The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development
The Minister tabled data on Sri Lanka’s sugar requirement, domestic production, expected 2025 output, and imports, noting annual demand of about 650,000 metric tons and expected 2025 imports of 550,000–600,000 metric tons. He stated that locally produced sugar is subject to 18 per cent VAT and 2.5 per cent SSCL, and that Pelwatte and Sevanagala are currently not profitable from sugar production. The answer also identified risks to direct and indirect employment in the sector and listed measures to increase brown sugar production and reduce imports, including improved cane varieties, farmer incentives, better fertilizer use, training, and modern technology.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Deputy Speaker, I table the Answer.
¶ 02 - Answer tabled:
¶ 03 (a) (i) The average annual sugar requirement is approximately 650,000 metric tons (per Sugarcane Research Institute data).
¶ 04 (ii) Domestic production (metric tons): - Lanka Sugar Company (Pvt) Ltd. – Pelwatte: 2023: 28,076.65; 2024: 27,790.85; 2025 (01.01–30.06): 8,779.30 - Sevanagala Sugar Factory: 2023: 13,784.00; 2024: 11,930.00; 2025 (to 30.06): 3,139.56 - Gal Oya Plantations (Pvt) Ltd.: 2023: 14,581.00; 2024: 26,382.00; 2025 (to 30.06): 5,225.00 - Ethimale Plantations Company: 2023: 9,756.00; 2024: 14,584.70; 2025 (to 30.06): 5,297.00 Total: 2023: 66,197.65; 2024: 80,687.55; 2025 (to 30.06): 22,440.86
¶ 05 (iii) Expected for 2025 (production): - Pelwatte: 35,617.00 - Sevanagala: 18,350.00 - Gal Oya Plantations (Pvt) Ltd.: 30,459.00 - Ethimale Plantations Company: 19,701.00 Total: 104,127.00
¶ 06 Expected sugar imports in 2025 (per Ministry of Trade, Commerce, Food Security and Cooperative Development): approximately 550,000–600,000 metric tons. Imports Jan–Apr 2025: 269,800 metric tons.
¶ 07 (b) (i) Taxes on locally produced sugar: - VAT on value addition: 18% - Social Security Contribution Levy (SSCL): 2.5%
¶ 08 (ii) Pelwatte and Sevanagala sugar factories are currently not profitable from sugar production.
¶ 09 (iii) Employment: - Pelwatte: Direct 3,856; Indirect 250,000 - Sevanagala: Direct 1,297; Indirect 100,000 - Gal Oya Plantations (Pvt) Ltd.: Direct 1,265; Indirect 60,000 - Ethimale Plantations Company: Direct 1,151; Indirect 9,500 Total: Direct 7,569; Indirect 419,500
¶ 10 (iv) Given the severe financial difficulties of the domestic sugar sector, there is a risk of problems arising with both direct and indirect jobs.
¶ 11 (v) Measures to increase brown sugar production and reduce imports: - Introduce high-yield, drought-tolerant, pest-resistant sugarcane varieties. - Awareness and training programmes to reduce post-harvest losses and improve quality. - Introduce organic fertilizers to increase yield and quality. - Farmer incentive programmes to retain growers in sugarcane cultivation. - Introduce modern equipment and technology to increase sugar recovery. - Fertilizer recommendations to improve crop quality.
¶ 12 By following these measures, increasing domestic brown sugar production will reduce the need for imported white sugar.
¶ 13 (c) Not applicable.
Provenance
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- Hansard, Tuesday, 22 July 2025 ·No. 1753443916033328 ·English daily/uncorrected Hansard
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Cite as: The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development. 10th Parliament, Parliament of Sri Lanka. Hansard, 22 July 2025. No. 1753443916033328. Politick, https://staging.politick.io/lk/speeches/13647