 per cent to 378 per cent in terms of different indicies, almost all income groups have been affected. The loss in real income ranges between 12 and 25 per cent and between 5 per cent and 17 per cent among dif. ferent income groups.
As previously noted, inflation affects different income groups differently depending on their consumer needs and income levels. However, when the prices of basic necessities rise, low income groups experience greater difficulties than upper income households due to their inabilitv to accommodate increased cost, Furthermore... almost the entire budget of the low income groups s spent on their basic necessities and increasing cost means declining real
-INCOME DISTRIBUTION BY INCOME GROUPS (MEAN MONTHLY INCOMES IN RUPEES)
1978үү 1973); Where Y,
1980
1973 1978 Average
Growth Estimate Rate
(r) (y)
56.0 22.0 13.7 58.0 115.0 262.0 14.6 344.0 180.0 411.0 14.7 541.0 264.0 630.0 15.6 842.0 522.0 1679.0 21.4 2475.0
represents qintile mean incomes of respective o income classes. ); where x is equal to 2
fiance Surveys and own computation.
EconoMIC REVIEw, APRIL 1982

Page 27
Table 5-ESTIMATES OF PRICE INCREASES OF BASIC NEE
1978 Proportion of Expenditure 1978 Meari Of Exрета Incomes iture
(Rs...) Food Clothing Energy (Rs.)
Low income Group 22.0 62.8 49 5.4 90 Middle Income Group 630.0 53.4. 9.4 4.5 424 Upper income Group 679.0 25.9 8.6 2.0 613
Source:
Consumer Finance Survey 1978, Central Bank of Ceylon.
See Note below for computational procedure.
ΝΟΤΕ
. The 1980 estimates of expenditure on food, clothing and energy were b computational procedure:
FCE
1980 - Y F (FI) Y C (CI) Y E (EI
1 — — II i ( -) (--- (ལ་ལས་ཁ་ཁ་ས་ཁ) (FI) (CI) (EI)
0 O { Where FCE = Expenditure on food, clothing and energy in 1980 Yi = Mean incomes of income groups Fi = Proportion of expenditure or food Ci = Proportion of expenditure on clothing Ei = Proportion of expenditure on energy FI1,CIl.EI 1 = Index numbers (CPI) of food, clothing, and energy for FIO, CIo, EO = Index numbers (CPI) of food, clothing, and energy for
2. Evaluation of Calorie Ietake of the Food Stamp Recipient
Quartities Calories
1. Aduit Recepients - - -
1979
Ou
Rice 8.0 745 Flour|Bread 2.5 232 Total Calories - - - - 977 ܚܚܚܫܚ 1980 Calorie Intake as a percentage of 1979 2. Children between 8-12 years
Rice 8.9 745 Flour|Bread 2.5 232 Sugar 2.0 2O7 Total Calories 1184 ܚ 1980 Calorie Intake as percentage of 1979 3. Children below 8 years
Rice - - - 8.0 745 Four Bread 2.5 232 Sugar 2.0 2O7 Milk Foods 1.0 66, Total Calories - 1250
1980 Calorie intake as a percentage of 1979
standards, since the rate of income growth of low income groups is uSually below the rate of inflation. This is clearly demonstrated in the figures of Table 5 in which the household monthly expenditure on food, clothing and fuel have been estimated on the basis of expenditure share of the respective household budgets of low, middle and upper income households. In the case of the low income group, a 44 per cent increase in nominal income is necessary to keep them at the 1978 standard, while the upper income group requires Only a 39 per cent increase.
(a) Effects of Inflation on Fond Consumirtinn
Food consumption has been a maior area of concern of the respective governments for almost 30 years since the Second World War. Under the food subsidy program maintained by the government from 1942 to 1979, there was a more direct government role in food consumption
ECONOMIC REVIEw, APRIL 1982
since the food subs based on the Supply basic food items ei Subsidized rates. Scheme, which repl program, on the ot basically an income for low income ho as those who receive per month, since t provides the housel cashable coupons. A are enrolled in this ing that apprOxima of the population i ceives less than RS The majority of the cipients are adults
5/ The cost of food gained 25.8 point: per cent in 1979. reported a drama points. This repr However, the inde

DS 1977-1980 *
1980 - Expend
iture Rate of (Rs...) Increase
30 44 606 43 852 39
ased on the following
1980 978.
1981 antities Calories
3.9 365 1.3 114 - 479 49
3.9 365 1.3 114 1.0 04 - 583
49
3.9 365 1.3 114 1.0 104 0.5 33 - 616 49
Sĩdy COIìCept Wa.S 7 of quantities of ther free or at "he Food Stamp aced the subsidy her hand, is support scheme useholds, defined : less than R.S. 300 he new program holds with ΘΙΩAbout 7.4 million program implyvitely 52 per cent in Sri Lanka re. 300 per month. e food stamp rerepresenting 70
per cent of the total in the program, followed by children under 8 years accounting for 19.6 per cent, and the balance 20.5 per cent by children between 8 and 12 years. The composition of food stamps recipients with a greater population of adults appears to be the major reason in the high demand for rice, flour and sugar and the relatively low demand for milk rroducts.
One of the major disadvantages of the Food Stamp Scheme, especially from the point of view of food conSumption and nutritional status Of low income groups, is that the value of food Stamps is fixed in monetary terms. The prices of basic food items, on the other hand have been almost entirely determined by the Supply and demand conditions ΟΥ market forces after the removal Of Subsidies. Given food stamps fixed in monetary forms rising food orices inevitably lead to a reduction of purchasing power of food Stamos. This is now becoming a major policy concern. Although there was popular support for the Food Stamp Scheme at its inception, the information coming out from Surveys indicate that this support is losing ground. For example, according to the recent survey conducted by the Food and Nutrition Division of the Ministry of Plan Implementation, only about 31.8 per cent of the stamp holders are now in favor Of the food stamps, while 38.5 per cent indicated a preference for the previous food subsidy program. The balance * 29.7 per cent were indifferent
Compared against the rice subsidy program the Food Stamp Scheme is a fairly flexible program since the
consumer has the option of choosing
among several consumer items. This appears to be the reason for wir Asr read acceptance of food
stamps at the beginning, but the scheme is now viewed less favorably due to rising prices of almost all commodities available under the prOgram 5.
A COmpari SOn Of the purchaSfIng power of food stamps in terms of calore intake indicates the rapidly declining role of food stamps as a means of assisting to maintain food consumption needs of low income households. In 1979, for example, food stamps would have contributed about 50 per cent of the total calorie intake for adultS, 60 per cent for children between 8 to 12 years, and 75 per cent for children below 8 years. Assuming that consumption preference remains un changed food stamps can now provide only about
index, which takes into account the changes in food prices, s in 1979 increasing from 237.5 per cent in 1978 to 263.3
This represents an increase of around 11 per cent in 1979.
tic gain of 76.4 points in 1980 over 1979
recording 339.7
esents almost a 30 per cent increase in the average price
x reported of aroun
of food.
25

