Two major investments in sugar

Wednesday, 12 October 2016 00:01 - - {{hitsCtrl.values.hits}}

By Chathuri Dissanayake

Two major investors are set to start large-scale sugar production plants in the country to increase local production to meet 20% of the demand, the Trade Ministry said.

One of the investors, a company based in India, has already signed the agreement, with 20,000 hectares of land from Kanthale already allocated for sugarcane plantations. Discussions with a Korean company for another sugarcane factory will take place next week, Trade Ministry Secretary T.M.K.B. Thenakoon said.

“They will enter into a partnership with the Government and we will provide land to plant sugarcane,” he said.

The feasibility of providing 20,000 hectares of land from the Eastern Province is being evaluated at present, with emphasis being paid to lands available in Moneragala, Ampara or Batticaloa.

At present local production meets only 10% of demand. Sri Lanka imports 660,000 tonnes of both brown and white sugar per year while only 65,000-70,000 tonnes are produced locally, Lanka Sugar Company Ltd. Chairman Navin Adikarama said.

With the addition of the two new plantations, local production will meet 20% of demand, he said.

“The set goal is to be about 40% self-sufficient in sugar,” Adikarama said. Sugarcane planting at the Kanthale plantation is set to commence soon.