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By Bro: Jude Deluxion. SJ
deluxionsj@gmail.com
 Don Stephen Senanayake became in 1948 the first
Premier of Ceylon after the independence.
D. S. Senanayake took the following decisions:
 The Gal Oya project- an irrigation project;
 Two development programmes: the six year
development plan (1951-1957) and the 6 year
programme of investments (1954-1959);
 welfare measures like: free education up to the tertiary
level, free health facilities for all; the provision of food,
mainly the staple food, rice, at a subsidized price for
all.
Don Stephen Senanayake passed away in March 1952
at an age of 67 years. (Birth and death respectivley
20 October 1883 – 22 March 1952)
 Dudley Senanayake (1st period)
 D. Senanayake was following his father up as Premier from
Sri Lanka in 1952. He was, before his father died, the
minister of Agriculture and Lands in his father cabinet. The
inflation was high and there was a high unemployment.
 Dudley Senanayake took the following decisions:
 Development of irrigation systems.
 There was a high unemployment;
 The government reduced food subsidies and stopped the
free meals for school children.
 There became a general strike in the country and there was
some violence. After the general strikes there came a state
of emergency and because of this Dudley Senanayake gave
up his post as premier of Sri Lanka in 1953.
 John Kotelawala
 From 1953 till 1956 John Kotelawala was the Premier of
Sri Lanka. In this period Sri Lanka became, in 1955,
became a member of the United Nations (UN). John
Kotelawala passed away in October 1980 at an age of 83
years.
 He was born on 4 April 1895 – died on 2 October 1980)
was a Sri Lankan soldier and politician, most notable
for serving as the 3rd Prime Minister (Sri Lanka) from
1953 to 1956.
 Solomon West Ridgeway Dias Bandaranaike
 Before the elections from 1956 Solomon Bandaranaike
formed the Mahajana Exalt Peramuna (MEP, People’s
United Front). This is a political alliance between four
socialist parties. In the campaign before the elections he
got support from Buddhists.
On 12 April 1956 Solomon Bandaranaike and his alliance
won the elections and Solomon became Prime Minister of
Sri Lanka. In the new cabinet there were only Sinhalese
ministers.
 Solomon Bandaranaike was shot down by a Buddhist monk
on 25 September 1959. One day later Solomon
Bandaranaike succumb by his injuries. Solomon
Bandaranaike died at an age of 60 years.
 Solomon Bandaranaike took the following decisions. Also
below there are some important dates:
 Thegovernmenttookstepstoexpandtheroleofthepublicsectorin
theeconomy;
 Aninitiativewastakentointroducestateledindustrialdevelopment
withtheintroductionoftheStateIndustrialCorporationsActin1957;
 ThecargohandlingattheportofColomboandbusserviceswere
nationalised;
 ThePaddyLandActof1958gaveprotectiontotenantpaddyfarmers;
 SinhalawasproclaimedtheofficiallanguageinJune,1956andafter
protest,provisionwasmadefortheuseoftheTamilin1958;
 ThegovernmenttookoverthecontroloftheTrincomaleenavalbase
andtheKatunayakeairbasefromtheBritishauthorities;
 Twopremiereducationalinstitutions,theVidyalankaraand
VidyodayaPirivenas,wereelevatedtothestatusofuniversity;
 TheeffortsbyMr.Bandaranaiketoresolvetheethnicissuebygivingsomeformofautonomytothe
TamilcommunityintheNorth,andtheEastonthebasisoftheBandaranaike-ChelvanayakamPact
hadtobeabandonedduetostrongopposition;
 Thetradeunionsaffiliatedtotheleft-wingpartiesalsoshowedtheirmusclethroughprolonged
strikeswhichweresettledbylargewageincreases.Thestrikesweakenedtheeconomywhichwas
alreadyfacingdifficultiesduetodeterioratingexternalresources;
 TheEmployees'ProvidentFundwasintroducedbytheGovernmenttoprovideretirementbenefitsto
workersinthePublicsector;
 ATenYearPlanwasprepared,givingemphasistodevelopingagricultureandindustry.However,due
toresourceproblems,arisingfromdecliningexportearnings,amoremodestThreeYearPlanwas
adopted.
