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Sri Lanka: UNP MP urges govt to present white paper on sugar import needs

UNP MP Ravi Karunanayake criticized policy confusion in Sri Lanka’s sugar industry, warning it hurts farmers, investors, and the economy. He highlighted low domestic production versus high imports, urged clarity on production goals, tariffs, and state factories, and called for a White Paper to ensure fair farmer prices and consumer affordability.

UNP MP Ravi Karunanayake has raised concerns about the government’s shifting stance on Sri Lanka’s sugar industry, warning that the ongoing policy confusion is harming farmers, investors, and the economy.

Speaking in Parliament, Karunanayake pointed out a recent statement by Industries Minister Sunil Handunneththi, who acknowledged that governments cannot competitively run businesses and should instead focus on creating a conducive environment. This, Karunanayake argued, was a significant departure from the Minister’s earlier claim that Sri Lanka could not only meet its sugar needs but also export to Asia.

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.

The Karunanayake highlighted that while Sri Lanka required around 664,000 metric tonnes of sugar in 2024, the country produced only 81,000 MT, or barely 12% of its national demand. The remaining 583,000 MT had to be imported at a cost of nearly USD 300 million. Karunanayake stressed that foreign exporters were benefiting from this situation, while local cane farmers were left struggling with delayed payments, low prices, and high production costs.

Karunanayake questioned whether the government now accepted that its previous export ambitions were unrealistic and called for clarity on several key issues, including production targets, the future of state-owned sugar factories, and whether these would be privatized, modernized, or shut down.

The MP also sought answers on the government’s tariff policies, which he claimed unfairly favored imports over domestic production. He called for reforms that would ensure fair prices for farmers and affordable sugar for consumers.

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Source : Chinimandi

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