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We should be grateful to China because they never tried to bargain on prices or tried to exploit the market to their advantage.
The Sri Lanka China Business Cooperation Council, jointly with the Sri Lanka China Society, rightfully remembered and honoured him at a public ceremony organized to commemorate the Golden Jubilee of the signing of the Sri Lanka – China Rubber-Rice Pact held on 20th December 2002, at the BMICH, Colombo, by recognizing in person his beloved wife, the late Mrs. This was a period when China had a surplus of rice, whilst experiencing difficulties in purchasing their requirement of natural rubber due to competition between the western capitalist countries and the Asian communist countries. Senanayake, who was the Minister of Commerce at the time, observed this situation and proposed signing a barter trade agreement with China under which Ceylon would supply natural rubber and China to reciprocate with rice, which will be beneficial to both countries.The United Nations imposed a resolution prohibiting Malaya (before it broke up into Malaysia and Singapore) exporting their natural rubber to China which aggravated the problem further. Though this was a period when Sri Lanka was politically favouring the western countries, the prevailing local conditions made the Ceylonese government to take a bold decision to sign the proposed barter agreement.And the “Ceylon – China Rubber – Rice Pact” was signed between the two countries on December 18, 1952, in Peking, China.The pact was initially made effective for a period of five years, with the quantities of imports and exports to be balanced annually.
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