Six state entities to be leased out for 30 years

By Prasanna C. Rodrigo | The Bottom Line

.............................................................................................................................................................................................

The government is planning to lease out six state entities to potential investors on a thirty year term to redevelop and revive out of which some are operating and some are defunct.

Among the earmarked entities rank the Ambilipitiya Paper Mill, Kantale Sugar Factory, Ceramic Corporation, Mawanella Rubber Factory, BCC Lanka and the Lanka Salusala.

Secretary to the Ministry of Public Resources and Enterprise Development Willie Gamage said, they have already informed this plan to the Cabinet of Ministers.
He further added, “This is the only option we have to revive those loss making entities”.

According to him, the Kantale Sugar Factory has not been operating for last nine years while Ceramic Corporation is only making ‘Bricks’ and ‘Tiles’ despite high potential to produce other varieties.

“Mawanella Rubber Factory is only producing crepe rubber”, added Gamage.

The Secretary said, the BCC which manufactures coconut oil and the Lanka Salusala which is engaged in retail business of textiles are making profits.

However, he said those two firms also will be leased out owing to strategic reasons.
Commenting on Salusala Gamage said, “There is no logic in government engaging in retail business in areas such as textiles”.

The Ministry of State Resources and Enterprise Development is planning to utilise the money expected to be generated by leasing out above firms, to settle liabilities of those enterprises.

Gamage disclosed, the Ambilipitiya Paper Mill for which the ‘Expression of Interest’ has already been called to be leased out, has a liability of around Rs. 350 million.
He revealed, “The entity has not settled EPF and ETF of its employees for a long period of time”.

Part of the money is expected to be utilised to launch a ‘Voluntary Retirement Scheme’ for the employees working in the mill.

Gamage revealed “Already two foreign parties have shown interest in Ambilipitiya Paper Mill”.

The ‘Expression of Interest’ for Kantale Sugar will be called on within two weeks.

© The Bottom Line