Pelwatte Sugar Company is reeling under a deepening financial crisis, with reports revealing that 500 metric tons of brown sugar were sold at a massive loss just to meet staff salaries for May 2025.
Employees allege the sugar stock was offloaded at Rs. 199 per kilo despite production costs reportedly hovering around Rs. 283 per kilo after taxes. This decision, they say, resulted in a staggering loss of Rs. 84 per kilo and a total financial blow of Rs. 42 million to the company.
Trade union representatives claim the sale was a last-ditch attempt by management to generate funds not only for salaries of the company’s 3,900 employees but also to settle dues to sugarcane farmers. Monthly operational costs, including staff salaries and farmer payments, are estimated at nearly Rs. 1 billion.
Desperate for relief, the company had requested a Rs. 5 billion bailout from the Treasury. That plea, however, was reportedly turned down.
Efforts to reach the company’s CEO, Ms. Deepika Gunaratne, for clarification proved unsuccessful. When contacted, company Chairwoman Mrs. Sandamali Chandrasekara denied that the sale was made at a loss and redirected further inquiries to Minister Sunil Handunnetti. Attempts to contact Deputy Minister Chathuranga Abeysinghe for comment were also unsuccessful.
With its sugar stock dwindling and cash flow in crisis, Pelwatte Sugar appears to be heading toward even more bitter times.
