Page 1
| SEX|| How Engels dar
ECONOMIC
I. M. F. Repo World Bank
A. D. B. Viev Mervyn De S
GENERALS
Wanasinghe Seneviratne Kobbelkaduwa The Army col
Police and H
V. . S. Jay: | Ranil Senana
Selling Sover
assessesses.
| News and Wi
 

ed to tread
— S. Pathiravitama
/43/NEWS/92
Drt Statement
у
ilva
AND GUERRILLAS
mes of age
- S. S. Mishra
uman Rights
- Soli J Sorahjee
palan yake
eignty
— Yash Mvant Simha
estern Controll
- S. Տ. Թil/

Page 2
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Page 3
SSS
Split in LTTE
Rivalry within the LTTE Was the cause of the Feb. ly o bomb at the afa_flospital according ГО Г77///fary and governгтегії SOLV rCaS. Prabfakararı /a/ been favouring Pottu Amman, the Tiger intelligence chief, to the annoyance of Mahattaya, the supremo's deputy, and the bomb was meant for Mahattaya, a military spokesman of the Weekly press briefing.
When it was Suggested
by a journalist fair would be more logica/ if Mahattaya had tried
aliminate Pottu Annan, cabinet spokesman Rani Wickremasinghe said that Pottu Amman may have been, attempting to consolidate his position.
Question: could it be a third force, RAW for in stance? Neither the military nor the government was aware of a third force.
Mahatta ya was due to visit the hospital on that day but did not do so. The bomb injured two Others, or 7e die W.
PM LInawware
Prime Minister D. B. Wijetипge told Parliament in ans Wer so a (/Uestfor that he was una wäre that employees of Lake House had requested a "peoplisation' of that institution. A secand question asked by Mr. Wima ( Siripa a de Silva (SFP) was whether Prime Minister would take steps to peoplise Lake House irn Кеадfлg with government's policy of Tgopsising" (μΓίνει τις ίηg) Sate institutions. " That, /Mr. Wijetunge said, dia
7 of arse.
Briefly
Deat Documents arny in Oper Kreila III at TE WE || ed it Ft lost 5,000 fig This figure exc brigade" and is a lives, an army
SCL rity for CE LTTE bases in ration. Twenty Wre used for
Police jt Sixteen thou ha We been di пorth—east to army fighting police will me ed of Tigers E
SLFP j The SLFPC te has decide Opposition part their protest Ca 5.1 és SLICh HS CO Wa tista t iom, h Lima ployment, waste
TUs demand A jgirt trädi demanded a pa lect Committge "bad debts" of banks running i TLOBES. I äld Ceylon Bank Em the trade unior Të preserited the Left parties.
PM to ba Prime Minist Minister DB W. Written to Cey ployees Union P sirip la that th Will not convert Banks into com the Companies
What the gover is: ""Prowide tE 3 L Oriol y artid El 3 ble the t Wự to Conduct their E ations by suita the Acts of ir
Probe e
The Ceylon E Union has calle

h to
seized by the Edition Wan miwic - Wa Wu ni ya hawe the the Tigers | ter5 sice 1982. :luded the "baby pecial task oper30 kesa said, is da Stroyed three The ter day opefoLIr light tanks the first time.
bin army Sand policeman a ployed in the Supplement the the LTTE. THE Ih area S Clearby the army. oins in Ben tra | Committid to join other i ES in future in mpaigns om isst of Illiwing, priin rights, unemand corruption,
bank probe a union rally Tilliam Cantary seprObE) iriito to
the two state to billions of i ti on to thë քlՃye Es" Արign 15 at the rally
SLFP and a
nk union
and Finance Vijat Linga has Qn Bank Ernresident T Ru2 go Wernet the two state բanits under Act.
ment will do по песеssary flexibility to State banks usiness operbly a mending Corporation'. :5tates
stad ta Staff" 5 d for a probe
hb he causes o the huge Esses of the State plantations. "We are not out of times to request the appointment of a com Tmission", says LInion por3 = sident Kingsley R. Robert in staff News, the union journal.
Change in climate
Mr Laith Athulathmudai, one of the leaders of the Democratic United National Front (DUNF) told a public meting at Polon mår Lwa that there was now a COITriplete change in the political climate. | after they had left the UNP government six months ago"
"We assure you that we will not allow the govern
ment to take the Country into another reign of terror or to
recreate bogus JWP violence. We will not allow it to shr. Oud the whole country in fear which we have removed in six months", he said.
Explaining the significance of the now party's symbol the eagle, Mr Athulath muda I i said that political observers were of the opinion that the DUNF Will be the most PCwerful party within a short time and would capture PO
Wer Is racord tima.
LAN FLA
GUARDAN
Wol, 14 No. 22 March 15, 1992
Pri F5. 7, 50
Published fortnightly by Lanka Guardian Publishing Co. Ltd. No. 245, Union Placa, CU TE) - 2. Editor Morum da Silva 447584 :ngנtוTälapf
Frinited by Annrı del Prags 82/5, Sri Ratnajothi Sarawa marmutlu Ma Watha Colombo 13,
ТыІвphппв: 4359"Б
COMTENTS Nea wws Background | Econorily
Enviro IIITErit 15 Bartering Swaraj for
“ECOOTE: Mi:3' 1
Educat CD Policę Carl HuTTiam Rights 20
Wester ni Hegemony
Oyur Mavs FC 23
Corresporidan Ca 24

Page 4
LOCAL POLITICS OF
GLOBAL.
EC
THE COMING
CRUNCH
Mervyn de Silva
he Sri Lanka Aid Group meeting in Paris was a najor victory for the Premadasa administration but only because it was a serious setback for the Opposition, especially the "dissident" UNF breaka Way gro Lip now known as the DUNF. Along with the SLFP, and some Left parties, Strongly supported by several NGO's, all closely linked to the "punish Premadasa" Camp of some European and Commonwealth donors, the DUNF felt certain that this campaign would result in a major aid-cut. The weapon of course was "Human Rights".
Whila this Campaign did Craate an un favourable climate preParis, the World Bank-and-1 MF argument that Sri Lanka's owerall performaпce iп resроп5e to the 'structural adjustment" program, was satisfactory and encouraging, carried the day. In this, the US, the sole Superpower, played an important Supportive role. . . in keeping with its own strategy of global economic integration. The IMF and the World Bank are NOT creatures of the US government but American influence is increasingly all-pervasive. Which is why the "new" Russia has expresSed a desire to be come a TerTiber. Precisely because Sri Lanka has received the aid, the gowernment must now push through thց ց: ԼյոDmit։ Teform program ewan mora resolutely. And that will bring in its Waka ni E. W political troubles. Or more accura tel trade Union pressure. But the tra de Lion S in the Se aras ära party-Controlled Of politicis d refer to the bārks Ed the plantations, the tea estates primarily.
The political-propagan dist on51äLight on the governrTlent, with
2
tha impeach Then climax, and th the Presidency E failed il its wer rina | aim5. It is sible for the ". out of parliam Gr plan a re-rLII c. scenario.
The battle gr. FParliar11 3[h t. | t | parliam en tary. I
led or led by force, lot even pled by interr demora lised by liks ir 55. sault has to E) kind, perhaps ex JLT 10 B.CBS5 political aim. combined assa alliance, perh: party and non
THE E WEES O hawe Created E In the current nomic has edg iar political, a C15 de Eubel I ticularly the ba the Waat Hier h; tribution, the south. The bat State-owned ba ta' tito rs, lww O On Eij01h, ex te іпterпа| agв пcit Tin ant... the | | Bank. Privatisa (:iä Iisation 3 rg IMF-E RD rgri " 'rad tibra lisation' for cutting the In labour for lay-offs - an i tio to träda and action. Th preva i ling Tno. run Bank Of CE Bik.

ONOMICS
t motion as tha El overthrow of is the objective, arbitious Taxino longer B.D5issidents", ow it arid party, to if that particular
uld cannot be is to be extrat cannot be planапе орpositional the SLFP, cripal conflicts an Cid Mrs. BandaraThe second asof a different :tra-parliamentary arily with a clear It has to be a ult, led by an ps à L (JC, of party forcës.
f the past month TE W situitio,
St:grift, LF1B, E. Cũ= |ạd Cut the fami = li the tradi LI I ilg-activated, par
Ik Ilio S. EWE as da 3 Codrought in the
ta frts a T8 the nks and the planstra tagiC SEC tOTS. rra || Fäthor than 35 haựa bạẽn do= WF and World tiom am do CO Timorthe recommanded die S. ECO OTTIČ " is B10 ther W Qrd fat from a SWO"Ce, That gas rresistible invitaunion agitation, at certainly is the յt! Irl tha Statցylon and Peoples'
Already a nervous management
has issued denials, and re-assured a restive trade union leadership.
In the plantation sector, the agitational cry is the perhaps more dangerous anti-Indian, antiTamil, anti-Thondama slogam.
In the plantations, still the island's Thain exchange garn (T, the ecoloric merges into the ethnic, a deadly mix. Just the ows that Indian firms like Birā5 Tāts V bid for management contracts brought forth a hyster i Cal Warning yell
from the SI MAHALA DEFENCE LEAGUE. It would be another "EELAM", a MALAY NA DU, a
mini-state u der the Control of the big eighbour. Interestingly awan the supposedly T1 o fil-Communal liberal DUNF, the fa Wourite son of Several foreign missions, could not resist the temptation to join the anti-Indian chorus as a continuation of the anti-Thonda campaign launched Whe Minister Toddi allounced his "peace mission" to Jaffna and talks with LTTE supremo Prabhakaran, (ThondaTTH Tĩ Cf C[]LITSE matla th[}... tār:ti= Call blunder of also in 'n Our Cing his plan for a negotiated settlement).
The drought-hit estates are in the south, old J. W. P. terrain. Recently Plantation Industries Minister Rupa Karunati| eka mat a deputation from the Private Tea Factory Owners Association. The LLLL L S LLLLLL S L S L HLLLL that about a million people rely for their livelihood directly or indirectly, on this industry. 110 factories have been closed. Low grown tea, produced in about 300 factories, always enjoyed a steady market in the MiddleEast and the Sowiet UiO, CO E of the largest buyers Was Iraq. UN Sanctions had restricted
сошпtry tea tha

Page 5
Iraqi purchases, though Jordan was buying more,
Cudling a Trea Suty Officia, gtes portd:
""Sri Lanka's Cash-Strapped economy Will be in serious trouble by the middle of the Year if tea prices continue to fall and dro Lught persiSt5. . . . WC Will face a severe cash crisis in June. . . the goverпп1епt wwould spend bestuur een 300-400 million ruipees on drought relief and connected items. ''A similar annount Would be lost in production shortfalls in tea, TL Ibber" - and COCO Lit... | PriWatisation of Course is a crucial iter in the structural reform program. The Bank representative at the Paris meeting said:
''Amother Tajor component of the Government's reform program is its commitment to privatise all commercially-oriented public Sector activities. A good start was lade in 1990-91. With the privatisation of a number of illdustrial enterprises and the bus
COITpanies, and the process is Continuing in 1992. Fast privatisation is required if the twin
objectives of reducing the fiscal deficit, and encouraging private sector expansion are to be achiewed in the near futurg. Important tasks ahead include expeditious action to privatise not only the remaining manufacturing enterprises but also enterprises in the servica and trading sectors . . . . . A special case of the need for increased private sector participation, causa of both its economic and social impact, is the publiclyowned tree-crop sector where the government has decided to enter into contracts with privata enterprises for the management of the estates. The estates are currently generating large losses, and are an important source of the losses of the Governmentowned commercial banks".
Thus to plantations-State banks linkage. The World Bank "understands the political sensitivity' but warns that the international experience with this approach of private LLLLLCLLLCLL0LLLCLL S LLLLLLCLLLLS S LLLLLL not been "successful' where
ba
the ownership in the State
The Bark is about the 'co Conflict". To economic cost in production, and HSSEts, increas dit Lires, and low 3S i T W Estors los
Another basi 'structural adju li G Sector reform ing staff. The glad about the through wounta gener O US Se Wgr
But more cuts
On the banks,
tear (Financa M
a heated contri
used the terril relatio to til of Ceylon and
In a strongly w the Bank Employ det, Mr. T. R. ged tha officia | condemned any staff. When a
met tha Prim Wijet Linge state "At the discu Minister assure the government decided to cont te Banks in to C the Companies. A ment's intention Cialise the two strengther ther additional capiti TEėt the Itärequirer Tiernts ir Central Bank's or in terts banking standari The Pri Theo M to the Union
this was wha Stated in his sta ment. Ha regre
disgruntled eter ing the actual ing to mislead also thig itɛ munity. He a: baпk employеes any fears with future. What propo OS ES is to Incorporating S Wo State Bal Operational aut

has ramained e CitOT".
also concerned its of the civil most ob Wious Եlude: "foregong loss of physical dппilitary expепered investments : Confidence". 3 airm of thit timent" is pub, meaning reducagencies were 10% reduction y retirement with апce paүптепts. arв шrgвd. the Prime Minisinistar) provoked versy when he ''isolvent' il 2 banks, Bank Peoples Bank. orded statement, es Union Presisiri pa la challenStatelets and attempt to reduce Union delegation a Minister. Mr. 出: ssions the Prime i the Uniom that at no stage art the tWO Staompanias un der Act. The governi is to Com11 e TState Banks and n by providing all and also to OSS provisioning terms of the guide lines and of international ds.
inister i dicated da legation that t he precisely
:) ment to Parlia - tted that various Ets are distort = position and trythe people and arnational Comsured that the
need not have
regard to their the government a rend tha two ta tutes of the ks and provide nomy so that
the banks could compete on equal terms with the other Commercial banks and render a better service to the people."
The Ceylon Bank Employees Union Delegation requested that they be consultad before the amendment to the law is finalised to which Prime Ministër agreed. The Ceylon Bank Employees Union expressed their appreciation of the steps that are being taken by the government and assured tha Prime Minister their fullest co-operation to the gow
ernment in restructuring and commercialisation of the two sta të banks.
The SLFP however has damanded an independent Commission to inquire into the
affairs of the two banks.
The Sri Lanka Freedom Party is to demand that a Special Presidential Commission be appointed to inquire into the affairs of the Bank of Ceylon and the People's Bank which are currently at the centre of a Controwersyo ower insolwency and restructuring.
The SLFP will also demand that the commission should hold this inquiry in public, that th Ea offenders ba identified, their identities and conduct mada public and that they be at least deprived of their civic rights, for the purpose of cleansing public life and as a deterrent to others.
In all recent statements of the main Opposition parties, these 3 issues (privatisation and retrenchment, banks and plantations) figure prominently, just as these have become slogans in protest demos of the Opposition and the unions. As the old-fashionad Sri Lankan 'socialism" (State capitalismcum-social Welfarism) is being dismantled, weather gods contribute to a marked change in
the political weather. Mr. Premadas a has sur Wiwed tha impeachment, and there is no personality strong enough to
challenge him but the pressures released by 'structural adjustment" puts the Presidency under attack from diverse, but sometimes overlapping social-political forces.