Page 28
49 per cent of calories of food stamp recipients in general, compared to the 1979 contribution, due to the almost doubling of food prices between 1979 and 1981. (See note below table 5 for computation).
Although the above discussion does not lead to any firm conclusions about the effects of inflation on 1ncome distribution, the tentative picture that merges indicates that inflation, to a greater extent, affects income distribution of low income groups. Given the low per capita income.S. inflation means a reduction of their relative living standards since the rate of income growth often lags behind the rate of inflation. Accordingly, the concern about the effects of inflation on low income groupS stems from these consideratiOnS.
In most developing nations, the low income groups belong to four distinct economic groups: the landlesS, rural farmers, the urban underemployed, and employed. These groups are seldom benefited θγΘΙΩ with rapid economic development and in fact, according to cross country experience, are adversely affected in the early stages of economic growth. Furthermore, since inflation is another pOSsible development accompanying economic growth, OW income groups are affected by economic growth as well as increasing inflation. This is the basic reason for the increasing concern about the need to focus on target poverty groups in development policies of developing nations. It should be noted, however, that the scope of public policies aimed at redistribution of existing income and wealth in any significant role is highly limited and politically infea Sible. A shift in sectoral emphasis in resource allocation also may not help to im– prove income distribution or welfare of low income groups. For example, if a project is located in a rural area but is heavily dependent upon capital intensive modes of production, skilled workers, sophisticated technology and services that are usually found in urhan areas, the investment in a rural project is likely to lead to a weak linkage between the project activities and the target poverty groups in the area. Consequently, the location of the project even to a relatively poor geographical region may not bring significant improvements in the welfare of the poor. AS Chenery (1974) points out. growth with distribution is possible provided that development policies focus On: (a) physical investment or infrastructural development. (b) investment in capital to raise Skill level (c) increasing access to production inputs such as seeds, fertilizer and credit, and (d) development and utilization of domestic resources and technology. A greater emphasis in these areas will facilitate the in
26
Creased partici poor in the deve that the benefits activities will din ln COme groupS, to minimize the rapid economic inflation
CONCLUSION
This Paper bro flation and incon the objective of : of inflation. On After discussing
flation and in the analysis exa extent to Whic
affected by risin; derable attention
DATA AND MET
This anally Si, upon published a om income distri and household e. tion, data orn, S. economic indica frOm. Q7272 ual Ce and re)ieus.
The data, baS a result, the scop be severely curta ded Workc Pld liminary resear most Serious p? uvas the lack of tribution and ho after 1978 phen gathered momen come distribution assuming that it groupth continued
1978.
The problem, data substantiall: tical strength
References %
به هر 1. Chenery, H. RedistriÜbutîO
ford Univers
2. Fan, L. S. (1 | formance în mies: A Qu: proach”, Q. Economic d.
i mer.
3. Kaldor, N.
EcOnOmic (
స- մՕ11777 dl, Jut:
4. Kirkpatrick,
F. I. “The
in Less Dev Selective R in Open Ecc kin and G. versity Press
5. Marga, An
of Poverty in ga Publicati

pation of the rural lopment process SO Of economic growth ectly accrue to low thus helping to adverse effects of growth and high
adly dealt with Inhe distribution with Lssessing the effects low income groups, the trends in income distribution, mined broadly the h hOu Seh Olds are g inflation. Consiwas given to the
effects of inflation on food consumption, since this relationship is judged among the most important and thus, is a frequently discussed issue. This analytical investigation appears to support the widespread concern that low income groups are adversely affected by rising inflation as well as rapid economic growth. Even during the periods of rapid economic expansion, the income growth of low income groups has been considerably below the rate of inflation, Suggesting the likelihood of adverse effects of inflation. On these income groupS. It is therefore imperative to design appropriate policies specially aimed at raising the income level of low incorne groups in order to prevent the decline of living standards.
HODOLOGY
s largely depends ned unpublished data pution, price indi CeS, icpenditure. In add2peral Other mita(CrOtors apere " obtained :ntral Bank reports
e DCS ver? Deak, dS le of analySiS had tO illed from the intenoutlined in the prech, proposal. The *Oblem. data От ітсоте disusehold eacpenditures the rate of inflation tus. Therefore, inhad to be projected he trend in income i betudeen 1973 and
s associated aljith the y reduced the analyand comprehenste
A.
encountered
ness of the analysis. However, an attempt has been made to utilize
the available data in the best possi
ble manner, employing a fe2) simple statistical techniques and deriving tentative conclusions. As a first step, inflation is defined and measured in terms of Several indices to make a comparative assessment of the recent inflationary tendency. This is followed by an analytical investigation of income distribution, providsing an inter-temporal comparison of relative changes in income distribuίίοη αηλοηρ αίfferenί ιησοηιe grouιρS both at national and regional level. The regional breakdoun is in terms of urban, rural and estate sectors, This follous a projection of income distribution for 1980 and this (profected income distribution) is then compared with the rates of inflation to assess the net effects of inflation on income distribution. The final section concentrates om effects of inflation om household er penditure on basic needs with specific reference to lou) income households.
B. et al. (1974) pa ujith Grouth (Oxíty PreSS).
970) “Monetary Per
Developing Econoantity Theory Aptarterly Revoteu) of 2d Business. Salm
(1959) “A MO del Of 3rowth”, Economic J.
C. H. and Nixon, Origins of Inflation eloped Countries: A eview nomies, by M. Par
Inflation
is (Manchester Uni... 1976).
alytical Description Sri Lanka (A MarOn 1980).
6. Ministry of Plan Implementation, Nutritional Status, its Determinants and Interventi Or
Programmes, 1980
Ministry of Plan Implementation, Evaluation of the Food Stamp Scheme, F and NPP DivlSion, 1981.
The Central Bank Of Ceylon. Survey of Sri Lankca's Consumer Finances 1973 and 1978 -(Unpublished). 2
Thirlwall, A. P. (1974) Inflation, Saving and Groupth in Det elloping Economies, Macmillan.
Thorp, R. (1971) "Inflation, and the Financing of Economic Developmento, in K. Griffin (ed), Financing Development in Latin America, Macmillan
11. Tobin, J. (1965), “Money and ಖ್ವಲ್ಗte Growth”, EconometriCld, 33.
ECONOMIC REVIEW, APRIL 1982
10.

