State-run Sugar Company makes turnaround with Rs. 321m profit

Wednesday, 27 July 2016 00:00 - - {{hitsCtrl.values.hits}}

Sri Lanka Sugar Company, which employees 5,600 workers, earned a profit of Rs. 321 million in the first quarter of 2016, making a remarkable turnaround after it suffered a loss of Rs. 1 billion last year.

Sri Lanka Sugar Company Chairman Naween Adikarama releasing a statement noted the change was mainly due to stronger Government regulations and support from top policymakers. In 2015 the company suffered a loss of Rs. 1,000 million and in 2014 a loss of Rs. 211 million.

“Even though the company accumulated high losses in the past, in the first quarter of 2016 it earned a profit of Rs. 321 million. The company earned this profit because of the direct guidance given by the Ministry and the new procedure of tenders which was introduced for the first time,” the Chairman said.

Pelwatte and Sevanagala sugar factories are subsidiaries existing under the company. An estimated 5,600 employees work in the Sugar Company with 25,000 farmer families depending on the factories to absorb their crop. The sugar factories cover about 15,000 hectares with the factories growing 2,000 hectares while the rest is cultivated by the farmers of the Monaragala District.

The two factories manufacture about 50,000 tons of sugar annually and cater to high demand in the local market.