30th September, 1937, charged in account was rs. 228,015,601. The receipts for the 12 months ended 30th September, 1937, were rs. 16,304,611, and expenditure rs. *20,355,043. Deficit rs. 4,050,432. By the completion of the Talaimannar extension the railway systems of India and Ceylon were brought within 20 miles of one another, the intervening distance being covered by steamers of the South Indian Railway Co., which ply between Dhanuskodi (the Indian Port) and Talaimannar (the Ceylon Port). The other extensions are for the better transport of planting produce (tea, rubber, coconuts, etc.). Private Parties, Irrigation traffic, nearly 5,000 being metalled or trackmetalled and the remainder being gravelled. Most of the metalled roads are maintained in good order and with but few exceptions may be considered passable for all classes of traffic. Gravelled roads can be considered as dry weather roads only; in dry weather they are generally in fair order, but they cannot be relied upon to the extent of metalled roads. The Public Works Department is the central road authority of the Island and is in charge of the "main roads" totalling, in 1937, 4,816 miles. Of these, 4,357 miles are metalled, 335 miles are gravelled, and 124 miles are natural tracks. Of the metalled roads, 4,134 miles or approximately 95% are either grouted or surface treated with tar, bitumen or other preparations. The whole cost of maintenance of the main roads is met by the Central Government, while assistance is also rendered to the other road authorities in the form of grants-in-aid. In 1937 the expenditure incurred by the Central Government on road maintenance (including grants-in-aid) amounted to rs. 4,128,868, the average cost of maintenance per mile for the Public Works Department roads working out at rs. 780. Telephones. The Government Telephone System comprises two exchanges at Colombo, viz., Central Exchange (2,796† subscribers) and Havelock Town Exchange (517 subscribers) in trunk communication with exchanges at Kandy (187 subscribers), Nuwara Eliya (122 subscribers), Galle (101 subscribers) and 216 smaller exchanges and call offices. There are, in addition, 73 licensed private systems of various sizes, several of which are connected by means of junction lines! and subsidiary trunks with one another and the main trunk lines. The mileage of telephone wire in the Government system at the end of 1937 was estimated at 16,685 (aerial) and 37,900 (underground). Telegraphs. Nearly all parts of the island are served by the Government telegraph system, which has 315 offices * Includes provision for renewals. + Includes call offices at sub-offices in Colombo. working, inclusive of Railway offices open for postal telegrams. The system comprises 3,808* miles of line and 10,052 miles of wire. Ceylon is in direct telegraphic communication with India by a cable which starts from Talaimannar and crosses the Pamban Channel. It is also connected with Europe by direct cables from Colombo to Aden and with the Far East and Australia by direct cables to Penang. There is a Government Radio Station in Colombo which is open always. This station keeps watch on 600 metres almost continuously and on 2,100 and 36 metres according to schedules. The normal day range is 800 miles on the 600 metres wavelength. Ships fitted with shortwave equipment are worked all along the route between the United Kingdom and the Far East and Australia. A wireless Broadcasting Service is provided on wavelengths of 428-5 metres and 48.7 metres. Music, about 8 hours daily. general news, market prices, etc., are broadcast for The station caters for over 5,650 listeners in Ceylon. Postal and Shipping Communications. 1. There is a regular fortnightly mail service between London and Colombo and Australia by the P. & O. steamers. There is also a regular fortnightly mail service by the Orient Line of steamers except from April to August when it is monthly. It has been made possible to fill this gap from April to August by the utilization of the A. & C.L. and S.S. & A. steamers. There are also fortnightly services by the P. & O. steamers line between London and Japan via Colombo. 2. The sea mail service between England and Colombo takes approximately 16 days at present. 3. An irregular Parcel Mail Service is maintained between Colombo and Hamburg by the direct German steamers of the Deutsch-Australische-DampfschiffsGesellschaft A-G, Hamburg-Amerika Line, Hansa Line and Norddeutscher Lloyd. 