 Duringtheperiod1956-1959,theagriculturaldevelopmentpolicyoffarmersettlementunder
irrigationwascontinued.TheWalaweRiverDevelopmentSchemewasinauguratedin1957.However,
stronginitiativesweretakentodeveloptheindustrialsector.
 Aradicaldeparturewasmadeinforeignpolicywhenrelationshipswerebuiltwithcountrieshaving
differentpoliticalideologiesandsocialistorientationintermsofthenewpolicyofnon-alignment.
TherelationshipwithIndiawasfurtherstrengthened.
 However,ideologicaldifferenceswithinthecoalitiongovernmentcontinuedtosimmerandtwoleft-
wingministerswereforcedtoresign.
 Wijeyananda Dahanayake
 Wijeyananda Dahanayake was from 26 September 1959
till 19 March 1960 interim Premier from Ceylon. This
was because of the dead of Solomon Bandaranaike.
Dahanayake removed nearly almost all the ministers
from cabinet from Bandaranaike.
 In March 1960 the Parliament dissolved and there came
new elections.
Mr. Wijeyananda Dahanayake passed away in May 1997
at an age of 94 years.

 Dudley Senanayake (2nd period)
 In March 1960 Dudley Senanayake was chosen as the
new premier from Ceylon. But he was only a short
period premier. It was a minority cabinet. This
government was didn’t survive for a long time and was
defeated at the vote on the Address of Thanks. In July
1960 there were new elections in Sri Lanka.
 Sirimavo Bandaranaike (1st period)
 Sirimavo Bandaranaike was chosen in July 1960 as the
first woman premier from the world.
 This cabinet took the follow decisions and some
important dates:
 In 1962 the government survived a coup by certain
high ranking officers in the armed forces.
 The government also declared that basic education
was the responsibility of the state and took over many
private schools.

 Dudley Senanayake (3th period)
 Dudley Senanayake became prime minister in 1965. Dudley
Senanayake was prime minister until 1970. The cabinet
from Dudley Senanayake was a combination between his
party and some small parties.
 Dudley Senanayake passed away in April 1973 at an age of
61 years.
 This cabinet took the follow decisions and some important
dates:
 Tight trade and exchange controls were relaxed and a
multiple exchange rate system was introduced in 1967 with
the Foreign Exchange Entitlement Certificates (FEECs)
which were traded at a premium over the official rate for
specified transactions.
 These reforms were supported by the first borrowing made
by Sri Lanka from the IMF in 1965 of U.S. dollars 30
million.
 TheGovernmentdecisiontopaycompensationthenationalisedUSoilcompany
holdingspavedthewayfortheresumptionofassistancefromtheUS.In1966,the
moratoriumonrepatriationofdividends,profitsandotherinvestment,imposed
in1964,waslifted.
 In1966,anattemptwasmadetolimitfoodsubsidiesbyexcludingincometax
payersfrombenefits.TaxpayerswithtaxableincomeofoverRs.1,000were
requiredtopayataxequaltothesubsidyunlesstheyhandedbacktheirration
books.Theamountofricegivenatthesubsidisedpricewasreduced.
 TheSriLankarupeewasdevaluedin1967by20percentagainstthepoundsterling
toreducethepressureonthebalanceofpayments.
 Theagriculturalsectorwasgivenhighpriorityandcameunderthedirect
supervisionofthePrimeMinister’sOffice.Schoolchildrenweremobilisedfor
agriculturalactivitiesandagriculturewasgivenaprominentpositionintheschool
curricula.Theimportofpotatoeswasbanned.
