The government has made arrangements to lease the Embilipitiya Paper Corporation to an Australian company for a 30-year period as part of the restructuring of public enterprises under the State Resources and Enterprise Development Ministry.

The ministry said that the Embilipitiya Paper Corporation was handed over to Perth Engineering and Maintenance Private Limited for Rs. 600 million.

The government has valued the machinery and assets of the company at Rs. 400 million, and the business value has been estimated at Rs. 100 million.

The lease agreement to hand over the paper factory was signed by Ministry Secretary Willie Gamage and Perth Engineering and Maintenance Private Limited Executive Director Priyanga Mallawarachchi yesterday in the presence of State Resources and Enterprise Development Minister Dayasritha Tissera, with a cheque to the value of Rs. 400 million received and the balance to be paid within three months, ministry sources said.

The ministry said the government is in the process of restructuring 23 state enterprises and the first phase included four enterprises. The Embilipitiya Paper Corporation was one of the four state enterprises.

The Kantale Sugar Company, Sri Lanka Rubber Products and Exports Company and the Ceylon Ceramics Corporation are the other three institutions to be restructured.

The ministry is currently in the process of studying the Expressions of Interest (EoIs) sent by private investors for the Kantale Sugar Company, Minister Dayasritha Tissera said.

The minister said that 283 employees of the two institutions will be compensated and laid off.

The government through the measures expects to recommence production in the factories that had been closed for some time and provide more job opportunities for the public.

Perth Engineering and Maintenance Private Limited Director and National Paper Corporation chairman Ashoka Subasinghe also participated.