Saturday Dec 14, 2024
Saturday Dec 14, 2024
Wednesday, 19 June 2019 00:40 - - {{hitsCtrl.values.hits}}
By Nuwan Senarathna
Sri Lanka Freedom Party (SLFP) yesterday said the Government was allegedly attempting to privatise the Sevanagala and Pelawatte sugar factories by repealing the controversial Takeover Act that was passed in 2011 during the Government of Opposition leader Mahinda Rajapaksa.
Under the Revival of Underperforming Enterprises of Underutilized Assets Act of 2011 the previous administration took over 37 institutions, including the two sugar companies that were privatised in 2002.
Speaking to media at SLFP headquarters, SLFP General Secretary MP Dayasiri Jayasekara alleged repealing of the Revival Underperforming Enterprises of Underutilized Assets Act of 2011 would pave the way to hand over the sugar factories to Minister Daya Gamage. Gamage managed Sevanagala before it was taken back under the Government. However the Government has said that the repeal is a symbolic move to reassure investors that their ventures would be protected under Sri Lankan law.
“Most of the institutions that were taken over under the Revival of Underperforming Enterprises of Underutilized Assets Act of 2011 have become profitable entities. Sevanagala and Pelawatte sugar factories are one of the most profitable business entities,” he added. Jayasekara claimed if the Government privatises the two sugar factories that would directly affect the livelihoods of sugar cane farmers. According to Jayasekara, if the two factories are given to private management that could lead to reducing the amount of sugar cane used for production.
“In 2002 Lanka Sugar Company Private Ltd. had a fixed deposit of Rs. 985 million and by today the company has a fixed deposit of Rs. 781 million,” he added.
He claimed the Lanka Sugar Company had not obtained funds from the Treasury since it was taken over in 2011 and Rs. 700 million transferred to Treasury annually since 2011.
He pointed out that if the Lanka Sugar Company is privatised the Government will lose vital income, insisting that could have been used for the development of the sugar cane farmers and the Monaragala District at large.
