Activists forcibly occupy Sevenagala Sugar factory as Govt. takeover looms

Saturday, 5 November 2011 00:09 - - {{hitsCtrl.values.hits}}

(AFP) Government supporters in Sri Lanka have stormed and occupied a private sugar company earmarked for nationalisation under a controversial law, the owners said on Friday.

Sevanagala Sugar Industries, which is controlled by an opposition politician, said that ruling party activists had forcibly evicted the management from the sugar plant in the south of the island on Thursday.

Company owner Daya Gamage said a director of the company was beaten up and other managers were locked out by a pro-government mob which also damaged two vehicles and disrupted work at the factory.

“We have complained to the police, but nothing is being done to protect the factory,” Gamage told reporters in Colombo.

The government, which declined to comment on the raid, has defended the proposed law to nationalise “under-performing” private companies and it rejected allegations the policy was designed to crush political opposition. President Mahinda Rajapakse's administration is set to introduce the bill next week in parliament, where his party commands a two-thirds majority.

The influential Bar Association of Sri Lanka asked the government to withdraw the bill.

“We appeal to the president, the government and all promoters of the bill to take steps to ensure that the bill is withdrawn and not passed without opportunity of further careful scrutiny...,” it said in a statement.

Rajapakse, who exerts huge control over Sri Lankan politics, has been accused by international rights organisations of undermining media freedom and thwarting dissent, charges vehemently denied by the government.

The president is also the minister of finance and his immediate family members hold key positions with authority over the day-to-day running of the the economy, military and parliament.

Sri Lanka has been trying to woo investors after defeating Tamil Tiger rebels in 2009 and declaring an end to nearly four decades of ethnic violence that killed up to 100,000 people.