1

CHANGING TRADITIONS OF ECONOMIC PATTERNS RELATING TO THE

BUDDHIST NATIONALISM IN SRI LANKA FROM 19th CENTURY TO THE NEW
MILLENNIUM.
Jayaneththi, Ramesha,
Department of History, University of Peradeniya, rameshadul@gmail.com, 0718720379


Introduction

Economy and Nationalism are fundamental factors in national states since the political
stability is always depended on economic condition of the state. Therefore nationalism in new
and developing state is a complex problem of increasing concern to both political scientists and
economists. To the political scientists, nationalism appears on the one hand as an interrogative
ideological force facilitating the establishment of a viable and cohesive nation-state: on the other
hand, ethnic groupings, especially with considering geographical, linguistic and religious
differences, generate the phenomenon of nationalism within the state.
1
To accelerate
development processes, economic planning and policy buildings as well as industrialization, the
government and ruling class have normally used economic nationalism. Economic nationalism is
a term used to describe policies which emphasize domestic control of the economy, labour and
capital formation. In colonial era, many anti-colonial movements used economic nationalistic
ideas to develop the national economy. Therefore economic nationalistic ideas were widely
spread in colonies parallel to their political and constitutional reforms demanding.

In Sri Lankan situation, anti-colonial activities against to British rules were consists with
economic nationalistic ideas in combination with the Buddhist revival movements. Economy and
Religion is a joined theme in every society either ancient or modern. In Sri Lanka, Buddhism has
always combined with the State power, economic factors and dynamic social features. In the
British period the economy and revival Buddhism was together with these economic nationalism
ideas. After the Independence as national state, Sri Lankan regimes have practiced National

1
Harry G. Jonson 1968. A theoretical Model of Economic Nationalism in new and developing states in Harry G.
Jonson (ed) Economic Nationalism in Old and New States, London, George Allen and Unwin Ltd., p.1.

2

economy to develop their economic policies. Especially after the 1956 regime change, the
philosophical aspects and national aspects of Sinhala Buddhist community widely effected to the
contemporary policy makers which belongs to democratic. In this paper, there is an attempt to
examine about the combination of Buddhist nationalist ideas and national economy of Sri Lanka
during the British period and post Independent era until the new millennium.

Methods

Main methodology of this research is the identification and analysis of historical sources.
Data which belongs to Primary and Secondary sources were categorized and analyzed
considering current theoretical and historical discourse. Especially data has been collected from
Sri Lankan National Archives, libraries in University of Peradeniya and other places and web
sites. Then the facts are discussed comparing with dynamic patterns of Buddhist economic
nationalistic ideas of Sri Lanka.

Results

The British Period Post Independent Sri Lanka

Economic Nationalism and National State Building Processes (1796 - 2000)

Buddhist Nationalism and Phases of the Buddhist Revival Movement

Activators and Social Backgrounds Current Political Processes

Influences from Nationalist Ideas of Other National States
Changes of the Ideological Factors in Politics and the Society
Emerged Dynamic Patterns in Economic Policy Makings



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Discussion

In the British period, the plantation era transformed the island's economy. The sharp
economic changes in Sri Lankan society caused to emerge various social levels and groups. In
Sinhalese society there was a highlighted capital class and middle class. The features of this class
were configured by many economic and social factors. After 1833 the expansion of commercial
plantations created a legion of new trades and occupations such as landowners, planters,
transport agents, contractors and businessmen. Many Sinhalese converted their economic capitals
with engaging these minor activities as well as major activities like plantation sector and rent
systems. Therefore, wealth was the popular and more effective thing. Be a wealthy person or
belonging to such a family was a crucial thing to earn social capital. Earning social capital mean
earning the value of social relations and the role of cooperation and confidence to get collective
or economic results. Many Sri Lankan communities who involving economic activities,
understood about this value of social capital and they were eager to develop that status, engaging
with many social welfare works. Some rich families like Goronise de Soyza family involved
with social activities without concerning religious factor. They were Christian, but they help to
some Buddhist activities in Moratuwa area.

