The Sevanagala Sugar Factory has been temporarily shut down until further notice after worker unrest and trade union action repeatedly disrupted production.
Sevanagala Sugar Company Chairman Wasantha Athula Kumara said production had been affected several times in recent weeks due to unrest among employees.
Although workers returned to duty on August 25, the factory could not resume normal production.
Sevanagala Sugar Company Chairman Wasantha Athula Kumara
Management also tried to restart production during the public holidays on August 26 and 27. Those efforts did not succeed.
By 10 a.m. on August 28, production had still not resumed.
Management then decided to close the factory to avoid further financial losses from paying salaries and overtime while production remained stopped.
No Date Set for Reopening
The factory will remain closed until further notice.
Wasantha Athula Kumara has not given a date for production to resume.
The company also said essential operations faced disruptions during the closure. It alleged that trucks arriving to transport sugar for sale also faced disruptions, affecting revenue-generating activities.
Management is now working to address long-running issues over staffing and the salary structure.
The company is carrying out a formal workforce assessment and preparing a new salary framework.
Discussions are also underway with the Salaries Commission on the proposed changes.
The company said it plans to make the changes without reducing the salaries of existing employees.
Meanwhile, the Department of Labour has informed the relevant parties about the legal position concerning the ongoing trade union action.
Impact on Workers and Sugarcane Farmers
The closure could affect more than the factory’s own operations.
Wasantha Athula Kumara warned that the Sevanagala factory is directly linked to the livelihoods of sugarcane farmers in Monaragala District, as well as a large number of workers.
Management has urged employees to return to work and resolve the outstanding issues through discussions and within the legal framework.
For now, the key uncertainty is when production will resume, as the company has given no reopening date and says the factory will remain closed until further notice.
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Last modified: August 29, 2026
