The race distribution of the population was as follows:

Among the "others" are included Boer prisoners of war and the small remnant of Egyptian exiles, headed by Arabi Pasha, who has since been permitted to return to Egypt.

Of the 3,565,954 persons (exclusive of the Military, the Shipping and the Prisoners of War) enumerated at the census of 1901, the occupation or means of subsistence of 2,348,164 persons (of whom 1,057,357 were earners and 1,290,807 dependents) was returned as agriculture; 613,689 persons (275,739 earners and 337,950 dependents) manufacture; and of 126,747 persons (57,712 earners and 69,035 dependents) commerce. In other words 65.8 per cent. were connected with agriculture, 172 per cent. manufacture, and 3.5 per cent. commerce.

The population on estates, mainly consisting of immigrant Tamils from Southern India, numbered, at the census of 1901, 441,601, and formed 12:4 per cent. of the total population. Since 1891 this population has inercased 68.4 per cent.

The mean annual birth- and death-rates for the period 1898-1903 were 38 6 and 27-8 respectively per 1,000 of the population. The highest birth-rate (444) was in the Eastern Province, the lowest (351) in the Central Province; the highest death-rate (413) was in the North-Central Province, the lowest (221) in the Western Province.

The urban population was 118 per cent. of the total population. The principal towns and their population, according to the census of 1901, are:Colombo, 158,228; Galle, 37,316; Jaffna, 33,879; Kandy, 26,519.

Religion and Instruction.

The principal religious creeds were returned as follows at the census of

1901-Buddhists, 2,141,599; Hindoos, 828,622; Mohammedans, 248,140; Christians, 362,018.

The religion of the great majority of the inhabitants is Buddhism, which was introduced in the third century before Christ by Mahinda, a Buddhist missionary of royal parentage, and soon became the established religion of the Island, replacing the Brahminical religion introduced by earlier streams of Indian colonists. The Buddhism prevalent in Ceylon (unlike the Northern Buddhism of Tibet, China and Japan) is, in its philosophy, materialistic and atheistic, and in popular usage has a large admixture of the doctrines and practices of popular Hinduism (due no doubt to the influence of the reigning dynasty which for nearly a century was South Indian), and of the aboriginal wild tribes.

Education has made considerable strides in Ceylon since it was or ganised under a separate Government department with a director of public instruction and a staff of inspectors, as will be seen from the following table :

1900

820,133

500

1903

1,038,652

523

48,642 1,328 120,751 2,089 38,881 60,823 1,460 137,631 1,755 39,805

There were thus in 1903, 238,259 scholars receiving regular in struction, or a proportion of 1 in 15 of the population according to the census of 1901. The Government expenditure is now chiefly devoted towards vernacular education, which is unable to support itself, while English education has obtained such a hold upon the people that it is becoming gradually self-supporting. The only Government high English school is now the Royal College; but other high English schools receive grants in aid. The Government also gives a scholarship of 2001. a year for four years, and an outfit allowance of 50l. and free passages, to enable promising students to proceed to an English university. The Cambridge local examinations, and the examinations of the London University are held annually in Ceylon by arrangement. The technical college, established in 1893, was re-organised in 1897, and is prosperous. The branches taught include civil engineering, telegraphy and electrical engineering, surveying and levelling, mechanical engineering and drawing; there are 172 students. There is a Government Training College for teachers, both English and vernacular, with two practising schools attached to it. There are also thirty-six industrial schools and orphanages.

Justice, Crime, and Pauperism.

The basis of the law is the Roman-Dutch law, modified by colonial ordinances. The criminal law has been codified on the principle of the Indian Penal Code. Justice is administered by the Supreme Court, the police courts and courts of requests, and the district courts, intermediate between the latter and the Supreme Court. There are also village councils which deal with petty offences.

The number of paupers is not known, as there is no poor law, though a few old persons receive a charitable allowance from the Government vary. ing from Rs. 1 to Rs. 12.50 each per mensem.

Finance.

The public revenue and expenditure of the colony, in 1892 and each of the last five years, were as follows:—

1 Exclusive of an expenditure of 3,626,939 Rs., in 1900, wholly on account of railway construction from surplus funds; and of an expenditure of 3,320,152 Rs. in 1901, and 1.700,227 in 1902, on account of Railway Construction and Irrigation Works from Surplus Funds, and of an expenditure of 363,930 Rs. in 1903 on account of irrigation construction and other miscellaneous works from surplus funds.

