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Sunday, 25 July 2004  
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Sweeter times ahead for sugar industry

The Government has decided to expand and modernise the domestic sugar industry, introducing a better policy environment to attract greater investment together with a level playing field for local producers.

This was revealed by Plantation Minister Anura Priyadarshana Yapa at a workshop on 'Sugar Sector Development - Policy into Action', organised by the Sri Lanka Sugar Research Institute in Colombo last week.

Minister Yapa, delivering the keynote address at the workshop, said as the country is full of potential and possibilities both in manpower and resources, the Government is eyeing dry zone land for sugar sector expansion and development. The proposed expansion of the sugar industry will cover the districts of Anuradhapura, Ampara, Hambantota, Monaragala, Trincomalee and Vavuniya which have a high proportion of Samurdhi beneficiaries in the country.

Around 4000 people are presently employed by the two sugar factories in Pelwatta and Sevanagala. The Minister said that the planned expansion by the industry will increase direct employment opportunities to around 10,000; the number of families dependent on the industry directly or indirectly will be increased from 30,000 to 50,000.

He said the Government is interested in developing the backward regions of the country with the objective of alleviating poverty among the rural masses, providing gainful employment and increasing rural income.

The Minister also accepted that the industry has not received attention it deserves, resulting in the closure of two sugar factories in the recent past. The Minister also explained that the country annually spends over Rs. 12 billion for sugar, which comes only after the essential food items of rice and flour. "Value added sugar products also cost five billion rupees annually" he said.

Sugarcane Research Institute Director and Chief Executive Dr. M.W.N. Dharmawardene said the two projects currently in operation inject around one billion rupees monthly into the economy, while creating many income opportunities for direct or indirect dependents.

He also said that the Government's aim should be a substantial improvement of the industry, reactivating the two abandoned factories at Kantale and Hingurana immediately.

(DPL)

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