 Anattemptwasmadetodeveloplargescaleprivatesectoragriculturebyleasing
outlandtolargeprivatesectorinvestors.In1968,thefirstagreementbetweenthe
AsianDevelopmentBankandtheGovernmentwassignedforfinancingthe
foreignexchangecostoftheTeaFactoryModernisationProgramme.
 Credit assistance was provided through the New
Agricultural Credit Scheme introduced in 1967 for
paddy, vegetables and other specified food crops. The
Government, through the Central Bank, backed this
scheme with 100 per cent refinance and a 75 per cent
credit guarantee. Loans were provided on easy terms to
the farmers.
 The government procurement price for paddy was
raised and inputs such as fertiliser were supplied at a
subsidised price.
 The subsidised rice quota was reduced but some part
was given free.
 Sirimavo Bandaranaike (2nd period)
 SirimavoBandaranaikecameforthesecondtimeonpowerin1970.
 Thiscabinettookthefollowdecisionsandtherearesomeimportant
dates:
 Atthegeneralelectionin1970,theUnitedFront(UF)consistingofthe
SLFP,theLankaSamasamajaParty(LSSP)andtheCommunistParty
(CP)wonatwothirdmajorityinParliament.Mrs.Sirimavo
BandaranaikebecamethePrimeMinister.
 TheUFpromisedsocialistreformsandthepresenceoftheleft-wing
partiesintheGovernmentaddedcredibilitytothispromise.Theleft-
wingpartiesweregivenseveralimportantportfoliosintheCabinet,
includingtheMinistryofFinance.
 Theunprecedentedoilpricehikein1973,adeterioratingexternal
resourcesposition,andafoodcrisisthathadbeenloomingsince1971
createdseriouseconomicproblemsfortheGovernment.Itwas
compelledtointroducedrasticrationingtoensure
 fairer distribution of essential food items. A special programme
was launched to raise food production.
 Under the socialist policies, the public sector expanded rapidly
on several fronts. However, certain import substitution
industries thrived under heavy protection.
 Exchange control measures were tightened to preserve foreign
exchange and to prevent abuse.
 New state corporations were established to handle several
economic activities, particularly the import-export trade. The
Co-operative Wholesale Establishment (CWE) was assigned a
greater role in handling internal trade. Similarly, when shipping
lines raised their charges without consulting the Government,
the Ceylon Shipping Corporation was established as the national
shipping line.
 The Business Acquisition Act, passed in 1971, enabled the take-
over of any private sector business by notification. Restrictions
were imposed on Agency houses, through which foreign
companies managed the plantation sector.
 A comprehensive Five Year Development Plan was introduced in
1972 with the objective of achieving a high growth rate, but could
not be implemented effectively because of resource constraints.
The external environment became unfavourable with the first oil
crisis in 1973.
 Though foreign investments were not encouraged in the
beginning, the policy was changed later (1972 to 1975) to
encourage foreign investment in collaboration with local
investment, with local investors holding the majority
share.
 Productivity Committee was established to co-ordinate
agricultural production at the village level. Agrarian
Services Centres (ASCs) were established at the district
level to co-ordinate the supply of agricultural inputs and
services at the grassroots level. The activities of the Paddy
Marketing Board (PMB), Marketing Department and CWE
were expanded rapidly to provide marketing facilities for
agricultural commodities.
 The New Agricultural Loan Scheme introduced in 1967 was
revived and expanded and the Comprehensive Rural Credit
Scheme was introduced in 1973 to supply institutional
credit to small farmers at a subsidised rate. Bank of Ceylon
was required to open sub-offices at ASCs to extend credit
under the Credit Scheme. The Agricultural Insurance
Board was established to insure farmers against crop losses
in agriculture.
 The land policy of the earlier period was to distribute
government lands to private sector investors. With Land
Reforms introduced in 1972, it was expected to restructure land
ownership by imposing a ceiling of 50 acres on land ownership
by nationals and the excess was vested in the State Subsequently,
the Government took over foreign owned plantations by
negotiation. While most of this land was kept under State
companies, some effort was made to set up collective and co-
operative farms.
