Financial Times

Lanka Phosphate in the dark over Eppawala sale
By Dinushika Dissanayake
As the Eppawala phosphate deposit issue over privatisation deepens, Lanka Phosphate Ltd (LPL), the company currently exploiting and mining the deposit, is clueless about its status.

Lank Phosphate, has no clear idea on whether the Public Enterprise Reform Commission (PERC) hopes to take the mine totally out of its hands or whether the restructuring will be in collaboration with them.

Recently PERC called for Expressions of Interests (EOIs) for the Eppawala Phosphate deposit and a range of other state organisations and state-owned lands.

The PERC website says that the restructuring will take place on a 'private-public partnership' basis. The PERC advertisement has raised many issues particularly in the context of a Supreme Court order relating to the Eppawala deposit.

Informed sources said LPL invited PERC for a discussion on the imminent restructuring of the organization.

But at the discussion that was very brief, no details were given of the proposals with LPL officials present returning with more questions than answers. According to the source LPL is currently awaiting PERC's decision as to how the restructuring will take place. LPL officials declined to comment on the issue. Currently LPL has exploration rights in 1700 hectares of land surrounding the deposit and produces 45,000 tonnes of phosphate per annum, just 40 percent of the national requirement.

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