In a questionable move, the Sri Lankan government has relinquished control of the Kankasanthurai cement factory to a private company, Luminex PLC. This decision, approved by the Cabinet of Ministers, raises concerns about the fate of once-profitable state-owned industries and lands.
The Kankasanthurai cement factory, once a symbol of industrial development, is now handed over to private interests. The government’s eagerness to divest itself of valuable assets in favor of foreign investors and private companies is disconcerting.
The awarding of the cleanup and metal collection project has been critised for its lack of transparency. Despite bids from six parties, the process remains shrouded in secrecy, with three bidders disqualified. The contract lands in the hands of Luminex PLC. The Kankasanthurai cement factory, with its abundant limestone deposits, could have been a cornerstone of local industry. Instead, it is repurposed into an industrial zone, leaving the North-East economic future in the hands of private entities.
The factory’s closure in 1991 due to war already resulted in job losses and economic setbacks. Now, the limestone reserves are being cleaned up and squandered for economic benefit. The proposed $500 million industrial park, backed by Canada-based entrepreneurs, further underscores this trend. The defunct cement factory’s land becomes a playground for foreign investment, while local communities bear the consequences. It is reported that the huge limestone deposits exceeding 80 million MT in the area is sufficient for the manufacturing of cement for another 100 years – even if they are extracted at a rate of 3,500 MT a day.
