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USD 300 mn agreement on Kantale Sugar Factory to be finalised

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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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Our focus is on economic stability through fiscal discipline, sustainable debt management, and reforms that enhance productivity and growth – PM

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Prime Minister Dr. Harini Amarasuriya participated in the South Asia Regional Conference of the World Federation of Consuls (FICAC) 2026 held on 2nd of February at the Cinnamon Life, Colombo. The conference is hosted by the Association of Consuls in Sri Lanka and the World Federation of Consuls.

The conference held from 1st to 4th of February, brings together diplomats, business leaders, and policymakers to strengthen regional cooperation and explore new avenues for sustainable development across South Asia.

Addressing the event, the Prime Minister noted that selection of Sri Lanka as the venue for this conference holds particular significance at a time when the Government is working closely with international partners to position Sri Lanka as a credible and reliable region.

The Prime Minister also drew attention to Sri Lanka’s vulnerability against climate change, citing the recent impact of Cyclone Ditwah, and commended the support extended to Sri Lanka by the international partners. The Prime Minister emphasized that climate change requires global cooperation, shared responsibility, and innovative solutions.

She further highlighted ongoing efforts to improve public sector efficiency, transparency, and accountability, promote national unity and respect for diversity, and advance digital governance to enhance service delivery and public trust.

The Prime Minister stated,

“The Government of Sri Lanka is committed to addressing economic, social, and environmental challenges through a clear policy framework. Our focus is on economic stability through fiscal discipline, sustainable debt management, and reforms that enhance productivity and growth. At the same time, we are strengthening social welfare programs to support the most vulnerable”.

Addressing at the event, Minister of Foreign Affairs, Foreign Employment and Tourism MP Vijitha Herath also stated that, the government is committed to recognizing Sri Lanka as a sustainable tourism hotspot in the global platform while positioning Sri Lanka as a stable and reliable international partner.

The event was attended by the Deputy Minister of Foreign Affairs and Foreign Employment  Arun Hemachandra, FICAC President Nikolaos K. Margaropoulos, President of the Association of Consuls in Sri Lanka Mahen Kariyawasam and Diplomatic corps.

(Prime minister’s media)

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Development Officers threaten to intensify their protest

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Protesting Development Officers continued their hunger strike near the Presidential Secretariat, Colombo yesterday (01), for the seventh consecutive day.The protesters, who are members of the Lanka School Development Officers’ Association, are demanding that they be absorbed into the teacher service as they have served as teachers in state-run schools for nearly seven years.

Secretary of the Association, Viraj Manaranga, said the protesters were seeking an urgent meeting with the President. He added that a presidential aide had visited the protest site and offered to arrange for a meeting with the President on 03 Feb., but the union insisted on an earlier date. Manaranga warned that failure to grant a meeting could trigger a massive protest in Colombo today (02).

Four officers participating in the hunger strike have been hospitalised due to deteriorating health, while two more joined the fast on Saturday (31).

In a bid to raise awareness of their grievances, on 30 January a delegation of the All Island Development Officers’ Association visited Most Venerable

Warakagoda Sri Gnanarathana Thera, Mahanayake of the Asgiriya Chapter, and subsequently with the Chapter’s Registrar, Ven. Dr. Medagama Dhammananda Thera. The prelates said promises that had been made to them should be fulfilled.

The protest began on 26 January as a satyagraha, after authorities failed to respond to repeated requests to integrate the officers into the teaching service. The escalation into a fast-unto-death underscores the protesters’ frustration over the prolonged delay

by Pradeep Prasanna Samarakoon

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Auditor General to be appointed tomorrow

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Bimal

The long-vacant post of Auditor General would be filled on 03 Feb., after months of controversy and delays, Minister of Transport, Highways and Urban Development Bimal Rathnayake said on Friday (31) in Kandy.

The Constitutional Council met at the Parliamentary complex on Friday to discuss the appointment but failed to reach a decision on a suitable candidate. The President had previously proposed four names on four separate occasions, all of which were rejected. The Council is now set to consider the fifth nominee.

The post has remained vacant since April 2025, following the retirement of Chulanta Wickramaratne, who served as the 41st Auditor General. More than 10 months have passed without a permanent appointment.

Sources said a female officer in the Auditor General’s Department has been nominated again, though her previous recommendation was rejected due to some allegations against her.

Meanwhile, senior audit officer Dharmapala Gammanpila, with 31 years of service and the department’s most senior official, has received backing from the Mahanayake Theras of the three Nikayas, the Maha Sangha, and several civil society groups for appointment as the 42nd Auditor General.

Sources noted that the three civil society representatives on the Constitutional Council will play a crucial role in the final decision.

by Chaminda Silva and SK Samaranayake

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