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Paper exporters expressed their willingness to supply the lacking amount of raw materials to maintain full capacity production in the Valachchenai and Embilipitiya Paper Corporations. They agreed to provide 5% of the locally gathered waste paper in the first phase and another 5% later at a discussion held with Industrial Development Minister Kumara Welgama. Ministry Secretary Jayampathi Hettiarachchi, leading exporters of the country and Paper Corporation officials, Ministry Additional Secretary Titus Jayawardana, Corportaions and Statutory Boards Director M C L Rodrigo also participated at this discussion. It was held due to a directive by President Mahinda Rajapaksa to maintain production in the two factories. Raw material sufficient for 21 days had been given to the Valachchenai factory last May which produced 301 metric tons during those 21 days. Officials say if adequate raw material was provided 500 – 600 metric tons of paper could be produced. Accordingly, Minister Welgama requested the waste Paper Exporters to supply 5% out of around 7000 - 9000 metric tons, being the amount which is exported monthly in order to overcome the relevant shortage and to secure the employment of the employees of the factories by maintaining continuous production. Mean while the Embilipitiya Paper Factory, which was inactive for a long time was re-opened by Minister Welgama and arrangements have been made to commence, its production activities on a step-by-step basis. Presently, its staff packs the Valachchenai Paper products. Exporters state that in the export of paper 15% from the profit is paid to the government as income tax and if the paper is sold locally the tax is 35%. The exporters requested the Minister to lower this gap and provide a concession after discussing it with the General Treasury and to take steps to provide speedy payments for the paper supplied by them. Minister Welgama stated that steps would be taken regarding the above and also ordered the factory officials to store an additional stock to maintain the continuous production of paper if any shortages of raw materials occur.
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