Sri Lanka : Sugar sector adds Rs. 11bn to economy, says Deputy Minister
Sri Lanka’s Deputy Minister stated the sugar industry generates at least Rs. 11 billion annually in economic value despite financial losses. To reduce intermediary markups, the state sugar company plans direct retail sales through the Nugegoda Sugar Shop, state outlets, and online distribution channels.
Deputy Minister Chathuranga Abeysinghe has presented an in-depth analysis on his social media account explaining the real economic reality behind simplified public conclusions that the sugar industry in Sri Lanka has moved from “profitable in the past to loss-making now,” based on current financial data.
He notes that the value of certain state-owned enterprises cannot be measured solely through profit and loss statements, emphasising that this industry contributes at least Rs. 11 billion annually in direct economic value to both the national and rural economies.
According to his post, the sugar company is planning to enter the direct retail business as a solution to existing market monopolies and intermediary exploitation. At present, wholesalers purchase sugar at around Rs. 205 per packet, but it reaches consumers at significantly higher prices ranging between Rs. 270 and Rs. 320 after packaging and distribution.
As part of this strategy, the ‘Nugegoda Sugar Shop’ is being developed as a central operational hub (Colombo Hub). In the future, this locally produced brown sugar distributed from Nugegoda is expected to be made available directly to consumers through state retail networks outlets.
Furthermore, the post also states that the Nugegoda Sugar Shop premises are being prepared to function as a pickup point for online platforms, aligning with modern consumer needs and digital retail systems.
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Source : Hiru News
