Thriposha Factory closure sparks concerns over malnutrition and privatisation
The state-run Thriposha factory in Sri Lanka is facing a potential shutdown due to a shortage of essential grains like corn and soya.
Thriposha, a nutritional supplement distributed free to pregnant women and infants, plays a critical role in fighting malnutrition across the country.
Grain supplies have been severely affected, but officials expect new stocks to arrive after the next corn harvest in October.
Several leading nutritionists warned that Sri Lanka could soon face a complex malnutrition crisis if these issues are not urgently addressed.
The closure or merger of the Thriposha factory is outlined in a special gazette notification issued on September 27, 2024, which lists state enterprises slated for restructuring or sale.
In a letter Anton Marcus, Co-Secretary of the Free Trade Zones and General Services Employees Union has urged President Anura Kumara Dissanayake to reconsider this decision.
He highlighted that despite the gazette’s call for closure or merger, the factory’s role in public health should be prioritised over profit-driven motives.
The directive to restructure state enterprises, including the Thriposha factory, has its roots in agreements made with the International Monetary Fund (IMF) in March 2023, under former President Ranil Wickremesinghe’s administration.
In May 2023, the Sri Lankan government prepared a list of 52 state institutions for restructuring, which included the Thriposha Company.
This decision was part of a broader move to privatise state enterprises due to financial losses amounting to Rs 443 billion from 2017 to 2022, according to the former President.
However, the Free Trade Zones and General Services Employees Union argued that the Thriposha Company, despite being state-owned, has remained profitable even during challenging times, including the COVID-19 pandemic.
The Thriposha Company has consistently contributed to the country’s finances, providing Rs 165 million to the Treasury as dividends between 2021 and 2023, and paying Rs 231 million as income tax in 2023.
In addition to its financial contributions, its value lies in its critical role in supporting the health of children and pregnant women. More than one million people benefit from Thriposha’s nutritional supplements, which are provided to vulnerable groups such as malnourished children and expecting mothers.
Mr. Marcus called on the new President to ensure that only loss-making enterprises are restructured and that the process is transparent, involving employee representatives.
He emphasised that selling or merging the Thriposha Company, which continues to make profits and plays a vital role in public health, is unnecessary and ill-advised.
In light of these concerns, the Free Trade Zones and General Services Employees Union has requested the immediate cancellation of any plans to close or merge the Thriposha Company, urging the government to recognise its indispensable role in the country’s nutrition and health strategy.
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