Lanka Sugar Company makes Rs.1.16b record profit

Lanka Sugar Company last year managed to turn around a plummeting financial record gaining profit to the tune of Rs. 1,162 million, paying Rs. 600 million as taxes, the company said in a statement.  

The company was on a losing trend, making a loss of Rs. 1,030 in 2015 and Rs. 211 million in 2014. Lanka Sugar Company managed to up its sugar production by close to 9,000 metric tonnes, while increasing sugar cane harvest by over 100,000 metric tonnes.

The company currently operates two production plants in Palawatte and Sewanagala, with over 5,000-strong workforce, generating income opportunities for over 25,000 families in the area.

“We were able to turn the company around from a loss-making entity to earn profits and pay Rs. 600 million in taxes, because we worked with a proper business plan and good governance policy, “ Lanka Sugar Company Chairman Navin Adikarama said.

Plans are underway to recommence production in two sugar factories – Kantale and Bibile – owned by the Lanka Sugar companies, as Public Private Partnerships. However, the Kantale sugar factory, which entered into an investment agreement through the Board of Investments (BOI) in 2015, has been delayed due to bureaucratic processes in clearing off land to be handed over to the investor.

The BOI highlighted the stalemate a few weeks ago, hoping to expedite the process of handing over the lands to the investor to kick start work in the plant, but failed to gain any momentum as the Land Ministry is yet to take a decision on the matter. (CD)