The Hon. Sunil Handunnetti - Minister of Industry and Entrepreneurship Development

¶ 01 Hon. Speaker, I thank you for the opportunity to make a statement on the important national issue concerning sugarcane farmers of Pelwatte and Sevanagala under Lanka Sugar Company.

¶ 02 Members, including the Leader of the Opposition, have raised this repeatedly. The current difficulties arose due to delayed payments to outgrower farmers of Pelwatte and Sevanagala under Lanka Sugar. The reasons leading to the institutions’ financial distress have been explained previously; I will not repeat them.

¶ 03 When we assumed office, Pelwatte had 3,847 employees and Sevanagala 1,269. Outstanding liabilities we inherited included: statutory obligations of Rs. 3,977 million; dues to farmers Rs. 609 million; dues to suppliers Rs. 510 million; bank loan repayments Rs. 1,176 million—total liabilities Rs. 6,272 million (over Rs. 6 billion). Additionally, there were stocks of about 33,000 MT of sugar and about 5,500,000 litres of ethanol.

¶ 04 In the first six months of 2025, despite difficulties, Pelwatte produced 14,201 MT of sugar and sold 8,468 MT, earning Rs. 1,652 million. Sevanagala produced 4,045 MT and sold 4,568 MT (including previous stocks), earning Rs. 877 million. Combined, sugar production was 18,246 MT; sales 13,036 MT; revenue Rs. 2,529 million.

¶ 05 Ethanol: Pelwatte produced 3,539,109 litres; sold 3,666,120 litres; revenue Rs. 2,125 million. Sevanagala produced 904,185 litres; sold 1,166,773 litres; revenue Rs. 563 million. Combined for Jan–Jun 2025: production 4,443,294 litres; sales 4,832,893 litres; revenue Rs. 2,688 million. As at 31 July, available for sale: sugar 27,292 MT; ethanol 857,185 litres.

¶ 06 We acknowledge a two-month delay in payments. From 02 June 2025 to 01 August 2025, we have been making payments to farmers. Total due by 31 August was Rs. 1,541,472,630. As at 01 August, payments made totalled Rs. 871,863,442, including advance payments, transport allowances, harvest advances and final payments. The remaining due was Rs. 669,609,186. During this period, we procured cane from 422 Sevanagala farmers and 1,898 Pelwatte farmers—1,084 outgrowers and 832 settler farmers working on our estates. I table the name lists and payment details titled “Outgrower and ISFO Farmer Payment Details, 2025 Maha” and “Settler Farmers Commercial Cane, Final Payment Details in 2025 Maha.”

¶ 07 We table these to clarify that some who appeared in protests were not from the relevant areas, and some are debtors to the company—including an individual owing Rs. 500,000. Some do not have land titles or service numbers. Therefore, all lists are tabled. From 02 June to 01 August, Pelwatte’s final advance payments—

¶ 08 [Placed in the Library.]