Sugar is one of the main food items consumed in Sri Lanka. The annual per capita consumption of sugar in Sri Lanka is around 30 kg and the total annual requirement of sugar in the country is around 550,000t. But, only about 50,000 t are produced locally. In a year only 38,000 t were produced. The balance requirement has to be imported. The total annual expenditure on sugar imports is around Rs. 20 billion.
Sugar cane (Saccharum officinarum) is the only crop cultivated in Sri Lanka to manufacture sugar, although there are crops such as coconut, kitul and palmyra which can be used to manufacture sugar based substances such as jaggery and treacle. Sugarcane has been cultivated in Sri Lanka since 1840s. About two decades ago, in 1990s, sugarcane was cultivated in about 25, 000 hectares. But, it has come down to around 15,000 ha, and most of it is cultivated in the Moneragala District.
At present, only Pelwatta ,Sevanagala Sugar Industries, and Sevanagala Sugar Industries are involved in commercial production of sugar. Hingurana sugar factory which was closed for a long time started to cultivate sugarcane and Kantale Sugar Industry expected to cultivate sugarcane in Kantale in the near future. by-products of the sugarcane industr y and is made from molasses. This is the portion of the sugarcane juice which contains sugars other than sucrose (what is normally consumed) and a number of other organic compounds. One of the compounds formed during fermentation of molasses is ethanol. In addition to sugar, about 12 million litres of ethanol are produced annually at the two factories in Sevanagala and Pelwatta.
Another by-product of the sugarcane industry is bagasse which could be used to generate electricity. In addition, animal feeds, bagasse based fiber boards, biogas, numerous organic compounds such as acetone, butanol etc. are other by-products of the sugarcane industry. Developing the Sugar Sector: Developing the local sugar sector will result in an