Page 6
THE WAR (1)
The Generals speak
óé.
he primary internal security forca is tha 25,000 pers or police force which includes 2,000 police commandos in the Special Task Force (STF). The para-military Home Guards, charged with providing security against LTTE attacks for Muslim and Sinhale Se Communities in
ths orth-east number about 8000—10,000. Ex Capot for Musin Home GLIE rd Cortingets,
SEICL rity for CG personnel är Crowerwhelming Sinhalasa, The Sri Larikan är my has Carried the brunt of the fighting with the LTTE. The continuing need for larger for Ces to prosa Cute the 1 Orth-East Wär är Severe oudgetary restraints have resulted in substantial numbers of army troops Elging poorly trained and inadequately armed and equipped.
(LV. S. Stafa Dept. armia/
(.L .5 יחס rtםטre
The Sri Lafı kan armed forces have "come of age" is the conclusion of an Indian analyst SS Mishra, Who Se brief asses ment appears in this issue. It is not simpoly tha professionalism that has Saen a marked improvement. Nor the use of a Tore modern and sophisticated Weaponry, now more freely available to the services. It is the total approach to the internal conflicts, and its overal impact on Sri Lankan society, the political nature of the armed revolt, and its external entanglements. The following are excerpts froT in terwig wis -published in thea SUNDAY OBSERWER, and the SUNDAY TIMES.
Gen Hamilton Wanasinghe JOC Commander
O : The widely predicted Jaffna Operati 7 s see y deferg aralysis as the ultimate tasting groLI In d of the Lankar security forces. How was prepared are your troops for the Fig push to Jaffra
A: We aro always ready for war When the appropriate tiTie
A.
Comes, you'll propa red Wg We
As you re. fa Elle Corl7 fro rita Çfar 7 Carr7' āE of the enemy . fog LTTE KOM
A: THE LITTE
haWE and wha doing, and it TThätth Us Wựhị COT Wetti Orhal W. TT1B W g[] [[] tha delay our push
LTTE wi|| || OLIT IT Oy ETTE II tS delay us by
and obstructing
С2: Tha popu/a
JEr7 fr75 WW is
around to me m, āre you faking a casualties?
A: We F# hawe
the people to år E as ad take kow is and ch given utter mos
mäking sure CBS ualties färg don't ask the
from the penir opla can move within the per
O: What wou. E decides t, a 凸Lmá门 s直范真
A: WelI wg Wait. The LT kt eping a hu by winning th | Brins Will not
and of the we people to be
theSe are our 'We instructed tra t tE Civi
G: What spec WLF gyftwa 7 ffig are fier for
A: We use tra 15TiSSi o la to keep them

See how Wel
.
ага for an frтеvї
'for', you must he шt ffa operafforis Intelligence. Does what to expect?
knows what We we're capable of ki W5 it Can't : it comes to a 'ar. Therefore they Externt of trying to to Jaffna. The be ab ea to thwart but the Tigers can building defences
our path.
for for the Jaffrina 5rat ) be //ion, What steps
fо лттfлfл77 f5е сѓv/ -
already warned TOVé intO Safer refuge in schools Irches. We hawe t importance to that tha Civilia
inimised. We 2il IO ITOWE CLII Insula but the peout to safer areas insula.
d you do if the o Lyse CřW i Wiärs as ፵ዖ
will not attack but TE Can't go on man shield. Just e War, the probbe solved. At the Ar, We wat the with us and say security forces. the troops to ins kindly.
a advicas have civiliars to reaj War situation?
a special radio ld air drop ieaflets informed of what
MEWUS BACKGROUND
ther
into
is happening, We've told not to panic but move a reas designatod by us,
O' Do you expect the troop casua/tу гаfe to be very high?
A: In a War We've to expect this. Since a large number of troops are going to be involved in tha Jaffna operation, the casualties will be high but we'll do our best to minimize it. We hope to conduct the operation phase by phase and with maxiПLITT СЕ ГЕ,
C2. What do you hope to achieve through this operation?
A: Our aim is to establish law and order and gat the government machiner y functioning in Jaffna, We also want to free peuple from the tyranny and the shackles of the LTTE.
O: WIWho is in charge of posarning and controlling the military operations?
A: The overall stategy is planned by JOC with the support of tha three service Commanders who plan and execute the operations through the divisional and ground Commanders.
C2: Do you have fu politica backing for your operations?
A: We don't execute any operation Without the political app - roval. War is a Continuation of politicis by other means. We've received formal approval for tour operations,
O. How do you estinate M. TTEP
A: We reckon the LTTE as the best guerrilla organisation in the world with the best training and discipline.
fie
O: What is Wor oprior7 abour Pra ësha ka ra nr
A: He has proved himself to be a capable man who is leading the LTTE in the battle against the security forces since 1983.

Page 7
О: If Frabһаќагn agraes to /ay down arm75, give Lup / is strug - gylle ard Show a will Wingress fa on the troops with his cadres acceptїпg tha Srї Lалќап агmy aS É7e a 7/y irat forla ( force. two L Maid you accept Aii irmi?
A: If he is willing to change, why not?
O. W. Wyou ca/W for the backing of other as groups for the
Ma ffirma operatio irn?
A: Yes Groups lika the PLOTE and the EPDP help us. We will Liste them to Towe the Civilians in to sa fer a reas. Any group Which is wil||ing to help us can do so because this is a united effort. The entire country must support this effort.
C) FIT What Way Caf the Courttry support the risitary?
A; The people should forget their differences, political or otherwise, I appeal to people to gather around their leaders and make a united effort to find a lasting political solution. If there's a political solution We'll call off the operations and lay down Weapons tomorroW. As I always say, the sky is the lit it if we all get toge. thвг.
As for the military effort, I feel that the country is already with us, There's no death of Sons and daughters of Sri Lanka Wanting to join the Security forces to defend their country
Q: Warn the /affла oparatiал is fra My Mauried. WWY fig pg.opla know the correct picture?
A We'll keep them informad just like the allied forces did during the Gulf War.
Q. Do you think Prabhakaran ca fi fie căptured ă/ve?
A: No. He'll never be caught alive. Probably he'll take the wery famous cyanide capsule.
Gen. Denzil Kobbelkaduwa
Q: The talk in Colombo is that your objective is expansion?
A: It is a part пade that very up earlier but alone, hoping ti be a build-up, there ära Certail area. J LISt Igw Un Vicky base Shästrikulariku|ar
C." How War way. yō i'r dafarn Cel i'r
A: Five kilometri
O: Have you gone
kuları7 Freforer
A: Yes we have trikula || k ulam b hawe nie war bela before. We are more informatio 1) I'W W HTC . :: in the afterloo
WG will search
find out logistic There hawe beel CITETITS Cf | into take their but they hawe E artillery aid air
O. So basica (sy if ing forward a Eack?
A: I didn't say
Jack. Yolu seg t of Clear ing forv, expansion listgr үQш агв goiпg We arB going t thing you will Expload the FDL and if you give We can go to g0 a cross to Ku put the troорs c Si T PolG a Liter. E T1 E9 Irit Work tk. to really settle a larga a Tount de velopmert Caim | think it is mu tTOOPS On the offensive rather grd.
C2: Whät happene operation?
A: In the last op looking around, t Were performing WOLJ Id do. Tigre
that we could g

Of it, We Have clear. We went we left this area at there would We know that camps in this
We have Owerwhich is just off 1.
Wa' Wat be for 77
ت
5 a Way.
fa SFārstriku War) -
bdel to Sharse fora, but Wej to Wicky base trying to get really. Right nsolidating and befora darkne 55 th a pola Ce to :s of the Campo. some re-inforLTTE coming casualties away, }een langaged by
force.
is a case of god then conting
pull the troops he FDL is a way Ward area S, foT on. So when to expand what o do is song see la ter on. To is no proble us three days Sinnathambārly, | Ilipanku lam and lown, that is a ut the de WallopEs som a time own. By having of ground the t take place, th better to keep ground for the than to hold
I ir your Kast
era tion Wa Wera o se e how the y
and what they ad T O Certa in a reas into, like what
Wg did today. It's the sama operation but we did something
else, to get the trops back again on the offensive. We waited to see whether they
would take us on the flank and they did, so we knew that there was something in the North. So it merely confirmed our information. So We succeeded in the last one by getting tha information that we wanted.
C.: In tha present operat for how птапy Tigers do you fћїлќ ага fп
Wig area?
A: No comment on that. I can probably tell you later on but not right now.
C2: Wow today's operator a rind the last two days operation is it the samв t/ifл9 that is gofг7g on?
Ал Oh үes,
Q: Are you really moving into Jaffna as the papers keep saying?
A. There is no Way I am going to tell you what we are going to do, and where We are going to do it. But, tha North is orth from the FDL for ward, the area where we are operating in. Whether it be Jaffna, Mannar, Mulla tiwu, it is not information you will get from me, a military offiCar, or from tha G co w Èrmimet either, I don't think thay Will over talk about that. As a generic term they may speak about What we are going to indicate the political pictura, cothar than for that I don't think you can get anything else from us really can't comment on that.
C2: How Wong do you think it wil/ tākie to velo fe ārgā5 eir thé FDL?
A. So many factors corne into it. Wether the roley is available, the resources hawe to come forWard, the people have to come il and Start tha re Construction of thair houses. We hawe to rehabilitate them to get on with thair economic life. In the Mai 1nar island where fishing is the economic life, a lot of people want things like boats which hawa been damaged. Tha ministries are giving the necessary assistance within the controlled aras, but all these factors hawa
5

Page 8
to be taken into consideration, How long does it take to build a road, it's an on-going thing. I don't think they can keep up With tha direct iwas given at tha moment. It is a good thing that the directives 母f白 given so that we would know at the end of it really how long it wi|| take to rehabilitats and reconstruct this area.
O: Why did it taka Wв//w/лќіл/ал7?
50 l'org Fr]
A: It om ly came under the Controlled area in Decembar. The LTTE may mot ha wa baan thar a b Lut it Camda LIrı değer the Coll troll ed area only in December, and the GA had to get the people back and start rebuilding. So it has started. There are will ag as fLITIC
tion ing in the non-controlled area. You hawe willagers funct ioning anywhere even in the
North, but it does Tot maar that things na wa Corne back to lormacy. The damage to buildings in Wawu niya has beam high. Som 9 of those buildings hawa beer damaged in 1985, especially those a long tha Mellun kulam road. No W people are coming back.
C2. In the refugee cap at Neelankulam one refugee said that they wега саџght betwвел the d'evїї and the deap sea.
A: That is a temporary period. They can go to their fields but they can't go to their houses. But we have refugees flowing in to that ca Tipo froT MH dh J. There = fore, I don t't see that point you are talking about.
О: МУЛ ї/e there is a rттf//tary offелSive going or what do you frk of a politică/ solution?
A: That you have to ask the Goverпппепt. It is the strategy decided by the Government that we are goiпg оп.
C) Sa far WW er 7 : WIG Gwerrir 77 er 7 has åsikEd' WOL fo stopy the War you have Stored. Is that what you will do even now?
A: A go Wernment decision is lä government decision. It is the country's government, and We hawa to obey,
6
С: What is yoигд,
A: Warni Wickre is an offensive o
Q: Сал урш 8 хүр/ алд гтfгтds opera
A: It is a siri poli is that you figh tarily to destory up the pressura LTTE C T to Wif the her Ճf the people , innocent of this sympathisers or forced to beliew is strong and Who are their pl is that you safeg
Wil the to government side ti ilir
casualties are S Civiliärs.
Lt. Gen. Nalir Governor NCouncil
Č: A full-scale i in ring Waffiad IP, widely redicted I'r difr (2005 57 OL Word
Å: If I WBre t te TT1S a || 2. || || go for Jaffna.
out Comisk hås til Solutio. If I
Would hawe is iOn On tha D and Work with the two World ad out a CCOrd guidance.
O: Taking irit
populatfол and ferns, could you down) iri) affirma
A: THE TE TE and tactics th can crush the harming tha Civ, from the Army not fully conw capabilities of
LTTE Can't take: af Thy in (:orlv The security fo al the Tiger d
О: By de/ayїпg fr, f '