Page 29
The Large Towns in Sri Lanka
M. W. J. G. Mendis
The considerable shift in public investment towards urban development programmes in recent years has raised many issues from the economists' and urban planners' points of view. In this paper Professor Willie Mendis, Head of the Town and Country Planning Department, University of Moratuwa, discusses the trends resulting from this shift and consequent processes of urbanisation and emphasises the importance of national spatial strategies in this context. One of his findings of interest is that there has been no excessive growth in the "Big Towns' and therefore a polarisation of very large populations has not occured in them. He calls for a national urban growth strategy, to facilitate “promotional urban development, in order to realise 'the full potential of specific regional areas.
It is now recognised that although much attention in research has been focussed on the urban sec
tor in recent years, actual public investment in it had been “somewhat neglected' in Sri Lanka. (1)
Hence the inclusion by the present Government of a substantial share of public investment in two urban programmes, (Out Of its three lead projects). represents a dramatic reallocation of resources, both sectorally and spatially. In this situation the study of how this shift will influence the process of urbanisation has become most necessary. MOre particularly, the focussing Of attention. On city-size classes has become relevant, both to cope with “big city' problems and also in promoting national spatial integration.
In the above context, the specific Study of the large towns will be of much use to planners.
Theoretically, the greater the population, the more likely will there be certain advantages in the city which many persons seek to share. A big city could be expected to offer a quality market for just about all the basic elements which any individual believes essential to his happiness. One is also familiar with many development agencies in the urban complexes announcing the availability of "lenty of labour' in
order to attract investments. The GCEC is one such agency. (2) Further it is argued that the “Big Towns' (see tables) offer greater
prospects for improved economic welfare and increased local prosperity. However, while such arguments hold some truth, it is also known that “exploding cities' conform to the law of diminishing return.S.
ECONOMIC REVIEW, APRIL 1982
In the above C Search is needed to Situation. Of the “B. Lanka. It will revea Our towns reached t also what their chá Hence, this Paper contribte to Such k.
It will also exar issues related to the Big Towns in strat development.
CITY SIZE CILA AND DISREBUT
IN SRI L
Using the defin used in the nation: data indicate that S 43 towns in 1953; 9 1971; and 134 in thOSe cenSus years tion of the towns W South-Western Cն: country, which C wet-zone. Thus in 1 towns were located tricts of the wetsix towns in the f Of the dry-ZOne.
The polarisati the Wet-zone has tuated in the dist Kalutara and Gam) 38 towns in 1981. ( tricts in Sri Lanka
In terms of cit tion, the situation dependence period : 1. It indicates tha the share of the l live in small cities below 50.000 perSO) number of tOWns a size population we 10WS:
TOW Colombo City Dehiwela-Mt. Lavin Moratuwa. Jaffna
Kotte
Kandy
Galle Negombo Battramouilla Maharagama,
On the proposi vide in city-size c) Ween towns in th Other town is 100 then the number C
(1) Population Resooriya, Secret:
(2) “Sri Lanka’s ] (3) Government a

ircumstance, recomprehend the ig Towns' in Sri all how many of he big league and aracteristics are. Will attempt to nowledge.
nine the plannin
» utilisation of the egies for national
SSIFICATION ON OF TOWNS ANKA
ition of urban aS all census, recent Sri Lanka has had 9 in 1963; 135 in L981. In each of a large prOpOrere located in the adrant of the orresponds to its 981, seventy-eight L in the ten di Szone, and fiftyOurteen districtS
on of tOwns in Dee Ore a CCerricts of Colombo, paha, which had See Map for Disа).
y-size classificain the post-inis shown in Table it more than half urban population Of various rangeS ns. In 1981, the it or above 50,000 re ten as fol
Population
385,776
ia 174,385 135,610 118,215 101,563 101,281 77,183
61,376
56,535
49,984
tiOn that the diassification bette big league and ,000 population, of “Big Towns' in
Sri Lanka is only six. These being, Colombo, Dehiwela-Mt. Lavinia. Moratuwa, Kotte, Jaffna, and Kandy. Of them, the first four are situated contiguously in the urban region of Colombo. Further it is also noted that five are situated in the Wet Zone and only Jaffna is in the Dry Zone. In addition four are coastal towns and two are inland towns.
By status. Colombo enjoys primacy and was until very recently the "capital city' of Sri Lanka. (3) It is now the Commercial Centre of the country. Kotte is the new capital city and also the Administrative centre of the country. Kandy was the capital Of the last Sinalese Kingdom of Sri Lanka. Further, four Of the big towns are Municipalities and only
Moratuwa and i KOtte are Urban Councils.
RATE OF ENTRY INTO THE
BIG LEAGUE
Census data indicate that Colombo city has always belonged to the big league. In fact it had a population of 110,502 even in 1881.
The entry of the next town ìnto the big league was in 1963, when Dehiwela-Mt. Lavinia reached the size of 110,934. Thus, it had taken over eight decades after Colombo, for this Occurrence.
The third town to enter the big league was Jaffna, when in 1971 it reached a population of 107,184. It's entry occurred nine decades after Colombo and eight years after Delhiwela-Mt. Lavinia.
The fourth, fift and sixth towns made their entry only in 1981 when the populations of Moratuwa, Kotte and Kandy exceeded 100,000 in each. These occurred 100 years after ColOmbo, two decades after DehiwelaMt. Lavinia, and a decade after Jaffna. In this connection, it is also Worth noting that the actual population of Moratuwa exceeded that of Jaffna, in 1981.
The rates of entry of the six towns into the big league shows an acceleration after 1971 (See Table
2). However, the study of the Other towns between 50,000 and 100,000 populations indicate that
other than by rolanned urban growth it is most unlikely that any more will join the big league until the turn of the century. Furthermore, even considering a consciously planned re-distribution of population as per a well conceived national urban growth strategy, it is unlikely that more than two other towns, (possibly, Galle Rand Trincomalee), will the big league before the Year ,000.
distribution Policies and Measures in Sri Lanka, Dr. W. Weera
ry,
Ministry of Plan Implementation, 1980, P. 9.
investment Promotion Zones', GCEC, 1980, P. 15. nnouncement as reported in the “SUN” of 15th January 1982.
27

