Hot on the heels of the enactment of a new law to acquire underperforming and underused assets, the government today leased out the Embilipitiya Paper Corporation to an Australian company on a 30 year-period under the government’s plan to restructure some state enterprises, a Minister said today.
The employees of the paper mill will be laid off on a voluntary retirement scheme after being compensated, he said adding that 51 per cent of the corporation’s shares would remain with the state.
State Enterprise Development Minister Anton Dayasritha Tissera told the Daily Mirror that a committee appointed six months ago decided to call for bids from prospective investors to resume the operation of the paper mill that remained closed for years. The Minister said there were twelve investors short-listed among the bidders and this Australian company was finally selected.
He said the company had already paid Rs.400 million out of the total lease amount Rs.600 million, and the remaining Rs.200 million would be paid later.
“The company has allocated Rs.203 million to pay compensation to the employees.They will start manufacturing paper by April, next year,” he said. (Kelum Bandara)