Hon. K.V. Samantha Viddyarathna - Minister of Plantation and Community Infrastructure

¶ 01 Mr. Speaker, the answer is as follows.

¶ 02 (a) (1) Yes. In 2010, when under the Ministry of State Resources and Enterprise Development, and with the intervention of its Secretary and the Treasury, Chilaw Plantations Limited provided Rs. 105 million in loans to five affiliated institutions to meet short-term liquidity needs.

¶ 03 (ii) The institutions: 1. Janatha Estates Development Board 2. Ministry of State Resources and Enterprise Development 3. State Plantation Corporation of Sri Lanka 4. Sri Lanka Rubber Manufacturing and Export Corporation (Pvt) Ltd 5. Elkaduwa Plantations Company (Pvt) Ltd

¶ 04 (iii) Loans were granted under agreements to meet short-term liquidity requirements, at 8% interest, repayable with interest within three years.

¶ 05 (iv) Amounts: - Janatha Estates Development Board: Rs. 40 million - Ministry of State Resources and Enterprise Development: Rs. 15 million - State Plantation Corporation: Rs. 20 million - Sri Lanka Rubber Manufacturing and Export Corporation (Pvt) Ltd: Rs. 10 million - Elkaduwa Plantations Company (Pvt) Ltd: Rs. 20 million

¶ 06 Total: Rs. 105 million.

¶ 07 (b) (i) Despite continuous efforts, no principal or interest has been recovered from any institution.

¶ 08 (ii) Interest income due on an accrual basis was accounted for up to 2013; thereafter, accrual interest was not recognized. However, provisions for doubtful debts were made in 2014 accounts.

¶ 09 As at 31.12.2025, principal and interest due are: - Janatha Estates Development Board: - Principal: Rs. 40,000,000.00 - Interest due: Rs. 49,227,397.26 - Total: Rs. 89,227,397.26 - State Plantation Corporation: - Principal: Rs. 20,000,000.00 - Interest due: Rs. 24,410,958.90 - Total: Rs. 44,410,958.90 - Sri Lanka Rubber Manufacturing and Export Corporation (Pvt) Ltd: - Principal: Rs. 10,000,000.00 - Interest due: Rs. 24,319,452.04 - Total: Rs. 34,319,452.04 - Elkaduwa Plantations Company (Pvt) Ltd: - Principal: Rs. 20,000,000.00 - Interest due: Not computed due to lack of proper agreements - Total: Rs. 20,000,000.00 - Ministry of State Resources and Enterprise Development: - Principal: Rs. 15,000,000.00 - Interest due: Not computed due to lack of proper agreements - Total: Rs. 15,000,000.00

¶ 10 Grand Total due: Rs. 202,957,808.20.

¶ 11 For the Ministry and the Rubber Manufacturing and Export Corporation (Pvt) Ltd, interest was not computed as proper agreements were not in place. Responsibility to repay Rs. 25 million due from those two institutions was assigned to the State Resources Management Corporation, but as no agreement exists with that body, interest has not been recorded.

¶ 12 (iii) Chilaw Plantations has repeatedly notified the debtor institutions in writing, but collection has not been possible. The matter is being discussed at the Ministry’s Audit Committee.

¶ 13 Provisions for doubtful debts were made in the 2012 accounts.

¶ 14 As the State Resources Management Corporation is not operational, guidance was sought from the Secretary to the Ministry of Finance, Economic Stabilization and National Policies by letter dated 05.02.2026. That letter is tabled.

¶ 15 Accordingly, the Department of Public Enterprises has instructed that action be taken under Public Enterprise Circular 01/2021(i) through the Audit Committee of Chilaw Plantations. Action is being taken to write off the loans as per instructions.

¶ 16 (c) Does not arise.