The Hon. Ravi Karunanayake

¶ 01 Hon. Speaker, I rise to speak on the future of Sri Lanka’s sugar industry—directly linked to our food security, foreign exchange security and farmers’ livelihoods.

¶ 02 At the 35th Annual Convention of the Sri Lanka Tea Factory Owners’ Association on 13 September 2025, the Hon. Minister of Industries stated that “the Government’s primary role is to create an enabling environment for businesses to operate; not to directly run businesses.” Daily FT of 15 September 2025 reported, “Govt. to step back from running businesses, focus on facilitation.” I congratulate the Hon. Minister for that.

¶ 03 Globally, it has long been accepted that governments cannot successfully manage businesses; their role is to set policy, ensure fair governance, and create conditions for private enterprise to thrive—principles embraced in 1977 by President J.R. Jayewardene when introducing the open economy.

¶ 04 However, this now contradicts what the Hon. Minister himself said nine months ago in Parliament—that Sri Lanka could not only meet its own sugar demand but also export to the Asian market. That aspiration has since been abandoned, undermining confidence among farmers, workers and investors.

¶ 05 In 2024, our sugar requirement was about 664,000 metric tons, with domestic production around 81,000 metric tons—roughly 12% of needs. The balance, about 583,000 metric tons, was imported at a typical annual cost of USD 290–300 million. While foreign suppliers benefit, our cane farmers suffer due to arrears, low prices, high input costs and little modernization support—exacerbated by tax and revenue policies that favour imports over domestic production.

¶ 06 Accordingly, I ask the Hon. Minister:

¶ 07 1. You now state governments cannot run businesses and should confine themselves to policy. Is this your personal view or the official, unified position of the NPP Government? 2. Nine months ago, you said Sri Lanka could meet domestic sugar needs and export to Asia. What data, economic calculations or capacities underpinned that claim? Will you table them? 3. Today your position has changed. What new evidence led to this shift, and do you accept that such policy reversals erode confidence and deter investment? 4. With only 81,000 MT produced in 2024 versus 664,000 MT required, and USD ~300 million spent on imports, does this not disprove your earlier export claim? If so, can you now present realistic production targets? 5. If the Government will no longer manage sugar mills, what steps are planned—privatization, public–private partnerships, or closures? Will the process be transparent and impartial? 6. Cane farmers face arrears, low prices and high costs. Is there a defined mechanism to guarantee fair prices and timely payments? 7. Will the Government amend tax and revenue policies that currently disadvantage domestic production and favour imports? If so, what are the proposed changes? 8. Sugar affects not only industry but national food security and consumer price stability. With over 85% of demand reliant on imports, how will the Government balance fair farmer incomes with affordable consumer prices? 9. Will you clarify the complete tax burden per kilogram on imported sugar versus domestically produced sugar? 10. Finally, will you present a printed white paper on the sugar industry, outlining production targets, import strategy, self-sufficiency goals, role of private investment, tax reforms, and the NPP Government’s official position?