resвлt oparaffол?
ma three, which peratioп.
air i yat Ir hearts. tiլյրի
a strat egy – One 3 LTTE milithẹm, and keep to flush the other thing is Irtis and mids who art to tally There плаy Eаа people Who a TE g that the LTTE the only people Otg Ct OTS, S0 0 1 3 4шагd tha people, our side, the and to ensure ium amount of justained by the
i Seneviratne, E Provincial
т//ftary operatiол gir 75 W Wa is ba fr7g7 Ihink שטy סD ' tāk ārā
i talk in military hink we should But tha fināli O Ea a political were in charge. Ought clarificatlitical limitation til the T1, Ewell la r5 Were Carriing to political
ICCOLift flig Våst Μας ή5ίίτε μ Γαίstill say a crack
is possia.
lifferent methods rough which we LTTE Without iians. I retired in 1988. So I'm er5 ant With tha the enemy. The - оп a пational entional Warfare rcles Carn sir nash efences.
i tha military push Of fisk foo LTTE
will have tima to prepare for a Counter-attack?
A: In a COWBritional War, BWary day Counts, The onemy can use each day to improve the quality of its fighting strength, prepare strong dofenicas and all other aspects of war. Militarily speaking, we should give the IT the east possible time, but We also must take the political comStraints into CCTIsideration,
L0SSSS S AASK SSS SY SLLLLLLC LLLHaK LLCL S SLGLLCCmHL carried to have broken the lack of the LTTE, do you frk Tha golwgr rhif 7e 7f must ir vite the LTTE for pGaca talks.
A: From what I gather, the LTTE Will low favour a ceasefire or a political dialogue. If the outcone is good the government will consider these options. As I said, finally it will only be a political solution which Would bгing peace. Tha military may crush the LTTE. But in another 10 or 20 years the problems will crop up again. Therefore we must tackle the problems after the military has contained
Fig LTTE.
O. Do you believe that the реод/e in the Worth алd East LGLLGSS S La SLYL S L S SLLLLLLS LLLLL aLT
F7C0 FF als Grič Mive peacefur Wy a'r 7 Y VE
7e är fyť reg?
A: Tg bulgt Can't Tule forever. Certainly there's a ray of hope for peace. As soon as the areas are cleared the goverTent machinery must move in to reap the best results and to establish normacy. We're already doing this in Tany area S. including Wawuniya Where Thore developomalt is t3 king pola CE low than in the last 20 years. We hawe done Tora thar just achiewing our objective.
C. But If F3 TTE favo Lr5 a до/їгїca/ d'ѓа/ogше гїght поw', why is it contiri u ing ā ir 77 bus fies w fiere
HHHaCC S SH HH S LLLS S LLLLLLCLLL L S SYKLL died his year? A: Those are guerrilla tactics.
Till there is a political platform on which the problems Can be solved, any war will go on. But I feel the government and the military are working closely to bring a las ting solution.

Page 9
THE WAR (2)
Gaining the upper
S. S. Mishra
fecerit times the Sri Lankar military has carried out a Saries of Successful Campaigns agHinst the Tamil Tigers who have been locked ir a violent Corflict with the state. In this Cotext the la test Tawa Timping of the Sri Lankar) arrTed for Ces With new changes at the top of the
military establishment is noteworthy. The government has recorstituted the Joint Opera
tions Command (JOC) in a bid to adopt a more aggressive and better co-ordinated military stra. tegy against the Tamil Tigers in the orth Eld east of the island. President Prema dasa has appointed the last retiring chief of the army, Lt. Gen Hamilton Wanasing he as the General Officer Commanding the JOC. In his place, Major Gen Cecil Waidyaran the has taken over the command of the 77,000-strong military. These da velopments indicate that the present regime is intent on a full scale offensive against the Tail guerillas.
The recent military successes of the defence forces against the Tamil Tigers hawa emboldened the army which has managed to advance towards the Jaffna pelinsula. In this context, "Operation balawegaya" launched in July || Sit is a positiw dawel Opoment for the military, in the sense that the operation to rescue the 800-odd soldiers trapped in the Elephant Pass army camp proved to be a serious setback to the Tamil Tigers.
Non, ethelbess, th 9 - SLICCeSS Cost the Sri Lanka 1 military dear, as it mobilised its maximum regio LurCËS i th1 3. Jätte for ThiS strategic military Camp situated the Ca Luste Way Iinking tha Jaffna peninsula to the rest of the island. In this battle, the army sent an 8000-strong amphibious force backed by full air cover and artillery forces. But being confronted with the positional war
TWh e Horset i u Hoe krig yw'r sy'r fretr i'r deferrer y prif re'r.
Mr. Effair,
hand
farg of the Ta
a long and reach the car analysis, the E
tla gaWE Ilia r needed borost
Coming as it of a sort of in the War ag which began it long after the sion of the Ja famuria rebg ||i this wictory ha E. W the strengt the armed for:
The success tions has been dLI g t t|E3 C. më It of the di the tota || CTT
mission. This the growth of t CD f d wiwit a Tim ad for Cas" ra Presidēt Prg, Well-disposed tary as he has meeting the pe the arried for arms and аппш tance, in the government ha Za n 1 50 TT är jet—fight er bJoT1 red vehicle5 ar -class patrol b in order to Tee
The army ha: a free hand Hgaimst IՒ1t: Tat change, tha m faithful to the For instance w faced rebellion of the MPs, t him, expressing in his | eadar sh
In this light, ing fear in po a LI Cratic Circles gro Willig role of result in a gra der Tocrátic CLIin a military ta
1983, has moшпtє
SimCe f||Ալ

nil Tigers, it took »loody battle to p, in the final ephant Pass batmilitary a much to its morale. did in the Wake lilitary stalemate Finst the Tigers June 1990 and brutal suppresata Wimukti Wesom in 1989-90, i helped to renh and Vigour of
S.
of military operapossiblea largely omplete in Wolveefence forces and Titment to their is evident from le national defenolations from the nks. On his part, ada sa seems to be :OWards the milibel libera i iodic dermands of ces in terms of Initions. For insrecent past, the is imported a doillery pieces, six bers, 43 arould three Shanghai oāts from Chima the LTTE theät.
also been given In its operations mil Tigo rs. In exilitary has been present regirтпе. hen the president from a section Ie army stood by full confidence Iբ,
therė is a | Ur|litical and burgthat the everthe military, may | du al erosion of ture, Culmina ting
ke ower.
the ethnic cold in such a way
that there has been a massive increase in the defence expenditure. The relentless pursuit of a "military solution" to the ethnic conflict by successive governments has been largely responsible for this and has seriously curtailed the economic growth of the Country. According to an estimate, between 1983-1987 Sri Lanka imported ve S95 million Worth of military equipment of which S40 million Cartne from China, Which has baan its biggest supplier of arms. The enormous expenditure in the defence sector has caused serious socio-economic problems.
Though the military expansion has been massive in nature, there is a lack of corresponding professionalism and discipline in tha a Tmed Cadres. Mor Gower tha ethic character of the armed forces is predominantly Sinhalese and has contributed to it being viewed with distrust by tha Tamil populace. Even during the suppression of the JWP uprising the brutal and ruthless operations of the armed forces led to a complete erosion of their gemera || 5 tandards. This has baar well documented by Amnesty International and other humain sights organisations in their indictinent of the Sri Lankan military.
Against this backdrop, the 77,000 -strong militar y celebratigd its 42nd anniversary last year. Boosted by the recent military gains, the army has further embarked upon an all-out final assault on the Jaffna peninsula. This current offensive against the LTTE is intended to weaken the outfit's military and political machinery, impair its mobility and cut off its political stronghold in the Jaffna peninsula from the mainland north and east and to bring the area of Contest under government control. Hence the a test military operation codenamed "Operation Walampuri' in its initial stages saw the well co-ordinated capture of the little
"Солгiлығгі ол рағғ. - 24)

Page 10
Extradition of Prabhak:
has NOT asked for thë extradition of LTTE Supremo We upillai Prabhakaran. Even if Delhi had asked for his Ex träd= ditio, Sri Larika Could lot obliga sice the LTTE la dar Wās Tot in Sri Lankan custody. Ewen if Prabhakararı had been İm OLIr custody, Sri Lanka could not extradite hit since there Was to | dia - Sri Lanka Extradition Trety said Mr. Harold Herat, the Foreign Minister at a press briefing.
While there is a treaty binding all Commonwealth Countries, the procedure is complicated and time-Consuming, Th 3 pro Ce55 could be "shortened if India gläicts the SAARC Conw Brition
ón terrorism an Indian statute expli
When Sri La ka: Alfred Dura Wapp) 1975, Delhi ha Lākā didi 5 after that. This Kittu in SwitzE the UK had ex Swiss governme had him Ower ti authorities,
India has now ; mвпts made by E tа пts to be rec. Laka Court SO ments may be u dian High Cour
Ostrovsky jubilant
Ta Lif D. Bern Ir New York
in Ostrowsky, the CX-Mossal intelligence Elgent who first revealed
details of Israeli arms supplies to Tamil Tigers, said he felt windicated after hearing reports that the
Australian Federal Police had stumbaL LHHa C LLLLS CLLLHH LLLLLS LLLLLL Illilitarily linking the Tigers to the Israelis.
Si Lunding jubilant, (Ost TC vysky breake intr lnլյd laughter when Inld about the widely circulating stry in Australia about Tigers Buying Israeli węaIIIs by lefril Liding six major airlines
"I krew what I was talking about", hic sail in an inter vie: w rcpciāling his original revelations about the landestic supply of Israeli wealports to the Tigers and the training i lid Titics.
"I have a lot of respect for Shri Lankas," he said "B I sorry to say the guys who tried to prove
The wrong are a bunch of idiots. And y Lu can quot ITV1 on Llull," hic said.
The Sydney-based Telegraph Mirror reported last month of Australiá's hig
8
gest travel fra Ld Lev Israeli aris deals t
5''sky. Whitl Weer the Tigers in his best Sellĩng bị Пғr:ғлтілді: the Mofiтiki Mfa5 var officer", agent who lefected v, Qırld's Film 5 t r"Lillhıl 25 cies.
In an interview 3FFFFF'er Oštrovsky : Only l:) Ligh Weapo Els: O Liller yayeli Ill Les hills, 7 LI HII e IE
"Would you buy i İTElin Ol" he: 1sk trE4D15äi, tLi J 15, H, e: ,!Oi |lis Talk: They || || Hut H 5ווטרןH טילי Fם EL TI - in the cilis: weapons - in II aints vision of spares.
(I) 5 Iri W5 kyo :-) 1 til LI
the Tigers learnt landlines from the
" "Le b) LI y ÇLILII" le stil,

孙护3卯
di 13KE5 È a ailed Mr. Herat. asked for Mayor ah's killers in id refusad. Sri eek extradition
was trua of irland. Though alled him, the It refused to the Sri Larikan
15 kad for StätLTTE Ti || - orded by a Sri that Suchi 5 tätsed by the Int t Fiat is 'W
MEWS BACKGROUND
hearing the Rajiv Gandhi assassiпatioп case. -
In the Case of Prabhakaran, thé issue is a Cademic, Say S.L. Čfficia S. Sice neither the Sti La ka 1 or the Indiam army has been able to capture him,
The Sri Lankan A.G. ha5 beën asked by the government to hawe certain LTTE men now in Custody produced before a judge as it have thiEis stat EME it's recorded. Material connected with the assassination, Prabhakaran and his in telligence chief Pottu Amman which could help the Indian Court is likely to be passed on to India.
er involving 5ecre y Tigers,
Cici thi: likib g: L – Israelis ill ook "By Fay of Trg Irrid Liri FrTalking of was in intelligence
fTATI I If the s intelligence agen
with the Sriraj said the Tigers not is from Israel but ilitary training at
rallis.
ו"חu tiidטy תרונןi we a Ed. Like It ist är 115 Titel KL, the Iisri, C. Only 01 the 33 le ls in the lining
if sophisticallel :nl: In Cç al Tid the po TC
is L. Inililiin that the il:illy Lise çif
Israelis.
y weapons in a
The report of the investigations, he said, is "not worth its weight in sand." "It's an absolute disgrace. Wholl were they trying to prote:cit and cover Lup?" lle asked.
Ostrovsky said he: had told the Shri Lankan investigators that they should interview a former Indian Cabinet EtLLLL OHaH LLLLLL S S LLLL CLCa the link between Israel and the Tigers, 'Did they talk to him? No. I don't think they did," Ostrovsky said.
List May the Hashing for Parr quited LL aLLCC LLLLLLaL KCLS LLLLLLL CLL HHH LLL LLLLLLLLS LLLLLLG SLLLT LLHLLLLLLL S SGaL CLLLLa LHaLL aL LLLLL LLLLL LH a the Tigers she backed it up by an allocation of several Tillion dollars to buy armis and Other supplic5.
"With help from the Research and Analysis Wing (RAW), Lebanese and LLLLLL LGLLLLGL S GKLLLS S SLLLL S S LLLL S SLLLL the Tamils and El ship WH.5 purchased to ferry weapons from Hong Kong and Singapore LC) Tamil Nadu for tränshipillent to northern Shri Lanka", the Pas reported.

