- 15,000 ha of land to be developed
- Rs. 430 m annual cost for fence maintenance
- 661,183 MT of sugar required annually in 2023
- No new employees to be recruited for two years
- Tourism development to lower brown sugar production costs
The Government plans to transform nearly 15,000 hectares of land owned by the Sevanagala and Pelwatte sugar factories into tourism hubs under a Public-Private Partnership (PPP) model.
The two sugar factory premises together span 15,000 hectares and include streams, recreational facilities, and abandoned bungalows that were once in operation but have since been left unused.
Industry and Entrepreneurship Development Minister Sunil Handunnetti confirmed to The Sunday Morning that a Cabinet paper was being prepared to seek approval for converting these valuable lands into recreational and tourist attraction areas.
He stressed that these areas were particularly attractive to tourists interested in elephants, as both sites were equipped with nearly 225 km of electric fencing designed to protect the sugar cane crops from elephant encroachment.
The fencing costs approximately Rs. 430 million annually to maintain, with around 500 employees overseeing its upkeep.
“The two premises are strategically located, bordered by Ella on one side and extending to Yala and Udawalawe on the other. The area also boasts a historic road system,” the Minister noted.
Handunnetti further explained that while the land would be developed as tourism zones, sugar production would continue and tourists would even be able to observe the sugar manufacturing process.
He also reassured that no current employees of the factories would be laid off during this transition. “We won’t recruit any new employees for the next two years,” he added.
Lanka Sugar Company Ltd. (LSCL), a fully Government-owned entity under the Ministry of Industry and Entrepreneurship Development, took control of the Pelwatte and Sevanagala sugar factories through the Revival of Underperforming Enterprises or Underutilised Assets Act No.43 of 2011 on 11 November 2011.
This decision followed a detailed study by a Cabinet subcommittee, which recommended the takeover after evaluating the economic potential of the sugar industry.
LSCL, incorporated in August 2012, is focused on becoming a self-funded and efficiently managed company. The company aims to reduce Sri Lanka’s reliance on imported sugar and ethanol, which in 2023 made up 90% of the country’s sugar needs, costing Rs. 127 billion in foreign exchange.
Through its efforts, LSCL hopes to make the sugar industry more sustainable and profitable while supporting local farmers.
According to LSCL Chairman Dr. Rukshan Gunathilaka, developing the lands into tourism hubs will help lower the production cost of brown sugar.
He pointed out that the existing infrastructure and human resources could attract private investors, who would partner with the Government and share the profits.
Dr. Gunathilaka also stressed the need to reduce the taxes currently applied to brown sugar in order to make it more competitive with white sugar in the local market.
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