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FSP decries questionable Kantale sugar factory deal
By Rathindra Kuruwita
The Frontline Socialist Party (FSP) and the Professionals’ National Front (PNF) yesterday condemned the proposal to hand over the Kantale Sugar Factory and 21,000 hectares of land that belongs to it to a Singapore-based company.
FSP Education Secretary, Pubudu Jayagoda said that the land would be leased for 30 years and that it was likely that the Cabinet would approve a questionable proposal submitted by Minister of Finance, Basil Rajapaksa, on 07 February 2022.
Jayagoda said that the factory had been established in 1960 with Czechoslovakian aid.
“At that time, Czechoslovakia was a socialist country. The factory was privatised in 1993, but even then, it was closed in 1999, it was producing 16,000 tons of sugar and 3.9 mil litres of alcohol.”
In 2015, the Yahapalanaya government tried to establish a company, MG Sugars Lanka Pvt. Ltd, with a Singapore-based company, SLI Developments Pte. Ltd, as a partner. The state was to hold 51% of the shares of the company.
A shareholders’ agreement was signed between MG Sugars, the Government of Sri Lanka and SLI Developments in 2016. SLI is connected to UK-based investors Mendel Gluck, Robert Salem and Moussa Salem.
“According to this agreement, the factory and nearby land were to be given to the company. Of the 21,000 hectares that belong to the factory, sugar cane was to be grown in 14,000 hectares and 7,000 were to be given to farmers. The water for the farming was to be taken from Kalu ganga, a tributary of the Mahaweli River,” Jayagoda said.
Gluck and the Salem brothers used K.P. Nagaraja, an Indian national to establish the business. There was a dispute between the investors and Nagaraja, and that resulted in a court case.
“In August 2019, August a Singaporean arbitration court said that there was a need to change the agreement. Subsequently, in July 2020, the Director Board was changed and a new agreement presented. On 09 August 2021, the Cabinet approved the new 30-year lease agreement. Earlier, on 05 August a MoU had been signed. However, this was different from the earlier agreement,” he said.
While under the previous agreement, the factory and nearby land was to be under the new company, the 2021 agreement had proposed to hand over the entire land to the company. Instead of taking water from Kalu Ganga, the water was to be taken from the Kantale tank.
“Although the government was to own 51% of the shares, Moussa Salem was to be the Chairman of MG Sugars. Gluck was to be the CEO. Thus, SLI would run all the operations. This will also mean that farmers in the area will face water shortages because Kantale Tank is an important source of water,” the FSP Education Secretary said.
The project to revive the Kanthale Factory is expected to cost USD 300 million, but SLI will only invest USD 70 million. However, according to the agreement 85% of the profits in the first 10 years will go to SLI. 75% of the profits in the second 10 years will go to SLI.
“The government will get 51% of the profits only in the third decade. Sri Lanka will make most of the investments but will make a pittance. This is a serious issue,” he said.
Meanwhile, Eng. Kapila Renuka Perera of the PNF said that this agreement would only lead to a monopoly, which will be disastrous for Sri Lankans. He added that given that all lands will be given to MG Sugars, Sri Lankan farmers will not be benefitted.
“The agreement also allows the company to import unpurified sugar, purify it here and re-export. This will be done with virtually no oversight. Previous governments too have come into agreements that lead to monopolies, like wheat, and these only had negative impacts on us. This will also have similar results. A few people will benefit at the country’s expense,” he said.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
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