- Cabinet considered the proposals submitted by Hon. Lakshman Seneviratne, Minister of Sugar Industry Development on the recommendations of the Officials' Committee appointed by the Cabinet to make recommendations for the rehabilitation of the above four Sugar Industries , with the view to increasing local production up to 40% of the annual sugar requirement of the country by 2020. Some of the salient features of the proposals are as follows:

* 27,567 hectares of land belonging to Kantale, Hingurana, Sevanagala and Pelwatta Sugar Industries will be leased out for a period of 99 years to Lanka Sugar Co. (Pvt.) Ltd. which is a 100% Government owned company, to increase its equity capital enabling it to obtain the required financial facilities for the development of the above four Industries;

* Kantale Sugar Industry will be developed and modernized with the assistance of the Czech Republic; and

* blocks of land will be allocated to farmers for sugarcane cultivation by entering into forward contracts with the said farmers for the purchase of sugarcane; priority will be given to the farmers who are already engaged in sugarcane cultivation and farmers who are residents of the Districts where the relevant lands are situated.

The proposals contained in the above Report were approved by the Cabinet.