“The Giant of Asia” re-awakens

As a preliminary to the re-commencement of work at the Hingurana Sugar Factory, cane cultivation has been started once again. The sugar factory at Hingurana in the Galoya valley was known in the 60’s as “The Giant of Asia”

Since then it has functioned as a government and semi government body providing employment to over 1,000 employees. The project has also been closely linked to the lives of the people in the area providing a livelihood to the 40-odd cane farmers, while providing around 20,000 direct and indirect avenues of employment.

Though the project faced many ups and downs during its lifetime, the programme ran on its own steam until 1993. At this stage the then ruling party decided to privatise the venture. State valuation set the value of the venture at an estimated Rs. 1,000 million. However the then UNP regime through a convoluted logical process sold the company to one R. Weerabahu for a paltry Rs. 13 ½ million.

Under terms of the agreement the purchaser had to make a down payment of a mere 3 ½ million while the balance was to be paid via a bank draft.

Amidst worker protests the new owner set about his business. The first act of the new owner was to sell off capital goods belonging to the establishment starting with the sale of iron worth millions to a Malaysian company followed by the sale of tractors belonging to the company. This was followed by mortgaging the factory to a bank for a large sum of money.

To ensure a compliant workforce he began creating divisions among employees by granting special privileges to particular officials. As the situation continued to deteriorate workers were forced to unite in an effort to protect their jobs. This led to the formation of a single strong trade union and a rising worker militancy which in turn forced the government to intervene. By then however the factory had been mortgaged and the new owner had left the area.

Finally the state took over the company but closed down the company for a period of three months. The losers were the workers who had to forego their salaries. At the end of the period the factory re-opened under a Competent Authority but was closed down once again after paying compensation to workers. The compensation paid ran into millions of rupees.

Since then the factory has remained closed and has been vandalised. Valuable items and spare parts worth millions have been looted from its stores. Over the years politicians of different hue have made promises regarding the re-opening of the venture. The present president during his 2005 presidential campaign assured the people that he would re-open the factory.

However no one took him seriously believing it was merely another election promise. It is therefore a matter of relief to the people as that promise is now about to be fulfilled. The factory is about to be revived.

A new name has been given and the factory is being re-named The Galoya Plantation Company –a joint collaboration between the State, the Lanka Orix Leasing Company and Brown & Co. 51% of the shares will be held by the state.