The principal sources of revenue are (1903): customs, 7,576,360 Rs. ; land sales, 735,970 Rs.; arrack, rum and toddy licences, 3,535,551 Rs.; stamps, 2,314,470 Rs.; sale of Government timber and Government salt, 1,522,959 Rs.; port and harbour dues, 1,337,206 Rs.; Government railways, 8,355,676 Rs.

:

The principal items of expenditure are (1903) establishments, 6,781,703 Rs. ; military expenditure (including cost of volunteer force, fortifications at Colombo and buildings for the Military), 2,214,350 Rs. (of this 1,990,722 Rs. was paid to the Imperial Government); pensions and retired allowances, 1,307,183 Rs. ; interest on loans, &c., 3,450,587 Rs. ; on public works, 3,282,578 Rs.

On December 31, 1903, the public debt of the colony amounted to 4,733,3317. and 3,194,980 Rs. ; it has been incurred entirely for public works, including 392 miles of railway, the Colombo breakwater works, the Colombo waterworks, and certain irrigation works.

Defence.

The harbour of Trincomalee on the east of Ceylon is a naval and victualling yard, and is the headquarters of the British fleet in the East Indian waters. It is fortified, and the fortifications have been recently strengthened, at the cost of the Imperial Government, by the replacement of obsolete armament by quick-firing guns. The harbour of Colombo, on the west, is also protected, the colony having paid the cost of the erection of batteries of the newest forms, the Imperial Government supplying the armament. At the present moment considerable additions are being made to the defences of Colombo, the cost, as before, being jointly shared by the Imperial and Colonial Governments. Ceylon has no naval forces of its own.

The British troops in Ceylon are under the command of a BrigadierGeneral, and (1904) comprise 1 battalion of British infantry, 2 companies of British artillery, 2 companies of Native artillery (not recruited locally), Fortress Company Royal Engineers, and a Native Submarine Mining Company Royal Engineers, with detachments of several other companies; total strength all ranks 1,809. There is a volunteer force numbering 2,592 of all ranks. The colony pays 1,912,109/23 Rs. per annum to the Imperial Government as the cost of the garrison. The cost of the Local Volunteers was 223,627 Rs. in 1903.

Production and Industry.

The estimated area of the colony is 16,233,000 acres, 2,231,948 acres being under cultivation, and 826,427 acres pasture land. Of this, 753,872 acres were (1898) under rice and other grains, 19,023 under coffee, 424,856 under tea, 749 under cinchona, 864,296 under coco nuts, 46,117 under cinnamon, 11,127 under tobacco, and 33,260 under cocoa. The live stock of the island in 1902 consisted of 4,127 horses, 1,398,209 horned cattle, 83,620 sheep, and 163,987 goats. There is a Government Dairy and Model Farm, possessing over 200 head of cattle, imported from Scinde. The Dairy supplies milk to the Government hospitals and prisons and to the military hospital. Efforts are made to improve the native breeds of cattle, sheep and goats by crossing with imported animals. Plumbago is a valuable mining product, and in 1898 there were 1,692 plumbago mines. There were besides 412 gem quarries. The produce of the pearl fishery in 1890 was valued at 310,000 Rs.; in 1891 at 960,000 Rs. None since.

Commerce.

The declared value of the total imports and exports of the colony, including bullion and specie, was as follows in each of the last five years :—

The values of imports and exports are declared, and represent the wholesale values at the place of import or export. Declarations are subject to scrutiny and penalty. The Chamber of Commerce, as representing the trade of the island, assists by supplying the value on which a rated duty is levied. Quantities of imports are ascertained from invoices or by actual examination; of exports, from declarations and by examination of the shipping documents, shippers being liable to penalties for misstatement. The origin and destination of goods are also obtained from the shipping documents. In some cases, however, goods intended for transshipment abroad are so entered, e.g. to New York, via London. The transit trade includes all goods transhipped direct in port, as well as goods landed into transshipment warehouses. The transit trade of Colombo has largely increased of late years, but, as no bills of entry are required in respect of transshipment goods, the returns as to quantity are only approximately correct, and no returns as to value can be prepared. On

Import duties are levied on most articles at the rate of 5 per cent. ad valorem. cottons the duty is 4 per cent., on other textiles 5 per cent. There are specific duties on all wine. spirits and tobacco, on metal goods of several classes, on grain, rice, flour, provisions and some other imports, but industrial and electrical machinery, scientific instruments, and raw materials such as unwrought iron and steel, unset pearls, manures, coal, oil for fuel, animals, &c. are free.