 Industrial policy was basically to promote import substitution
through high tariffs and incentives, with a greater emphasis on
public sector and local ownership.
 In 1974, India and Sri Lana reached an agreement to repatriate
75,000 of the 150,000 persons of Indian origin who were not
covered by the Sirima – Shastri Pact of 1964. The balance was to
be absorbed as citizens of Sri Lanka.
 Sri Lanka’s international relations during this period were based
on a strong commitment to the Non-aligned Movement (NAM).
The culmination of the role played by Sri Lanka was the holding
of the 5th NAM Summit meeting in Colombo and assumption of
the Chairmanship of the Movement from 1976 to 1979.
 Sri Lanka played a leading role in initiatives which concerned
issues of peace, security and co-operation in the Indian Ocean
and Third World solidarity. She promoted the Indian Ocean
Peace Zone proposal at the Lusaka Conference held in 1970. This
was further promoted at the Commonwealth Conference held in
1971 in Singapore, which culminated with the UN Resolution in
1971 declaring the Indian Ocean as a Zone of Peace.
 The NAM broke new ground by giving priority to economic
development at its Algiers Summit held in 1973 which resulted in
the Economic Declaration and the Action Programme for
Economic Co-operation. The development problems of Third
World countries were further emphasised at the Colombo
Summit and the resolutions were submitted by the Sri Lankan
Prime Minister to the UN General Assembly in September, 1976.
 The major theme developed in the NAM economic agenda has
been the emphasis on collective economic self-reliance while
reducing the widening gap between the rich and the poor
countries. A demand for a "New International Economic Order"
was made, which asserted the aspirations of poor countries and
supported expanded trade flows among the developing
countries.
 Mass opposition to economic hardships surfaced
strongly by 1975. The LSSP and the CP decided to
withdraw their support after a Cabinet reshuffle in
1975, which was made under pressure from some
members within the Government. Elections were held
in 1977 and the SLFP suffered its heaviest defeat, while
the left wing parties lost all their parliamentary seats.
 Sirimavo Bandaranaike passed away in October 2000
at an age of 86 years.

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History of Sri Lankan Politics 1951 to 1971

  • 1. By Bro: Jude Deluxion. SJ deluxionsj@gmail.com
  • 2.  Don Stephen Senanayake became in 1948 the first Premier of Ceylon after the independence. D. S. Senanayake took the following decisions:  The Gal Oya project- an irrigation project;  Two development programmes: the six year development plan (1951-1957) and the 6 year programme of investments (1954-1959);  welfare measures like: free education up to the tertiary level, free health facilities for all; the provision of food, mainly the staple food, rice, at a subsidized price for all. Don Stephen Senanayake passed away in March 1952 at an age of 67 years. (Birth and death respectivley 20 October 1883 – 22 March 1952)
  • 3.  Dudley Senanayake (1st period)  D. Senanayake was following his father up as Premier from Sri Lanka in 1952. He was, before his father died, the minister of Agriculture and Lands in his father cabinet. The inflation was high and there was a high unemployment.  Dudley Senanayake took the following decisions:  Development of irrigation systems.  There was a high unemployment;  The government reduced food subsidies and stopped the free meals for school children.  There became a general strike in the country and there was some violence. After the general strikes there came a state of emergency and because of this Dudley Senanayake gave up his post as premier of Sri Lanka in 1953.
  • 4.  John Kotelawala  From 1953 till 1956 John Kotelawala was the Premier of Sri Lanka. In this period Sri Lanka became, in 1955, became a member of the United Nations (UN). John Kotelawala passed away in October 1980 at an age of 83 years.  He was born on 4 April 1895 – died on 2 October 1980) was a Sri Lankan soldier and politician, most notable for serving as the 3rd Prime Minister (Sri Lanka) from 1953 to 1956.
