Embilipitiya Paper Factory leased out at highest price

Mahinda ALUTHGEDERA

The Embilipitiya Paper Factory was leased out to Perth Engineering and Maintenance (Pvt) Limited at the optimum price under government valuation, the government said.

Minister Thissera

State Resources and Enterprise Development Minister Dayashritha Thissera totally rejected the claims by some that the factory was given out at very low price.

The government has made arrangements to lease the Embilipitiya Paper Corporation to an Australian company for a 30-year period as part of the restructuring of public enterprises, the minister said. The government has obtained Rs. 350 million for the factory buildings while Rs. 50 million has been received for the land.

The minister added that the government has also received Rs. 400 million for the outdated machinery.

Minister Thissera added that the company has to pay a tax of 4 percent out of total assessed value of company lands to the government per annum while a tax of six percent of the total assessed value of the buildings would be charged by the government a year.

The minister added that the government will not privatize State assets. He said the Embilipitiya Paper Mill is a State-owned entity. The minister said that the company has to meet conditions laid down in the agreement and any violation will lead to the cancellation of agreement.

Minister Thissera added that the government had been allocated Rs. 4.3 million to pay salary of employees though it was closed after a dispute from 2003.

He said that the properties belonging to the factory in Colombo were sold out to the private sector to raise funds for payment of salaries to the employees.