Embilipitiya paper mill leased out

15 November 2011 11:46 am - 9     - {{hitsCtrl.values.hits}}

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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)

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  Comments - 9

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  • Jodie Windenburg Wednesday, 16 November 2011 05:00 AM

    30 years ? Don't we have to see how they fair first before going in to a long term deal afterall, the previous company didn't do that great (as per givernment)...

    Jodie Windenburg Wednesday, 16 November 2011 05:01 AM

    Australian based Sri Lankan company '?"

    willowsww Wednesday, 16 November 2011 06:32 AM

    10% who will get

    nut Tuesday, 15 November 2011 11:56 AM

    very good work!

    dagobert Tuesday, 15 November 2011 12:33 PM

    Yeap......... good.

    SLPF@gmail.com Tuesday, 15 November 2011 12:48 PM

    CAN WE KNOW HE NAME OF IS AUSTRALIAN COMPANY, PLEASE

    saman Tuesday, 15 November 2011 01:28 PM

    In foreign currency term its just 6million USD , peace of cake for a foreign investor ! Even if you want to set up a mill in sri lanka it will cost more than that ( think of money and time to build ).
    Sure there is more underhand money involved !

    Aruna Wednesday, 16 November 2011 03:51 AM

    Hope it's not a Sri Lankan's Australian company

    klk Wednesday, 16 November 2011 03:58 AM

    Taking from our people and giving to foreigners.


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