The state owned entity Lanka Sugar, which previously reported heavy losses, has now emerged with splendid financial performance as a result of Industry and Commerce Minister’s initiatives.

“I am pleased to inform the House that for the first time, Lanka Sugar Company (Private) Limited under my Ministry earned Rs one billion profit” stated Minister of Industry and Commerce Rishad Bathiudeen tabling his Committee Stage (budget) speech in the Parliament.

He said that last year the Lanka Sugar Company made a Rs. one billion loss. As a result of latest profits, he believed that it was a great success story among state owned business enterprises. “I praise Hon Finance Minister’s proposals for sugar industry development in this budget such as imposing a minimum price of Rs. 5,000 per Metric Tonne for sugarcane with effect from 1st January 2017, calling local and foreign investors to invest in Sugar Mills in Monaragala, Batticaloa, Kilinochchi and Ampara districts with a minimum plant size of 2,000 Tonnes etc.”

Lanka Sugar has reported a profit of Rs one billion by third quarter of 2016 in comparison to the loss Rs one billion in 2015. It also plans to establish Sugar Cane Juice Extractor Factory and 2000 Hectare Sugar Cane Plantation in Vavuniya district Settikulam Division. A sugar pricing formula based on incentive to be competitive with any commercial crop in Sri Lanka will also be introduced.

Upto third quarter (3Q) of 2016, Lanka Sugar’s Pelwatte and Sevanagala facilities cultivated 13,164 hectares of sugar cane (an increase of 7.6% compared to the entire 2015), harvesting 561,067 MT of cane resulting in 44,059 MT of sugar output (an increase of 2.5% from Y2015). According to Company financials, the Company reported a net loss before tax of Rs 1,030 Million in FY 2015 but reported a stunning turn-around “net profit before tax” of Rs 1,018 Million, as of third quarter of FY 2016.