SRI LANKAN GOVERNMENT TO STOP IMPORTING SUGAR The Food Department will no longer import sugar from April 1, senior officials of the Food and Cooperatives Ministry and the Department told Reuters. They said the decision was taken after the Sugar Importers Association asked that the sugar trade be further liberalised. "The Food Department will cease trading in sugar and will no longer hold a buffer stock," a senior official said. He said the government has finalised an agreement with E.D.F.Man (Sugar) Ltd under which E.D.F.Man will hold a buffer stock on the government's behalf of 20,000 tonnes, against the 45,000 tonne buffer stock usually held by the Department. Officials said the size of the buffer stock has been reduced because the private sector will hold its own stocks. The agreement with E.D.F. Man includes details such as trigger pricing mechanisms, they said. Four months ago the Department allowed the private sector to import sugar without government clearance. The Department and the private sector each imported around 115,000 tonnes of sugar last year, when national consumption was 280,000 tonnes. An Importers Association official said that "even if the Department no longer imports sugar, we would not necessarily buy more." This is because the Association would still have to compete with the Cooperatives Wholesale Establishment (CWE), he said. The CWE is a semi-government body and the official said arrangements are being made for state cooperatives and holders of food subsidy stamps to draw their sugar from it, starting April 1. Ministry officials said the CWE can either import sugar or buy it from a local bonded warehousing scheme run by E.D.F. For the past two years.