The Sevanagala Sugar Factory has suspended operations indefinitely following weeks of worker unrest and trade union action that disrupted production. Management cited financial losses and obstructed logistics as reasons for the closure.

The Sevanagala Sugar Company announced on August 29 that it has temporarily halted all operations at its facility due to ongoing labour tensions. According to the company's Chairman, production faced repeated disruptions in recent weeks despite employees returning to work from August 25. Attempts to restart operations during the public holidays on August 26 and 27 proved unsuccessful, with production remaining stalled through August 28.

Management stated that the closure was necessary to prevent mounting financial losses from continued salary and overtime payments without corresponding production output. The company also reported that essential operations had been obstructed and trucks transporting finished sugar for sale encountered resistance, further impacting revenue generation. The shutdown affects not only factory workers but also sugarcane farmers throughout the Monaragala District who depend on the facility's operations.

The company indicated it is pursuing longer-term solutions to address workforce concerns. Management said it is conducting a formal assessment of staffing levels and developing a new salary framework in consultation with the Salaries Commission, with assurances that no employee salaries would be reduced. The Department of Labour has reportedly been engaged regarding the legal implications of the ongoing trade union action.

Factory management has called on employees to cease disruptive actions and return to work, urging them to resolve outstanding grievances through formal legal channels and dialogue rather than industrial action. The duration of the factory closure remains unspecified.