There have been a series of protests against UPFA's privatisation plans

Trincomalle district Member of Parliament Jayantha Wijesekara told BBC Sandeshaya that the party has prepared a plan to build a new sugar factory in the area instead of trying to save the Corporation, which is up for sale.

Public Enterprise Reform Commission (PERC) announced the sale of many state enterprises including that of Kanthale Sugar Corporation in February.

New factory

MP Wijesekara said he prepared plan to build a new factory after President Kumaratunga requested him to come up with a strategy, if any, to safeguard the Corporation.

He denied the JVP is now turning its back to protest any attempt to privatise government enterprises.

UPFA pledged not to privatise state assets in 2004 election manifesto

Wijesekara accused the media of trying to create a rift in the United Peoples' Freedom Alliance (UPFA).

He said the JVP does not work on its own as a single party, but work with the alliance in the government.

"We are having discussions with relevant parties on privatisation."

"UNP's legacy"

He blamed the opposition United National Party (UNP) for creating PERC to privatise government institutions.

"We are still suffering from UNP's legacy and trying to change that."

However, the MP said that the JVP is planning to mobilise people to buy the state assets on sale rather than call for a halt.

We are still suffering from UNP's legacy and trying to change that MP Jayantha Wijesekara

The UPFA in it's manifesto for the 2004 general election pledged not to privatise state assets.

PERC that functions directly under President Chandrika Kumaratunge has called for investment from local and foreign parties to register "expression of interest" to "purchase assets" belonging to the state.

For sale

The Eppawala phosphate deposit in Anuradhapura district is also among several other state assets for sale.

People’s action and a lawsuit earlier halted moves to sell the phosphate deposit.

Workers of Engineering Corporation protest against privatisation

Addressing a public gathering in Southern Sri Lanka after the tsunami disaster the president warned that anyone who campaigns again to stop the sale of the phosphate deposit will be "locked up in a hotel and be taken care of".

PERC has advertised for the "restructuring" of state owned media institutions as well.

Trade unions have pointed out that "restructuring" is a term that governments use to sell state assets to multi national corporations.

Independent Television Network Ltd., Sri Lanka Rupavahini Corporation, Associated Newspapers of Ceylon Ltd. and Government Information Department have been advertised by PERC for "restructuring".