Page 30
Table 1—-IDISTRIBUTION OF URbAN POPULATTION A(
Number of towns Population . Percentage of total urban Number of towns Population Percentage of total urban Number of towns Population Percentage of total urban Number of towns Population Percentage of total urban Number of towns Population Percentage of total urban
1946
1953
1963 197
1981
Below 2,000
3. 5,173 O.2
Sources: Population of Sri Lanka Country Monograph Series, Mo. 4, UN
198.
Accordingly, the national urban hierarchy in Sri Lanka will contain a dispersed network of Small which
medium sized towns
Department of Census and Statistics, Colombo 1981.
Table 3-POPU
and
Will Name of Town
accommodate a larger share of the
future increaSes in urban tion.
pOpula
This proposition is based On the belief that the Mahaveli
and Colombo
other agro-based development programmes will enable the rural masses
to upgrade their quality of life
in
their Own environment rather than
through mass migration to the big
urban area.S.
On the other hand, a failure of
Dehiwella Mt. Lavinia
the agro-based schemes through natural disasters, extremely high energy costs, or massive inflation, may accelerate the entry of mere towns
into the big league.
CHARA(`STERISTICSN . (ha" THE
BIG SX TOWNS
The pattern of growth of Big Six towns in the last inter
indicate tat
censal period
average annual rate of growth of each one except that of Moratuwa
and Dehiwela-Mt.
rate for the national urban popula
Lavinia, been lower than the corresponding
ti On. (4) MOratuwa has had a dra
matic rate of growth of 4.1%
annum which was nearly 3.5 times
the rate for the national
population. tiUn in MOratuwa, cOuld be
The exceptional
Moratuwa
the
Jafna
the
has
Kotte
per
urban Situa- Kand attribut- andy
able to the establishment of a major housing estate (at De Soysa Pura).
new in rustrial fact nries.
training
institutions, and government offices.
Table 2-RATE OF ENTRY
Name of Big Town
Colombo City Dehiwela-Mt. Lavinia Moratuwa Jafna
Kotte
Kandy
Note: X...... Denotes population
28
INTo BIG TowN STA
Population at Census Y
1946 1953 1963
362,074 426,127 511,644 Χ X 110,934 Χ Χ Χ Χ Χ Χ Χ X X Χ Χ Χ
below 100,000 persons.

CORDING TO SIZE OF TOWNS, SRI LANKA 1946-1981 ,000 to 5,000 to 10,000 to 20,000 to 50,000 to 100,000 to All
1,999 9,999 19,999 49,999 99,999 and over Towns
9 7 13 5 4 42 28,386 55.874 174,598 177,123 221,388 362,074 1,023,044 2.8 5.5 17.1 17.3 21.6 35.4 100.0 8 4. 15 6 6 43 28,338 29,691 213,150 154,727 383,038 426,127 1,239,133 2.3 2.4 17.2 2.5 30.9 34.4 100.0 2. 23 21 18 5 2 99 74,681 158,280 278,153 .487,986 379,265 622,578 2,016,285 3.7 7.9 3.8 24.2 18.8 30.9 100.0 32 30 34 25 5 3 135 104,095 215,848 499,561 781,874. 411,311 823,798 2.848,116 3.7 .6 17.5 27.5 14.4 28.9 100.0 28 28 35 31 3 6 134. 90,518 199,189 511,138 976.957 195,094 1,216,830 3,194,999 2.8 6.3 16.0 30.5 6.1 38. 100.0
-ESCAP, Bangkok, Thailand. 1976 and Census of Population and Housing
LATION GROWTH IN THE SX “BG TOWNS OF SR LANKA
Census Year
1946 1953 1963 1971 1981
1946 1953 1963 1971 1981
1946 1953 1963 1971 1981
1946 1953 1963 1971 1981
1946 1953 1963 1971 1981
1946 1953 1963 1971 1981
TUS
(IS
1971
562,420 154,194
Χ 107,184
Χ
Χ
Population
362074. 42627 511644 562420 585776
5688 78213 110934 1541.94 174385
50698 60215 778.33 96.267 135610
62543 77811 94.670 O7184 118215
40218 5438 73324. 93680 101563
51266 57200 682O2 93303 101,281
1981
585,776 174,385 135,610 118,215 101,563 101,281
Inter-cenSal increase Average Remarks Total Percentage Annual Growth Rate %,
64053 7.69 2.5 Population 855.17 20.0 2.0 increasing 50776 9.9 1.2 at a 23356 4.1 0.4 decreasing
rate
Population 2332 37.5 5.3 increasing 32721 4.1.8 4.2 at a 43260 38.9 4,8 decreasing 2019 13.0 1.3 rate.
Population 9517 18.7 2.7 increasing 17618 29.0 2.9 at an 18434 23.7 3.0 increasing 39343 40.8 4. rate.
Population 5268 24.4 3.5 increasing 16859 21.6 2.2 at a 12514 13.0 1.6 decreasing
103 10.0 1.0 rate.
Population 41.63 35.O. 5.O. increasing 18943 34.8 3.5 at a 20356 27.7 3.5 decreasing
7883 8.4 0.8 rate.
Population 5934 1.6 1.7 increasing 11002 19.0 1.9 at a 251O. 36.8 4.6 decreasing
7978 8.5 0.9 rate.
In terms of population increases in absolute numbers, Moratuwa has added the most in the last inter-censal period with ColOmbo having the next largest addition.
However, in each . of the Big Six towns except that of Moratuwa, the population is increasing at a decreasing rate. (See Table 3). The actual drop in the growth rates have been dramatic in all those towns.
ECONOMIC Review, APRIL 1982

