Deal signed for sugar refinery plant at Hambantota Port

An agreement on the establishment of a sugar refinery plant by Shree Renuka Sugars Ltd., India, via its subsidiary Lanka Sugar Refinery Company (Private) Limited, was signed yesterday with Sri Lanka Ports Authority.

The signatories were Dr. Priyath B. Wickrama – Chairman of SLPA, Executive Director of SLPA Dr. Sanjaya Sedara Senarath and Rajesh Rawat, Director – Lanka Sugar Refinery (Private) Limited, William Dharmadas – Lanka Sugar Refinery (Private) Limited in the presence of Deputy Minister of Ports and Highways Rohitha Abeygunawardena.

This agreement has been signed for a term of 25 years and the expected total investment of this business venture is US$ 220 million. The initial capacity of this plant will be 2,000 tons per day, which will be expanded up to 3,000 tons per day subsequently.

Raw sugar is expected to be imported by the business venture for refinement at this proposed plant. The company is planned utilise the local human resources to the maximum level and expects to engage 1,500-2,000 workmen during the construction period. When in operation, nearly 300-350 people are expected to be employed by them at various technical and commercial levels.

Apart from the above, nearly 1,000 persons are expected to get indirect employment opportunities through this. The construction of this plant is expected to be completed within 24 months.    

In parallel to the construction of the Magam Ruhunupura Mahinda Rajapaksa Port (MRMR Port) in Hambantota, the Sri Lanka Ports Authority (SLPA) has received investment proposals from prospective local and foreign investors to establish businesses within the port premises.

Out of the 27 proposals received, the Cabinet of Ministers has approved seven investment proposals, subsequent to the recommendations by Cabinet appointed negotiating committee with the assistance of the technical evaluation committee.

These proposals include schemes for setting up a sugar refinery plant, a cement grinding/ bagging plant, a fertiliser plant, a petro-chemical plant and warehouses.

Following the success of Magam Ruhunupura Mahinda Rajapaksa Port, several more foreign investments will also be granted approval to initiate further industrial activity at the port premises in the near future, SLPA said.