The Hon. Rauff Hakeem, Attorney-at-Law

¶ 01 Hon. Presiding Member, I am pleased to speak on the Motion to Postpone the House moved by Hon. Ranjith Madduma Bandara. Though the Motion raised issues regarding the Pelwatte and Sevanagala sugar factories under Lanka Sugar Company, our colleague Vasantha Piyathissa also raised matters regarding the factory owned by Gal Oya Plantations (Pvt.) Ltd. in the Ampara District. I intend to add a few points on that.

¶ 02 We met the Minister at his office this morning; Hon. Vasantha Piyathissa also joined, along with representatives of cane farmer organizations. The Minister listened attentively to their concerns. I thank him for agreeing to personally attend the District Coordinating Committee on the 31st to address the farmers’ grievances. I also request that our Deputy Minister, Anil Jayantha, and a Treasury official attend, at the Minister’s request. We must also speak about Treasury officials who have been asleep at the wheel, with no oversight of the issues affecting farmers and the Treasury’s own stake.

¶ 03 There appears to be no concern for due dividends. We have been raising this for years in this House, yet the Treasury has done nothing to secure dividends that should accrue to it. Though attempts are made to transform this into a highly profitable factory, there are covert practices here. On top of that is what Hon. Vasantha Piyathissa mentioned: using criminal gangs to intimidate farmers, setting fire to their crops. Beyond that, there are other schemes. I informed the Hon. Minister about this today. Is there a deliberate attempt to antagonize the factories under Lanka Sugar Company to build a monopoly, control the entire ethanol business, and bring the sugar factories under their sway? We must examine this.

¶ 04 The audit report also sets out many issues. The Auditor General has submitted a special report. Parts of it are with me. It observes, among other things: “Further, with regard to this state-owned company, proportionate direct supervision by the General Treasury has not been carried out, and the Government has received no dividend under the shareholders’ agreement. As at 31 March 2020, the company’s liabilities exceeded its assets by Rs. 7,521 million. Moreover, upon execution of the shareholders’ agreement, both parties failed to fulfill certain conditions therein, and although GOPL (Gal Oya Plantations) management functions were entrusted while Gal Oya Holdings held 69% shareholding, the expected objectives were not achieved; the company continued to exhibit operational inefficiencies.”

¶ 05 Therefore, we have a major issue with the Treasury being in deep slumber on these matters. Police officers are also involved—using the police to harass farmers who protest, filing cases against their leaders. I showed the Minister how cases have been filed against protesting farmer leaders, seeking heavy damages. Is this a cyclical process where state enterprises are harassed into becoming private property?

¶ 06 There are also efforts to bring in new machinery to upgrade these factories, which could soon enable power generation through ethanol by-products—potentially 6 to 7 megawatts. They have also obtained a licence for a bottling plant, which, through backward integration, would increase profits and move into alcoholic beverage production. That is fine in the business world, and we appreciate such efforts, but farmers must be paid the correct price. If this business is carried out by suppressing farmers, destabilizing conditions will emerge. Especially in areas like Galmaduwa, Deegavapi and Thiruppathanchena, many farmers face severe problems. They are pushed into debt—sometimes forced loans. Even insurance is abused: alleged arson followed by collecting insurance proceeds that are then captured by the company. That is what Gal Oya has become.

¶ 07 Please examine these matters and provide a decision. We know marketing brown sugar is difficult, but the Minister is prepared to act. Regarding ethanol, to resolve issues—especially around ethanol prices and liquor manufacturers—we can take steps to regulate. The Hon. Minister is aware of approaches for that. I request that the District Coordinating Committee take decisions and provide an immediate solution to the farmers’ issues. Thank you very much.