Colombo, May 30, 2025 — The Ministry of Industries and Entrepreneurship Development has officially denied reports suggesting that the Sevanagala Sugar Factory is at risk of closure, stating that such claims are false and misleading.
In a statement issued under the Ministry’s official letterhead, officials clarified that neither the current government nor the Lanka Sugar Company has held any discussions or taken any decisions regarding the closure of the Sevanagala facility.
The Ministry also rejected claims made in certain media reports that the factory is no longer purchasing sugarcane from local growers. “The information that the sugarcane harvest will not be purchased is incorrect,” the statement emphasized.
The Ministry urged the public and media outlets to refrain from spreading unverified information, especially when it could cause unnecessary concern among employees, farmers, and stakeholders connected to the sugar industry.
This response follows growing speculation fueled by recent complaints from sugarcane growers alleging administrative mismanagement and harvest delays. However, the Ministry maintains that the factory continues to operate and that all procurement processes are proceeding as planned.
Press Release
2025 – 05 – 29
To: News Editor / News Manager
Subject: Clarification Regarding the News Item “Sewanagala Sugar Factory at Risk of Closure”
The news item titled “Sewanagala Sugar Factory at Risk of Closure”, currently circulating on social media, is a false report spread by certain parties. The Ministry strongly denies this claim. Neither the Lanka Sugar Company nor the current government has held any discussions regarding such a decision.
Furthermore, the report’s claim that the sugarcane harvest will not be purchased is also incorrect. The factory is actively taking steps to procure the harvest provided by farmers.
This institution, which previously operated at a loss under the former administration, is now continuing operations under a new marketing plan introduced by the current management, aimed at minimizing losses. Necessary steps have already been initiated to transform the factory into a profitable and sustainable enterprise.
Kasun Gamage
Secretary to the Hon. Minister
Ministry of Industries and Entrepreneurship Development
Corrupt government