The religious factor was a very dynamic cause to determine the states of classes.
2
And
natives converted to various sects of Christianity to win Colonial masters hearts for earn
economic as well as social capital without obstacles. In this situation, the highly Christianization
among bourgeoisies and sharp reaction from Buddhist activators was an obvious trend which
emerged as a colonial social formation. Many people converted to Christianity and had followed
Western living style and education system. Because they had an eager to engage in the British
administration system as Mudalirs and other minor officers.

Beside this some Sinhala families associated with new Buddhist revival activity because
they wanted to earn social capital and popularity among their petty societies. Petty bourgeoisies

2
Kumari, Jayawardena 2003. Nobodies to Somebody, Social Scientists' Association, Colombo, PP. 170-
177.

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had a willing to develop their minor status in plantation sector and other economic activities such
as trades and revenue. The leaders of this Buddhist revival clearly understood the strength of
donations, wealth and the participation of this emerging economic families and small
businessmen. This development of merchants capitalist activated and encouraged on ethnic and
religious movements which were depend on funds and donations from the petty bourgeoisies.
Those families who financed the religious revival were not mainly belonged to national
bourgeoisies. National bourgeoisies had many opportunities to expand their independent
business activities, rent systems, plantation ownerships and many others. Therefore they gave
the priority to achieve the Government friendship without involving other anti-colonial
movements. So they did not lead mass struggle for national political achievements or economic
achievements like Indian nationalists.

Therefore petty bourgeois and other local level merchant community voluntarily involved
to develop Buddhist revival movement. The link between Sinhala merchants and Buddhists
leaders were strong from 1860s on ward. This multi activist's economic community in local level
was the main financial donators of the Buddhist revival movements. Many low country families
which belong to various castes had engaged with Temperance movement and Buddhist revival
movement. With these involvements, many leaders of Buddhist revival movement raised their
voice about the national economy or economic development of Sinhalese. Especially in this
period trade was belong to non-Sinhalese people. The key areas like export- import economy,
semi processing industries, wholesale and banking mainly controlled by Europeans and some
Indians. Internal trade was dominated by local Muslims and Hindus. Therefore leaders
undoubtedly encouraged native trade and other economic activities with advising to Sinhalese to
deal with Sinhala (Swedesi) market and goods. Parallel to this social formation there were some
obvious development in communication. It was called as the printing culture. Few leaders
showed their enthusiastic ideas about this Sinhala Buddhist economic development through the
newspapers and other pamphlets. In many writings of Anagarika Darmapala emphasize about
necessity of Buddhist Sinhalese economic development for the national economy.

This Swedesi idea was not limited to Sri Lankan economic nationalism. Considering
contemporary India, these Swadesi ideas had developed in Indian nationalist ideas with the

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intervention of Gandi's activities in the era of Indian Nationalistic movement. Swadeshi
Movement was a popular strategy for eradicating the British rule and for improving the
economic conditions of the country. The concept of Swadeshi, as per Mahatma Gandhi, was to
attain self-sufficiency which included employment of unemployed people by encouraging village
industries and towards building a non-violent society. Thus, the main policies of the Swadeshi
Movement included boycotting all types of British products and the restoration of all domestic
products.
3


There were many other factors behind the growth of 'The new spirit in India'. It was
widely accepted by everyone that Britain was the cause of the country`s poverty. The Swadeshi
movement quickly gathered force in the country. Burning of British cloth in public places
demonstrated the people`s determination not to rely on foreign products. The sale of English
goods fell drastically, as Bombay Mills worked overtime to meet the demand for
Swadeshi textiles. It became a matter of national and personal pride to wear coarse dhotis woven
on local handlooms rather than fashionable Manchester cottons. Student volunteers further
encouraged people to use Indian products. Popular enthusiasm was sustained by songs written by
Rabindranath Tagore and others. Vande Mtaram by Bankim Chandra Chatterjee became the
national anthem. Further, the Swadeshi movement gave tremendous inputs to Indian industries.
Home grown salt, sugar, matches and other products had started to be manufactured on native
soil. On a larger scale, the movement gave a stimulus to Prafulla Chandra Roys Bengal
Chemical Works. This action encouraged Jamshedji Tata to open his famous steel plant in Bihar.
At the same time, Indian labours took their first real steps towards organization. A series of
strikes in Kolkata and other places demonstrated that the working class was growing weary of
exploitation. Swadeshi Movement was described by Mahatma Gandhi as the soul of self-rule in
the country.
Not only India also in Japan, concepts of national economy was emerged with beginning
the Meiji period 1868-1911. Sri Lankan economic nationalist ideas were influenced by emerging
Japanese nationalism and Anagarika Darmapala paid his attention to Japanese developments. In