Page 11
THE ECONOMY (1)
WORLD BANK REPO
SE? Our last aid group meeting sixteen months ago, Sri Lanka has achieved considerable progress in a number of a reas. Recent policy reforms, good Weather, and a mora sett lead civil sit Lation in the South hawe resulted in good economic growth exceeding 6 percent in 1990 and reaching nearly 5 percent in 1991, Way above the average of 2 percent a year during the previous three years. Progress, is not shared by all parts of the country as economic activities in a reas affected by civil conflict remain severely depressed.
A disscussion of recent economic da Velopments, policy meaSures already taken and important steps that Ilie a head in the process of restructuring Sri Lanka's economy is included in the Country Economic Memorandum
which we distributed to you earlier. Today, I will confine my remarks to a few salient
points and to somé personal impressions as a new Comer to the Sri Lankan Scene. In particular, Would lika to emphasize the linkages among different compoInents of the adjustment program and the read to пova ahead boldly in several areas at the same time. Also, let me emphasize at the beginning that a resoution of the civil conflict is a prerequisite for the country's achieving sustained high growth in the future.
The Government's adjustment program, launched in 1989, cornprises four main areas. These are: (i) stabilizing the economy through a reduction of the high fiscal deficit; (ii) rationalizing and reducing the size of public sector boy inter alia retrench - ment of excess civil servants; (iii) restructuring the Country's expensive poverty programs; and (iv) creating a business climate Conducive to private investment by inter alia privatizing commercial public enterprises and eliminating distortions in external and internal trade. There
has Heen progrt areas, particula and early 199' Concernead that form may be sl recent months.
Macroeconom Stabilization
Tha macroeco tio 1 efforts W Garg ful in reducing cit froIl 16 per 1988 to 10 per 1990. There has a reversal of th When the deficit |ritial deficit rei пеtarү аппапа Чепт Tmiem ta I im Ted Luci above 20 perce about 9 percent 1991. This was ping the nomini broadly stable s increased fiscal which was partial Creased foreign ai
generated again
growth that may Wedi inflations in
The external : formed well in th With Current a C 5.2 percent of G below the progr about the larget cent) тіп 1991. substantially in less so in 1991 Higher aid disb asingly in the fic paүmвп t5 Suppo a se the gross to about threer While the expo sti|| || Toboust, the Sri Laikas Col hawa to Ele folli the Gower ment with the IMF. In axCharge Com.tr barriers need to promote mara CC sector environm.
encourage the continue its cle with the IMF

RT
BSS in all of these rly during 1990 I, but we are the pace of re. Owing down in
ic
I OITiC Stabilizainitially successthe fisca defiCEIlt Of (GDP || cert of GDP in s been, howg wer, is trerid in 1991 in Creased again. duction and mo3 In t Wara ir Str Ul[1g is 1 flation frgfn
it in 1990
at the old of helped by kee. 8x Change rate inca 1989. Tg deficit in 1991, ly financed by inid disbursements, a rapid monetary | lead to rene
1992.
Sector has perIe last two years, COLIIllt defic its of DP in 1990 (way апп target) and le Wel (6 perExports grew both years, but tha T ir "1990, sements (incra| TT of ballace of helped in crofficial reserves onths of imports. “t gro With W3S possible loss of petitiveress wiwi|| Wed closely by in Consultation Eddition, foreign ls and import be reduced to Tpetitive private it. We would Government to Se Collaboration O achieve the
necessary macroeconomic adjustment in a manner that encourages efficient growth and we look forward to assisting in these afforts.
Public Sector Reforms
Control of public expenditures is high in the reform agenda. In an effort to reduce recurrent expenditures and to streamline the civil service, the Government took a major step in 1990 by reducing its staff by 10 percent through voluntary retirement with 99 ne OUS - Sewerf] In Ce paymerts. We feel that, after a pause in 1991, further retrenchment should be effected in line with the Administrative Reform Committee's recommendations. This should be done with an eye on retrenchment costs as well as the quantity of staff which the the civil serwice needs to maintain.
Sri Lanka's social indicators
have long been exceptionally high and the Government con tinues to attach high priority to social sector development and powerty alle Wiation. At the same time, it is making efforts to reduce inefficiencies in the na - tion's three major powerty programs (Jana Saviya Program, Food Stamp Program, arid MidDay Mea | Program). This includes improved targeting of beneficiaries of the Jana Saviya and Food Stamp programs through community-level screening. In addition, it has been made mandatory that a person from each Jana Sawiya beneficiary household participate in rural civil Works or training, But, in Our view, the mid-day school meal program should be replaced by a more targeted interwention. in implementing social programs, NGOs have an importanto rolo to play. We hope that the work of the NGO Commission will soon be completed and that the Government Wil | promote a cimate of greater cooperation with the NGOs operating in the Country.

Page 12
Efficient public sector resource allocation goes beyond the civil service and welfare program is sues, and extends to each and every aspect of public expепditures. For this reason, We intend to work with the Gowernment om a review of public sector expenditures during 1992. In the area of public investment, the large reduction from about 17 percent of GDP in the early 1ģgs to about 9 per Cent in this year is largely in line with the Government's strategY to in Crease the shara of priwa te to public investment, but also a result of the attempt to reduce the overal fiscal deficit and the inflexible nature of many recurrent expenditures. Thus, it is important to focus both on the level and the composition of the public investment program to maximize the returns and the complementarity to private investment. The tight fiscal situation will continue to make it essential to ensure that limited public funds (including public and publicly guaranteed borrowing) are only used for projects with high rates of return particularly those that complement and encourage additional private invest
Et,
Private Sector Development
Another major component of the Government's reform progral is its commitment to privatize all commercially oriented public sector activities. A good start was made in 1990-91 with the privatization of a number of industrial enterprises and the bus Companies, and the process is countinuing in 1992. Fast priwat ization is required if the twin objectives of reducing the fiscal deficit and encouraging private sector expansion are to be achieved in the near future. Important tasks ahead include expedi tious action to privatize not only the remaining manufacturing enterprises but also enterprises in the service and trading sectors. In addition, we welcome the Government's intention to divast the 50 percent share of the peoplized" bus companies
O
still in the publi at an early stage
A special Case increased - privata tion, because of b and Scialipt, o Wlad trec, CT COP) : Gowerment has into contracts Wi prises for the mai estates, The 3Sta generating large I important SOLUTIGE
HE GO WÉTTI TT 21 marcial banks, ment in the finan of the esta tas i: for sustainable in the financial we understand th sitivity of the էՒ1ց GLյWErTimBT11 J5g of por iWal B IT tracts, We must international eX. approach has fu| Where 0 W 1 til uued in the O. separation of management is industry but sh panied by prive ensure maximi term profits. U. of the land itself remain with and be combi term leases to
The ultinate Government's ri to generate stri ted private SE? would be able in the directi growing East This requires private, and to foreign, in Vestr a policy envi free from rela ! tions and ad i terwentioris, i and for 3 igri supported by ture and Se filancia | Se CEO "ET Eft TC J", ment Of this
ment is a F specific maasui elimination of contols, Conti reforms and S

iC sector and
.
of the leed for sectoг рагticipaoth its economic is the publiclySector where the decided to enter the private Enterriage inefit of the tes are Currently Cosses and a Te armi of the losses of t-owned COITThus improvidcial performance 5 a prвгвquisite improvements | Sector. While he political seniss Lé and Wish success in the па ПаgEпhвпt coПnote that the Jerien Ce With this ot beën Succesarship has co
blic sector. The ownership and frequent in the
ould be accomi te ownership to zation of long timate ownership could, of course, the Government nad with llonghe private sector.
objective of the tform program is - חriBם-rLסק g, B xחג ctor growth that o mowe Sri Lanka of the fast Asia Countrigs. a high level of a large extent 1епt operating lп L that isחB וחווטי We prica distorVOC GO W Earn ment pën to domestic опрвtitioп, апd fficient infrastusvices, including ser wicas. Rapid irds the establishan abling environgh priority and s required include ramaining price u ing With trade reamlining of the
tax system (including clear and transparent fiscal in centives).
The Government is trying to address inefficiencies in the financial institutions including Con Tercialization of the two state-owned barks. These are useful steps, but in the Bank's view, should be followed by privatization of thasa banks in a s Lubsequent Staga, More ower, the public sector usas the financial Sector to Capture a large share of domestic Savings Which Could other Wisa filance privata investment. This can only be solved by a reduction in tho fiscal deficit but in the meam time, deficit finan
cing should take placa in a transparent Way with the public sector competing openly for
funds On market ter Ths.
WG at the World Bank är eð looking forward working with the Government in putting together a program of specific Taa S Luras to a CC el fräi te thi G structural adjustment in the areas of public sector reform, privatization, and private Sector de wel opΠΠΕ Π.Π.,
The Civil Conflict
Finally let me mention the e COOmic Cost Of the Civi. COnflict which have been un doubtedly high, not to mention the very Un fortunate COSt in Lman lives, Most obvious economic cost illclude: foregone production and loss of physical assets, increased Tilitary expenditure; and lowered investments as investors lose Confidel Ce.
In particular, the security expem ditures, which hawe increased from around 1 percent of GDP in 1982 to ower 4 parcent of GDP in the last couple of years, hawe Substantially reduced the flexibility in fiscal policy. In addition, the Government now needs to take care of nearly one million dislocated individuals for which it spent over 1 percent of GDP in 1991.
WS und Brstand the difficulties and political Sensitivities associated with resolving the civil
(Солtїпшесї огт даge 12/

Page 13
The Economy (2)
IMF View
DES 1991, Sri Lanka COTTplated the final year of a three-year аттапgеппепt with the Internationa | Monetary Fund LInder the structural adjustment faci = lity (SAF) and entered into an arrangament under the Enhanced structural adjustment facility (ESAF). The latter arrangement will allow Sri Lanka to obtain loans fror the FLI Id i I am allo u Int equivalent to SDR 336 million during a three-year period that began in September 1991.
Sri Lanka's graduation to an ESAF arra Tigerent, Which folOwed its improved economic performance over the last two years of the SAF, Was based On the a Luthorities' Strong Commitment to accelerate the pace of structural reforms. These reforts Ware considered to be a prerequisite for atta ining noninflationary growth and a strong external position that would eventua y Teduce reliance on COnCessional assistan C3.
I would begin by briefly describing the main macroeconomic treinds in Sri Lanka Over the past few years. The improveleft in the economic situation during this period is indeed Termarkable Con Sidering the serio LIS difficulties that Sri Lanka faced in 1988 and early 1989. The Gover ment's firm economic poicy response at that time helped restore confidence and formed the basis for a resurgence of growth which continued through 1991. The period was marked by generally un favorabla extera condition 5 — — a slo Wing international e Com Comy, the ad dwe Tse impact of the Middle East Ciri5is, ārld, ir City, precipitous decling in tea prices. Domestically, as We are aware, th B. ethmit: CũTiflitt älst CCT1 tỉT1– ued to Slow Sri Lanka"s Economic progress. Despite this adwarse environment, ecoloric activity remained buoyant. Real growth in 1990 was about 6 percent and is estimated to be naar the authorities" target of 5 percent in 1991.
A major C01 Ce of the last Aid Was the accelera which reached of almost 2O p{ Site the as : tio LIs Credit pic domestic output, port prices for (Wh åt, SL gadir, i inflation dece | E falling to an an about 12 percer 1991,
The Overal b ments positions to improve. Sri of internation || re doubled during years, reach ing 1 early three lion end-1991. The deficit, which W. reduced in 1990 higher exports), hawe been high should have rër the target of 6 From the prelimi Eble, export perfor to Be Strong; t! of on tradition: more that offs impact of lower the capital accou of both prograT sistance proce et pace throughout A Welcome Sig confidence is . Sti|| Torie:St. E imwestmẹnt, whi EO a W rEEC E 1991.
Turning to p tation, a focal program Was a WBם שוfן חi חםti cit through re' and expendit LIre r ficant por og TESS this Tespct, IS reduced from al of GDP II 198 in 1990. During S&W er E3 por ISSU TES res emerged fro first, structural Gularly the "ped bus Company a fgtrel ChrTert – tligr tham expe C there Were Cor

rin at the time Group Meeting Fion in inflation, äl anuā rāte 3rcent in 1990. } result of Cadu = licy, increased and Iower imstrategic items and petroleum), 3rated steadily, nual average of it in December
a lance of pay
has continued Lanka's holdings 3 SerygSmOr than
the past three he equivalent of his of imports at CLITľ2 T t d CCCLIII as substantially (as a result of
is expected to er in 1991, but mained close to per Cent of GDP. nary data availafinance Continued he rapid growth all exports has at the adverse
tëa prices. In h t, disbur semerts 1 and project asled at a brisk
1990 and 1991. II of increasing 1e rising, albeit vel of foreign h is estimated
Տ50 million in
olicy implemenOilt of the SAF
marked reduc'all budget defi"ET, LIB T183SLITBS 2ductions. SigniWaS achieved in the deficit was most 16 percent | to 10 percent 1991, however,
сап expепditшWO SOL CBS. reforms — partilization" of the |d civil sa Twice rowed to be cos2d; and second, inuing difficL|-
ties in containing military expenditures and other costs associated With the civil conflict, I mid-1991, the authorities took some corrective actions - raising Bxclse and import duties and trimming expenditures, including thos g on inefficient socia | WB |- fare programs. Ne var the less, it is expected that the 1991 budget deficit will be higher than that il 1990,
The second prong of the stabilization program has been the
maintenance of tight limits. Ο Π bank credit. The authorities Wera quite successful in con
taining the expansion of credit to the public enterprises and private sector, but the reduction in bank financing of the Government envisaged in the 1991 program did not occur. Consequently, the credit program for 1991 appears to hawe weered slightly off track. With the Stronger-than-anticipated balance of
payments, the rate of liquidity expansion remained high. In the a rea of Thonetary policy,
treasury bill rates remained positive in real terms and än important reform of the treas Lury bi|| auction system was introduced in August 1991. This latter reform represents an important step toward market-basad instruments of monetary control.
The authorities have followed a Cautious exchang ta ra te policy. The rupe was held stable against the U. S. dollar through 1990. but Was a 10 Wed to depreciate modera tal y during 1991, With the dec|ine in the domastic ra ta of inflation during 1991, the real effective exchange rate broadly followed the movements of the U. S. dollar, appreciating by about 12 percent in the first ha | f of the year and de preciating by an almost equal amount in the second. Tha policy of maintaining a stable exchange rate has contributed to the lowering of inflation, but its continued effectiveness requires sup
portive fiscal and monetary policies.
Before turning to the ESAF program, I should also mention some of the structural reforms
undertaken under the SAF. These
11

