News Today: Sevanagala Sugar Company Rs.8,000 million debt crisis reveals mismanagement, unpaid EPF, and sabotage attempts

The Sevanagala Sugar Industry, owned by the Lanka Sugar Company, is facing a staggering Rs.8,000 million debt burden, according to Trade, Commerce and Food Security Deputy Minister R.M. Jayawardena.

During his visit to the Sevanagala Sugar factory on Monday to assess the fire damage that destroyed large sections of the sugarcane plantation, the Deputy Minister revealed shocking details about the company’s financial mismanagement. He stated that during the previous administration, loans and payments owed to institutions were concealed, allowing the company to show artificial profits.

The factory had failed to remit contributions to the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) for the years 2021, 2022, and 2023, placing further pressure on workers’ welfare. Millions were spent on various projects without generating any income. Despite heavy bank loans, employee bonuses were still distributed—further distorting financial reports.

“Appointments were handed out recklessly. Instead of the required 500 employees, the company now has 1,300, making operations unsustainable,” the Minister said. He also criticized policies under the Ranil Wickremesinghe government, such as imposing 18% VAT and permitting ethanol imports, which harmed the local sugar and ethanol market.

The Minister assured that neither Sevanagala nor Pelwatte sugar factories would be shut down. Instead, steps will be taken to safeguard employees, farmers, and the long-term viability of the institutions. He highlighted past sabotage attempts, including a deliberate attempt to send a rock into the factory with sugarcane and the recent plantation fire.

“Opposition political groups and some employees are attempting to destroy the company, but we will not allow it. Investigations are underway, and strict action will be taken against saboteurs. Farmers and workers must stand united to protect the factory,” he concluded.