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Home International Customs Netherlands

Dutch East India first multinational company in Sri Lanka

bySahar
25/03/2015
in Netherlands
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AMSTERDAM: On the 20 March 1602 the Dutch East India Company, perhaps, the first multinational company was founded. “Verenigde Oostr–Indische Compangnie” or VOC as it was called flourished and survived for two centuries with spectacular trading posts between Asia and Europe, reported SL Guardian.

VOC built ships and shipping with a network of bases from simple offices, to warehouses and workshops which later developed into massive commercial centres with the heart of its operations in Jakarta (Batavia), in East Indies and in South Africa.

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Ships took some 8 months to reach the East Indies at an average of 7 knots. The opening up of the East was at the expense of trade and proselytise its people.

Its main purpose was trade, exploration and colonisation. At the time of its founding, it was given the semi-governmental power by the Netherlands Government “to begin wars, prosecute convicts, negotiate treaties and establish colonies”. It built forts, kept armies and had a monopoly over the spice trade which at that time was mostly dominated by the Portuguese.

The connection with Ceylon and the Dutch East India Company existed from 1640 until 1796, with the Kandyan Kings inviting the Dutch to help defeat the Portuguese. The Portuguese rule was in the Maritime Provinces with those whom they converted to Catholicism mainly in the coastal districts. The rest of Ceylon remained in the Buddhist and Hindu religion.

The coming of the Dutch caused the Portuguese having to deal with two enemies, the locals and the Dutch. Finally, the Portuguese were forced to sign a treaty with the Dutch. Once mainland Portugal obtained freedom from the Hapsburg Kings of Spain, the Dutch settled for peace with the Portuguese and a new chapter of colonisation began. Thus the Dutch and the Dutch East India Company took control over the coastal as well as the outer areas of Ceylon by driving the Portuguese out.

Tags: multinational company

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