General30 August 2026

Sevanagala Sugar Factory management clarifies closure amid ongoing employee unrest

The Chairman of the Sevanagala Sugar Factory has issued a special media release clarifying factory operations amidst ongoing employee unrest and trade union action.


The Chairman pointed out that repeated employee unrest in recent times has severely disrupted production activities.


Although workers reported for duty on August 25, operations were stymied as production was not properly carried out.


Following the holidays on August 26 and 27, production failed to resume even by 10:00 am on August 28.


Consequently, management decided to close the factory until further notice to avoid corporate losses incurred by paying salaries and overtime while no production was taking place.


The Chairman further stated that the institution's revenue streams have been impacted due to disruptions caused to essential services and lorries arriving for sugar sales, even during the factory closure.


Efforts are currently underway to introduce a new salary framework to address issues concerning manpower and pay structures.


The Chairman emphasised that discussions are taking place with the Salaries Commission to ensure this process is implemented without reducing any employee's salary.


Furthermore, the Labour Department has briefed the relevant parties on the legal standing of the ongoing trade union action.


Noting that the Sevanagala factory is directly linked to the livelihoods of sugarcane farmers in the Monaragala district and the employment of its workforce, the Chairman urged all employees to refrain from disruptive activities, report for work immediately, and join in resolving the current issues through dialogue.

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