Mineral Industries.—Commercially there are two established mineral industries:—(1) that of digging for precious stones; and (2) the much more important industry of digging for plumbago or graphite, the one mineral of commercial importance found. Further developments may result in the shipment of the exceptionally pure iron ore found in different parts of Ceylon, though still no coal has been found to be utilized with it. Several places, too—Ruanwella, Rangalla, Rangbodde, &c.—indicate where gold was found in the time of the Kandyan kings; and geologists might possibly indicate a paying quartz reef, as in Mysore. Owing to the greatly increased demand in Europe and America, plumbago in 1899 more than doubled in price, rising from £40 to £80, and even £100 a ton for the finest. Latterly there has been a considerable fall, but the permanent demand is likely to continue keen in consequence mainly of the Ceylon kind being the best for making crucibles. The trade with Great Britain and the United States has slightly decreased, but there has been a rapid expansion in the exports to Belgium and Holland, Russia, Japan and Victoria; and the industry seems to be established on a sound basis. One consequence of its development has been to bring European and American capitalists and Cornish and Italian miners into a field hitherto almost entirely worked by Sinhalese. Though some of the mines were carried to a depth of 1000 ft., the work was generally very primitive in character, and Western methods of working are sure to lead to greater safety and economy. Besides a royalty or customs duty of 5 rupees (about 6s. 8d.) per ton on all plumbago exported, the government issue licenses at moderate rates for the digging of plumbago on crown lands, a certain share of the resulting mineral also going to government. The plumbago industry, in all its departments of mining, carting, preparing, packing and shipping, gives employment to fully 100,000 men and women, still almost entirely Sinhalese. The wealthiest mine-owners, too, are Sinhalese land-owners or merchants.
As regards gems, there are perhaps 500 gem pits or quarries worked in the island during the dry season from November to June in the Ratnapura, Rakwane and Matara districts. Some of these are on a small scale; but altogether several thousands of Sinhalese find a precarious existence in digging for gems. Rich finds of a valuable ruby, sapphire, cat’s-eye, amethyst, alexandrite or star stone, are comparatively rare; it is only of the commoner gems, such as moonstone, garnet, spinels, that a steady supply is obtained. The cat’s-eye in its finer qualities is peculiar to Ceylon, and is occasionally in great demand, according to the fashion. The obstacle to the investment of European capital in “gemming” has always been the difficulty of preventing the native labourers in the pits—-even if practically naked—from concealing and stealing gems. A Chamber of Mines, with a suitable library, was established in Colombo during 1899.
Manufactures.—Little is done save in the preparation in factories and stores, in Colombo or on the plantations, of the several products exported. The manufacture of jewellery and preparation of precious stones, and, among native women and children, of pillow lace, give employment to several thousands. Iron and engineering works are numerous in Colombo and in the planting districts. The Sinhalese are skilful cabinetmakers and carpenters. The Moormen and Tamils furnish good masons and builders.
Commerce.—There has been rapid development since 1882, and the returns for 1903 showed a total value of 22½ millions sterling. The principal imports were articles of food and drink (chiefly rice from India) manufactured metals (with specie), coal, cotton yarns and piece goods from Manchester, machinery and millwork and apparel. The Ceylon customs tariff for imports is one of 6½% ad valorem, save in the case of intoxicating drinks, arms, ammunition, opium, &c. The chief export is tea.
Roads.—The policy of the Sinhalese rulers of the interior was to exclude strangers from the hill country. Prior to the British occupation of the Kandyan territory in 1815, the only means of access from one district to another was by footpaths through the forests. The Portuguese do not appear to have attempted to open up the country below the hills, and the Dutch confined themselves to the improvement of the inland water-communications. The British government saw from the first the necessity of making roads into the interior for military purposes, and, more recently, for developing the resources of the country. The credit of opening up the country is due mainly to the governor, Sir Edward Barnes, by whose direction the great military road from Colombo to Kandy was made. Gradually all the military stations were connected by broad tracks, which by degrees were bridged and converted into good carriage roads. The governors Sir Henry Ward and Sir Hercules Robinson recognized the importance of giving the coffee planters every assistance in opening up the country, and the result of their policy is that the whole of the hill country is now intersected by a vast number of splendid roads, made at a cost of upwards of £2000 per mile. In 1848 an ordinance was passed to levy from every adult male in the colony (except Buddhist priests and British soldiers) six days’ labour on the roads, or an equivalent in money. The labour and money obtained by this wise measure have enabled the local authorities to connect the government highways by minor roads, which bring every village of importance into communication with the principal towns.