Page 14
included the following: a reduction of about 10 percent in the civil service; privatization of a number of public enterprises arid Tastru C turing of the b) u 5 Company; a lowering of import ta riffs: Steps toward tax reform; and liberalization of foreign investment regulations.
The recent achievement in the areas of growth, inflation, and the balance of payments have placed Sri Lanka in a position to set Tora ambitious Tacroeconomic objectives. Our asSSSS ment is that with appropria - te e Conomic policies, and requisite external support, the economy
Can Sustain an annual growth rata of 5-6 percent; inflation Ca F1 ble further reducad to tha
le Wel of trading partner Countrias, and the external current aC Count deficit can ba reduced b2.loW its present |e well, Tha attainment of these goals will be predicated on prudent fiscal and more tary policies, but it Will also require a bolstering of
Systemic reforms designed to address longstanding inefficiencies in the public sector, to
foster high er levels of savings and in Westment, and to acceleTata industrialization. A nu mbër of Specific measures hawa been mEntioned in the statement by thÊ World Bank representative, Above all, the reforms need to b6 aim ed a treleasing the un tapped potential of thg privata sector to underpin economic develop ΠΠΕΠΙ.
The FLund staff wi|| || hawa tha Opportunity to assess more fullly the financial and structural policies during the mid-term review of the ESAF arrangement which is to taka place in Colombo during the coming two weeks. It is clear that the implementation of the program, as envisaged, will raquire determined afforts to put in place the necesSary adjustment reasures. The financial program supported by the ESAF arrangement envisages a Substantial fiscal adjustment and a restrained monetary poliÇy. The authoriti as arg, We beliewe, fu | | y aware that a substantial streng thening of thg. budgetary position is pivotal to the
12
itוחם חםtirB - BCחB Ta di UT1-tear f to reduce the di period of the ES to 6-7 percent that is conside and to geng ra te s ment sa wirhgs implementation in Westment prog The fiscal ot a strong effort slippages that c The 1992 budg ral important s' reform arid im gro With of Curr Well below thilt The budget enw tion in the Ove percent of GD || plus if the է:Dmpըn Emt, arlii dOrgStic: bak impl3rieri tation in this form wi T BES LIF"Ee S, Tg following: a policy, further pl tiwa reforfin; ri to publiG Enterp cial councils; rBSs in the ef of socia | wò| farE of prime impor dance of any іп пmilitary expe On the stru, ESAF-supported g|ES 3 Sharp FC di Vestitura and public en terpris man LI facturing e be privatized a Efter rise S i t | trading sectors be divested by The ESAF progr ցES thք restrut: t state-owned pla ti Cons and the f zation of bankin WO state-W banks. Foreign to be encouragg designed in centi SyStGIT. I til affective rates are to be furth Ontariff barriers the abolition o monopolies. By import and expo tem Will I a Iso Eo

prograп. The iscal goals, are eficit, withim tha SAF arrangement, of GDP, a ranga i red sustainable, :Liffitiant glowernto facilitate the of tha public TH T. 2jectives require
LO CÖTTE : t the ccurred in 1991. St Contain5 se vatę p8 to Warri tax 3 at holding the 'ent expenditure of nominal GDP. isages a reducra II deficit to 9 P, a STTall SurCLITTEIT t CCOLI
Il C I ECOLITSE TO financing. The of the budget Il require strong se include the Cautious wage ublic administradu Ced transfers rises and provinadditional progficient targeting a recipients; and, LETICE, tha awifurther ower rums ndituras. ct Lura | side, the 0f 0g fĒT E2 wisaCE lera tio il the
restr UC turing of es. Most public ni terprises a ra to id at least tarı ha serviceI5 ånd are expected to mid-1992. The ām also Enwi5àLuring of the two in tation Corpora - LI || CO mmirTercialiig policies in the d Etם וחווהנrtial investrnant is di Withi a v|- W E3 and Laxation external sector, of protection er reduced and fiberalized with if state trading mid-1992, the rt licensing sysa rationalized.
In concluding these remarks, | Would underscore two points, First, overa II e conomic per forfinance over the past three years has be en commandable, particularly in wiew of the circumstam : Es that hawa tended to ba Unfavorabia. Although policy slippages have occurrad, the authorities have, by and large, attempted to take Corrective actions When ever neaded. Second, Sri Lanka now needs to embark on a broadening and acceleration of the structural adjustment effort. The authorities' refort program will thus Taquira bold To Wes and rasolwe Or the Part of the Government as well as appropriate interrational support from do nors,
World Bank. . .
(Салffлшgd fгалт дадуg 10)
Conflict. Nong the ESS We ancourage the Government to keep E}}{[]|[]. TỉT1g, ựựHys [[]. āChĩgự Ba peat:#; the economic cost of not doing so is too high and would delay Sri Lanka's progress towards becoming a rapidly industrializing Country even if all the necessary a Cor Comic reforris area Tadij.
Conclusion
In sum, Sri Lanka has recently achieved respectable progress in reforming the economy toward a private-sector oriented open economy. The Government, however, can lot afford to relax. Continued afforts are required to maintain tight Tacroeconomic management and accelerata the pact of structural reforms to realize the Government's aspiration to maka the country a NIC. The donor commmunity should support the Government's afforts. by providing sufficient financing and encouraging the Government's efforts, by providing sufficient financing and encouraging the reform process. Mr. Shishido will prasant to you this afternoO m O, LI r esti rima ties of aid " requi Tamants for 1992. Finally, реасе апd prosperity are dreams of nations. Nowhere as in Sri Lanka today, prosperity doponds on achievement of peace.

Page 15
THE ECONOMY (3)
A.D.B. Report
n behalf of the Asian
Development Bank, I would like to thank the World Bank for the arrangements for this reeting and for the docume 1tation it has prepared in support of our discussions. The World Bank's review of recent econdmic devalopments in Sri Lanka
and the assassment of the axtarnal financing reeds for the proposed development program pro vide the 3 ss en tia | background for our discussions today.
Since our last meeting of
this Aid Group, Sri Lanka has faced some se were shocks from the situation in the Gulf in early 1991, specifically: the loss of Iraq as Sri Lanka's second largest tea market, the reduction in remittances from the 100,000 Sri Lankans working in Kuwait and Iraq and the higher oil prices which placed additional pressures. On the balance of payments. Sri Lanka Weathered
the crisis very Wall through astute and prompt action. It was indeed fort un atë that the
Gulf situation was quickly resolved and no significant longEr COnomic reperCu5SiOS were felt. Although tranquility appears to hawe returned to the southern areas of the country, a perman Brit solution to tha civil disturbances in the northern and eastern parts of the country continues to escape finality. It is our sincere hope that a lasting solution to this strife will soon be found and normalcy restored. This is a necessary pra-Condition for tha full economic potential of the country to be realized.
The Stabilization and Adjustment Programs
The Sri Lankan economy has labored under a number of significant structural constraints, including a low lewel of national sa Wings relative to in West
merit; resulting account imbala: quently heavy foreign borrow in ofte i efficier 1 E and is Lifficient the private se: greater role in These caristraint le civil disturbi w8n tect econ Om from achieving i
T1B ADE fLI| four principles the Governmg m and adjustment tight mat:roat:O ment eSpecially ment through t of recurrent : Continued ration: public sector; rationalization ( programs; and ( an enabling fra private Sector, o ADB is color of the macrog 13' 10 t beer som E of tha imba to deteriorate,
While the ico impressively in With real GDP 6,2 per Celt a 5 per Cent, rɛ noted that most ting this perfor ternal' tij e comin namely, good W tively stable SË in tha south positive affects Gulf Crisis. EC has however be by increasing iToba lar Ces Whic Cuntinuo, Cøuld country's future tial. Although Curret cut 7.1 per cit of to 5, 4 per cent | imira T y e5 tirati it rose again per cent of GDP aspect of this i less than expeac in exports rest appreciation of t
E TETTL11
іп а

W export base serious current lice and consereliancă on |ց: a large and public Sector; ificatives for tuor to pola y Ed the economy. s, together with 3n Ces, hava preic performance ts full potential.
ly supports the which underpil t's stabilizatio
Program: (i) nomic mamagefisca ! Ti El flagge9 etter Cotro xpenditure; (ii) alizatio of the (iii) continued If the power ty iv) provision of The Work for the Wertheless, the med that soma conomic targets met and that lances Continue
non perfor Gi 1990 in 1991 growth rites Off d ċari Castima tad 3 spectively, it is fäC tors SupporC. We Xift: marl Hgamant, "Bather, i rea|Curity situation and Laxploited following thE to notic growth en accompaniad acro Colonic sh, if allowed to jeopardize the g) To With potethe Extgrn: deficit fo II from GDP in 1989 in 1990, preBS indi:äte that. im 1931 t 3.3 . Tha Worrisone in Créä53 iS thg ted real growth ulting from an he real affective
exchang (2 rate. Another Concern is the growing size of the b) Ldg at da ficit, which according to pro liminary 35 tirTlates for 1991 is expected to be 10.8 per cent of GDP compared to 9.9 per cant in 1990. The GO ựr Terit ES timit E35, that the budget deficit in 1992 will deClīne to 8.8 per cent of GDP, a figшre which appears optimisLic giwem Waga prgssures in the public sector and the demand for defence expenditures. Furthermora, to finance the budget deficit i 19 || ... the Gowa Timmet in Creasingly relised om bank financing which accelerated mOmetary expansion to 22 per cent Owar the October 199)-Oct 3 1991 period. Although inflation d3 Crea, sed to 10 per cent Egy the third quarter of 1991, indications are that inflation will rise again in the near future,
It is the ADB's view that without a ra WarSa | Of the expansionary fiscal policy and
accommodative monetary policy. ץgוח yחrטוrסfidence in thB eCוrסC Ele undermined and the e Como Tic gains achieved through reforms Carried out in recent years will largely be negated,
The Go Warnment is to ba commanded for the positive reform measures undertaken in the past two years. The ADB SU I ports the liberalization and deregulation reasurgs introduced in most sectors of the economy, particularly in the agriculture and fira ficiāli sectors. It is Cour hope that the Government's Commitment to implarnart thas B rfors vi bē Iātā ied.
Poverty Alleviation
Issues associated with poverty alleviation are of special interest to the ADB, A, significat proportion of the Sri Lankan population lä5 rot b Bn Efittad from past economic growth and the alleviation of power ty has been an ongoing concern of the Government. The proportion of the population which is Iru tri titola || y at risk a id iri absolute powerty has parsisted at about 20-25 per Cerri t.
13

