The Hon. R.M. Jayawardhana - Deputy Minister of Trade, Commerce and Food Security
Deputy Minister R.M. Jayawardhana rejected opposition claims that the collapse of Pelwatte and Sevanagala occurred under the current Government, stating that Lanka Sugar Company had recorded losses, irregularities, and alleged misuse amounting to Rs. 7.47 billion before the present Minister assumed office in December 2024. He cited audit findings on unauthorised payments, politically influenced recruitment and promotions, and a large wage burden, noting that the two plants currently employ 9,489 workers. He also reported outstanding dues as of mid-2025, including Rs. 3,740 million payable to suppliers and Rs. 2,034 million to farmers, and argued that prior mismanagement had damaged the institutions.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Presiding Member, I wished to ask Hon. Ranjith Madduma Bandara, “Have you not seen the unseen?” Both he and Hon. Dharmasena claimed the collapse occurred under the current Government. But the records show otherwise.
¶ 02 Pelwatte and Sevanagala are under Lanka Sugar Company, gazetted as one entity. Our Minister took charge in December 2024. As at 30th July last year, these entities had losses and irregularities amounting to Rs. 7.47 billion—funds misused and fraudulently expended, causing damage to both plants. Had we had that Rs. 7 billion, we could have developed these institutions.
¶ 03 As to staffing: in January 2022, there were 9,598 permanent employees; by December 2022, 2,999 permanent employees were in Pelwatte alone. Under political influence, large numbers were recruited without due process. For example, a Provincial Council Vice Chairman’s son was appointed to HR without qualifications, and around two thousand employees were made permanent in one batch. A total of 159 were recruited without approval and 510 were promoted without approval, inflating the wage bill. Currently Pelwatte has 5,567 employees and Sevanagala 3,922—total 9,489—with three HR heads across the two plants.
¶ 04 Regarding dues, as at 30.06.2025, Rs. 3,740 million was payable to suppliers, and Rs. 2,034 million to farmers as of July—figures that have since increased.
¶ 05 Audit findings show unauthorised payments amounting to Rs. 2,330,339,843. These are recorded in audit reports. Additionally, expenditure on guest houses and other non-core areas...
Provenance
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- Hansard, Tuesday, 22 July 2025 ·No. 1753443916033328 ·English daily/uncorrected Hansard
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Cite as: The Hon. R.M. Jayawardhana - Deputy Minister of Trade, Commerce and Food Security. 10th Parliament, Parliament of Sri Lanka. Hansard, 22 July 2025. No. 1753443916033328. Politick, https://staging.politick.io/lk/speeches/13839