Nov 15, Colombo: The Sri Lankan government has made arrangements to hand over the Embilipitiya Paper Corporation to an Australian company for a period of 30 years as part of the restructuring of public enterprises under the State Resources and Investment Promotions Ministry.
The Ministry has said that the Embilipitiya Paper Corporation would be handed over to M/s Perth Engineering and Maintenance Private Limited for Rs. 600 million.
The government has valued the machinery and assets of the company at Rs. 400 million, and the business value has been estimated at Rs. 100 million.
The lease agreement to hand over the paper factory will be signed today, and the government will receive 400 million rupees from the deal, Ministry sources said.
The Ministry says the government is in the process of restructuring 23 state enterprises and the first phase included four enterprises. Embilipitiya Paper Corporation was one of the four state enterprises.
Kantale Sugar Company, Sri Lanka Rubber Products and Exports Company and the Ceylon Ceramics Corporation are the other three institutions to be restructured.
The Ministry is currently in the process of studying the expressions of interest (EoIs) sent by private investors for the Kantale Sugar Company, the State Resources and Investment Promotions Minister Dayasritha Tissera has said.
The Minister has said that 283 employees of the two institutions will be compensated and laid off.
The government through the measures expects to recommence production in the factories that had been closed for some time and provide more job opportunities to the public.