The Hon. Wasantha Piyathissa - Deputy Minister of Rural Development, Social Security and Community Empowerment

¶ 01 Hon. Presiding Member, in 2006 there was a coalition Government. Hingurana Sugar Factory had been closed for over seven years. I brought an Adjournment Motion to restart it—either by re-nationalizing or as a public–private partnership. Accordingly, within months, the Government with LOLC and Browns restarted it as Gal Oya Plantations, with 51% for the Government and 49% for the private partner.

¶ 02 Originally, Gal Oya development included sugarcane on 5,000 acres around the D.S. Senanayake reservoir. The plant began in the 1960s with Russian assistance, providing land, housing, and infrastructure. Later, under a UNP Government’s privatization drive, Hingurana was sold in 1993 to a businessman, Veerabahu, for a low price. Mismanagement led to protests; eventually even scrap was sold and the owner absconded. What was once the heart of Ampara’s economy collapsed. The UNP must be accountable.

¶ 03 Similarly, Kantale Sugar has been destroyed. Today, Gal Oya Plantations operates, but farmers face many issues: no fair cane price, no fair agreement, poor infrastructure, and an authoritarian management. Peaceful protests by farmers and unions were met with assaults; a former General Manager of the Sri Lanka Sugar Corporation and others were attacked—cases are pending. The company has not paid billions due to the Government nor remitted the 51% dividend share. It took bank loans and insurance in the company’s name, even signing loans in farmers’ names. Mismanagement has driven it to losses. Though the Government holds 51%, the private partner effectively controls decisions. Benefits must reach farmers, not just management. The present Government will take necessary measures; however, those responsible for the destruction of Hingurana must be held to account.