Page 31
Presently (1981), the Big Six Towns accommodate, 1.22 million persons or 37.5% of the total urban population or 8% of the national population. Of this, nearly half
Or 600,000 perSons were added in
the post-independence period 19461981. (see Table 4). The latter represents 27%. Of the increase in the total urban population and 7% of the increase in national popula
(4) The annual average growth rate or the national urban population in the last inter-censa period (1971-1981) WaS 1.2%.
tlon. The average rate of absorption into the Big Six Towns has thus been about 17.000 persons per annum, in the post-independence period. However, with the increase in population at a decreasing rate, the Big Six towns are unlikely to have similar rates of absorption in the next two decades. It is m0re likely that the future rate of absorption may be about 10,000 persons per annum. AccOrdingly, the probable size of population in the Big Towns at the end of this century will be about 1.5 million or just under 1/3rd the forecast total urban population of approximately 5.0 million at that time.
The slow rate of growth of population in five of the Big Six Towns suggests that levels of Saturation conditioned by existing situations have been reached in each of them. On the other hand the prevailing (1981) population densities in them are not indicative Qf this situation. Thus Colombo, Dehiwela-Mt. Lavinia, Moratuwa, Jaffna. Kotte and Kandy, have gross population densities of 64, 34 42 24, 26 and 16 persons per acre respectively. In this situation, the study of the landuse patterns of the Big Six Towns is necessary to ascertain other underlving reasons for the slow rate of growth.
Thus, recently classified landuse patterns in each of the Big Six Towns show that more than 75% of te land comprise residential, marshes, parks and other reSerwations and roads. (See Table 5). Hence, the capacity to absorb increases in population becomes limited. In Such a context, the absorption of future populations will result in sub-divisions, high prices of land, and higher occupancy rates in dwellings (through rentals of parts of dwellings).
THE BIG TOWNS AND
NATIONAL SPATAL STRATEGES جر
City sizes have played a key role in fashioning national spatial strategies in many countries of the world. Thus, there have been conscious efforts to contain cities within "preferred sizes' or "optimal sizes'. Further, excessive polarisation in cities have been overcome by
EconoMIC REVIEw, APRIL 1982
dispersion policies. "growth centers' loped as part of a growth strategy. H actions have evolve sideration of city the national space
In this connec wation of what is the Big Six Towns
 

I LANKA ADMINISTRATIVE DISTRICTS
REFERENCE
District Boundary Ooo South Western. Quadra
Large Towns
LAM, -, , POLONNARUWA
DRY ZONE
やっ-4
KURUNEGALA
KANDY
Kandy A1
KEliALLA
N<محےح~
. VA WEE ZONE) e.
ཚེ་༽ TANUWARA \s*\`ELIYA
M RATNAPURA
II) addition, show that they do mot have exhave been deve- cessive growth. The polarisation ef, national urban fect has also not been very great 2nce, all of these due to the various processes which 2d out of a con- have been triggered off by several sizes to develop policies of successive Governments. economy. However, the core region of Col:tion the obser- ombo which contain four of the Big happening in Six Towns, has acted in concert to ; in Sri Lanka pull a large population and there
29

Page 32
Table 4-NTER CENSAL INCREASES IN POPU
Name of Town
Colombo - - - Dehiwela-Mt. Lavinia Moratuwa
Jafna
Kotte
Kandy 3. « » Total “Big Six'' Towns
Share of inter-Censal Increase in Big Towns as Share of Increase
in Total Population (%) 8 r
Share of Inter-Censal Increase in Big Towns as Share of Increase
in Urban Population (%)
by serve as a single platform of urban concentration. Such a nolitic urban settlement, While having advantages, may also have diminishing returns.
In respect of the Big Towns outside Colombo, it is significant to note that there also exist no excessive effects of polarisation. On Jaffna and Kandy. However, it will be relevant to conduct further Studies to determine whether Suburban expansion has begun around them.
In this situation, the Big Six Towns in Sri Lanka, seem to exist with no known effort being made to consciously link them with the network of Small and medium size tOWns, in the context of a national Spatial strategy. If the latter existed, then the Big Six Towns could Stimulate the commercialisation and marketing of agricultural Output; the provision of high-Order services to residents of the peripheral region; the promotion of national spatial integration and decentralisation of job opportunities; and the more equitable distribution of economic Welfare among urban areas and among regions.
For such purpose, the Big Six Towns need to be spatially integrated with the existing network Of Small and medium sized towns in the country. In this connection, the towns now being developed in the
Accelerated Mahaweli Programme become very significant as the dry-ZOne presently lacks adequ
ate numbers of the different city sizes for effective integration. The eastern sector of the dry-zone could then actively promote the growth of one Big Town as none presently exist. The obvious choice would be Trincomalee with a current population of 45,000 persons. In a similar manner, another Big Town in South Sri Lanka, will also be desirable. This choice could west with Galle, with a current population of 77,000 perSOS,
Thus, an appropriate national urban growth strategy that would complete a broader national Spa
mO
tial strategy, will scious developme TOWns in the COr and also Jaffna, Trincomalee. The spatially integr: sizes of tOWns regions.
Table 5-PERCENT
Name of Big Town
Colombo (a) - Dehiwellaf Mt. Lavinia Moratuwa (b) Jafna (b)
Kotte (a) Kandy (a)
Notes: (a) Survey (b) Survey
(c) Include
Surveys ca tuwa, and
The adoptio strategy will resu mand fOr the a ces fOr urban des a great COmnitr Inade and need in the Colombo Such actions able Strains On able resOurces. also provide the c quired to broad economy so tha entials could be such a context, Sources may in cessary. The la and viable due vantages Of Spati cieS mentiOned
CONCLUS RECOMM The conclusic the discuSSiOn, in the following:
Sources:
(5) A study done by Gunadasa (1981) indicated the estimate "approved' building projects by the private sector in thi Colombo and in the immediate urban region is Rs. 6
excludes: the Free Trade.
30
Zone, and public sector inve

