The Hon. Chathuranga Abeysinghe - Deputy Minister of Industry and Entrepreneurship Development
Deputy Minister Chathuranga Abeysinghe said the Valaichchenai paper factory, occupying 330 acres and inactive since 2014, has resumed operations after machinery repairs and the appointment of a new Board. He stated production is about 200 tons per month, with targets of 300 tons from April and 500 tons within the year, while the factory has reached break-even or operating profit. He outlined plans for a packaging materials plant through the Industrial Development Board, multi-product zones, and technology upgrades through public–private–people partnerships to expand employment beyond the current 120 workers.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Speaker, I reply on behalf of the Minister of Industry and Entrepreneurship Development.
¶ 02 Hon. Member, this is a timely question. Under past administrations, institutions like this were sold off as scrap or closed. Reviving them is part of our Budget programme.
¶ 03 1. The factory occupies 330 acres. 2. The Valaichchenai factory was inactive from December 2014. In 2020, steps were taken to restart. When the new Government assumed office, production had halted due to machinery breakdowns. After appointing a new Board of Directors, repairs were carried out and production commenced. It is now at operational level, and the factory has reached operating profit. Current production is about 200 tons per month; with ongoing improvements, we plan to increase to 300 tons per month from April. 3. Not applicable, as the factory is active. As noted, with operations revived, we are planning diversification projects to utilize the land productively. 4. Through the Industrial Development Board, work is underway to start a packaging materials plant. Additionally, we plan to establish multi-product zones. 5. Repairs to long-idle machinery have been undertaken; production resumed to 200 tons per month, bringing the enterprise to break-even. We are working to reach 300 tons per month in coming months and target 500 tons per month within this year. The factory currently employs about 120 workers; jobs will increase with improvements. While production continues with old machinery, Government policy is to upgrade via a public–private–people partnership (PPPP), install new machinery, and restore the factory to its former stature as the “paper town,” thereby creating significant employment for youth in Batticaloa district.
¶ 04 The technology is outdated; hence, we will seek new technology via public–private partnerships. At present, around 120 employees are working; with new partnerships, this number will certainly grow.
Provenance
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- Hansard, Thursday, 20 March 2025 ·No. 1746596381071973 ·English daily/uncorrected Hansard
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Cite as: The Hon. Chathuranga Abeysinghe - Deputy Minister of Industry and Entrepreneurship Development. 10th Parliament, Parliament of Sri Lanka. Hansard, 20 March 2025. No. 1746596381071973. Politick, https://staging.politick.io/lk/speeches/24041