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)

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Minister of Industry and Entrepreneurship Development Sunil Handunneththi expressed concern over the recent reciprocal tariffs imposed on Sri Lanka by the US, calling the move unexpected and potentially damaging to the country’s export ambitions.

“This is actually a big shock, This is not something that we anticipated,” Handunneththi said speaking to media. The new tariffs, he said, could hinder his governemnt’s target of increasing exports by $3 billion.

The Minister criticized the tariff rate calculation, describing the 44 percent figure as “unfair.” He explained that it was based on halving the trade deficit between the two countries, a method he said disproportionately penalizes Sri Lanka.

“The US has no political reason to do this to us,” he noted, adding that the timing is especially difficult. “We were just starting to stabilize. It will be difficult to bear at this time for Sri Lanka.”

He also commented on former President Donald Trump’s trade policies, suggesting they may not be sustainable. “President Trump’s plan may not be feasible in the long run, considering the consumption patterns of the country,” he said.

The government is expected to review the potential economic impact and consider diplomatic options in response, the Minister said. (Newswire)

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