3
http://www.indianetzone.com/26/the_swadeshi_movement_indian_history.htm

6

Meiji period Japan, nationalist ideology consisted of a blend of native and imported political
philosophies, initially developed by the Meiji government to promote national unity and
patriotism, first in defense against colonization by European powers, and later in a struggle to
attain equality with the Great Powers.
During the final days of the Tokugawa shogunate, the perceived threat of foreign
encroachment, especially since the arrival of Commodore Matthew Perry and the signing of the
Kanagawa Accord led to increased prominence to the development of nationalist ideologies.
Some prominent daimyo promoted the concept of fukko (a return to the past), while others
promoted osei (the Emperor's supreme authority). The terms were not mutually exclusive,
merging into the sonno joi (Revere the Emperor, Expel the Barbarians) concept, which in turn
was a major driving force in starting the Meiji Restoration. Government policies also laid the
basis of later industrialist empires known as the zaibatsu.
4

With influenced of these countries, in Sri Lanka Anagarika Dharmapala has criticized
Sinhalese capital class and he argued Tamils, Muslims and other Asian traders definitely invade
native market and therefore Sinhalese should have an willing to develop and spread Sinhala
market. Darmapala directly focused Sinhalese merchants backward ideas and attempts to
depend on colonial economy.
5
And he clearly advised to develop national industries with
empowering youths technical knowledge with using assistance of other developed countries like
Japan, America, England, French and Italy.
6
He highly criticized British administration policy
which discouraged Sinhalese economic and industrial development. Also he gave warnings about
competition of other indigenous business class.
7
These economic nationalism ideas which

4
http://en.wikipedia.org/wiki/Meiji_Restoration
5
Guruge, Ananda (ed) 1991. Darmapala Lipi, (The Articles of Darmapala), Ministry of Cultural Affairs &
Information, Colombo
pp. 17-24.
6
Sinhala Baudyay, 1911-10-14, in Ananda Guruge(ed) 1991. Op.cit, P. 20
7
Sinhala Baudyay, 1909-10-30, in Ananda Guruge (ed) 1991. Op.cit, pp.125-130

7

combined with Buddhist revival movement spread as a new ideological factor among local
Buddhist merchants. That influences has clearly appeared on the Independent process.
Even after the independence this struggle to establish national economy and Industries in
Sri Lanka was not disappeared. With emerging S.W.R.D. Bandaranayake's regime in 1956 these
ideas of Sinhala Buddhist national economy had obviously increased. During the state building
process the discourse of national economy was being getting important year by year. Especially
after the collapse of UNP regimes nearly Independent, unauthorized Sinhala Buddhist activators
and ideologists have got the practical power. Bandaranayake started to gather these ideologies
before the Independence, with establishing Sinhala Maha Saba in 1935. He made many speeches
to spread and lead Sinhala Buddhist nationalist ideas as his political policy. Therefore Sinhala
Buddhist communities gathered around his party and they encouraged him to elect in 1956. Five
Major Powers or Pancha Maha Balawega was his ideological force. That mean
Sanga, Weda, Guru, Govi, Kamkaru or (Bikkhu, Aurvedic doctors, Teachers, Farmers and
Labours. Especially United Bikkhus Front influenced the policy making process of
Bandaranayake with their Ten Bills (Dasa Panatha). The six one is clearly express about
National industries and important of Aurvedic medical sector.
8