Value of dutiable imports (1903), 75,632,132 Rs.; duty free, 42,015,983 Rs.; 1902, dutiable 71,534,450 Rs,; duty free, 37,933,816 Rs.

The principal articles of export from Ceylon in 1903 were-coffee, valued at 508,410 Rs.; cacao, 2,248,145 Rs. ; cinchona, 12,030 Rs. ; tea, 58,198,622 Rs. ; plumbago, 6,026,319 Rs.; cocoa-nut products, 25,945,893 Rs. ; areca nuts, 1,174,659 Rs.; rubber, 84,784 Rs.

The principal articles of import in 1903 were-cotton goods valued at 6,182,762 Rs.; salt-fish, 2,966,377 Rs.; rice and other grain, 39,243,970 Rs.; coal and coke, 9,123,422 Rs. ; spirits, &c., 1,140,389 Rs.; wines, 323,558 Rs. Coffee growing has lost its importance in Ceylon, while tea culture

SHIPPING AND COMMUNICATIONS-MONEY AND CREDIT 121

has extended. The exports of tea, which in 1884 amounted only to 2,392,975 lb., reached 144,275,608 lb. in 1901; 150,829,707 lb. in 1902; it has fallen to 149,227,236 lb. in 1903.

The export of cacao was in 1899, 42,527 cwt.; in 1900, 33,696 cwt.; in 1901, 47,471 cwt.; in 1902, 61,476 cwt.; in 1903, 59,098 cwt.

Rubber is a growing industry and will develop rapidly in the near future. Sixty-six cwt. valued at 11,986 Rs. were exported in 1901; 189 cwt. valued at 39,362 Rs. in 1902; 389 cwt. valued at 84,784 Rs. in 1903.

According to Ceylon returns the total imports from the United Kingdom in 1903 amounted to 32,890,450 Rs. and exports to 54,134,018 Rs.; imports from India 62,234,806 Rs.; exports to India 11,085,991 Rs. The amount of trade with the United Kingdom is shown in the following table, according to the Board of Trade returns in each of the last five years.

The chief import from Ceylon into the United Kingdom is tea. In 1878 the value of tea imported was 1207.; in 1901, 3,249,6167.; in 1902, 3,133,9607.; in 1903, 2,954,8607. Other imports in 1903 were cocoa-nut oil, 554,7607. ; nuts and kernels, 163,2447.; plumbago, 119,3167.; coca, 156,2177.; cordage, 49,6937.; drugs, 56,0487.; spices, 32,5917.; coffee, 29,6157. The exports to Ceylon from the United Kingdom in 1903 comprised cottons, 239, 1017.; coal, 173,4057. iron, wrought and unwrought, 209,8657.; machinery, 84,8717.; lead and manufactures, 31,1437.; railway carriages, 7,6287.

Shipping and Communications.

The total tonnage entering and clearing at Ceylon ports in 1903 was 10,316,738. On January 1, 1904, 155 sailing vessels of 12,219 tons, and 10 steamers of 1,372 tons, total 165 vessels of 13,591 tons, were altogether registered as belonging to Ceylon. During the year 32 vessels were taken off the list as not being heard of.

Ceylon had 368 miles of railway open for traffic at the end of 1902, of which 331ğ are on the broad gauge (5ft. 6in.), and 36 on the narrow gauge (2ft. 6in.), and 194 miles were under construction, namely, 163 broad gauge and 31 narrow gauge. In November, 1904, 68 miles of new railway were opened to Anuradhpura, the ancient capital.

In 1900 there were 312 offices opened for post and telegraph business. There were 1,438 miles of telegraph line, besides 205 miles of telephone line.

Money and Credit.

The estimated amount of paper money in circulation on August 6, 1902, was 11,266,450 Rs. Five banks have establishments in Ceylon: the Mercantile Bank, the Bank of Madras, the National Bank, the Hong Kong and Shanghai Bank, and the Chartered Bank of India, London and China. The Ceylon Savings Bank on December 31, 1903 had deposits amounting to