The recently reopened Embilipitiya paper factory belonging to the National Paper Corporation has closed down after just eight days of operations. According to sources, the factory was closed down because of a lack of funds to pay employees their salaries and purchase fuel.
The factory was declared open on September 24, 2008, by Minister of Nation Building Basil Rajapaksa, and Paper Corporation chairman, Siripala Amerasinghe.
The employees, who were expecting to be paid on October 24, were first told by the general manager that they would be paid on October 29, and then told that money for salary payments and fuel purchases had not been released by the government.
The factory, which originally employed 2,500 staff, reopened last month with 300 employees. Another 30 employees work on a contract basis. During the eight days of operation, the factory produced 35 tons of paper. It is understood that another 20 tons were due to be produced.
According to Inter-co-operative Worker Unions secretary Somadasa Weeratunga, the closure was an excuse for privatising the establishment.
He said Rs. 25 million was allocated for the opening ceremony, of which Rs. 15 million was spent and the balance Rs. 10 million remains unaccounted for.
Menwhile, employees say the government is not interested in running the factory, and that they believe the present impasse is the result of efforts to privatise the factory. | 
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