Mar 22, Colombo: Sri Lanka plans to increase the production of ethanol in the country to reduce the amount of ethanol imported for the manufacture of alcohol and pharmaceuticals.

The cabinet of ministers has approved a proposal put forward by the President in his capacity as the Minister of Finance and Planning to submit a gazette notification to Parliament under the Imports and Exports (Control) Act for approval to increase production and reduce imports of ethanol.

The government says following the take-over of the Pelawatte Sugar Industries and Sevenagala Sugar Industries by the government, the production of sugar and sugar related products such as ethanol has increased.

Sri Lanka earlier this month banned ethanol imports since the country has an excess production of ethanol and also due to the decline of demand for locally produced ethanol.

The government in 2011 acquired the privately-owned Pelawatte and Sevenagala sugar factories that were not performing up to government's expectations under the Expropriation Act enacted in November 2011.