Page 16
The Gower Tert recognizes the importance of maintaining and administering programs that ale wiate powerty, specifically the Jana Sawiya program, the food stamp program and the MidDay Meal Program for School Children. The sa programs hawa however suffered from İmade: quate targetting and and lea kages of resources to non-intended deficiaries. The Government is to be commended for tha considerable progress it has made in restructuring and improving the effectiveness of these programs.
Although the ADB suppo Corts the efforts currently underWay to fashion a more focussed powerty alleviation program, it is the ADB's view that the key element in social development is an Environment CO TI ducive to in Westment and en terprise, thus Creating a base for a sustainable growth of in Come. Prospects
Eased On the perfor Tange of the economy in 1990 and 1991, the prospects for sustainable and higher growth in the longer tar mı appear göÖd. privata sector of the economy has continued to perfor T well and the Government's strategy
The
of relying on provide the leat is soundly ) while a tight management Sta maintained in 1 Come expansi fourth quarter fisca| ārld TI Hawe bee ex t:t:tonomy to Յ growth, it is fisca and moll tigh tened.
In addition, low-through quired if maxir to be realized already made a should be mad the pace of refo Tha ADB sup i Crease tha for Ces iT Fe3. and it recogniz contribution to public sector the privata 5E expected to |ewels of ser W up the annual, |ing Public | the Gowere idem tify a Core rm13 t i Which r1 ag Hirst Spendi vich must E
VASA O|
[סרו 2 ,207
Colom
Telephone
14

thi5 Sc (: to T to d role in growth ased, HOWEver,
macroeconomic nce was largely 990, it has benary from the
Of 1991 and опеiary targets ceeded. For the njoy Sustainable
eSS en tia | that etary policies be
appropriate folA Citi OS E TE TDnun benefits ar a from the reforts ld every effort e to sure hat irms is sustained.
ports efforts to ro|e of Tharkeat ource a location
es the important be made by the in a reas Where ct āt be rovide adequate ice. In drawing three-year rol - nvestment Plan, it will need to |evel of in westust be protected ng adjustments, | Tore bäläimicead
across economic sectors and which must focus on in westments with high rates of return ower a relatively short period. The Government's strategy for sustainable development aims at reducing the large resource gap which has to be filled by foreign saving. To contain debt service obligations in manageable lirimits, more emphasis should be placed on encouraging foreign direct investment. The increasingly export orientation of the growth strategy means that the whole policy framework relating to trade will need to be transparent and conduciwa to exporters, The foreign exchange regime will need to be managed flexibly to ensure the competitiveness of production and to maintain international reserves at prudent le Wels. Closing Remark
In closing, let me assure the Government of the ADB's support for the efforts it is making to put the economy on a higher, sustainable growth path. The Asian Development Bank is confident that continued donor support for Sri Lanka is Warranted and that it will prove to be effective in assisting the Government meet its development objectives.
PTCHANS
Cr OSS Street, bo - 11.
: 4 21 631

Page 17
EWWRC WWEMT
The Consequences of
W. L. S. Jayapalan
introduction
his report is to provide an
overview of Environmental consequences of conflicts in Sri Lanka. It is not a comprehensive study covering all the aspects of the problem. This report Is mostly based on T1 y personal knowledge of the subject gathered as a natura poat.
The effect of Sri Lanka Coficts, especially the prolonged ethnic Conflicts, or elwir amat and hul al life is di Sastrous, Positiwa aspects it any are indi
Ct.
*
Sri Lanka is a densel y populated island. Competition for degraded resour Cos and en wirolment has been increasing throughout the century due to the incгеasing populatioп. Carrying capacity of the land is not remarkably increased in this period. Allost a II tha effort to in Crea 5Ge the carrying capacity Such as irrigation projects and peasant settle Tents. Without the due cosideration of the environmental aspects, hai wa serio US ConsequenCes on the degraded ênvironment.
Thousands of Wedd has (tribal people of Sri Lanka) scattered in tha south eastern part of the island are forced to assimiliate with the Sin alleSea and TarThills by the environmental degradation, the Fhea germonism of the Sinhase and Tails and the sociopolitical development.
Nu Wară Elya district in the mountaino US Central provin Ce 1äS become the stronghold of the Indian Tamils. Muslims form strongholds in Ampara district, the northern part of the Puttala district and to SOf The EX tent in Kandy district,
Communa ||STı has becÖrtle 3m іпseparable and in creasing by predominant aspect of Sri Lankan politics and resource manage
Tart, TiS the e marging E tLr of the Cai
Population p high in coastal të rri province and in Jaffrl H dry zorne. In агеas thв рорш Carrying capaci Wéry Jw, Carr these are affe Es wir Crimental Other constraits Straint in the raifa.
R i fa || PiS E and limiting and man made v Īr rā ir i tÒT i dtarmir Ca på City in t F agricultural Tagi pal de ICE EXtr Satt la met S O elwir om mant bo à Ils Wer to thes
Theso practic buffer junglës Ween predominië Tamil regions 1950 s. Trl Is I Stata a ided C Sinlala sa in tl I iIiI do immira tgid disturbed thg ( .ץ חם וחhar
The resource репinsula is ir port its hig With its broad The financial r red from the eign countries ce and employ the life blood since the turn Growing cont for power and tՒla 1 35}"E Էյք basic: Strategy Sr Lā kā Tā Bast provinces, to riorated the Cdema Ilded a f

Conflict
'end began With lite politics at tha ntury,
ra 55 urta is wery parts of the Wesіп the Wet zопа peninsula in the th St Of te lation density and y of the and art ying capacity of cted by serious da gradation and 5. Tha main Codry zong is tha
wery important actor of natural egetation. Therean important fac1ing the Larrying he predominantly OnS. Since indeding Lank basad the cost of the BCEl Tië thg Thail) tB prtյblems.
Es hawe destroyed that existed bet|Titl y Siri ha les e ad
up to the mid Og ather With the olonialization of E Tamil and MLS
eastern province :entury old ethnic
bHSE of the Jaffna adequate to supTamil population dar Tiidrie C:llä SS. esources transferTidd and forthrough Commerment has b3Com E of the pean iris Lula of the centштү. ural competition re Sources Sil Ce Hidly affected tha of existence of ils liwing in morth This furt Her dasituation. Tails ederal solution to
Share enviroletal resources and establish political power over them. This leads to the present Conflict situation and the prolonged guerrilla warfare in the In Orth east provin CBS.
Areas mainly affected by SoCia | Conflicts and insurgency in Shese distris are diated by for est far Tigris Who are in wolved in slash and Burf CultiWation, This phenoппвпоп is поt typical for Sri Lanka. Similar situations exist in most of tha third World. fra Tn Peru to the Philippines, countries which a FÈ affected by social conflicts and insurgency.
Insurgents and guerillas traditionally moved to jungle clad peripher is to create a base for support and clandestine activiti
es. Most of to third World governments hawe not shown any interest to recognize the
cause of the insurgencies and the problems of the forest farmers. This leads to a sitt ätiol of mutual Sympathies. Always forest farmers b e Come the SOCially and economically easy targat of the security forces.
|rı Sri Lanka il the geographlical map of slash and burn agriculture Centered areas coincide i Tan y pola cas With the political map of 1971 and 1987-1988 insurrections. This is Tot a coincidence that can be ignored. Sri Lankan experiean Cos provide additional evidente to the interrelationship of diagradation of Environm. Et Fland growing regional and social inequalities and conflict. This has a circular יחסt:tiחfu
The situation is also intensified by the civil war in thig north east provinces. Scarce resources maca 55 ar y for the sustai na ble development of tha country hawe been transferred to the war efforts in the north Ed St.
(To be continu 0 d)
15

Page 18
EMWIROMMENT
The lessons learnt at W
Ranil Senanayake
ome..., ... Warm moist Bir, =onu palms, shades of green paint the landscape. The forest of the village gives way to carpets of tea clothing undulating hillsides. Finally, the mountains como into view, dark Crags clothed in ephemeral morning mist. Watawala, once the highest rainfall site of the island, sits in the walley, which is stark barren, a grim raminder of wanton dastruction of the original forest cover. Watawala, the site of thĘa first government effort into growing forests with high diversity. Watawala is a statement about the effectiveness and Committment of our foresters. The lesson of the plantation at Watawala and its after math serves as a valuable lessor in forestry politics and greed.
It was early 1980's — The prusperous days of the Maha Welli project when the economic climate was a froth. Money Was pouring into the project much like "Hinguru" or fish-bait poured into the ocean by fishermen. The boiling froth created by Tula is a feeding frenzy as a ConSequence, Was analogous to the social froth created by the economic sharks of the period. It was in such climatic codi - tion that work on Wegetation and landscaping was begun, with Consultats dra Wn into design the work for implementation by government agencies. The first work was to develop techniques frt ba ir vere arge tes Could bela boro Light im Lo - urbo a 1 andscaping. The success of these experiments driving the reorganization of a department to halde landscaping.
These were the times wher the change in forestry practices from monoculture to polyculture was discussed and a consultant was appointed to develop models. Two plantings Were desi
15
gned and imple the east coast patch diversity
tā ir 5 t i diversity. The
ta 'wwa la Was the point diversity. tio ni and mairi tero by officers trait and seconded t the Forest Deep: sults Were iirTmpr WETE ES tablisha Seed lings raised carefully by t A broad ill-si W:15 OThe SLI Ch
It is a fact tion was estab ing 5 LUC Cessfull But today the if no activity Hhad taken placo ders Why this with so much en Ce has disap
............ Was ITE TIE LOFS f() Sector Clairn, C that he consul was suddenly it a Consequer HC ti III by i Serisi titive OWür : cer n s woiced ir the plants just sing the Consu die beCaLIsa a || the project sto its suffered thi tion neglect? : it is hard to a Lj luiסW חוfיחו perish through go around (; plants pined to the shadow y p the strings. W rgminder.
The morning the crest of th gold and break

Watawala
- ented; old on
to investigate and one in the In westiga te point plantation at Wa
experiment on The implementaIan Ce underitaken ned in forestry, o the project by Let. The re3 sisiwe. Murseries d, thousands of and planted out rained fores tes. de at Watawala place,
that the plantalished and growү fог ап уваг. ad is B) är E 55
of reforestatio B. So Ole Wolplantation grown care and experipeared?
it, as Some Comm the forestry Lie to the fact tant to the project disi 555? Wä5 CE of Wageful guilty politicial, justainability Conth5 Talio did "pime" way misillta int? I or diiri thaw Tā ir tā of pped and the plaEl fate of plantaEwan in thasa days Wri Som a foreStar
lat a pola station
neglect and than äh i r ini I1g that th ] death. Perhaps
olitici an Stil puls 'atawala is a grim
Su Shirles Lup 1e his a liquid is the contempla
tio ni — The journey Lupo the rio Luritains Cortil Ug. I stil IOCks the same = these mountains, Jus, the same ai5 the time wher thit great lake was formed at Case
tier eigh. The la k E though, hachanged. Its Water onca ceas and clea, is low greer
thick, clotted with an algal bloom of massive proportions. The low waterflow of last August had concentrated Scummy dense bands of dead and dying algal cells it every day. The reason Was due to a po hom E O Cä || Ed er trophication, which means adding nutrient into El system Linti | it || Coosas its la tural balan Ce and collapses.
The Darling river in Australia recently experienced eu trophication and a massiva alga blom that produced a toxic chemiCa CEPable of kil ling humäS and livestock. The entrophication of the Castle reigh reservoir SESTIS TIC) t tČo hawa ball addressec by Environmental interests as yet, but it certainy needs to be. It may sig mål trends in reser Woir e Cology in Sri Lanka, The heavy dependence of this Nation on reservoirs requires us to consider these bodies of water as e CO5yStarTS IS WE3|| a:S being an agricultural or energy TE SOLITICE.
As I finish my circuit, visiting various environmental projects, head back through Nortan Walley. The day has bem eventful. There is a great surge of goodwill and interest in Creating better models of forgstry. It is even ing as || ) a55 Watawa|| a: the scene has changed, evening mists smoothing the stark, treeless landscape. Perhaps the scene has Changed at various lavels
of administration too. Perhaps the les sons lää rint at Watawala * will hawe soma impact.

Page 19
THE WINGED EROS
S. Pathirawitana
ܕ+
Zeus the High God changed into an ваgle to slake his lowe roughly violently on his god like Ganymede
Zeus the High God changed into a SWar to slake his love smoothly langourously on Leda, his golden blomde
Ong can see how the two types of pleasure are incomparable: old appeals to Sorte na lUTBS. . .
The other to other kinds. . .
| like էյtյth
A little poem liko this helps you to get just the toehold you need to get a better view of the great world of Greek Culture. Its author is LLLLaCGLGS La HmCC S LLLL CCCLLLL SS a S CLLLaLLLL LLaLLCLLL S S LLLLC CLCCC CCLLCLaLa L S LLCCC LCCLL only to scholars deep into Greek studies and also to you perhaps if you had the time to browse in a collection of Greek poetry found in a place called the Loeb collection,
These poems also hB|p you to answer 5orT1B of the questions that Keats raised so breathlessly when he burst in to song after seeing some drawings on a Grecian urn. Thou, silent form, said Keats talking to the urn, dost tease us out of thought. What teased him particularly out of his mind was Wondering what the LLLLLL CLLL LLLLHHLCCL HH LLa L H L GLC aC LLS
What men or gods are these? he asked, What Thad pursuit? What struggle to escape? and what wild ecstacy? Had he dipped into the Loeb collection, that is if there was a Logba around at that time, as he did in to Chapman's Homer, he would hawe discovered that those divine for Tis on the urn were, nothing oath, trying to es Cape into such Ecstacies as contemp|ated by the poet Nikar thos:
I like a firm, robustly built wопап. Young or rhot So Young, if she is young she will clasp The firmly and strongly with the warth апd eagerness of a large, bшхоп body. If she is maturer and softer and plumper, she will have the guts and experience to faast om me with either mouth at wi||
NO world Er there was such rejoicing in Europe when they discovered, after Constantinople fell to the Turk, the arts and Crafts of a people so free and uninhibited in the way they frolicked and gambo II ed om those turns and other bits of pottery.
Te fref is D S LLCHCLS LLLLLLaLCS LLLLL LLL 0KLS EEKLEO

