Hingurana Sugar opens

I L M Rizan. Addalaichenai Central Correspondent

The Hingurana Sugar Company which was closed for almost 15 years has now commenced operations under the management of LOLC and Browns Group. The factory,which was built as one of the largest sugar factories in the region with modern British machinery, was opened in 1959. The factory functioned smoothly until mid 1980’s when it was privatized and given to a single owner. During this time the Sevenaglala, Palwatte and Kantale factories too were functioning and Sri Lanka was heading towards being a self stuffiest nation in sugar.

At that time the factory in addition to sugar cane was also manufacturing spirits and had their own electricity since 1962.The Sugar factory that was originally commissioned by the Gal Oya Development Board was transferred to the Sri Lanka Sugar Corporation in 1966. However the entrepreneur who took over the factory could not manage the property despite the demand for sugar being high in the country. Mismanagement, labour and union issues were the order of the day and finally it folded up operations in 1993. In addition to the workers, the out growers who supplied sugarcane to the factory were left high and low and eventually the government took over the property in 1999.

Since then, a VRS scheme was offered to the workers and compensation too were paid to them. Two years ago, under the Mahinda Chintana re structuring of abandoned state entities programme, the Hingurana factory was given over to a consortium which comprised of LOLC and Browns Group. Government held the controlling share of 51 percent. CEO of the company, Gamini Ratnayake, said that they had invested over Rs.1.2 million to turn the company.

The new management will also re-activate the distillery but he emphasis that they would not manufacturing liquor. “We will give the spirits out so that manufactures can make perfumes and other related products.” He also disclosed plans to provide 2 MV of energy to the national grid using sugarcane waste. H. Waruna, Assitanant Human Resources Manager of the factory said the opening of the factory had provided livelihood hoods to over 800 people in the area.