The Hon. Sunil Handunnetti

¶ 01 Hon. Speaker, I thank our Leader of the Opposition for focusing on this industry and raising this important question, even amidst issues like appointments to local authorities and changes of electoral organizers.

¶ 02 Answers to the Hon. Leader of the Opposition’s questions are as follows.

¶ 03 1. There are two factories: Pelwatte and Sevanagala. In addition, there is a private factory at Ethimale. Gal Oya is a public-private partnership with 51% owned by the Government and 49% by the private sector.

¶ 04 Annual factory production (metric tons): - Pelwatte: 23,582 (2020); 30,381 (2021); 24,110 (2022); 28,077 (2023); 27,791 (2024) - Sevanagala: 16,105 (2020); 17,796 (2021); 12,628 (2022); 13,784 (2023); 11,930 (2024) - Total: 39,687 (2020); 48,177 (2021); 36,738 (2022); 41,861 (2023); 39,721 (2024)

¶ 05 Work for 2025 is underway.

¶ 06 Sri Lanka’s sugar requirement in 2024 was 658,678 metric tons. The Lanka Sugar Company accounts for 6.03% of annual requirement.

¶ 07 2. Annual sugar imports (2022 to Feb. 2025) per Sri Lanka Customs statistics were tabled. In 2024, 564 million kg were imported; in 2025 (Jan–Feb), 140 million kg. What is imported is refined white sugar. Brown sugar is not imported, though at times white sugar is mixed and passed off as brown.

¶ 08 A Special Commodity Levy (SCL) of Rs. 50 per kg is imposed on imported sugar.

¶ 09 3. Locally produced sugar is subject to 18% VAT and 2.5% Social Security Contribution Levy (SSCL), totaling 20.5%. VAT is not charged at import on sugar because the composite SCL of Rs. 50 per kg applies and VAT is not levied at import in such cases.