  • 5.  Solomon West Ridgeway Dias Bandaranaike  Before the elections from 1956 Solomon Bandaranaike formed the Mahajana Exalt Peramuna (MEP, People’s United Front). This is a political alliance between four socialist parties. In the campaign before the elections he got support from Buddhists. On 12 April 1956 Solomon Bandaranaike and his alliance won the elections and Solomon became Prime Minister of Sri Lanka. In the new cabinet there were only Sinhalese ministers.  Solomon Bandaranaike was shot down by a Buddhist monk on 25 September 1959. One day later Solomon Bandaranaike succumb by his injuries. Solomon Bandaranaike died at an age of 60 years.  Solomon Bandaranaike took the following decisions. Also below there are some important dates:
  • 6.  Thegovernmenttookstepstoexpandtheroleofthepublicsectorin theeconomy;  Aninitiativewastakentointroducestateledindustrialdevelopment withtheintroductionoftheStateIndustrialCorporationsActin1957;  ThecargohandlingattheportofColomboandbusserviceswere nationalised;  ThePaddyLandActof1958gaveprotectiontotenantpaddyfarmers;  SinhalawasproclaimedtheofficiallanguageinJune,1956andafter protest,provisionwasmadefortheuseoftheTamilin1958;  ThegovernmenttookoverthecontroloftheTrincomaleenavalbase andtheKatunayakeairbasefromtheBritishauthorities;  Twopremiereducationalinstitutions,theVidyalankaraand VidyodayaPirivenas,wereelevatedtothestatusofuniversity;
  • 7.  TheeffortsbyMr.Bandaranaiketoresolvetheethnicissuebygivingsomeformofautonomytothe TamilcommunityintheNorth,andtheEastonthebasisoftheBandaranaike-ChelvanayakamPact hadtobeabandonedduetostrongopposition;  Thetradeunionsaffiliatedtotheleft-wingpartiesalsoshowedtheirmusclethroughprolonged strikeswhichweresettledbylargewageincreases.Thestrikesweakenedtheeconomywhichwas alreadyfacingdifficultiesduetodeterioratingexternalresources;  TheEmployees'ProvidentFundwasintroducedbytheGovernmenttoprovideretirementbenefitsto workersinthePublicsector;  ATenYearPlanwasprepared,givingemphasistodevelopingagricultureandindustry.However,due toresourceproblems,arisingfromdecliningexportearnings,amoremodestThreeYearPlanwas adopted.  Duringtheperiod1956-1959,theagriculturaldevelopmentpolicyoffarmersettlementunder irrigationwascontinued.TheWalaweRiverDevelopmentSchemewasinauguratedin1957.However, stronginitiativesweretakentodeveloptheindustrialsector.  Aradicaldeparturewasmadeinforeignpolicywhenrelationshipswerebuiltwithcountrieshaving differentpoliticalideologiesandsocialistorientationintermsofthenewpolicyofnon-alignment. TherelationshipwithIndiawasfurtherstrengthened.  However,ideologicaldifferenceswithinthecoalitiongovernmentcontinuedtosimmerandtwoleft- wingministerswereforcedtoresign.
  • 8.  Wijeyananda Dahanayake  Wijeyananda Dahanayake was from 26 September 1959 till 19 March 1960 interim Premier from Ceylon. This was because of the dead of Solomon Bandaranaike. Dahanayake removed nearly almost all the ministers from cabinet from Bandaranaike.  In March 1960 the Parliament dissolved and there came new elections. Mr. Wijeyananda Dahanayake passed away in May 1997 at an age of 94 years. 
  • 9.  Dudley Senanayake (2nd period)  In March 1960 Dudley Senanayake was chosen as the new premier from Ceylon. But he was only a short period premier. It was a minority cabinet. This government was didn’t survive for a long time and was defeated at the vote on the Address of Thanks. In July 1960 there were new elections in Sri Lanka.