After winning the election Bandarnayake introduced his polices as Middle and Neutralize
way. Develop public sector was his main economic policy. Since his sudden death practically he
couldnt activate this policies but his wife Mrs. Srimao Bandaranayake kept continue theses
Sinhala Buddhist policies as well as Socialist ideas with regime of Samagi Peramuna in 1970.
The regime of Samagi Peramuna expedited these policies during the short times. Therefore some
short comings and consequences were emerged from the general public. Especially until 1977
the government helped native enterprises without considering their ethnicity.
This trend was different after the regime changed in 1977. When the emerging Tamil
National Movement with L.T.T.E., Buddhist Nationalism was expand with Sinhala Buddhist
Ideas. Also Buddhist ideologist communities couldnt motivate much their business community
regarding to the economic nationalism ideas, because of the Open Economic system. That caused

88
Malalgoda Banduthilake 1999. S.W.R.D. Bandaranyake, Deepani Publishing Ltd., Nugegoda.

8

to increased business competition among investors without ethnic boundaries. Therefore, the
sound of Buddhist economic nationalistic ideas were backward and the ideas about unity among
Sinhalese against the terrorist movement and Westernized policy were forwarded. Some scholars
such as S. J. Tambiah highly criticized Bikkhus involvement of this political and policy making
processes as an ideological force.
9
But analysing this involvement with middle view it can be
argued that many Bikkhus did not appreciate extremist way as L.T.T.E. and other Tamil
nationalists have done. With Globalization and the Open economic process, Bikkhus tried to
convert their Buddhist nationalism ideas which should suitable for current economic and social
trends. Considering few Parliament acts it is obvious that some Buddhist societies have this
balanced objectivise. By the act no. 62 in 1979, the Darmavijaya Foundation was established
with many broad objectives. Encourage economic developments and social developments of
Buddhists and appreciate Samm Ajiwa or Good employments. Specially has recommended high
productivity and the protection of investments as well as value of the management of the living
cost as suitable for the profit.
10

This society-wise nationalistic ideas were gathered by a political party called
Jthika Heala Urumaya in new millennium. The Jthika Hela Urumaya was launched in 2004 by
the lay-based; secular Sinhala Nationalist political party called Sihala Urumaya.. The party drew
some support from the middle class conservatives and the Buddhist youth. It was a significant
turning point in monks involvement in ethno-politics in Sri Lanka.
11
The party continues a
Sinhala Nationalist posture in its politics and advocates spreading out the L.T.T.E. by force. It
wants to maintain Sri Lanka's unitary constitution with meager devolution of power as a solution
to the ethnic conflict. Except common social welfare policies, the JHU have shown their
interesting about continues Buddhist economic ideologies and activities to protest some
Government policies such as Privatization.

9
S. J. Tambiah 1992. Buddhism Betrayed? Religious politics and Violence in Sri Lanka, Chicago, The University
press. PP 104-113
10
Sri Lankan Government Act, No. 62, 1979, "The Darmavijaya Foundation"
11
http://bathspa.academia.edu/MahindaDeegalle/Papers/999784/Politics_of_the_Jathika_Hela_Urumaya_Monks_Bu
ddhism_and_Ethnicity_in_Contemporary_Sri_Lanka , PP. 83-103


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Conclusion
As a result of these changes, since Independence, many traders and entrepreneurs have
conducted their business with global approach and there is not any significant diversity or
discriminations depend on ethnicity, as many minorities have argued. Buddhist nationality is
only an ideological factor which effected to some regimes. But after the introducing of the Open
economy and with the Globalization this religious based economic nationalist ideas were
practically despairing. Considering the popularity of these ideas in the Buddhist society,
Buddhist business class and merchants still involve to donate and develop the religious based
activities to continually collect their social capital. Therefore it can be argued that after
introducing the open economy system and the global market, Sri Lankan religious based
economic nationalism has changed their mood on practical involvements. The reflection of these
ideas is remained in social activities and the ethical system of expending the profit of Buddhist
economic class.
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