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A Small Step in Burma

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A Small Step in Burma 10 Friday 15th February, 2008 J R Jayewardene Dr N M Perera Felix Dias Bandaranaike T B Ilangaratne Ronnie de Mel Bandula Gunawardena by Dr Wimal also did not cut a good figure projects with investment goods Member of Parliament, thrash- beginning of the challenges to increased exorbitantly, due to Wickramasinghe while R G Senanayake contin- being made available for pro- ing the then UNP government the Minister of Trade came (a) low harvesting on account of ued as Minister of Trade and duction. In the process, the from 1989 to 1994 on many eco- with the period of Ravi seasonal reasons; (b) devasta- n the past, it was the Commerce under SWRD, until rupee value vis-à-vis the dollar nomic and trade fronts, pretend- Karunanayake, both internally tion of paddy stores and ware- he was removed by Prime depreciated drastically accord- ing that he alone knew the and internationally.Though Minister of Finance who house in the Dry Zone due to Minister W Dahanayake in ing to the vagaries of the world panacea or answers to many there were criticisms against Ibecame the eye-sore of the flooding, (c) manipulation of January 1960. market and the performance of economic ills of the govern- Ravi on items like extravagant public as it was he who had to the price of rice by some large- impose taxes on people to either Although Felix Dias the balance of payments. ment. He is a good Sinhala ora- expenditure, recruitment of scale mill operators who kept a cover the deficit in the budget Bandaranaike took over the Though prices were on the high tor who can speak eloquently employees to Sathosa, dealing or increase the prices of essen- portfolio of finance under side, the people had money to with verbosity.Though his with Prima, etc., he managed to margin more than warranted. tial food items in line with Prime Minister Sirima spend as they were able to earn vision would depend upon the deliver the goods despite inter- To cushion the increase of local international market prices. Bandaranaike in 1960, he from increased production of political party (to which he national adverse factors. prices, many steps were taken by the government: (a) declara- tion of rice an essential item, forcing the mill operators to release their stocks to the mar- With the adoption of an open economic and trade ket and making hoarding and policy, dismantling exchange control and trade black marketeering an offence; barriers in late 1977 under Prime Minister J R (b) planning to open Lak Sathoa Jayawardene, the Ministers of Finance (Ronnie de retail shops all over the country, Trade initially up to 300 units, with Mel) and Trade (Lalith Athulathmudali), and oth- financial facilities made avail- ers too, became popular figures. This period was able to them; (c) importation of in contrast to the period of 1970-1977 during rice and some other essential which time the people suffered very much at the food items from India and other hands of the so-called self sufficiency in every- countries. Still, the market situation in Portfolio: thing and import substitution policies that not the country is precarious and only resulted in (a) scarcity of consumer and lux- has reached melting point, ury goods (food items and others), pushing the prompting consumers and trade price levels to unbelievable levels, and (b) pro- unions to take the cost of living duction of shoddy goods within the country. issue to the streets. The only Why a hazard only now? consolation the Minister of Trade (and the government) has is the ongoing annihilation of the LTTE, presuming that the The first casualty in the resigned from it in August 1962 rice and other staple foods; and belongs), he is no doubt com- It is unfortunate for Bandula war would come to an end soon. over a proposal of his to reduce reduction of the unemployment mitted to the cause. His political process was J R Jayewardene, Gunawardena to have faced a Though many bunkers in the the rice ration, leaving P B G ratio was also a consolation. crossovers apart (from MEP to Minister of Finance in the First series of insurmountable chal- North have been destroyed by Kalugalle to be the next Even the unemployed and the UPFA, UPFA to UNP and UNP lenges from both the local and and Second Parliament of Sri air bombing, also killing a good Lanka, who became a public Minister of Finance. poor too were looked after, with to UPFA), he is a political figure international scenes. These fac- number of terrorists, there is eyesore during the hartal peri- Nevertheless, by this time the programmes such as to be reckoned with in the tors were not that intense and od in October 1953. This result- post of Trade and Commerce Janasaviya and