LATION IN THE BIG SX' TOWNS IN SRI LANKA
Inter-Censal Increase in Population Total Increase 1946-53 1953-63 1963-71 1971-8 1953-1971 1946-98
64053 85517 50776 23356 136293 223702 21332 32721 43260 2019 75981 117504 9517 17618 18434 39343 36052 84.912 15268 16599 12.514 O31 29373 55672 4163 8943 20356 7883 39299 6,345 5934 10O2 25101 8260 361.03 50297 130267 182660 170441 0.064 35310 594432
9.0% 7.0% 8.0% 5.1% 7.8% 7.0%
60.3%, 23.5%, 20%, 31.7% 22% 27%
comprise the connt of the four Big e-region of Colombo.
Kandy, Galle and se in turn could be ated with the Other in their respective
Using a norm of 100,000 persons (or more) as being adequate for classifying a Sri Lankan town as a “Big Town', presently the country has six such Big Towns with a combined population of about one and a quarter million perSOS
Past trends indicate that no add
AGE OF TOTAL LAND IN SELECTED LAND-USE CATEGORIES
IN THE BIG TOWNS IN SRI LANKA s
Residential (%)
52.0 62.3 62.9 68.6 56.7 34.8
s carried out in 1979 s carried out in 1981 es area of Water bodies.
a (b) .
Total
Parks, water Marshes Roads bodies, (%) (%) (% Cermetarie; s and other Reservations
(%)
6.0 0. 5.0 73.0 4.6 亨.6 3.9 80.5 5.1 O 7.0 76.0 5.3 Nij 8.5 82.4 2.2 26.6 6.7 92.2 38.6 Ni 10.5 (c) 83.9
rried out by the Dept. of Town and Country Planning, University of Morathe Urban Development Authority.
in Of the abOVe ult in a massive delocation. Of resOurvelopment. Already,
ment haS been s to be continued urban region. (5)
may cause intolerdomestically availHowever, it could Omplementarity re-base the national t urban-rural potfully exploited. In reliance on external itially become netter will be justified to the several adial integration poliearlier. IONS AND ENDATIONS. ons arrived at from this Paper comprise
e Central Area of j,210 million. This estments. -
tional Big Towns are likely during this century, unless extra-ordinary i circumstances compel massive urbanward migration. On the other hand, the active promotion of an appropriate National Urban Growth Strategy may be desirable and could result in the addition of two more Big Towns by the year 2000; (these possibly being Galle and Trincomalee).
There is no excessive growth in the Big Towns and consequently the polarisation of very large populations in them have not occurred.
There is no excessive growth in the Big Towns and consequently the polari sation of very large population in them have not occurred.
There is no known spatia strategy to integrate the Big Six Towns with towns of other sizes, so as to achieve several known advantages.
The recommendations arising from this Paper comprise the follow1Пg:
Promotional urban development is facilitated by agglomeration economies and hence the establishment of a National Urban Growth Strategy is recommended, -- ܥ ܀ ܀ ܀ ( ܀
EconoMic REvIEw, APRIL 1982

Page 33
The Use of A Desk Computer for Writing Vernacular Languag
ean-Pierre schaefer
This paper ... introduces a method for writing letters from a vernacular language is with the help of a tiesk computer. It is a simple, cheap and fast day of uriting, in various alphabets, a teact. A program has been de)eloped for Uriting in Sinhalese, and the mect application vill be for creating a botanical file of Food Plants of Sri Lanka. It is possible to use Such a method for many other alphabets, and for many others applications.
A NEW TOOL FOR
COMMUNICATION
The development of exchange of information is an important step for economical, Social and cultural progress. In many countries of the world, especially in
Hin the above connection, it is proposed that the Big Towns be incorporated in such a strategy with the active promotion of Galle and Trincomalee for entry into the big league.
The adoption of a Colombo-Trincomalee development axis combined with multi-polar urban growth focussing on Galle, Jaffna, and Kandy is recommended as a framework of the National Urban Growth strategy.
It is further recommended that development plans for defined macro-regions of the Big Town be formulated so as to realise the full potential of such regional areas and also to relate same to the national development plan. It is also recommended that resources necessary for development in the Big Towns be raised as far as possible through domestic sources, and sup
plemented with external resources where
wiable.
REFERENCES
Asia, it is rather With data resear and general info) - languages and W
different.
If Works are finding a link be ters and various the use of local the best support tion... It, very ofte! mistakes, especial fields.
But in One languages and W) found, and it is to realize quickly cumentS.
Warious kinds rust be used, wh: only in the count of this country.
rinter is not a working papers documents, and ... I'm Oney and en erg
Thus it may be way of writing a various alphabetS. V find equipment.
We think that ter (desk computer) for that purpose. . which are now in Ore mon, and cost less car, are used for sci gement purposes. Th print and draw: CO TV screen and/or : be taught to w
e.
This idea came following problem:
How could it be lize a file Of the fO IANKA (Ceylon) m.
1. City Size and National Spatial Strategies in Developing
Bank Staff Working Paper No. 252 by H. W. Richardson,
2. Population. Re-distribution
ea Colombo, July 1980.
3. Census of Population and Housing,
Statistics, Ministry of Plan
Policies and Measures in Sri Weerasooriya, Population Division, Ministry of Pla)
Sri Lanka - 1981, De Imple mentation; Colombo, Ju
4. Urbanisation in Sri Lanka, MWJG Mendis, in Progress Vol
try of Plan Implementation,
Colombo, December 1981.
5. Spatial Policy Issues in the Economic Development of Sl Mendis, in the Journal of Economic and Development Stu
No. 4, Colombo, June 1974.
6. Sri Lanka's Investment Promotion Zones, Greater Colombo
sion, 1980. 7. Urban Investment Promotional
for Post-Graduate
tuwa, September 1981.
EconoMIC REVIEw, APRIL 1982
Planning, PMG Gunadasa, Diploma in Urban Development, Un
 
