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An Independent Nation
Full independence was finally granted to the island on Feb. 4, 1948, with dominion status in the Commonwealth of Nations. In 1950 delegates of eight countries of the Commonwealth met in Colombo and adopted the Colombo Plan for economic aid to S and SE Asia. Riots in 1958 between Sinhalese and the Tamil minority over demands by the Tamils for official recognition of their language and the establishment of a separate Tamil state under a federal system resulted in severe loss of life. In Sept., 1959, Prime Minister S. W. R. D. Bandaranaike was assassinated, and in 1960 his widow, Sirimavo Bandaranaike, became prime minister. The Federal party of the Tamils was outlawed in 1961, following new disorders.
Certain Western business facilities were nationalized (1962), and the country became involved in disputes with the United States and Great Britain over compensation. The radical policies of Mrs. Bandaranaike aroused opposition, and the elections in 1965 gave a parliamentary plurality once more to the moderate socialist United National party (UNP) of Dudley Senanayake, who became prime minister with a multiparty coalition. Under Senanayake, closer relations with the West were established and compromise arrangements were made for recompensing nationalized companies. However, economic problems and severe inflation continued, aggravated by a burgeoning population (between 1946 and 1970 the population almost doubled).
In 1970, Mrs. Bandaranaike and her three-party anticapitalist coalition won a landslide victory, following considerable preelection violence. She launched social welfare programs, including rice subsidies and free hospitalization, but failed to satisfy the extreme left, which, under the Marxist People's Liberation Front, attempted to overthrow the government in an armed rebellion in 1971. With Soviet, British, and Indian aid, the rebellion was quelled after heavy fighting. In 1972 the country adopted a new constitution, declared itself a republic while retaining membership in the Commonwealth of Nations, and changed its name to Sri Lanka. In the early 1970s the government was confronted with a severe economic crisis as the country's food supplies and foreign exchange reserves dwindled in the face of rising inflation, high unemployment, a huge trade deficit, and the traditional policy of extensive social-welfare programs.
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