Economic Liberalization and the Aftermath of War in Sri Lanka ...

ICSW Abstract Number: 3GP0022
Presented at 2010 Joint World Conference on 13 June
at Hong Kong Convention & Exhibition Center
Economic Liberalization and
the Aftermath of War
in Sri Lanka
Presented by
G. V. D. Tilakasiri,
President
Free Trade Union Development Centre
General Secretary
National Peace Council of Sri Lanka
Email ftudc@sltnet.lk

Perl of the Indian Ocean
• Sri Lanka has a recorded
history of over 2500 years.
• The Portuguese invasion
in 1505, then Dutch and
British ruled.
• In 1948, Sri Lanka
attained independence from Great Britain.
• 75 % Sinhalese, 25 % Tamil speaking.

Back ground facts & figures
• Sri Lanka is a multi-ethnic,
multi-religious country.
• Total population of 19 million
• Buddhist 69.1%, Muslim 7.6%,
Hindu 7.1%, Christian 6.2%,
unspecified 10% (1981 Census)
• Sinhala and Tamil languages are used as official
national languages. English is widely spoken.
Literacy rate is 92%, the highest in South Asia.
• GDP is presently US$ 2000 the highest in South
Asia ( exception of the Maldives Islands)

Open Economic policy
• In 1977, Neo-Liberal Open
Economic Policy was
implemented ruthlessly.
• Free Trade Zones (FTZs)
were established.
• Reduced the Public Services.
• Privatized public properties
• Cut down welfare spending and
liberalized the financial market

Economic Reforms and Conflicts
• Introduced large scale projects
bound with the IMF loans.
(Mahawali Dam project )
• Reduced budgetary
expenditures for health,
education and social welfare.
• Stop rice and commodity goods subsidies.

Developed Social Unrest
• Adjusted exchange rate in
1978 from US$1=Rs.8.50 to
US$1=Rs.16/-(Now Rs.115/-)
• Inflation rate increased
from 5% to13% in 1980.
• Trade Unions demanded Rs.10/- per day and
Rs.2.50 for increasing of each Cost of Living
Points.
• Joint Trade Union Action Committee call a
General Strike on July 17,1980.

Workers Protested Against the
Dictatorial Regime
• UNP right wing
government announced
24 hours time and
sacked 100,000 strikers.
• August 08,1980 JTUCA declared
SATHYAGRAHA protest and strikers came to
the rode.
• They began street fights with army and
police. TU leaders arrested. 24 workers died
from suicide actions after of the depression.

1983 Holocaust
Anti-Tamil Activities.
• 1983, the government
engaged military conflict
with the Liberation Tigers
of Tamil Eelam (LTTE)
• 1983 July, anti-Tamil
Sinhala masses came
to street and killed Tamil ordinary people
openly on the roads, looted and burned their
properties with the help of right wing
government supporters.

JVP - Sinhala Youth Unrest
• During the 1988-89 period JVP
(Southern Sinhala Buddhist youth)
led terror, insurrection against NEP.
• Growing unemployment,
underemployment in rural areas,
broken down of their sustainable living pattern.
• In 1988-89, Right wing President
Premadasa crushed the JVP.
• Disappeared over 60,000 youth
including Wijeweera and
Gamnayakea JVP leaders by the government.

Tamil Youth Unrest
• Open economic policies
widened wage gaps,
destroyed livelihoods
of both Sinhala and
Tamil people.
• Neo-Liberal Economic Policy exhausted
self sustaining farming systems that the
majority of Tamil living in the North and
East areas.

Tamil Youth Took Up Arms
• Tamil youth took up arms
against the state.
• Cause of youth unrest,
deepening of the division
between Tamils, Sinhales.
• Indian Peace Keeping Force
sent back on 24 March 1990.
• SL singed MOU with LTTE
facilitation of Norway on
Feb 22, 2002.

LTTE Militarily Defeated.
• In 2005, SL majority of people
rejected the UNP & their
Economic and International
policies. MOU was Broken.
• Elected Mahinda Rajapakse
as The New President in SL
• In May 2009, the government
militarily defeated the LTTE,
destroyed leader Prbakarn
and their senior leaders
in the Northern battle front.

Enough is Enough
• People need to stop anti-people Neo-Liberal
Open Economic Policies.
• Implement a sustainable
economic policy.
• Expand the welfare state
for benefit of the masses.
• Higher profits are not for the multinational
corporations, international banks and
wealthy companies, it should be for welfare
of people.

International Support & Solidarity
• Final stages of the war
lost over 60,000 lives,
and 300,000 of people
displaced, still 80,000 in
the welfare camps.
• There are 3000 children who have lost both
parents. Over 40000 widows live in
the war affected areas. In the Southern part
most of them are soldiers’ families.
• Housing, resettlement; women-led families,
children’s education, health are the problems

Hope of Peace, Democracy &
Development