But Greek love has been often mis LIndB Istood. It is associated in the minds of most people with the form of love depicted in the first part of the poem at the beginning of this article. Here, unbelievably, is what a Marxist Critic has to say on lowe:
"Engels says there could be no question of individual sexual love before the Middle Ages," because '' for that än cient hard of lo We Ara Creom, sexual o wa i OL rf SG1 SG of the word Was as un important as the sex of his belowed,
"In those fär offlimes, married men were ashamed to reveal the slightest sign of affection for their wives. But the Ten paid for the humiliation of their ywomen by humiliating themselves, indulging in perverse love for youths and disgracing their own gods and themselves with the myth of Ganymede." (Problems of Modern A est Hetics po 1 66)
No wonder communism crashed. Had Engels dipped into the Loeb collection he may have sawed himself one more of those Sweeping generalisations characteristic of Marxist thinkers without exception,
To realisg how profoundly Wrong Engels and his puritanica I kind hawe been, not Only about politics but also on love, let us listen to the wisdom of Marcu 5 Argentarius:
To want to hawa a beautiful Woman is not lowe. It only shows that one has eyes and taste,
But to fall in Iowa with someone judged plain. Overwelmed, one's head lost, B | | gr fire. That is rega | low Co., That i 5 the true flama.
Beauty. The rely gives pleasure, a dually to any number who can perceive it.
LaaL S LaLaaLLS SLLLL S S LLL SSLLaaLaaa00 S L S SSLLLLLL sexual love" before the Middle Ages. In fact there is a thing or two We can learn about "sexual lowe' for the ancient World.
For on thing they were not obsessed with the 'obscend and tha pornographic" as we te nd aL LLL S L LL LtHHLCLCLH SaL0L tmaCHHmLS tL LLLLLLLLmmHCCS Tiad y find it awan amborrassing to Watch an LLLLaCaHCCLCLS SLLtC LLLLmLaLLLLL LL LLLL S aLCLL LLLL LL 'obscene and erotic imagery.
Unlike the ancient World We have distanced ourselves from the erotic experience. We would rather call it sex and take an X of it than
17

Page 20
5ē it EGS å satu Tal function that COES With the lot of man, Our mechanica progress, the ona We are constantly trying to improve, is only increasing our distance from the erotic and not bringing us any nearer to it in spite of exhortations froT the flower children in the sixties to maka Iowa and mot Wär.
The sexual liberation that swept the West in the sixties appears more a reaction against the puritanism that the industrialised word has Created for itself rather than a re-discovery of the Winged Eros.
Come to think of it these problems wera there even in the titles of the Greeks because there were strong advocates even then who argued that the object of love should be regarded more as a sex machine than something to lo Se Cole's head ower or be overwhelmed by as Marcus Argentarius tells us when describing What real owe is,
These are some of the things that Socrates himself raised with Phaedrus, the chief character LLa LLaLaaa LLLHHLLLLH LLLLC LLa LaLLLLS LLLLLLaL LaL reports to him that a sophist na med Lysias 'maintains that handsong boys should give their favour to non-lowers rather than to lowers."
What is valuable, Socrates explains, about the erotic experience is that it has given man a chance to escape from himself. This experience which overwhelms you, makes you lose y co Lur head and makes you stand outside of youгself is, Socrates says, a fогпп of "diviпе madness" (theia mania).
But a Word of caution. As Joseph Peier explains in his Commentary or Phaedrus, not every One Who is shaken with erotic emotion will find himself in this state of theia mania
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or being possessed by a god, "Such romantic ideas," he says, "are not to be found in Plato.
"However, Socrates' speech does maintain that erotic emotion may also be one way in which man can partake of the 'greatest blessings' -provided man does not corrupt the erotic emotion by, for example, refusing to pay the price for the receptivity to the divine madness. The prico is a Surrender of his autonomy. . ."
Ouite surprisingly we hear similar words from quite another direction. As in erotics So in poetics. Talking about poetic emotics Eliot says, 'Poetry is not a turning loose of emotion, but an escape from emotion: it is not the expression of personality, but an escape from personality." And how odd that Shakespeare himself should sum this all up for us by saying that the lower, the poet and the lunatic are all alike.
To vind up this note om erotic love may point out that not all Greeks of the time We are speaking of were inclined to slake their love roughly violently like Zeus on his Ganymede, There Were also those Who Were totally put off by it like Erast othenes who preferred the Smoothness and the langour:
I leave males to others
only want lowe making with Women their love eri dures boys be come una ttractive so quickly
loat he all those hairs were their absence is so peasant
The Excellant translations from tha Greek were done by Mike Kelly whose book Jousts of Apr hodite can be found in the British Council library,
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Page 21
1 N DIAN BUDGET
Bartering Swaraj For
Yashwant Sinha
ha Crisis il the Iridiāli a COTI
omy, coming as it does when til a corn Luist block is a sharibo||gS ad tha Third World im disa rray has given rise to many mythis. 't is liTTië vrije UT vierStood clearly both the nature of the present crisis and its relationship, if any, with global developments in order to explode these ryths.
It is no W a CCēpted by a II that the crisis in the Indian economy is the direct result of the profligacy of the eighties. The Economic Survey presented by the Narasimha Rao government to Parliament in July, 1991 gives a graphic account of the liberties which were taken with
power in the eighties. But this Crisis was largely fiscal with, no doubt, a serious spi|| - ower
effect on the balanc9 of payments position. The Gulf crisis proved to be the last Straw on the Camel's back.
Fiscal Deficit
But even after this, the remedy was not so complicated. The need to reduca the fiscal deficit of the government was para
mount. Steps were needad to curb non-essential imports and increase the earnings of the government through better tax
compliance and of the country through a greater export effort.
Some recession and a certain amount inflation was inevitable as a result of these steps, Other steps, therefore, which
gawe a powerful fillip to inflationary expectations like devaluation of the rupee and increase in interest ratas should, therefore, have been carefully avoided.
The problem that we faced was of our creation and not the result of global developS. The comple le retreat from whatever this country has stood for and held dear from
Tsha Writer is är forfra Cr, Ffra facey
Monsfer of Incia
the economy by those in
the days of the
and subsequen ranted by eco ations. The ret
sought elsewher a dark at si
TF1 first bJB en floated SO Cialis ES fa U Ilion and oth pă a II Countria: bando ed the al SO a bandon i Nothing Could rageous. The E Tomic syster in the Sowjet Other gastern E Wiwas to tally di System which | dia.
The second whole world is th Cara fore, change. In fai changed espaci loped countrie have ideed är B ft T the W, Is a Corno Way burdar T1 Lust fä Capabilē uf Eär draft is ampla
The third policies which adopted nov ha" o Tic Tiraclgs I SOLUth Ko Taal, TE Malaysia, Indon and that such about to happe In Comparing th tries With Indii
Jap batsyggt conditions and tỉ[:3|| 3 [1] gC{} | pletely forgot to
The fourth m mere developm in the country for all our i dustrial develop ba a Chieved thr foreign investm

Economic Miracle’.
reedom struggle Hy is mot Warhomic Considersoms hawa to be and they reveal ster design.
yth Which has s that b) e Cau SC | ed il tha So wiat er eastern Euro; and his been re, India must ts past policias.
OLolitical and e Co
which obtained
Union and the горваm countries ferent fron the was evolved in
myth is that the ; changing and, lia rust 350 ct, nothing has ally in the deveS. If changes aken place they orse. Integration street and the on those least ling it. Dum kel's proof of it.
yth i 5 that the we claim to hawe We Wrought econn countrigs like 1іwап, Singароге, esia and Mexico
a miracle is n in India also. lese Small I COUna, tha ya Wning their scale and ours, both poli
othic is COIT1.
yth is tha t the ant of industry
у is a рапаг:eа is and that inment can only ough un rastrictad ent and foreign
technolology. When the present government came to power, a much -discussed draft agricultural policy paper was alraady there. It has mot been finalised till da te whila the industrial and trade policies Were a in OLInced with in Weeks of the installation of the present government, Does it mean that agriculture and related fields have a lower priority?
And finally, there is the myth of the ''Caged tiger". Our financa minister has talked of Teleasing the "animal instincts' of the Indian entrepreneur. Such carefully chosen expressions are part of the capitalist marketing strategy to create a false sense of strength in order to subserve their own interests,
The international environment continues to be hostile todia, in fact, even more so today than in the past. Each country is fighting fiercely to protect its national trading blocks is an indication of the disintegration of global systems and when caution is tha ngad of the hour We seem
to be rushing in where angels fear to tread.
India is clearly under pres
suro on al fronts intornationally. The World has not only become unipolar but in the collapse of the Soviet Union. India has also lost perhaps its only true friend. The US is in full cry and out tO OverCome Whate VerreSi Stan Ce there is to its policies and perceptions any where in the world India has for far too long been perceived by the U.S. as a country with very close relations with the Sowiat ULI ior ad mot at the back and call of the US. The US would like all that to change now and bring India within its het om its tarms. The sudden insistence on India signing the NPT, the passige of Pressler's amendment in the US Senate
Continued on page 27
19

Page 22
Educate Police
Soli J Sorabjee
here is often not enough
realisation about the crucial role of the police in the protection of human rights. Indeed o Lur freedom to move freely and be secure in our homes depends lar gely Upon OUr police force and their ability to 'keep" the
реace". Apart from peасе-keеping duties, the police have another important function to
perform: To uphold the rule of law by protecting the law-abiding and getting the guilty punished.
A society where the offenders, especially the affluent and the well-collected are not brought to book, is bound to breed a large nuIber of mal contents whose anger and frustration inawitably |gad to at tempts to ower thir C) W the system and in the meantime genera te myriad tensions and conflicts. The practice of LI Into u Chabi li t W a mod per Sister li CE2 of borded labour with near impunity, and the abject failure to punish those who Committed heinous crities during the 1984 arti-Sikh riots är 3 Sī instā5.
Major Violators
Møre simister thäm the Sir 15 mf omission is the phenom en om that the protectors of 1 Li ma li rights hawa boa come their major viola
TOTS
Wiolations of human rights by police occur partly because of the functions they hawe to perform and their Inanner af performace, Life and liberty, the
KYS SHLLCLLaHCCLLLS SLLSLCLHHCHKLSLEKL RIGHTS activist, the writer served is India's Solicitor-Generd.
2O
On Hui
rThOst Eba si: h Lu IT" protected by t arg the Tiain C
There are I LI death in police count of physica engourters'is O' for murdering pi police regard a minals and WF and Corwiction la W of the la rii
CLUlt EE CEILIGE Of caps in securin Inst thE Im.
Our Constitu protection again tio I. Yet third and in||LITlan || interroga tiun ar. a person iп pс Tamբant and IT of this guarant UE li tie S - Te free siosi ald Dif significance USL police, Politica thi Era iš Strong t Hr BחeוחחWarםם and Speakers a
Equality of t Other human is frequently fic ness displayed the Corti polait : or a politician of hi5 tr). Sist contrast to the of a domestic it of assault
Un Constitutional their superiors, political, are th day and for an

man Rights
an rights amply he Constitution a su alties.
Tero Is Cases of
Custody on a C| torture. "Police ften a eupher Inish rSons who the S dan garcus Crilose prosecution according to the d are wery diffi
Serio US handiց Յwidence aga
Іtion gшагапtввs st self-incritiradegree methods treatment during nd datention of lice custody are lake a mockery Eee. Other Casноiom of expresassembly whose |ally escapes the meetings where Criticist of the often broken Lip re: arrasted.
rea trient is alright which buted. The readi. in dealing with if an industrialist abOLIt Lhe theft IT 13 ir rimarked Cä|Qu5 trgätmBlt Sarwa It's Compla - by his master. commands from both officia did Ea order of the average police.
man it is safe to yield to pressura and oblige the accuser OT It ha acused i accorda TCe With the "" directives" received by hini. A recurrent complaint, not always Lunjustified, concerns the partisan role of the police in hand| ing communal ricots.
The par Wailing perception of the policeman by the common person is one who has vast powers to USB force as the Cogrcive arm of the State End which practice are exercised arbitrarily, unjustly and without accountability. Though the impression is mot uniwersally true, the main Gaso for it is that the Concept of police befriending has not taker roots in India.
What are the causes for this distressing state of affairs? One of them is that the police have an old history as än instrument of stata repression. Thew ware a colonial force used as much to crush political dissent and punish freedom fighters as to combat crime. The hangower of this Colonia mentality sti per sists.
Another cause may be the source of recruitment. Having witressad discriminatic) in and tha accompanying unfairness and Cruety as a daily routine in their immgdia te surrounding:S the 3 weraga police person at the time of joining the force does not hawe much sensitivity to basic human right Š. Abow e a II, he has received no training or eduCation Worth the n artin 3 Which would help him to overcome these handicaps,

