THE POST-WAR PERIOD AND INDEPENDENCE

When at home, NU would spend most of his time ensconced in his study, which was lined with his bookshelves containing his evergrowing collection of books and journals.

- By Kumari JAYAWARDENA AND JENNIFER Moragoda

According to Neiliya, her father’s study was always the focal point of family activities, with NU, absorbed in his work, surrounded by his family who quietly carried on with their own activities. It was natural that NU, who had found refuge in books and libraries from an early age, felt most at home surrounded by his books.

Throughout his life, NU had a sustained interest in economic theory and applied economics. His personal collection of books and journals would eventually number in the thousands, and developed into one of the best private libraries on economics in Sri Lanka.

The Sterling Assets Agreements of 1948 & 1949

Since its time as a British colony, the Sri Lankan currency had been linked to the British sterling, and its sterling and dollar reserves were held, respectively, in a common “Sterling Pool” and “Dollar Pool,” together with the reserves of Britain and the other countries within the British Empire. There were advantages in contributing to the Sterling Pool since this enabled the Sri Lankan government to borrow against their sterling reserves from the British government, in order to meet foreign-exchange shortfalls, and since most of Sri Lanka’s trade up to this time had been with the other sterling-area countries. However, in times of competing demands for sterlingand non-sterling-based goods, and with the changing world economic order, there were growing disadvantages. This became increasingly apparent after the war left the British economy in shambles, and the US economy began entering its ascendancy.