4. Italy is maintained by utilizing the Orient Line A regular fortnightly Parcel Mail Service to steamers to London via Naples, except from April to August, when it is monthly. 5. The M.M. steamers maintain a fortnightly mail service between Colombo, Indo-China and Japan and between Colombo and France and countries served through France. 6. The mail service to Western Canada is via Hong Kong by all mail steamers to the Far East, except the M.M. Line. maintains a fortnightly service between Colombo, 7. The Nippon Yusen Kaisha Line of steamers Malaya, China, Indo-China, Japan and Philippine Islands. The Bibby Line between Liverpool and Rangoon via Colombo provides a regular fortnightly service to Rangoon. 8. The steamers of the Rotterdam Lloyd and the Stoomvart Maatchappij Nederland provide a regular fortnightly service each to the Dutch East Indies, Malaya and China. 9. The regular weekly mails are despatched by the P. & O., O.L., A. & C.L., and S.S. & A. steamers to Australia. 10. The India Natal Line, the Indian and African Line and Osaka Shosen Kaisha Line provide a regular monthly service each to South Eastern and South African Ports. A monthly service by the steamers of the Osaka Shosen Kaisha exists between Colombo and Argentine and Brazil via Durban and Cape Town. There is also a monthly service by steamers of the Osaka Shosen Kaisha between Colombo, Dar-es-Salaam, Mombassa and Zanzibar Mileage of Trunk and Junction lines is included in this figure. and Indian African Line also provides a monthly Colombo and Mauritius and a regular bi-weekly Service to these ports. 11. The British Indian Steam Navigation ComDany maintains an irregular monthly service between service between Tuticorin and Colombo. 12. There is an irregular mail service between Ceylon and the Maldive Islands by buggalows. The rate of postage on periodicals registered as newspapers in the United Kingdom or a British Colony other than Ceylon, when posted in Ceylon for transmission by inland post, shall be 6 cents for 6 oz., with 3 cents for each additional 6 oz., up to a maximum of 2 lb. The Customs Tariff of Ceylon is partly on a specific and partly on an ad valorem basis and includes provision for Empire Preference. Preference has been granted, since February 1st, 1933, to certain goods produced or manufactured in and consigned from any part of the British Empire. In the case of Cinematograph Films (sound and silent), the general rate is 1 cent a foot, but a preferential rate of cent is levied on films which are wholly produced in an Empire Studio and are registered as British or Imperial Films. In the case of cigarettes, duty is charged according to the proportion of Empire leaf content, and the wholesale market value in Ceylon. The basic rate of duty is 15% ad valorem. In the case of goods to which Preference is accorded the general rate in many cases has been fixed at 25%, the Preferential rate being 15%. There are also lower rates of 5% and 10% and higher rates of 20% and 30% whilst in the case of a certain number of articles a specific duty is charged. A number of articles are admitted free. The following are the main articles taxed at the various rates : 21% ad valorem :-Paper, plain, for writing and printing purposes, including plain envelopes and writing pads other than compendiums, iron and steel sheets and circles for manufacturing drums for the export of local produce. 21% Preferential and 124% General:-Aluminium foil and lining for packing produce for export, and lead sheets, foil and lining for packing produce for export. 5% ad valorem :-Manures of all sorts, tea and other chests and fittings. Free Preferential and 5% General :-Raw cotton. Free Preferential and 10% General :-Pig lead. 5% Preferential and 15% General:Cotton yarn and twist; dyes and dye stuffs; solder and soldering fluid; paper-millboard, strawboard, cardboard and box board; printing type and blocks; agricultural implements; book cover paper and marble paper; exercise books in paper covers; paper for lining tea chests; tissue paper; solder and soldering fluid. 