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Brown sugar to be exported

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In a bid to rescue Sri Lanka’s struggling sugar industry, the government is exploring plans to rebrand locally produced brown sugar as “organic sugar” and market it to international buyers, including China, Iran, and several African nations.

Industries Minister Sunil Handunnetti revealed the strategy in Parliament yesterday, responding to opposition concerns over the dire state of the sugar industry. He said that Sri Lankan brown sugar, though produced using fertilisers with minimal arsenic content, qualifies for organic labeling under international standards.

“This is a long-term solution we are working on. Discussions are underway with China, Iran, and some African countries to begin exports,” Handunnetti said.

The announcement came during a heated exchange with Opposition and SJB Leader Sajith Premadasa, who warned that the collapse of the sugar sector could devastate more than 250,000 families in the Uva Wellassa region. He criticised the current tax structure, which burdens local sugar producers with 18% VAT and additional levies, pushing production costs to Rs. 238 per kilo—while the market price remains at Rs. 175, resulting in steep financial losses.

Premadasa highlighted significant losses at major state-affiliated sugar factories, citing Rs. 17 billion at Gal Oya, Rs. 10 billion at Pelwatte, Rs. 7 billion at Etimale, and noting that Sevanagala is in urgent need of repairs.

He also highlighted ethanol production as another loss-making area. While one litre of ethanol costs between Rs. 628 and Rs. 759 to produce, it is sold at just Rs. 450–475. “The minimum viable price should be Rs. 800 per litre,” he said, adding that although he doesn’t promote ethanol, it remains an essential byproduct of sugar production. The government, he noted, takes 45% of profits from ethanol sales and imposes a Rs. 10,000 tax on each metric tonne of molasses.

Responding to Premadasa’s accusations, Minister Handunnetti refuted claims that sugar is available in the market at Rs. 175 per kilo. He pointed out that under the previous administration, brown sugar prices had soared to Rs. 360 per kilo, while white sugar hit Rs. 220. “Today, brown sugar has dropped to Rs. 260 per kilo, while white sugar prices have remained stable,” he claimed.

Handunnetti detailed the structure of the industry, clarifying that only the Sevanagala and Pelwatte factories are under the state-run Sugar Corporation. Etimale is privately owned, and Gal Oya operates under a public-private partnership, with the government holding a 51% stake.

He presented five-year production data for the two state-run factories, showing outputs of 39,687 metric tonnes in 2020, 48,177 in 2021, 36,637 in 2022, 41,861 in 2023, and 39,721 in 2024.

Despite this, local sugar production met only 6.03% of the national requirement of 658,678 metric tonnes in 2024. The remainder was met through imports—564 million kilos in 2024, and 140 million kilos so far in 2025.

Handunnetti noted that imported sugar is taxed under a special commodity levy of Rs. 50 per kilo. Meanwhile, domestically produced sugar faces an 18% VAT introduced in January 2024 and a 2.5% social security tax—bringing the total tax burden on local sugar to 20.5%



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Ms. U. L. Mathisha Jinanjalie Jayathilake, appointedto the post of Commissioner, Department of Probation and Child Protection Services

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The Cabinet of Ministers approved the resolution furnished by the Minister of Women and Child Affairs to appoint Ms. U. L. Mathisha Jinanjalie Jayathilake, the officer in Grade I of Sri Lanka Administrative Service to the post of the Commissioner at the Department of Probation and Child Protection Services with immediate effect.

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Commander of the Navy pays courtesy call on Speaker of the Parliament

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The Commander of the Navy, Vice Admiral Damian Fernando paid a courtesy call on the Speaker of the Parliament, Dr Jagath Wickramaratne at the Office of the  Speaker, today (7 July
2026).

The meeting marked the Commander of the Navy’s first official interaction with the Speaker following his assumption of command of the Sri Lanka Navy. During the cordial discussion, they exchanged views on the Navy’s role in matters of national importance.

The formal meeting drew to a close with an exchange of mementoes, signifying the importance of the occasion.

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Prison mayhem leaves at least 26 dead; five officers killed in revenge violence

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Police and STF personnel rushing an injured prison officer to an ambulance after yesterday’s clash at the Negombo Prison.

At least 26 people, including five prison officers and 20 inmates, have been confirmed dead following violent unrest at Negombo Prison, hospital sources said yesterday, as authorities struggled to restore full control over the facility.

According to unconfirmed reports the prison officers were killed by rioters yesterday morning,  in retaliation, and weapons carried by those officers were grabbed by them.

Negombo General Hospital Director Consultant Dr. Pushpa Gamlath said nearly 100 injured persons had been admitted, following the clashes, and eight of the critically wounded had been transferred to the National Hospital, in Colombo, for further treatment.

The violence, which initially broke out on Sunday (5) between remand prisoners and convicted inmates, left two inmates dead and 38 others injured before being temporarily brought under control.

However, tensions flared again on Monday (6), with prison officials reporting renewed unrest inside the facility despite earlier assurances that the situation had stabilised.

Police said the initial confrontation was triggered by a dispute linked to the exposure of an alleged drug trafficking network, operating within the prison, and was reportedly orchestrated by a drug trafficker, identified as Suresh, who is said to have links to an underworld figure known as ‘Booru Moona’.

The violence rapidly escalated, with female inmates staging a protest on the Prison roof in support of those involved in the clashes, while relatives gathered outside demanding information on detainees. Police later facilitated visits for selected family members to hospitalised inmates.

The Negombo Prison, which houses around 1,800 remand and convicted inmates, descended into widespread disorder as rival groups clashed, with reports indicating that the violence later spread beyond the initial confrontation.

Authorities said rioting inmates had allegedly seized firearms during the renewed unrest on Monday, prompting heightened security measures.

The Sri Lanka Air Force deployed drones for aerial surveillance and a Bell 412 helicopter to monitor the situation, while additional military personnel were sent to reinforce security around the prison.

Prisons Department spokesperson A.C. Gajanayake said a special investigation team had been appointed, under the direction of the Commissioner General of Prisons, to probe the incident, while a separate police investigation is also underway.

Justice Minister Harshana Nanayakkara told The Island that he had called for a detailed report on the disturbances.

By Norman Palihawadane

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