News
USD 300 mn agreement on Kantale Sugar Factory to be finalised
The government, MG Sugar and Singapore based SLI are about to finalize an agreement on the discarded Kantale sugar factory land.
The nominated representative of MG Sugar Anura Fernando yesterday (15) told The Island that the USD 300 mn Foreign Direct Investment (FDI) would be a big boost against the backdrop of the economic slowdown caused by the rampaging coronavirus.
Having entered into an agreement with the Board of Investment (BoI) recently, MG Sugar and SLI were expecting to conclude the contract for the relevant land with the Treasury, Fernando said. The government and SLI owned 51% and 49% of MG Sugar, respectively.
A number of previous attempts to restore the Kantale operation had failed. During the previous administration, two senior government officials, including Chief of Staff of the then President Maithripala Sirisena, were arrested for allegedly receiving a massive bribe to allow a foreign party access to Kantale premises.
The Singapore headquartered enterprise would make the investment.
According to Fernando, the company met the stipulated conditions, including the bank guarantee and awaiting the finalization of the contract to proceed with the operation. Fernando emphasized that a delay in finalizing the leases for the Kantale land could cause a severe setback.
The investors planned to set up a state-of-the-art factory, Fernando said, adding that world-renowned SLI experts Moussy Salem and Mendel Gluck would spearhead the project. The team consists of Booker Tate, Grupo TSK would handle industrial EPC (Engineering, Procurement and Construction) and O&M (Operations and Maintenance) along with Netafim-world leaders in irrigation technology and equipment, for the agricultural EPC and O&M, the company said in a statement. Hogan Lovell together with financial advisers Fieldstone, have developed all contracts and financial models for the Kantale project, the company stated.
The company said: “The landmark project will welcome a 27.5 MW maximum capacity cogeneration plant from biomass, with an export of 10 MW to the National Grid. This will produce 80,000 tons of direct consumption sugar per annum to the local market, resulting in foreign exchange savings of approximately US$50 million per annum in payments for imported sugar.
This project will offer progressive solutions to the economic development of the Trincomalee district region and wider rural economy. Direct employment opportunities will see 3,500 local people salaried, and a further 3,000 farmer families will benefit. To fulfill the proposed expansions, plans to train a cadre of skilled workers will be put in motion, and 10,000-15,000 indirect employment opportunities will be created nationwide.
The plans also outline additional infrastructure development in the area, and will see the establishment of new schooling and health facilities. The wider social support will assist in solving health issues and related public costs arising from consumption of illicit alcohol. Sri Lanka’s economic and social development is intrinsically linked to the Kantale Sugar Factory, and the onset of the project is a cause for national celebration.”
Fernando said if the final agreement could be concluded before the end of this year, the plant could be commissioned by July 2023 (SF).
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486 dead, 341 missing, 171,778 displaced as at 0600hrs today [05]
The situation report issued by the Disaster Management Center at 0600hrs today [5th December] confirms that 486 persons have died and another 341 persons are missing after the devastating weather conditions in the past week.
171,778 persons have been displaced and have taken refuge at 1,231 safety centers established by the government.

News
Media slams govt.’s bid to use Emergency to silence critics
Media organisations have denounced Deputy Minister of Public Security and Parliamentary Affairs Sunil Watagala after he urged law enforcement authorities to use emergency regulations to take action against those posting allegedly defamatory content about the President and senior ministers on social media.
The Sri Lanka Working Journalists Association (SLWJA) yesterday issued a strongly worded statement condemning Watagala’s remarks, warning that they posed a direct threat to freedom of expression and media rights, particularly at a time when the country is struggling through a national disaster.
Watagala made the controversial comments on 2 December during a meeting at the Malabe Divisional Secretariat attended by government officials and Deputy Media Minister Dr. Kaushalya Ariyarathna. During the discussion, the Deputy Minister claimed that a coordinated effort was underway to spread distorted or false information about the disaster situation through physical means, social media, and even AI-generated content. He also alleged that individuals based overseas were contributing to such activity.
According to the SLWJA, Watagala went further, directing police officers present at the meeting to treat those posting such content “not merely as suspects but as offenders” and to take action against them under emergency regulations currently in force.
The SLWJA accused the government of abandoning the democratic principles it once campaigned on, noting that individuals who publicly championed free speech in the past were now attempting to clamp down on it. The association said this was not an isolated incident but part of a pattern of growing state pressure on journalists and media platforms over the past year.
It warned that attempts to criminalise commentary through emergency powers especially during a disaster constituted a grave violation of constitutional rights. The union urged the government to respect democratic freedoms and refrain from using disaster-related powers to silence criticism.
In a separate statement, Internet Media Action (IMA) also expressed “strong objection” to Watagala’s comments, describing them as a “serious threat to freedom of expression”, which it said is a fundamental right guaranteed to all Sri Lankan citizens.
The IMA said Watagala’s assertion that “malicious character assassination attacks” were being carried out against the President and others through social media or other media channels, and that such acts should attract severe punishment under emergency law, represented “an abuse of power”. The organisation also criticised the Deputy Minister’s claim that false opinions or misrepresentations whether physical, online, or generated by AI could not be permitted.
Using emergency regulations imposed for disaster management to suppress political criticism amounted to “theft of fundamental rights”, the statement said, adding that the move was aimed at deliberately restricting dissent and instilling fear among social media users.
“Criticism is not a crime,” the IMA said, warning that such rhetoric could lead to widespread intimidation and self-censorship among digital activists and ordinary citizens.
The group demanded that Watagala withdraw his statement unconditionally and insisted that freedom of expression cannot be curtailed under emergency laws or any other legal framework. It also called on the government to clarify its stance on the protection of fundamental rights amid increasing concerns from civil society.
News
Cardinal calls for compassionate Christmas amid crisis
Archbishop of Colombo, Cardinal Malcolm Ranjith, has called on Sri Lankans to observe this Christmas with compassion and restraint, as the nation continues to recover from one of its worst natural disasters in recent memory.
In his message, the Colombo Archbishop has highlighted the scale of the crisis, noting that more than 1.5 million people have been displaced, while an “uncounted number” remain buried under debris in the hill country following landslides and severe flooding.
“It is a most painful situation,”
he has written acknowledging the difficulty of celebrating a season traditionally associated with joy while thousands are mourning lost loved ones, living in refugee centres, or left with nothing but the clothes they were wearing.
The Cardinal has urged the faithful to temper excessive celebrations and extravagance, instead focusing on helping those affected. “Celebrate, by all means, yes, but make it a moment of spiritual happiness and concern for the needs of those who suffer,” he said. “Assist as much as possible those who lost their loved ones, their homes, and their belongings.”
He has called for a Christmas marked by love, sharing, and solidarity, describing it as an opportunity to make the season “a deeply spiritual and joyful experience.”
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