 

eS
difficult to dea} ch, field survey, rmation work as ritings are very
in progress for 2tween latin letAsiatic alphabetS, Writings is still for communica(), avoids a lot of tly in scientific
country various ritings may be nOt an eaSy taSik multilingual da
of typewriters ich Can be fOund ry, or in On area Working with a good solution for Or provisional it costs time ፵y.
useful to find a utomatically, in With an easy-to
the minicomoulcould be used These machines, and in Ore conthan an average entific or manaLey Can calculate, Innected with a
a printer, they rite any charac
to light with the
possible to reaDd plants of SRI entioning Sinha
Countries, World April 1977. Lanka, Dr. Wick
in Implementation,
pt. of Census and
he 1981.
. 1 Issue 4. Minis
i Lanka, MWJG dies in Sri Lanka,
ECOnomic COImmis
Project. Submission iversity of Mora
lese - and Tamil i names, o Scientific names, i , " etc all on the same page? It is better to avoid Latin transcription of Sinhalese and Tamil names to avoid confusion, and it is not convenient to always refer to an index printed in One language.
Furthermore... all data, collected in Sri Lanka, were to be studied in France; for checking information with data from other countries, and type writers in Sinhalese and Tamil were not easily available.
A program has been conceived, on a minicomputer (Hewlett Packard 85), written in BASIC language, for using its screen and thermal printer as a Sinhalese typewriter.
This paper explains the specific example of the Sinhalese language, but it is rather easy to adapt the same program to any alphabetical languages.
For languages using ideogramms, the memory capacity might not be enough. In such case, increase of capacity or choice of equipment must be studied with specialists and computer dealers.
In its present state, the i program (on 1-7-1981) can only be used for writing Sinhalese as a typewriter would do, but it is possible to consider the following developments and applications:
* If links between a Latin and non Latin alphabet are firmly established transcription programs could be easily conceived.
The program could be educational : SOme grammatical mistakes c0uld be checked and manually Or semiautomatically corrected. (In Sinhalese, the use of the wrong vowel sign with a consonant).
* According to the memory capacity of the computer, various languages can be written at the same time.
* The method and the program are more likely to be used with Asiatic languages, as there are many alphabets used in that area of the world, but it enables any one in any part of the world (who can use a minicomputer) to Write in any characters or alphabet. For example in the archeological field, surveys and studies of various languages could benefit or be helped: cuneiform characters, hieroglyph in Egypt etc...
Readers of this paper are kindly invited to inform the author of any Other uses and of the various languages for which such a program could be useful) (Jean-Pierre SCHAEFER, 163, Digue de Mer, 59240, DUNKERQUE, i France). It might be possible
31

Page 34
that manufacturers of minicomputer would develop such applications if the demand is important.
This table has been conceived from a mnemonic system of letters mentioned in the Carter's Dictionary under the name of 2) o e5 (3) 3 c5 and it could be used if various specialists agree, as a basis for operating the program.
Therefore for keeping the letters 10, 18, 33, 39 and 40 to their traditional places, their lower part must be stored separately in the last section of the table.
Vowels have been placed in the empty cases of the table, (letters 26 to 30) at after the place number 39, signs and symbols useful for writing WOWels.
It will be very easy to add any other sign, to change any place or any shape of letters according to the remarks and critical issues made by the readers of this paper. Some letters, made with two others mght be added, various punctuation signs as well. (like &)
This alphabet has been designed
according to the following docuInents:
English-Sinhalese dictionary
- Carter Sinhalese through English
- - D. G. Wijeratine Sinhalese, the spoken idiom
- D. Garusinghe Say it in Sinhala
- D. Dahanayake. and some writing models by
-- R. Samara.wickrema.
HOW TO OPERATE THE
PROGRAM:
In its present state, according to user's choice, the program
selects first the chosen alphabet and prints it if required. For writing the user has to choose the position of the "pencil': Going forward, backward, up, down, skipping of one line, blank Space etc. ...... For the Sinhalese an automatic carriage advance has not been chosen as it is very often useful to stay on the same "place' (that is to say, close to the considered consonant for adding the vowel signs.
For the first program ("RANI l') it has not been planned as yet to program the various combinations of each vowel with each consOnant. By using floppy disks, it could be loossible.
The next step just consists in ehoosing the letter to be written by inputting a number (from 1 to 57), with the help of the above mentioned table.
The correction is very easy as it is just necessary to type again at the same place the wrong letter or
32
sign: as 1 + 1 if 0, a system, the place When the text entire page can b thermic printer printer.
WRITING A NON LANGUAGE: EXA
OF THE SINH THROUGH A MIN
The program loped on a HEWL) with a memOry Ca tets. This compute for data, and .
with a TV screen
printer (width of
For writing th bet, we use the eomposed of 191 l Each SinhaleSe Ch in a rectangle of each 16 points. A c is done for getti) two binary numbe) Such numbers are decimal equivalent
40 letters hav lowing Such a met designed in a rec Each letter is now
of 24 numbers. I change the design changing these nu
FN
symbols (vC a blank Space)
after design in a because of their S
10 symbols or 1.6 x 16 Square, are or under the cons
Two symbols added to letters 1 hand, and to lett On the Other. Thes large to be written gle. Thus they ha two parts for the
The program 1') enables us to just by typing a the following table
The blank sp with a 0 letter (li 4/) for saving tir in case of mista position.
 

