Embilipitiya paper factory to be leased to Australian company

Monday, 26 September 2011 00:07 - - {{hitsCtrl.values.hits}}

The government has made arrangements to hand over the Embilipitiya Paper Corporation to an Australian company for a period of 30 years as part of the restructuring of public enterprises under the State Resources and Investment Promotions Ministry.

The Ministry states that the Embilipitiya Paper Corporation would be handed over to Perth Engineering and Maintenance Private Limited for Rs. 600 million.

The government has valued the machinery and assets of the company at Rs. 400 million, and the business value has been estimated at Rs. 100 million. State Resources and Investment Promotions Minister Dayasritha Tissera has said that investors have come forward to invest Rs. 1.2 billion to resume work at several state institutions that have recorded losses.

An official from the State Resources and Investment Promotions Ministry said the government is in the process of restructuring 23 state enterprises and the first phase included four enterprises. The Embilipitiya Paper Corporation, Kantale Sugar Company, Sri Lanka Rubber Products and Exports Company and the Ceylon Ceramics Corporation are the four institutions to be restructured.

The Ministry is currently in the process of studying the expressions of interest (EoIs) sent by private investors for the Kantale Sugar Company, Sri Lanka Rubber Products and Exports Company and the Ceylon Ceramics Corporation.

The lease agreements for these enterprises would also be finalised shortly, the Ministry official said. The enterprises are to be privatised keeping a 51% majority share in the ownership of the Government. The Government is also looking at commencing operations of several state enterprises in the North as well. The Paranthan Chemical Factory and the Kankesanthurai Cement Company are expected to commence operations by next year. (www.colombopage.com)