Trade, Commerce and Food Security Deputy Minister R.M. Jayawardena has alleged that the Sevanagala Sugar Industry, owned by the Lanka Sugar Company, concealed massive debts during the previous government in order to report profits.
Speaking on Monday during a visit to the Sevanagala Sugar Factory — where he inspected damage caused by a fire that destroyed sugarcane plantations — the Minister claimed the company had failed to remit mandatory contributions to the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) for 2021, 2022, and 2023.
According to him, the factory owes Rs. 8 billion to banks and other institutions for loans and services. “The money owed was hidden and shown as profits. Bank loans were obtained and even bonuses were paid to employees. That is how profits were reported at that time,” he said.
The Deputy Minister also alleged that politically motivated appointments had strained the institution’s resources. “Instead of the required 500 employees, there are now 1,300. It is very difficult to maintain the institution in this situation,” he said, adding that policy decisions of the previous administration — including the imposition of 18% VAT and the approval of ethanol imports — further weakened the local industry.
Rejecting speculation of closure, Jayawardena pledged that neither the Sevanagala nor the Pelwatte sugar factories would be shut down. He accused saboteurs and opposition-linked groups of attempting to cripple operations, citing incidents such as a rock being sent into the factory disguised among sugarcane and the recent plantation fire.
“We will not allow them to destroy this institution. We will investigate and take action against those responsible. We appeal to all employees and farmers to protect Sevanagala without being swayed by opposition politicians,” the Deputy Minister said.
