SUGAR CANE HARVESTING SEASON OPENS

As state owned sugar manufacturing industry reported historic profit levels, Sri Lanka thanked its cane harvesters for their supportive role in unprecedented success heard for the first time in years.

“Thanks to your contribution, today our government owned sugar production industry is earning profits without any need for privatization” said Minister of Industry and Commerce Rishad Bathiudeen on 2 March in Buttala. Minister Bathiudeen was addressing the inauguration event of sugar cane harvesting ceremony of Pelawatte Sugar Industries owned by Lanka Sugar Company (Private) Limited (LSCL) under his Ministry. Joining Minister Bathiudeen was Chairman of LSCL Navin Adikarama.

“We start another round of sugarcane harvesting today. For years, similar harvesting ceremonies have been taking place but local sugar production was incurring losses and likelihood of privatization has been in the air” said Minister Bathiudeen, and added: “But thanks to your contribution, today our government owned sugar production industry is earning profits without any need for privatization. You, the more than 11000 workers under LSCL, have together helped transform our losses to equal levels of massive profits in just one year! This is a state owned business success. I thank you for your contribution and wish for success in your harvesting. Let us build on this trend. We are producing less than 10% of our annual sugar needs locally and we need to increase this. Meanwhile Maximum Retail Prices (MRP) on sugar sales are not helping our sugar development efforts. I believe removing MRPs can help the sector to be more competitive.”

Annually Sri Lanka consumes 500,000 MT sugar but locally productions is only 8% of it. In 2015 LSCL under Minister Bathiudeen’s Ministry produces best quality natural brown sugar in Sri Lanka. LSCL reported a Rs one billion loss (US $ 6.6 Mn) but this trend reversed by September 2016 when LSCL reported a Rs one billion profit (US $ 6.6 Mn)-a stunning turnaround not seen in any other Sri Lankan State Owned Business Enterprises in recent times.