Sri Lanka Sugar Company makes turnaround with Rs. 1 b profit

Tuesday, 15 November 2016 00:01 - - {{hitsCtrl.values.hits}}

Sri Lanka Sugar Company which employs 5,600 workers earned a profit of Rs. 1,018 million for nine months (three quarters) of 2016, making a remarkable turnaround after it suffered a loss of Rs. 1,030 million last year.

Sri Lanka Sugar Company Chairman Naveen 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. 1,030 million and in 2014 a loss of Rs. 211 million.

Even though the company accumulated high losses in the past, in the first nine months of 2016 (for three quarters) it earned a profit of Rs. 1,018 million. The company earned this profit because of the direct guidance given by Minister Rishad Bathiudeen and new procedure of tenders which was introduced for the first time, the Chairman said.

Palwatte and Sewanagala sugar factories are subsidiaries existing under the company and 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 above 15,000 hectares with factories growing 2,000 hectares while the rest is cultivated by the farmers of Monaragala district.

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