cCOrding to binary is cleared of sign. is corrected, the ie c0pied On the Or any available
-LAN
MEPLERE
ALES
I COMPUTER:
has been deveETT PACKARD 85, pacity of 32 Koc*r uSing Cartridges program storage, and a small paper: 10,5 cm).
e Sinhalese alphaScreen which is ines of 256 points. aracter 1S de Sligned 12 lines including Oding with 0 and 1 ng for each lines, rs, each of 8 digits, StOre di aS, their ; in the memory,
e been coded, folhod. They were all tangle of 12 x 16.
stored by a group t is very easy to Of any letters by umbers.
)wels symbols and
have been coded 12 x 8 rectangle
mall size.) to a G
signs, coded in a to be added above Onant. (56, 57) must be 0 and 18 on One ers 33, 39 and 40 e 5 letters are too in 12 x 16 rectanve been “split' in following reason;
m (Called “RANI write the letters number, chosen in
و سمت
ÈIz e il ghi
l
s
*
კპ
C288
응
i
Vrs
38 / ARRI ERE I 59
N. : S.
3.Ce can be Written Sted under number le When Writing Or ke in the carriage
A special order called LABEL in BASIC language) enables to write a text in Latin letters on the screen.
For Writing at the time with other languages (alphabets) the same Coding must be realised for the chosen languages. It is planned to develop Tamil writing, and per
haps the Hindi as well for the next Step of this program.
The equipment used for developing this program costs approximately, in France, (at the date of the 1/4/1981) 30,000 French Francs (inclusive taxes) that is to say 90,000 Ceylon Rupees.
The blank cartridges cost 150FF (450 Rs.) and have a capacity of 210 Koctets (the programm with the datas using 10 Koctets). Equipped with a good printer, the set costs less than a motor car (Peugeot 504) and consumes less energy than a 100 Watt bulb
APPLICATION FOR, EDITING A
BOTANICAL BILL
The below mentioned examples of Some botanical names of plants of Sri Lanka show how such a system could be used. If enough people come to the conclusion that Such a system could be useful, the work Will go On, with the help of any willing specialist. Thus it could be possible to realize easily a data bank of plants of Sri Lanka, with names of plants in various languages
wRITING VERNACULAR.
ANGUAGES
Writing languages · uSling non Latin alphabets is rather difficult as there are few typewriter available, and printing is not of much use for documents dedicated to a Small audience. It is often useful to use the appropriate alphabet for Writing names and words of a definite la Iguage.
Therefore it might be useful to use a desk computer as a type-Writer: With Hewlett Packard computer (HP 85), using the order BEPLOT, it is possible to draw any letter of any language. Each letter gets a code number, according to its place in the traditional alphabet. An alphabetical table is printed, gathering letters, symbols and others useful signs.
By using the code number mentioned in this table it is very easy to write any letter, thus any words. Orders for moving the "pen' over the "paper' (either TV set or printer) can be entered with the numbers from 6() to 64. At any moment of the Writing, it is possible to add any text in Latin letters.
There is an automatic "carriage" advance, from left to right or from right to left, according to languages.
EconoMIC REVIEw, APRIL 1982

Page 35
ARTOCHRPUS MOBILIS |G
OLHIN ZEYLHINICH 3.
CELOSIH ARGEETER 3.
TRIANTHEMA PORTULIROIRSTRUM t
TRIANTHEMA DECANDRH
NYMPHAEA STELIATA
SESIBHINIA GRANDIFLURH
MUXUMA PFU PITA
FICUS PACEMOSA
CITRUT ORENATIFOLIA 长
BRIDELIA PETUSA
As at October, 1981, the follow1ng languages can be written:
Sinhale Se: 4) LetterS
matrix 12 x 16 points) G SymbOlS (matrix 12 x 8 points) i) SymbOlls (matrix 16 x 16 points)
Jaldiivian o 24 letters, (matrix 21 x 16 points) 12 SymbOS. (matrix 10 x 16 pointSh the Maldivian language is written from right to left). Cyrillic : 46 letters
matrix 7 x 8 points (apart from the Russian alphabet, letters used in Serbian Ukrainian lalinguages etc... have been added) 6 Signs
natrix 9 x 8 points).
The programm should be exten(Ge( f Or :
Filing texts tanguage's - Switching fron one alphabet to another, either automaticalby or partly automatically.
Written in any
Zone reservée aux voyelles
Area reserved for voyels
Cinghalais/Sinha lese
O | O O
● O O O O G O 9 இ) இ O l2 O 0 O, GO GO! () O O ● O O O () ) () O O. e O
O O Oe es e o e இ இ9
--s l 6 -W
-
ECONOMIC REVIEw, APRIL 1982
SINHALE
ALPHABE
{Any advice C welcome by the
Other langua ln progreSS alre other Indian lar
The diagrams OuS alphabets alir following drawing atters have been to the languages vian, Cyrillic.
Maldivil
(...)
(
(
( O O
l2Symbolis
Sinhalese.
& Letters (matrix fi Swimb Olls {matri
Such neth Odi many alphabetical ding languages na ls rather simple : Orne machine can many languageS. that a special CO) signed just for

• ච ඡ ජ නැද කද
ණ ත ථ උ ය. න
ම අ ඉ ඊ එ ඔ
ශ ෂ ස හ ළ උ
à ම
. المسيحية
SE ALPHABET -
ET SINGHALATS
Dr COmments will be
author).
ges where work is HINDI, TAMIL and lgllageS.
Show the vari'eady available. The S show how the
designed, according Sinhalese, Maldi
Θ Ι
ஒ ஓ இ 3 ଶ୍ରେତ ୧୫
இ) இ
O
12 x 16 points) X 12 x 8 points
can be applied to languages (incluIn Ore in use). It nd econOmical, as be used for writing it can be expected nputer will be deWriting languages
l'ut until such equipment is available on the international market, such a method could be of some use for a research or documentation center.
It is now possible to communicate easily while respecting other languages and writings. Computer technology can help to keep alive many different cultures, instead of providing more power to dominating Ones.
Cyrill i que
l
O
O
O
uബ
அ
Y

Page 36
ECONOM UREVIEW
EOPLE'S BANK RESEARCH
STUDES
An Economic Study of the Coconut Hindustry in Sri Lanka.
This Study attempts to analyse the coconut industry in Sri Lanka in its varied aspects Of cultivation; crOp prOducti On ; COnsumption ; processing industries, exports and pricing frOm an economist’s point of Vie W RS. 50.00
This is one of the recent studies COmpleted by us and now available for Sale.
The People's Bank Research Division has over the last two years produced several studies. Nearly 15 Such reports are now being made available to the general public,
All publications could be purchased at the Research Department, People's Bank, 11th Floor, Head Office, Sir Chittampalam A. Gardi— ner Mawatha, Colombo 2. Telephone: 36940 -
A FPu boi C a t i O rn Of th e
People's Bank
R e S e a go cha O e po a r t nn Eent.
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