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Getting back to business in Jaffna
By Rajika Chelvaratnam

Soldiers buying vegetables at a pola

JAFFNA - The ruined shops and houses among endless rows of palmyrah trees that line the road from Palaly airport to Jaffna town bear witness to just how much peace is needed in this once prosperous area.

The first signs of life can be seen near the famous Nallur kovil in Jaffna, which is surrounded by some small-time business concerns. Some are in the process of being rebuilt and the shopkeepers are reluctant to answer the question of 'outsiders' from Colombo.

Opposite Nallur kovil is the shop of Rajah, called 'Rajah Fancy Stores'. Goods range from imitation jewellery to toys and cosmetics. He managed to continue with his business even during the war from which he suffered tremendously. "I had to constantly close and reopen my shop every time there was a crisis," he said. There was no stability.

Now he happily claims that there is no problem at all. The number of customers has increased and he fervently hopes that the present peaceful conditions would continue so that he could maintain his livelihood without a hitch.

At the Bastian Hotel in Jaffna, the receptionist was polite and welcoming. The restaurant was clean and neat and looked as if it had received a fresh coat of paint. The owner, M.S. Sounderanayagam, was wary of speaking to strangers and offered brief answers. He started the restaurant in 1997 and since then was forced to close it at least twice. "Even now we don't get many customers, but there is a slight increase after we opened the bar," he said, adding that the income was not satisfactory yet. The hotel necessities are bought from Jaffna itself.

A couple of guests at the hotel turned out to be businessmen from Colombo. They came to Jaffna to scout around and assess the prospects of doing business. They wished to remain anonymous but said they were from a Colombo-based electrical engineering company. "We have come to Jaffna looking for future prospects," one said. "We feel that soon there will be a lot of expansion and construction work in Jaffna. Already we have some contacts here."

They were invited by their local contacts and are trying to set up a joint venture. They appeared to be "very hopeful" of their plans to open up a business in the north after the initial exploratory period. "We want to see what contribution we can make because Jaffna is in a terrible state," one said. The arrival of businessmen from Colombo is seen as a definite ray of hope to this war-torn region.

At Chavakachcheri, just outside Jaffna, business has been greatly affected by the war and much of the town is in ruins. A pavement hawker selling his wares on a mat - miniature radios, Walkmans and batteries - had come from Jaffna to assess prospects for business amid the devastation. Mohammed Roshan hopes that the current peace effort would bring back his business to its former status.

Jaffna town itself was more lively, with rows of shops selling fabrics and groceries and fruits and vegetables. One particular grocery store called 'Saravanaa' was situated in an old building. The owner, who declined to be identified, said he moved to Jaffna from Colombo after the 1983 ethnic riots. His business was not much affected by the war, he said, adding that he could not say the same for all the shops in the area.

However, compared with the period before the latest truce, he could see only a slight improvement now. "The town lacked life during those days, but I can't say that I was really affected," he said. "But I can't say the same for other businessmen in this area. I can't say that we were all able to earn equally high amounts. Only those who brought down goods directly from Colombo were relatively successful." He hopes that the peace process will result in the influx of more people, which will naturally increase his income.

Businessmen in the heart of Jaffna, as opposed to its outskirts, seemed to be somewhat unaffected by the war as far as their incomes were concerned. This was because most of the people in Jaffna town remained despite the war. Tour operators in Jaffna are among those doing well with the large numbers of people visiting the area. The driver of a mini van said he charges around Rs. 3,000 for a tour around certain areas in Jaffna.

Vegetable vendors in Jaffna have seen the good times again with demand soaring following the reopening of the land route to the peninsula. One vendor selling dew-fresh vegetables said that peace has made things extremely easy for him. "Since there is an influx of people from all over to Jaffna, it is very beneficial to us." He was one of those displaced to the Wanni and had come back in 1997. Peace, he said, has definitely brought many benefits but there is still not enough tangible economic development. "But I am hopeful," he said.

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