Kankasanturai Cement factory mulls IPO

* Three other state  corporations to be handed  over on 30-year lease


By Hiran H. Senewiratne

Minister of State Resources and Enterprises Development Dayasritha Tissera says the Kankasanturai Cement Factory (KCF) located in the Jaffna peninsula will be commissioned via a public-private partnership before the year-end and would go for a public listing on the Colombo Stock Exchange (CSE).

Speaking to The Island Financial Review he said a 30 percent stake of KCF would be offered to the public while the balance 70 percent would be retained with the state. Currently, a feasibility study is being carried out by a leading bank in the country.

At present the factory is under the Defence Ministry and will be released for operations before the end of the year. However, required renovation and refurbishing activities are being carried out, he said

It is estimated that 1.6 million metric tons of cement could be produced annually. The Sri Lanka Cement Corporation would manage the production process and marketing aspect as well, he said. 

Before the 30-years long conflict broke out, the factory had produced 115,000 metric tons of cement annually and was shutdown after it sustained damages.

Meanwhile, several state-owned entities would be revived in due course and are expected to commence commercial activities. The earmarked entities are the Ambilipitiya Paper Corporation, the Kantale Sugar factory and the Sri Lanka Rubber Manufacturing and Export Corporation.

"These entities will be given out on a 30 year lease for suitable foreign investors to run," Tissera said.

The Australian Perth Engineering Company will be taking over the Ambilipitiya Paper Corporation on a 30 year lease. While several investors have expressed interest for the other two entities, the assessment of these projects are yet to be finalised, Tissera said.

Once these entities commence commercial operations, more than 1,000 employment opportunities could be created, he added.

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