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| Wednesday, 9 February 2005 |
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Govt. looks for bidders to re-open sugar factories by Shirajiv Sirimane The government will tomorrow call for tenders to recommence operations of the Hingurana and Sevenagala Sugar factories, which have been closed down for a long period. According to the sources, the Finance Ministry has already instructed the Public Reform Enterprise Commission (PERC) to call for tenders to find a bidder to re-open the two factories which had provided employment for nearly 5,000 people. Over 20,000 acres of land have already been abandoned and nearly 5,000 growers are without income due to the closure of the two factories. "If we could re-open those two factories, we will be able to produce over 75,000 Metric Tones of sugar. This is why the Government has decided to re-open the two factories," an official said. According to the President of the Ampara District Chamber of Commerce and Industry, Daya Gamage, the move by the Government to re-open these two factories is timely. "Most of our growers who were supplying sugar cane to the two factories are helpless since they have no place to sell their produce. Some of them have already abandoned growing Sugar cane," he said. Sri Lanka was self-sufficient in Sugar over three decades ago and today only 15 per cent is being produced locally through Sevanagala and Pelawatte. Sugar is being imported from Brazil Thailand and Europe. The demand for Sugar in the world market has increased mainly due to the product being utilised to manufacture other products. "This is one reason for the prices to climb up," he said. Gamage who is also the Chairman/Managing Director of Sevenagala Sugar Company said that since taking over the factory from the Government they had increased their production capacity form 13,000 metric tons per year to 34,000 tons within two years. In 2002, Master Divers Chairman, Ariyaseela Wicramanayake purchased the 53 per cent equity stake in Pelwatte Sugar Industries Ltd, for Rs. 288.75 million. When both these factories re-commence operations in three years Lanka can be self-sufficient in Sugar," Gamage said. He said that all the factories also convert Sugar waste to produce electricity and opening factories would help in the supply of electricity to the rural areas. |
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