10% Preferential and 20% General-Electric accumulators and batteries (except splash-proof for motor vehicles and dry cell), alternators, control and switch gear, converters, motors. dynamos, transformers, generators and exciters; apples and grapes (fresh); silk and art silk yarn; iron and steel and certain other metal bars, wire, tubes and pipes, sheets (coated); rods, etc., not fabricated; cheese; iron and steel drums and tanks; fish tinned, potted or preserved; typewriters and parts; iron and steel, black or galvanized, chains, bolts and nuts, rivets and washers, nails other than wire nails; barbed wire; iron and steel wire cables and ropes and shoot runners; sewing machines and parts. 15% Preferential and 221% General:-Motor lorries, vans, omnibuses, tractors, trailers and accessories thereof, and spare parts for motor vehicles, tram cars and component parts thereof. 15% Preferential and 25% General:-Silk and art silk (including any admixture thereof) and manufac tures thereof. 20% Preferential and 271% General :-Motor cars, motor cycles, motor scooters, and accessories thereof. 20% Preferential and 30% General :-Clocks and watches and parts thereof; Musical instruments and parts, including gramophones and records, etc. 30% Preferential and 40% General:-Playing cards, 25% General:-Betel leaves. Rs. 15 per cut. or 15% Preferential and Rs. 40 per cut. or 35% General (whichever produces the higher duty) :-Soap, toilet, perfumed and medicated. Rs. 4/50 per cwt. or 20% Preferential and Rs. 9 per cut. or 40% General (whichever produces the higher duty) :-Soap, other (including household and laundry soap). Cinema films (sound and silent), processed films Cinematograph films of an educational character whether developed negative or positive (including gramophone records or other forms of sound reproduction complementary to such films or developed negative or positive sound tracks) which are certified by the Director of Education in Ceylon to be films of an educational character on the ground that they fall within one or more of the following classes:- (a) films designed to supply information with regard to the work and aims of the League of Nations and other international organizations which are generally recognized by the High Contracting Parties to the International Convention of 1933 for Facilitating the International Circulation of Films of an Educational Character; (b) films intended for use in education of all grades... (c) films for vocational training and guidance, including technical films relating to industry and films relating to scientific management; (d) films dealing with scientific or technical research or designed to spread scientific knowledge; (e) films dealing with health questions, physical training, social welfare or Unit. per demijohn of 44 lb. do. cwt. 60 Free lb. -30 per gross 1.00 cwt. 1.50 gal. cwt. .50 cwt. 1.25 1 Spirits (not being sweetened or mixed with any article I. Absolute alcohol cwt. gross of boxes .30 1,000 or part thereof .08 100 sets or boxes or part thereof .38 cwt. •20 cwt. 1.00 cwt. 1.50 gal. 30-00* gal. .75 cwt. 4.00 1934-) 1935 19351936 19361937 98,993,552 107,286,125a14,557,013 24,476,011 DISTRIBUTION OF TRADE. Imports.-During the year 1937, 22-18% of Ceylon's imports came from the United Kingdom, 1934 44-10% from British Possessions and 33-72% from foreign countries. The principal countries from which Ceylon's imports were obtained and the percentage supplied by each are shown below: 102,770,507 109,740,475613,923,739 24,008,948 119,196,900c 108,778,780d14,218,802 24,104,665 Public Debt, on 30th Sept., 1937, Sterling debt, £12,243,775; rupee debt, Rs.30,775,000. • The Shipping Figures are for the Calendar year. + Decrease due to separation of Railway accounts from the Island's Budget. includes Rs. 7,418,932 recovered from loan being expenditure met from surplus balances in previous years pending raising of loan. § Includes Rs. 13,904,014 recovered from loan being expenditure met from surplus balances in previous years, pending raising of loan. Includes Rs. 2,120,437 and Rs. 1,564,512 appropriated to General Revenue from the Railway Renewals Fund and the Colombo Electricity Supply Depreciation Fund respectively. Includes Rs. 4,339,061, surplus in the sinking fund of the 4 per cent. inscribed stock, 1934. a Includes Rs. 2,190,172, being expenditure charged to Special Reserve. b Includes Rs. 1,035,442 being expenditure charged to Special Reserve.s c Includes Rs. 13,847,174-87, recovered from loan, being expenditure met from surplus balances in previous years pending raising of loan. d Includes Rs. 242,464.51, charged to Special Reserve. being expenditure |