The government has no plans to shut down the Sevanagala Sugar Company, nor will it allow the collapse of the local sugar industry, Minister of Industry and Entrepreneurship Development Sunil Handunneththi said.
Minister Handunneththi was responding to recent media reports regarding the future of the Sevanagala facility, stating that there was no basis to claims of its closure.
Addressing a special media briefing, the said that if anyone attempts to politically undermine the government’s agenda, firm decisions will be taken without hesitation.
The minister also highlighted the broader importance of the Sevanagala Sugar Company, noting that it not only produces sugar but directly and indirectly supports around 200,000 farmers especially in Buttala and Wellawaya. The factory also provides employment to approximately 5,000 families, the Minister said.
“No employee has been fired, payments have not been stopped. We have only removed one particular officer,” he said, adding that the media reports on the topic are politically motivated.
Referring to the pricing structure, Handunneththi said farmers are paid Rs. 10,000 per metric ton, a figure determined by several considerations.
He explained that to sustain these payments, the byproduct ethanol is sold to alcohol manufacturers.
From this week, ethanol will be sold at Rs. 800 per liter to these companies, he added. (Newswire)