Sri Lanka, August 27 – The Sevanagala Sugar Industry, which belongs to the Lanka Sugar Company, had to repay Rs.8,000 million to different organizations for loans and several services under the former administration. However, the debt remained concealed, and the firm declared earnings. This is how the company managed to show profitability back then, stated Trade, Commerce, and Food Security Deputy Minister R.M. Jayawardena. He shared these details on Monday during his visit to the Sevanagala Sugar Factory to assess the destruction resulting from a fire that damaged the sugarcane fields.
The Sevanagala Sugar factory failed to pay funds into the Employees’ Provident Fund and the Employees’ Trust Fund for workers during the years 2021, 2022, and 2023.
It must make a significant payment to banks and different organizations. So far, no revenue has been generated from the millions invested in various initiatives.
It must repay a loan worth 8 billion rupees to different organizations for loans and several services, along with other expenses. The debt has been concealed and presented as earnings. Loans from banks have been taken, and employee bonuses have also been provided. This is why the organization reported a profit during that period.
Under the prior leadership, positions were assigned to acquaintances so extensively that the organization struggled to manage. Rather than the necessary five hundred staff members, there are now one thousand three hundred. This makes it extremely challenging to sustain the institution under these conditions. It was the Ranil Wickremesinghe administration that introduced the 18% VAT. The same government permitted the importation of ethanol from outside the country, which is why we faced difficulties selling our sugar and ethanol.
We will not shut down Sevanagala or Pelwatte under any circumstances. Certain media platforms have remained silent regarding the harm and devastation inflicted upon Sevanagala and Pelwatte previously. We intend to speak with the President and ensure protection of these facilities so that farmers and workers face unjust treatment. ‘Individuals attempting to disrupt the factory sent a big stone together with sugar cane towards it. This instance, the estate was set ablaze. Political opposition factions and some staff members are collaborating to undermine this organization. We won’t permit such actions.’
“We are looking into this issue and will address those causing disruption. We urge every employee and farmer to support the organization without being influenced by opposing political figures,” he stated.
