CEYLON.
Papers relating to the Financial Condition of Ceylon.
PUBLIC RECORD OFFICE
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Reference:
C.O. 882
4 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE COPYRIGHT PHOTOGRAPH-NOT TO BE REPRODUCED PHOTOGRAPHIC-
SIB,
No. 1.
Downing Street, October 3, 1883.
THE Lords Commissioners of the Treasury are probably aware that during the last few years the Colony of Ceylon has been suffering from severe commercial depression due in great measure to the prevalence of the coffee leaf disease.
2. The revenue in 1877 amounted to seventeen millions of rupees; the estimate for this year was fixed at Rs. 12,410,000, and it is now probable that even this small amount will not be realized.
In 1879, 974,233 cwts. of coffee were exported; the current crop is estimated at 150,000 cwts, only.
In the Blue Book for 1877, the total exports of the Colony figure at a value of 5,730,0514., in 1881 they had fallen to 3,392,6847., and have since continued to fall.
In 1877 there were 108 miles of railway open in Ceylon, and the railway receipts amounted to Rs. 3,616,404; at the present time there are 136 miles of line open, but the receipts for 1883 were originally estimated at Rs. 2,750,000 only, and are now expected not to exceed Rs. 2,400,000.
3. The fall in the revenue has been as far as possible met by rigid economy in expenditure; the outlay upon' public works has been unsparingly reduced, and even the votes which most affect the welfare of the natives, such as that for irrigation, have been unavoidably cut down.
The financial condition of the Colony, however, appeared to be so serious that in October last a strong local committee was appointed by the Governor to inquire into the possibility of further retrenchment; and of adjusting the balance between the two sides of the account.
The report of this Committee together with the Governor's observations upon it was forwarded some time back to this department, and Lord Derby is now carefully considering what steps should be taken both to add to the revenue and to decrease the expenditure.
4. One of the most important recommendations made by the Committee relates to the question of the military contribution and it is to this point that Lord Derby desires to call the attention of the Lords of the Treasury.
*
A copy of the paragraph of the report which bears upon it is enclosed, and it will be seen that the Committee press strongly for some relief in this respect. The Governor also expresses a hope that the contribution which has been paid for so many years "at a rate far exceeding that demanded from any other Colony may be temporarily reduced," and a memorial which has been recently forwarded by the Ceylon Chamber of Commerce to the Secretary of State, urges a reduction amounting to one half of the sum now paid.
5. Their Lordships are aware that it has always been maintained, both by this office and by the Colonial Government, that the amount demanded from Ceylon in aid of military expenditure is excessive. A slight reduction was agreed to in 1876 by the War Office as a compromise, but the consent of the Treasury was never given, and in consequence the Colony, with constantly falling revenues, has continued up to the present to pay Rs. 1,240,000 annually to the Imperial Government on account of the English troops stationed in Ceylon.
6. If, however, this payment was heavily felt when the revenue amounted to 17 million rupees, it is wholly out of proportion now that the receipts have fallen to 12 millions, and Lord Derby is under the necessity of informing their Lordships that the Whether the payment of this amount cannot be continued after the present year.
A 2
* For This Enclosuse see p.p. 14 and 15-
of
the
Report of the Select Committee, exclosed in from /play
7793
Serial No.
From or to whom.
Despatch No.
Date.
Bubject.
Page
1
To Treasury
1
Oct. 3, 1883
Suggesting, for the reasons explained, that the military contribution of the Colony should be materially reduced.
3
2
To Governor Sir
(367)
Nov. 1, 1883
A. Gordon.
Submitting in detail observations and sugges- tions with regard to the Report of the Select Committee of the Legislative Council respecting the present expenditure of the Colony and the possibility of retrenchment.
5