The sugar requirement of the country is estimated to be 650,000 Mt per annum. Sri Lanka imports 94% of the sugar requirement, spending a colossal Rs.55 million in foreign exchange. The population increase and the increase in the incomes are likely to increase the sugar consumption significantly over the next 10 – 15 years. By 2020, the demand may approach 1 million Mt of sugar.
In 2020 the government of Sri Lanka announced the policy to the local sugar production to meet at least 50% of the domestic need within the next five years. This will reduce a large component of the foreign exchange expenditure to import sugar which could enhance economic developments in rural areas.