Ravi demands clarity on sugar industry policy

Colombo, Sept. 29 (Daily Mirror) - UNP MP Ravi Karunanayake questioned the Government’s shifting stance on Sri Lanka’s sugar industry, warning that policy confusion was damaging farmers, investors and the economy.

Raising the issue in Parliament, Karunanayake said that while Industries Minister Sunil Handunneththi had recently admitted that governments cannot competitively run businesses and should instead focus on creating a conducive environment, this was a stark reversal from his earlier pledge that Sri Lanka could not only meet its sugar needs but also export to Asia.

“In 2024, Sri Lanka required around 664,000 metric tonnes of sugar but produced only 81,000 MT — barely 12% of national demand. The rest, nearly 583,000 MT, had to be imported at a cost of almost USD 300 million. While foreign exporters gain, our cane farmers are left struggling with delayed payments, low prices and high costs,” he said.

Karunanayake asked whether the Government now accepted that its earlier export claims were unrealistic and pressed for clarity on production targets, the future of State-owned sugar factories, and whether they would be privatized, modernized, or wound down.

He also demanded answers on tariff policies, which he said unfairly favoured imports over domestic production, and called for reforms to ensure farmers receive fair prices and consumers affordable sugar.

The MP urged the Minister to commit to presenting a White Paper on the sugar industry, laying out production goals, import needs, self-sufficiency targets, taxation reforms, and the NPP Government’s unified stance.