Railways.—After repeated vain attempts by successive governors to connect Colombo with the interior by railways, Sir Charles MacCarthy successfully set on foot a railway of 75 m. in length from Colombo to Kandy. The railway mileage had developed to 563 m. in 1908, including one of the finest mountain lines in the world—over 160 m. long, rising to 6200 ft. above sea-level, and falling at the terminus to 4000 ft. The towns of Kandy, Matale, Gampola, Nawalapitiya, Hatton and Haputale (and practically Nuwara Eliya) in the hills, are thus connected by rail, and in the low country the towns of Kurunegala, Galle, Matara, Kalutara, &c. Most of the debt on the railways (all government lines) is paid off, and the traffic receipts now make up nearly one-third of the general revenue. An Indo-Ceylon railway to connect the Indian and Ceylon systems has been the subject of separate reports and estimates by engineers serving the Ceylon and Indian governments, who have pronounced the work across the coral reef between Manaar and Rameswaram quite feasible. A commission sat in 1903 to consider the gauge of an Indo-Ceylon railway. Such a line promised to serve strategic as well as commercial purposes, and to make Colombo more than ever the port for southern India. The headquarters of the mail steamers have been removed from Galle to Colombo, where the colonial government have constructed a magnificent breakwater, and undertaken other harbour works which have greatly augmented both the external trade and the coasting trade of the island.
Government.—Ceylon is a crown colony, that is, a possession of the British crown acquired by conquest or cession, the affairs of which are administered by a governor, who receives his appointment from the crown, generally for a term of six years. He is assisted by an executive and a legislative council. The executive council acts as the cabinet of the governor, and consists of the attorney-general, the three principal officers of the colony (namely, the colonial secretary, the treasurer and the auditor-general), and the general in command of the forces. The legislative council includes, besides the governor as president and nine official members, eight unofficial members—one for the Kandyan Sinhalese (or Highlanders) and one for the “Moormen” having been added in 1890. The term of office for the unofficial members is limited to five years, though the governor may reappoint if he choose. The king’s advocate, the deputy-advocate, and the surveyor-general are now respectively styled attorney-general, solicitor-general, and director of public works. The civil service has been reconstituted into five classes, not including the colonial secretary as a staff appointment, nor ten cadets; these five classes number seventy officers. The district judges can punish up to two years’ imprisonment, and impose fines up to Rs.1000. The police magistrates can pass sentences up to six months’ imprisonment, and impose fines of Rs.150. The criminal law has since 1890 been codified on the model of the Indian penal code; criminal and civil procedure have also been the subject of codification. There are twenty-three prisons in the island, mostly small; but convict establishments in and near the capital take all long-sentence prisoners.
Banks and Currency.—Ceylon has agencies of the National Bank of India, Bank of Madras, Mercantile Bank of India, Chartered Bank of India, Australia and China, and of the Hong-kong and Shanghai Bank, besides mercantile agencies of other banks, also a government savings bank at Colombo, and post-office savings banks all over the island. In 1884, on the failure of the Oriental Bank, the notes in currency were guaranteed by government, and a government note currency was started in supersession of bank notes. The coin currency of Ceylon is in rupees and decimals of a rupee, the value of the standard following that fixed for the Indian rupee, about 1s. 4d. per rupee.
Finance.—With the disease of the coffee plant the general revenue fell from Rs.1,70,00,000 in 1877 to Rs.1,20,00,000 in 1882, when trade was in a very depressed state, and the general prosperity of the island was seriously affected. Since then, however, the revenue has steadily risen with the growing export of tea, cocoa-nut produce, plumbago, &c., and in 1902 it reached a total of 28 millions of rupees.
(J. F. D.; C. L.)