Government Saves Millions by Merging Fertilizer Companies
July 13, Colombo (LNW): The Agriculture Ministry announced that the government has saved millions of rupees by merging two fertilizer companies, which previously operated with separate chairmen, boards of directors, and staff. This significant cost-saving move was celebrated at a ceremony held at Water’s Edge Hotel on Thursday, attended by Agriculture and Plantation Industries Minister Mahinda Amaraweera.
The event saw the presence of State Ministers D.B. Herath, Kader Masthan, Mohan Priyadarshana Silva, Ministry Secretary Janaka Dharmakeerthi, and State Fertilizer Company Chairman Dr. Jagath Perera.
Minister Amaraweera noted that many institutions under the ministry dealt with similar subjects, resulting in unnecessary expenditures. Following President Ranil Wickremesinghe’s instructions, the Cabinet initiated a process to merge institutions with overlapping scopes. As a result, the two government-owned fertilizer companies have now been combined into one entity. Out of the 400 former employees of these companies, 273 retired voluntarily, receiving compensation ranging from Rs. 900,000 to Rs. 8.9 million based on their length of service and position.
The merger is part of broader efforts to strengthen the fertilizer program, which was crucial following the 2021 fertilizer crisis that led to widespread farmer protests. Minister Amaraweera highlighted that Sri Lanka has achieved self-sufficiency in rice production due to the reinstatement of chemical fertilizers, preventing rice prices from soaring. He emphasized that no rice has been imported since 2023.
State Fertilizer Chairman Dr. Jagath Perera announced that the merged company now produces 30 types of mixed fertilizers for various crops, including tea, cinnamon, rubber, and coconut. Efforts have been made to significantly reduce the prices of these fertilizers compared to market rates.
