The Lanka Sugar Company Limited, a Government owned company established in 2012 to manage Pelwatte and Sevanagala sugar has recorded a profit before tax of Rs 1486 mn for the financial year ended December 31, 2013, reported Daily News.
These two under performing companies were taken over by the government in 2011 in order to make them more productive and provide greater services to the farmers and to the public at large.
In 2012 the Ministry of sugar Industries Development was established with the responsibility of making Sri Lanka self-sufficient in sugar by the year 2020. According to the report, Sri Lanka today imports around 600,000 mt of sugar spending over Rs 55 bn per annum which is next only to the import of oil. In 2011 it was reported that local production was only 4.8% of the total national demand while 95% was imported from countries like India, Thailand and Brazil.
After setting up the Lanka Sugar Company to manage Pelwatte and Sevanagala in 2012 October, sugar production in the country has doubled to 10% of the National requirement in just over two years. Pelwatte has 13,000 ha where 10,000 ha were cultivated and Sevanagala has 4,215 ha where 3250 ha were cultivated by the end of December 2013.