Economic Background Toward Crimes in Sri Lanka (1948

Economic Background Toward Crimes in Sri Lanka (1948 – 1970)

Earlier in 1948, Tea, Coconut and Rubber, the three main exports products in Sri Lanka, were highly sold in world trade market, providing 90% foreign exchange earnings. Unfortunately, several economic problems emerged. Population increased. Price of Ceylon’s rubber and Tea decreased. Price of imported food increased. As there was an expanded education system which produced a large number of educated people, scarcity of vacancies in job market occurred and unemployment increased.

In order to achieve the objectives of Marxist program as well as to stop the disinvestment by the owning companies, plantations were nationalized in 1956. In 1957, the Cultivated Lands Act, a concept of Philip Gunawardena, was passed. Many farmers in Sri Lanka, who were subsistence farmers, started to enjoy their rights in large scale.

Continuing the Sinhalese nationalism program similar to his deceased fiancé, Sirimavo Bandaranaike tried to protect the local industry, and also to develop state sector. Unfortunately, unemployment, high cost of living, acute shortage of consumer goods, failure of state enterprise in industry and trade like many problems arose during her period.

During 1965 to 1970, Dudly Senanayake’s government encouraged private enterprise and agricultural productivity. But, this caused to inflation and increased social inequality.

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