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History of Sevanagala
The Sevanagala Sugar factory was loosened at an arduous rustic village called Sevanagala in the Uva province bordering down south which was dismissed with no attention until it found to be a scrumptious region to cultivate Sugar cane in 1980. In result presently Sevanagala is a consociation that unabated and incorrupt to live easy, peace and harmony.
Sugar cane cultivation in Sevanagala has been carried out since1985. Apart from the nucleus estates managed by Sevanagala project, sugarcane had cultivated by settlers under both Irrigated & rain fed conditions, with the help of inputs & other services offered by the institute. Then the institute was operated under the Government in the name of Sri Lanka Sugar Corporation (SLSC).
The total Sugarcane lands in Sevanagals were 4215 Ha. The settler farmers are bound to cultivate only cane in these lands & cane to be supplied only to the Sri Lanka Sugar Corporation.
The operations of Sevanagala, Kanthale and Hingurana factories were combined and converted as a publicly quoted company and were denominated as Sri Lanka Sugar Company Limited In 1990.
But in view of enhancing the efficiency the 3 institutes have been separated denominating as Sevanagala Sugar Industries Limited, Kanthale Sugar Industries Limited, and Hingurana Sugar Industries Limited in 1991.
Privatization Sevanagala Sugar Industries
In the year 2002 the government decided to sell Sevanagala Sugar Industries Limited to a private party and in 2002, 90 per cent of the shares of SSIL were sold out for Rs 550 million.
After this privatization, the farmers used to convert for other crops such as banana, papaya & paddy. The farmers those who continued with cane cultivation practiced to sell their crop to private small scaled mills operated in the region. These reasons made the institute abortive and useless to the economy of the country.
According to the past records of Sevanagala Sugar Industries Limited, from 2004-2011 the cultivated lands of sugar cane have been declined from 3958 ha. to 2125 ha. (50%). Sugar cane received for crushing have been reduced from 286,000 Mt. To 116,000 Mt. Thereby the total sugar production has also declined from 24,396 MTs to 6029 MT (70%), though the Factory possessed a production capacity of 28,000 per annum.
During this period the farmers are not supported with adequate services such as the provision of better fertilizers, land preparations etc. therefore the sugar recovery was reduced from 8.5% to 5.5% due to the poor quality of cane supplied for crushing. But it was appeared that the liquor production has been increased from 13 lt. To 29 Lt per 1 metric tons cane.
Misuse, Inefficiency, underutilization and corruption spread out the institute due to poor management during this period.
Recapturing Sevanagala Sugar Industries
Due reasons the government decided to recapture Sevanagala Sugar Industries Limited in 2011 and appointed a Cabinet subcommittee headed by Minister of Environment Anura PriyadarshanaYapa. The other members of the Cabinet subcommittee were Ministers Dilan Perera, Reginald Cooray, Lakshman Senevirathne and Deputy Finance Minister Geethanjana Gunawardena. As a result the institute was taken over under the Revival of Underperforming Enterprises and Underutilized Assets Act no. 43 on 11. 11. 2011.
Conversion to a public quoted company
In 24. 08. 2012 the institute was registered as a private limited company named Lanka Sugar Company Private Limited and entrusted to a new Board of Directors headed by Dr. Keerthi B. Kotagama as the chairman of the company, Mr. Hillary Vishvajith Perera as Director/Chief Executive Officer and 4 other members to guide the operations of the company.