Sri Lanka seeking to substantially increase local sugar output

A special committee set up by the Prime Minister Ranil Wickremesinghe has prepared a policy paper aimed at sweetening Sri Lanka's sugar self sufficiency to 50 per cent in four years.

An official explained to the Business Times that this policy paper which will be submitted to the Cabinet soon will spell out whether the government should opt for an out grower model, it well identify lands for sugar plantations and whether it should go for public private partnerships, and what the trade policy will be along with research and development on productivity improvement.

Sri Lanka imports 94 per cent of the sugar requirement, spending a colossal Rs. 55 million in foreign exchange. The population increase and the increase in the incomes are likely to increase the sugar consumption significantly over the next 10 - 15 years.

The official said that Sri Lanka requires 55,000 Metric Tonnes ( MT) of which 8 per cent is locally produced.

Currently local production comes from three factories - Pelawatte ( 3,000 MT) Sevenagala ( 1,250MT) and Hingurana ( 2,000 MT). "All these are operating under capacity," the official said. He pointed out that if the Kantale Sugar Factory can be revived, it will fetch 3,000 MT daily production. "The Sevenagala factory's capacity can be enhanced to 2,000 MT per day which will yield 10,000 MT daily capacity."

"All these are operating under capacity," the official said. He pointed out that if the Kantale Sugar Factory can be revived, it will fetch 3,000 MT daily production. "The Sevenagala factory's capacity can be enhanced to 2,000 MT per day which will yield 10,000 MT daily capacity."