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Critics warn that the new brown sugar sales network launched by Lanka Sugar Company under Minister Sunil Handunnetti could become another financial burden on the treasury, with market prices already undercutting state sales.
The government’s new brown sugar sales initiative, launched by the Ministry of Industries and Entrepreneurship Development, has ignited sharp criticism across social media, with many questioning its economic viability. The project, established to sell brown sugar produced by the state-owned Lanka Sugar Company through dedicated retail outlets, was inaugurated in Nugegoda under the patronage of Minister Sunil Handunnetti.
Opponents argue that opening exclusive state-run stores to sell sugar may not generate sustainable profits and could, in fact, impose an additional strain on public finances. They point out that sugar prices in the open market remain lower than those offered at government-run outlets, undermining the project’s competitiveness.
The Lanka Sugar Company, which manages the Pelwatte and Sevanagala factories, initiated this distribution network for the first time in its history. According to Minister Handunnetti, the goal is to provide consumers with locally produced, high-quality brown sugar at affordable rates while also supporting nearly 250,000 sugarcane farming families.
The Minister emphasized that rumors about plans to privatize or shut down the Lanka Sugar Company were unfounded. He credited the company’s employees and the farming community for helping the enterprise achieve stability. Handunnetti also announced that Lanka Sugar Company would be exempted from statutory payments beginning January 1, as part of the government’s plan to restore its financial strength.
He described the launch of the brown sugar sales network as a “historic milestone” after 14 years, highlighting its symbolic importance for the local economy. The new outlet on Nawala Road, Nugegoda, will serve as the flagship store, offering both wholesale and retail services to consumers.
However, economic observers and social commentators are skeptical. They claim the project duplicates private-sector operations and lacks a viable financial model. According to them, without an effective pricing strategy and transparent supply chain management, the network could fail to generate sufficient revenue to offset operational costs.
In response, Ministry officials insist that the network’s long-term focus is not merely profit but also economic empowerment of rural sugarcane farmers. By promoting locally produced sugar over imported varieties, they hope to strengthen domestic industries and reduce dependency on foreign imports.
Future expansion plans include adding value-added products such as sugarcane juice, jaggery, and honey to diversify revenue streams and attract a broader consumer base. Still, analysts caution that unless operational efficiency and pricing parity with the private market are maintained, the initiative risks becoming yet another state-run enterprise that drains the treasury rather than contributing to it.