Page 23
Excessive politicisation of the Police force is one of the main causes. The police will indulge in as much lawlessness as the government of the day wishes or tolerates, emboldened by assurance of official patronage and political protection.
Another factor is the belief that in dealing with hardened criminals and habitual offenders, third degree mathods and inhu lman treatment are not on y legitirna te but necessary for Effecttive detection of crime and successful procecution of the crimina I.
Regrettably, a part from a cross section of the community, some top administrators and ministers also share this thinking, Ospecially when the crime committed is a Sensational Or b|0 Od curdling one.
No doubt terrorism rust be suppressed, insurgency tooted out and murderers of inocent people dealt with swiftly and sternly. The police and the security forces must be fully and ade quately equipped and supported in every way to Counter terrorist onstaughts. But to kill in Cold blood a person suspected of numerous terrorist acts is murder plain and simple. Law-enforcers just Carlmot stoop to the lewel of the criminal, Govern Ilent lawlessness is no answer to terrorism. Tha rule of law has, to be observed even in the most trying and tempting situations.
How do We remedy the situation? First and foremost there must be radical improvement in the living conditions of the police force which are far from satisfactory. Their workload has increased substantially and it is reported that they work 16 hours a day and seven days a Week which leaves then hardly any time for recuperation or recreation. It is difficult for the police to be civil and sensitive to human rights in these conditions. Indulgence in wholesale condemnation of the police Without appreciation of their "problems
is unfair and der should be pub lent of honest to ser Wicas Whe a Cross it.
Political Bo:
The politicisa force by politi be relentlessly hing has cont the da generatio force that its the power-wiel
The crying in for proper, education of p all le Wels. Kn various section and CF. P. C is
There should course in hum must bo dri || |ed ice person that alty is to the the laws.
If We implem Sures We may the re-emergei abiding policam sitive Conscie rights, who is fеared.
Bartering Sw (Салtiлшеd f
which we are today, the insist defence expепd sing on a sidad the deface sec the 'trial' of Dacia | 301, Dun GATT talks, the entry of multin terms, the Othe imposed by the are all indicatio ure that the U to bear om Lus in line.

oralising. Thare C acknowledig -
and devotion |Wr Ole COGS
ion of the police } a bos5e:S termiñU5t dilihat God. Notbuted in ord to of the police manipulation by |lrs.
ed, ho We Wer, iS comprehensive lice personnel at )wledge of the of the I. P. C. Tot sufficient.
be a compulsory in rights and it into every polhis primary loyConstitution and
ent these meabe able to see
Ce Of the la W– an With a San1Ce for human
not shunned or
araj. . .
orn sage 15)
wrongly lauding ince on reducing iture, tha ir Croco | laboration in or with the U.S., India under Spel's draft in the free Lum restrictead tionals on their Coditionalities IMF/World Bank, ls of the pressS is bringing to o make us fal||
There is much that is wrong With LS. We hawa made mista kes in the past. The pace of our growth should hawe been faster. We should hawe solved tha problems of poverty, un employment, drinking water, health, education and communication faster. But ultimately a nation has to decide upon the final tradeoff between the rate of economic growth tha, Eexterial ramifications of its economic policy and its foreign policy, its democratic framework and ultimately its sovereignty as a nation-state,
Economic Growth
Perhaps our people and their leaders in the early years of independence did work out this trada-off and Consciously sett - led for a strategy under which the rate of economic growth could be slower but which gawe full freedom of action on the foreign policy front and which preserved the democratic framework of the country and safeguarded its sovereignty. There is not on a nation in the post World War II era which has a chi awed an gconomic miracla and at the same time followed an independent foreign policy.
| si C, Lis tituest for such a s economic miracle, therefore, let this chilling thought not escape us. It is not merely the miserias this economic policies are going to heap upon us, especially on the poor and the helpless that wi|| hawa to be paid as tha price of this mis adwen tire. The
damage in the long term is going to be in calculable, both economically as Well as politically. The clarion call of the father of the nation namely "Swadeshi and Swa wa la mbam"
which were the bedrock of Swaraj have been a bando med for a handful of dolors Swaraj itself is in peril.
21

Page 24
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Page 25
VEDA
Western Hegemony O
S. S. Gill
நிதி he United States has long
T: said President Reagan, "the principle of free flow of information as a cornerstone of any democratic political order." Being the prime mower behind the information revolution, the AITlerican stake in the "free flow of infor Thation" i s quite understandable. Also, this commitment to a noble denocratic ideal is a many splendo Lired thing.
In 1983, the U.N. General Assembly adopted a non-binding declaration of 'principles gowerming the used by States of artificial earth satellites for international television broadcasting." The right of prior consert by the host country embodied in this resolution was supported by 108 nations. But true to its loyalty to free flow of information, the U.S. opposed it tooth and nail.
Baby Food
Again, about the sama time, W He tha W.H.O. draftad for national adoption, a resolution to restrict aggressive forms of marketing and advertising for baby foods, America happened to be the Conly Country to Wote against it.
The most notable instance of this 'principled" stand was, perhaps tho vigorous opposition by the U.S. and other industrialised countries to the UNESCO's rgSolution On the New World formation and Communication Order... This re5O 1 Li tion, based of the MacBride Comtission report, Was a modest attempt to ''correct the in equialities ir the flow Of information to and from developing COuntrigS Eind bët Weer 1 th059 countries." As nearly 80 per CSft Of the World IF WS-f|DW era nated from the Western news agencies, and 90 per Cent of the radio frequel C i ES: Sp ECtrum had been cornered by developed countries, tha UNES
CO felt that thi inbala rice I dec tiwa. TF1 era yw protest fro da: legates again design" to th flow of infor: Tlation of 5 tätt the sacred para cracy,
To fact of t tha na W ini orm has radically ch Charactar of i highly sophistic Sed methods fo processing, tran: retriawal and di tured it it Commodity.
Of course,
tյf information price tab. Me tions, industria processes, copy Were a II propo CoTi Tercial väl information has 5i: È emit il tribution, adi and leisure. All is of a specia requires exper and trained pe
malip II lation a cessible only to pay for it.
Twin, o sinin LI !tarı; the riformation of particular re Ti di WWT || () We seem to be
deluge of infor ters, optic fib. Satelites are the
il ti5 il forth. They are high technology logy is alway:
of the culture it. Created by trialised contri logy is a faithf. masters, The CC Its and data
da Sa

Ver News Flow
5 s(ort (of ex trèTe |ed so a Corra Cas a how of lhe first word st this 'silister rott le til fra a a tier, and pro
il Lr''' [ill i cincts of demo
ha litt 3T is that i äition te Chilology larged the wery ThB .1ן סformatiך lated, computariif its generation, smission, storage, isSemina til ha'we
a high-priced
SOTI 3 Categorie:S äl Ways carried a dicinal for Tulaor chemical righted products, ristory items of ue. But today b) a Com a tha baproduction, dislistration, work this i for la til lis Bed at LI Ti; it Isive equipment rsonal for its d, thus, it is a C| th058 Who Can
a) LIS rES LI Its Of revolution ara | EVä: 0 thig Til the 01E Hidd iri Lundated by a -uמוחםC . חסatiוח res, lasers and channels through Irma tion gushes : all creatures of A rid ta' Chimothe hidmaid which produces ddwäC; ad iridusas this technoIl ser Wärt of its } Tipo Lt B r por Og, ra rT1as as that we W Care Created irn
America, and designed to serve their work culture and habits of mind. By borrowing them wholesale we begin to view Our Work environment through alien glasses.
At a more innocuous level let us look at a popular blessing of information technology. Bored stiff by the bland fare dished oLIt by Doordarshan, television wiewers are having their fill of entertaining programmes beam ad from commercial sate|- lites. First it was C. N. N., then Star T. W., then B. B. C. and now Pakistan T. W. Many more such Ventures aro in the offing, inc|- Liding a regular Hindi channel. The more influential sections of Our Society which watches these programmes, not only derives pleas LU r0 from this diversion, but also tha social mores and political perceptions of the host Country,
But this is only a small segment of the information colonialism to which technological advance exposes us. The second
fa || out of the information T3 W LI tirrill is TIL: TTT)" fears Orthe. There HT LO
main agencies which finance Frid Control the COTT Lication technology. First, the military establishments, looking for ever more sophisticated weaponry. The leading player in this arena is the Pentagon. But for its massive subsidies to the American multinationals it would hawe been impossible to mount the sort of resa arch and development effort that led to major breakthroughs in this field.
Secondly, tha multimationals therInselwes Wera quick to percegi'w a the great Commercial potential of the information technoog y and went all out to exploit its Civilia I LISES.
As a result of these developThe sits, the information revolution is completely dominated by the military-industrial complex
23

Page 26
Which has absolutely no motiWation to promote free flow of information. Military affairs are traditionally cloaked in secrecy, and IT LI I til Nationals are not kao W to freely share the fruits of their TeiseäT Chl With other5.
There Wigre timas When universities and research Centres were public forums of free eriquiry. Not so now. Scientific research has become highly expansive, and the universities depend heawily on liberal grants from the industrial giants. These grants HIE T1 W givén in SLICh a slartead mann er that research ser V8s the best interests of the donors,
A.II the Se doors C|aim tO be great champions of free flow of information. An executive of the largest computer firm once
Gaiпіпg . . .
(Cearr rired fra 7 page 7) islands of Mandaitivu, Kayts and Кагаіпаgar off the Jaffпа репіпsula. It is a serious blow to the LTTE's seafaring capabilities as the outfit is already opera
ing amidst sari OL 5 Constraits LLLLLL L L L SS SLLLLL S LLLLLLaLLLL LLLLCKLLLLK such as strict in awal patrolling
of the coastline and armed surWeilla Ice.
Herce the tota || Capitulation of the LTTE in the Jaffna peninsula has seriously Weakened its strength and morale in the ongoing battle. A recent propoSal by Cabinet minister S Thomdaman for negotiations and the s Usbequent initia tiwe by the Buddist clergy for a dialogue with LLaL S LLLL S LaCCL LLLLLL SLLLLL impact, Moreover, with noninWolvement of India in the peace process, there is no sign of an early end to this conflict.
At presert, fhed Sri Lankan Scenario presents a confusing picture. The Tamils, on their
part, have been intransigent in ar riwing at a reas com å ble Solution to the ethnic conflict. On the other hand, the Sri Lankan gow
airmissient has not been able to tackle the situation and has, instead relentlessly pursued a
military Solution to the protracted ethic conflict.
24
stated, "IBM in War 120 cc therefore, Very floww of inforta ātijā flāci strong adwo Cata: as the trans-bc allo ng the iriter lic highways their transació
Cornerstone
In a w ar y ra mation is pow is the domain o international po Orly th9 leade technology wh W. Or it. Thigir | TIBT ES Tot With:5 the power of
CORRESPO
Dem O'Crafi
U. ThiS do Cädä concepts of "I ing ke am Sup the World.
This Luns top EOO LJ n d to ta ka United Natio S. Sğıt *'r. Liller;" | to democratize body's policy polėn partation ori may disintegrat At the time UN Charter, fr. permar helt TTET rity Counci hE וחם:it: tוחם חםBC majority of court ly there could justification for tions afforded
However such GLIT1stant:E; Il Moreover, Japa China who we casts" of the Ir munity during t of the UN are SOLIght after cc developing and tries alike.
It is therefore the recent Tee of state of Sa Curity Council such and tյt changes in in

does bLIsin B55 in untries. We are ependent on free I tiol. Al tra 15all institutions are 5 of this doctrife. rder flow of data
slå tid sal Slettros the life-lid of
S.
a sense, inforver. And power f pCliftỉt:5. Im tha fitical arena, it is
rs of information ID dominate tha ofty pronounceländing, thay usẽ imformation only
to extend and tighten their hogermoniC Control, aither directly or through their transmational corporations. And for the people, they ha VG to keep a liwe tha illusion of free flow of information which, as President Reagan asserted, is the "cornerstone of any democracy." But in actual fact, said H. Schiller, "People in the U.S may be among the globe's east knowledgeable in comprehending the sant iments and changes of recent decades in the internatio tia | areana. " But thält Elohg.rs not the grubby masses for whom "A Supermarket is a derinocratic citadal, the placa Where democracy is practised daily by the sh Coppers in their un Eros decisions and choices." (3rd World)
MADEMICE
:ising the M.
has seеп tha Democracy" gain|port throughout
ble tred is TÜ Qut Be well İl the Unless its pre
ake timely efforts the literational
naking and imto Ca 55a5, the U.N.
of the original hur of the fiwa bars of tha seculd political and frg| Լին: ET tha tries. Accordinghave been some the special posiלוחBוII סI | Titiga ting Cirilongar exist. n, Germany and "E da fäC to "Co Ltterational Corhe Earlier par i Ods now the Tost Jun trios by the de Weloped COLIrl
regret able that ting of the heads the CU TEt failed to address iher significant Earnational rela
tions. This indifference has also been reflected in the recently anno Linced reforms proposed by the new Secretary General.
The long overdue reforms to bring thg UN to reflect currant realities should include amongst other things the abolition of the system of permanent representation in the Security Council. Other desirable measures could include the possible replacement
of the Security Council by a democratically elected "Peace Council". Such a council would no doubt reflect the world's
desire to secure genuine peace rather than the conspicuous proliferation of the conflicts which the world has witnessed under the domination of the Security Council.
Bernard Wijedoru A Ustin Awen Lua, Hong Kamg
Buddhaputra vs Bhumiputra
It would be very much appreciated if Mr. Sarath Amunugama (LG. of 01.03.92) Could erlighten thg readers as to why he referred the two Christian priests as Fr. Singaraiya and Rev. Deogupillai and to the two Buddhist monks merely as Tiranagama Ratnasara and "Ma
dulawawe. Sobhita. If there is any political, social cor emotiona i ratason for drawing this
daring distinction, quite interesting.
E. M. G. Edirisinghe
it Would bg
Dehiwala.

Page 27
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