other welfare arena of consumer affairs. severe before. From an interna- still no hope of crushing the ed in two major consequences: Minister was becoming increas- provisions. The people at large When his talents were not tional point of view, (1) the LTTE. They are operative in the (a) resignation of Dudley ingly unpopular due to restric- felt that they were not an isolat- recognized by the Kumaratunga price of petroleum products South, planting claymore tive trade practices adopted ed community but part and par- government of 2000, he started Senanayake from the post of went up to $ 100 per barrel, bombs in the deep South and at during the regime of Prime cel of a moving international the process of making the Prime Minister in October 1953 prompting sharp increase of Dambulla, killing scores of due to public agitation against Minister Sirimavo force. downfall of the government by Bandaranaike (1960-1965). T B With the installation of crossing over to the UNP, fol- petrol, diesel, and kerosene oil innocent people. the government, (b) removal of that has had a cascading effects The unofficial rate of infla- JR from the post of Finance Ilangaratne first and Ranasinghe Premadasa as lowed by a few other ministers, Maithripala Senanayake next President, economic policy pro- leaving Ranil Wickramasinghe on the increase of transport tion too increased to 20 per cent Minister and his appointment costs (the latest in a series as Minister of Agriculture and were also those who fell into the grammes continued unabated, to win the general election of and above. The Ministerial Sub unpopular category.In June the Prime Minister D B December 2001, he himself being made effective as from Committee on Cost of Living Food by Prime Minister John February 1, 2008), resulting in Kotelawala. It took nearly 25 1964, Dr N M Perera became Wijetunga himself functioning becoming Cabinet Minister of chaired by the Prime Minister increase of all essential food years for J R Jayewardene to Minister of Finance and again as Minister of Finance and A R Rural Economic Affairs in is trying to move earth and items; (2) The rupee value of erase from the memories of the in May 1970 (until he was Mansoor as Minister of Trade. December 2003. The post of heaven to bring the situation removed in September 1975). He Under the economic and trade non-Cabinet Minister of Trade the dollar increased drastically public the stigma of unpopular- under control, initially examin- ity and bitter hatred created at became very unpopular over policy that was in operation at and Consumer Affairs was to Rs. 114 – though it is now the issues of demonetization of that time, these two ministers given to Ravi Karunanayake around Rs. 111 – prompting an ing (a) the financial crisis faced that time, losing his Kelaniya by the CEB due to escalating seat to R G Senanayake in 1956. the Rupee in 1973 and introduc- enjoyed both prestige and popu- (who was made a Cabinet min- increase of all essential import- fuel prices, and (b) how electric- At that time, portfolio of tion of late night gazettes for larity.It was not a hazard to be ister on March 4, 2002). Bandula ed food items, including rice, trade was a plain-sailing post, increase of taxes and prices. All either Minister of Finance or did not have to find fault with flour, dhal, sugar, potatoes, ity charges could be revised – both C Suntharalingam and H of them lost their seats at the Minister of Trade. Ravi on account of the handling onions, dried fish, Maldive fish, revision means increase – in W Amarasuriya holding the general election of July 1977. of the trade affairs by latter, as salmon and other food items; (3) keeping with the increasing post in rotation in the First With the adoption of an open With the change of government both of them were members of Of late, the price of imported fuel prices. Further increase of Parliament of Prime Minister D economic and trade policy, dis- in August 1994, President the same government. But he flour also increased phenome- electricity charges would exert mantling exchange control and Kumaratunga functioned as became critical of Ravi when he S Senanayake, and thereafter, R nally; (d) The price of imported further pressure on the cost of G Senanayake in the Cabinet of trade barriers in late 1977 under Minister of Finance as well, crossed over to the UPFA gov- milk powder increased substan- Prime Minister J R with Kingsley T ernment of President Mahinda living, the increase of water Prime Minister Dudley tially resulting in the corre- charges being another calamity. Senanayake who was instru- Jayawardene, the Ministers of Wickramaratna as Minister of Rajapaksa, together with 16 sponding increase of milk pow- Finance (Ronnie de Mel) and Trade, Commerce and Food.
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