Speaker lauds 1952 rubber-rice pact

By Skandha Gunasekara

The Sino-Lanka rubber-rice pact was one of the most useful and successful trade agreements in the world, Speaker of Parliament Karu Jayasuriya said yesterday. 

Addressing an event to celebrate the 65th anniversary of the historical Rubber-Rice pact of 1952 at the BMICH, Speaker Jayasuriya said that the 30-year-long agreement was a great example of a successful trade agreement.

The Speaker noted that the agreement was signed during a time when Sri Lanka was facing a severe economic and agricultural crisis and that China had agreed to assist in providing rice in exchange for Sri Lankan rubber.

“I would not call this a trade agreement but a friendship agreement,” the Speaker said. 

Noting that even though the world rubber price at the time was Rs. 1.07 per lbs of rubber China had agreed to buy Lankan rubber at Rs 1.74 per lbs as part of the pact. 

“Similarly we were able to procure rice at a cheaper rate, well below global market prices. That is why I say this is an agreement built on friendship,” the Speaker said, adding that China had given a loan of Rs. 125 million during that time to develop Sri Lankan rubber plantations.

Present at the occasion were the Charge d’Affaires of the Chinese Embassy, Pang Chunxue, as well as the family of the late Chinese Minister of Commerce Lei Renmin and the family of the late Lankan Minister of Commerce R.G. Senanayake. 

The two families of the two late ministers were awarded ceremonial plaques to mark the occasion. China Business Council of the Ceylon Chamber of Commerce Senior Vice President Thulitha Mendis and Vice President Anura Perera were also present at the event.

- Pix by Upul Abayasekara