Origin & History

In the post independent era, one of the first development projects inaugurated by the Government of Sri Lanka was the development of Gal Oya Valley, a part of Gal Oya basin.

An important project undertaken was to cultivate sugar cane. The decision to grow sugar cane was based on three factors, availability of mass scale flat lands, sufficient water from Iginiyagala tank and the fact that for the traditional paddy farmer shifting to sugar cane was not an insurmountable problem. 

Gal Oya Valley is situated in the eastern sector of Sri Lanka south west of Kalmunai and North of Monaragala. The major township is at Ampara and the Hingurana sugar complex is situated approximately 12 km from Ampara town in eastern province.

Situated at Hingurana, the work on cultivation was commenced in 1950, with the sugar factory commenced production activities in 1960 followed by the commencement of distillery in late 1962.

The Sugar factory that was originally commissioned by the Gal Oya Development Board was transferred to the Sri Lanka Sugar Corporation in the year 1966.

The factory machinery was supplied by Mirrlees Watson of UK. The rated capacity of the plant is 2000 tones per day (TCD). The factory consists of 3 roller five mill tandems with a vacuum pan sugar processing system.  Plant produces crystal sugar and follows the defecation process.

The Hingurana distillery was supplied by a French firm namely, Lapage Urbain and Cie has a processing capacity of 30 metric tones of molasses per day to produce 9000 bulk liters of sprit per day.

Background of Gal Oya Plantations (Pvt) Ltd.

Gal Oya Plantations (Pvt) Limited., (GOPL) was formed in 2006 for the purpose of revitalizing the former Hingurana Sugar Industries Limited, that was closed since 1997. 

The Public Reforms Commission, on behalf of the Government of Sri Lanka invited expression of interest from the interested parties to restore the Hingurana Sugar Industries (Pvt) Ltd and to re-cultivate the lands attached to the factory.  

A consortium led by Brown & Company PLC and Lanka ORIX Leasing Company PLC forwarded a proposal to the Government of Sri Lanka to enter into a public-private partnership thereby to revitalize then abundant  sugar factory.

Having perused the proposal, a new company was formed as a joint venture between the Government of Sri Lanka and the consortium, where 51% of the ownership retains with the Government of Sri Lanka and 49% of the ownership to the consortium. In addition, the consortium was appointed as the exclusive management agent of the new company. As a result GOPL was formed as a new company.

The Government of Sri Lanka transferred/leased all the assets of Hingurana Sugar Industries to GOPL at an agreed valuation for its 51% of equity. The consortium infused fresh capital for the balance 49% with an undertaking to arrange the balance funding through debt capital.

The plantation consists of 7659 ha of land with approximately 5200 ha of cultivatable extent allotted amongst 4400 families. The rest of the area is occupied by factory buildings, housing complexes, high lands reservations, field roads and drainages. The project area is divided into 5 major zones namely Varipathanchena, Galmuduwa, Deegawapi, Hingurana, and Neetha.  

Structure of the Company

 Galoya HOLDINGS (Pvt) Limited (GOHL)

Gal Oya Holdings (Pvt) Ltd is the management company of the Gal Oya Plantations (Pvt) Ltd. This is a 50-50 joint venture established between Brown & Company PLC and Lanka ORIX Leasing Company PLC.

Therefore, the responsibility of managing factory, plantation and generating adequate returns lies with GOHL. GOHL has the exclusive powers to manage the business till 2020 with the agreement signed with GOPL, which can be extended there after.