  • 10.  Sirimavo Bandaranaike (1st period)  Sirimavo Bandaranaike was chosen in July 1960 as the first woman premier from the world.  This cabinet took the follow decisions and some important dates:  In 1962 the government survived a coup by certain high ranking officers in the armed forces.  The government also declared that basic education was the responsibility of the state and took over many private schools. 
  • 11.  Dudley Senanayake (3th period)  Dudley Senanayake became prime minister in 1965. Dudley Senanayake was prime minister until 1970. The cabinet from Dudley Senanayake was a combination between his party and some small parties.  Dudley Senanayake passed away in April 1973 at an age of 61 years.  This cabinet took the follow decisions and some important dates:  Tight trade and exchange controls were relaxed and a multiple exchange rate system was introduced in 1967 with the Foreign Exchange Entitlement Certificates (FEECs) which were traded at a premium over the official rate for specified transactions.  These reforms were supported by the first borrowing made by Sri Lanka from the IMF in 1965 of U.S. dollars 30 million.
  • 12.  TheGovernmentdecisiontopaycompensationthenationalisedUSoilcompany holdingspavedthewayfortheresumptionofassistancefromtheUS.In1966,the moratoriumonrepatriationofdividends,profitsandotherinvestment,imposed in1964,waslifted.  In1966,anattemptwasmadetolimitfoodsubsidiesbyexcludingincometax payersfrombenefits.TaxpayerswithtaxableincomeofoverRs.1,000were requiredtopayataxequaltothesubsidyunlesstheyhandedbacktheirration books.Theamountofricegivenatthesubsidisedpricewasreduced.  TheSriLankarupeewasdevaluedin1967by20percentagainstthepoundsterling toreducethepressureonthebalanceofpayments.  Theagriculturalsectorwasgivenhighpriorityandcameunderthedirect supervisionofthePrimeMinister’sOffice.Schoolchildrenweremobilisedfor agriculturalactivitiesandagriculturewasgivenaprominentpositionintheschool curricula.Theimportofpotatoeswasbanned.  Anattemptwasmadetodeveloplargescaleprivatesectoragriculturebyleasing outlandtolargeprivatesectorinvestors.In1968,thefirstagreementbetweenthe AsianDevelopmentBankandtheGovernmentwassignedforfinancingthe foreignexchangecostoftheTeaFactoryModernisationProgramme.
  • 13.  Credit assistance was provided through the New Agricultural Credit Scheme introduced in 1967 for paddy, vegetables and other specified food crops. The Government, through the Central Bank, backed this scheme with 100 per cent refinance and a 75 per cent credit guarantee. Loans were provided on easy terms to the farmers.  The government procurement price for paddy was raised and inputs such as fertiliser were supplied at a subsidised price.  The subsidised rice quota was reduced but some part was given free.
  • 14.  Sirimavo Bandaranaike (2nd period)  SirimavoBandaranaikecameforthesecondtimeonpowerin1970.  Thiscabinettookthefollowdecisionsandtherearesomeimportant dates:  Atthegeneralelectionin1970,theUnitedFront(UF)consistingofthe SLFP,theLankaSamasamajaParty(LSSP)andtheCommunistParty (CP)wonatwothirdmajorityinParliament.Mrs.Sirimavo BandaranaikebecamethePrimeMinister.  TheUFpromisedsocialistreformsandthepresenceoftheleft-wing partiesintheGovernmentaddedcredibilitytothispromise.Theleft- wingpartiesweregivenseveralimportantportfoliosintheCabinet, includingtheMinistryofFinance.  Theunprecedentedoilpricehikein1973,adeterioratingexternal resourcesposition,andafoodcrisisthathadbeenloomingsince1971 createdseriouseconomicproblemsfortheGovernment.Itwas compelledtointroducedrasticrationingtoensure
  • 15.  fairer distribution of essential food items. A special programme was launched to raise food production.  Under the socialist policies, the public sector expanded rapidly on several fronts. However, certain import substitution industries thrived under heavy protection.  Exchange control measures were tightened to preserve foreign exchange and to prevent abuse.  New state corporations were established to handle several economic activities, particularly the import-export trade. The Co-operative Wholesale Establishment (CWE) was assigned a greater role in handling internal trade. Similarly, when shipping lines raised their charges without consulting the Government, the Ceylon Shipping Corporation was established as the national shipping line.  The Business Acquisition Act, passed in 1971, enabled the take- over of any private sector business by notification. Restrictions were imposed on Agency houses, through which foreign companies managed the plantation sector.  A comprehensive Five Year Development Plan was introduced in 1972 with the objective of achieving a high growth rate, but could not be implemented effectively because of resource constraints. The external environment became unfavourable with the first oil crisis in 1973.
