COLOMBO: The state owned entity Lanka Sugar, which previously reported heavy losses, has earned Rs. one billion in profits for the first time, according to the Minister of Industry and Commerce Rishad Bathiudeen.
Minister Bathiudeen told the parliament that the loss-making enterprise has now emerged with splendid financial performance as a result of the initiatives taken under his direction.
“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,” said the Minister delivering his Committee Stage (budget) speech in parliament summarizing the performance of various institutions under his Ministry.
He said the Lanka Sugar’s profits came this year following the company’s Rs one billion loss last year. Lanka Sugar reported a profit of Rs one billion by third quarter of 2016 in comparison to the loss of Rs one billion in 2015.
“As a result of latest profits, I believe that this is a great success story among state owned business enterprises,” Minister Bathiudeen said.
The Minister commended the Finance Minister’s proposals for sugar industry development in the next year’s budget such as imposing a minimum price of Rs. 5,000 per Metric Ton (MT) 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 MT etc.
It plans to establish Sugar Cane Juice Extractor Factory and 2000 Hectare Sugar Cane Plantation in Vavuniya district Settikulam Division. The Company also intends to produce a sugar pricing formula based on incentive to be competitive with any commercial crop in Sri Lanka.
Upton third quarter (3Q) of 2016, Lanka Sugar’s Pelawatta and Sevenagala facilities cultivated 13,164 hectares of sugar canes (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 1.03 billion in FY 2015 but reported a stunning turn-around “net profit before tax” of Rs 1.018 billion, as of third quarter of FY 2016. Lanka Sugar Company Limited (LSCL) is a fully government owned company under the Treasury of Sri Lanka.
