Jaffna Market so elastic?

The post war situation is so dramatic in Sri Lanka so far. All are with an enthusiastic mind set and with a lot a of hurry to achieve some think. The competition between every organization who provide goods and services are trying to out beat others by serving to the Jaffna market.

Banks and Financial Institution

All the bank have started their operations so far. I hear that one of the leading bank has secured a place in jaffna town by agreeing to a deal of 150,000 rent for a 1500 Sq area. What this indicates? is there so much potential in jaffna peninsula?

I doubt, Are they trying to show a big picture? Are these organizations are trying to overtrade? Do they heading for a financial crisis in northern region? Wel, i think so.. the organizations with long term focus might suffer a lot, Is that same boom condition as at today will remain the same for ever? Undoubtedly no…This boom may be for next one and a half year. Thereafter who knows what will happen? Because jaffna people have subject to lot of ups and down after eighties.

In my concern bank and financial institution can survive in a short term. Tamil are good in saving, that only happens when the banks give higher interest rate. Under Sri Lankan economic condition the interest rate will fall 8% or 6% in next couple of months. In such interest rate i don’t think that they (jaffna people) will turn to the bank. even they might grow some cows to get milk, but they wont be attracted by such an interest rate. In Tamils mentality is that they use the bank only for deposits purpose, they never get loan from bank. They grown with a mind set, not to borrow or beg from anybody including bank. So i am waiting to see, what these banks going to do in long term. Because the jaffna people never seen such competition nearly with 15 banks. They might know only HNB,BOC and Commercial…so what others going shake?

Education Institution
So far lot of institutes have started their operations, thinking that jaffna students are so elastic to change. I don’t know how much student population in jaffna peninsula?. Will they bother about this private institution. Well some established bodies such as ICASL and CIMA could bring their best. but others again doubtful?

Because all their focus, one is going abroad or entering into universities(not private). In good old time, the backbone of the northern culture is becoming educated. They are the hardcore contestants of national educational systems. In 60.s and 70 s more than 60% of student who are selected medical faculty of university of Colombo are jaffna students(under merit Criteria). Still you can see that proportion among doctors above the age of 50. Then only government changed the university selection based on the population proportion. Later this reason also becomes a root cause for ethnic problems.

I do believe they still have that mind set of studying hard to enter the local universities. But other private institutes who go with some foreign (uk) banner would score some sixes.. but for others still questionable.

This is the nature i would predict mainly for the service type organizations. But for the product , the boom will continue for ever because jaffna Tamil people never felt shortage of their money saving in any sort of situation in the history. Even they bought a loaf of bread for 200/= and a box of matches for 150/= at the times when every think went against them… and at a time when no body bothered them.

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