  • 16.  Though foreign investments were not encouraged in the beginning, the policy was changed later (1972 to 1975) to encourage foreign investment in collaboration with local investment, with local investors holding the majority share.  Productivity Committee was established to co-ordinate agricultural production at the village level. Agrarian Services Centres (ASCs) were established at the district level to co-ordinate the supply of agricultural inputs and services at the grassroots level. The activities of the Paddy Marketing Board (PMB), Marketing Department and CWE were expanded rapidly to provide marketing facilities for agricultural commodities.  The New Agricultural Loan Scheme introduced in 1967 was revived and expanded and the Comprehensive Rural Credit Scheme was introduced in 1973 to supply institutional credit to small farmers at a subsidised rate. Bank of Ceylon was required to open sub-offices at ASCs to extend credit under the Credit Scheme. The Agricultural Insurance Board was established to insure farmers against crop losses in agriculture.
  • 17.  The land policy of the earlier period was to distribute government lands to private sector investors. With Land Reforms introduced in 1972, it was expected to restructure land ownership by imposing a ceiling of 50 acres on land ownership by nationals and the excess was vested in the State Subsequently, the Government took over foreign owned plantations by negotiation. While most of this land was kept under State companies, some effort was made to set up collective and co- operative farms.  Industrial policy was basically to promote import substitution through high tariffs and incentives, with a greater emphasis on public sector and local ownership.  In 1974, India and Sri Lana reached an agreement to repatriate 75,000 of the 150,000 persons of Indian origin who were not covered by the Sirima – Shastri Pact of 1964. The balance was to be absorbed as citizens of Sri Lanka.  Sri Lanka’s international relations during this period were based on a strong commitment to the Non-aligned Movement (NAM). The culmination of the role played by Sri Lanka was the holding of the 5th NAM Summit meeting in Colombo and assumption of the Chairmanship of the Movement from 1976 to 1979.
  • 18.  Sri Lanka played a leading role in initiatives which concerned issues of peace, security and co-operation in the Indian Ocean and Third World solidarity. She promoted the Indian Ocean Peace Zone proposal at the Lusaka Conference held in 1970. This was further promoted at the Commonwealth Conference held in 1971 in Singapore, which culminated with the UN Resolution in 1971 declaring the Indian Ocean as a Zone of Peace.  The NAM broke new ground by giving priority to economic development at its Algiers Summit held in 1973 which resulted in the Economic Declaration and the Action Programme for Economic Co-operation. The development problems of Third World countries were further emphasised at the Colombo Summit and the resolutions were submitted by the Sri Lankan Prime Minister to the UN General Assembly in September, 1976.  The major theme developed in the NAM economic agenda has been the emphasis on collective economic self-reliance while reducing the widening gap between the rich and the poor countries. A demand for a "New International Economic Order" was made, which asserted the aspirations of poor countries and supported expanded trade flows among the developing countries.
  • 19.  Mass opposition to economic hardships surfaced strongly by 1975. The LSSP and the CP decided to withdraw their support after a Cabinet reshuffle in 1975, which was made under pressure from some members within the Government. Elections were held in 1977 and the SLFP suffered its heaviest defeat, while the left wing parties lost all their parliamentary seats.  Sirimavo Bandaranaike passed away in October 2000 at an age of 86 years.