The Investor Sentiment - Equity and investments forum for Sri Lankans

Join the forum, it's quick and easy

The Investor Sentiment - Equity and investments forum for Sri Lankans
The Investor Sentiment - Equity and investments forum for Sri Lankans
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Please send an email to if you face any technical difficulties when posting
Display results as :
Advanced Search
Latest topics
Browns Investments updateTue Feb 02, 2021 2:38 pmYin-Yang
ACL CablesWed Dec 30, 2020 7:22 pmsubash
Merry Christmas to AllTue Dec 29, 2020 4:53 pmchutiputha
Trading Journal Sat Dec 12, 2020 11:33 pmxmart
HVA FoodsFri Dec 04, 2020 10:25 amThe Invisible
Tokyo CementMon Nov 23, 2020 9:42 amRajapaksap
Insider Dealings Fri Nov 20, 2020 2:30 ampjrngroup
UML United MotorsTue Nov 10, 2020 8:50 amThe Invisible
ExpolankaMon Nov 09, 2020 8:46 pmsmallville
Plantation Sector UpdatesSat Nov 07, 2020 8:15 amRajapaksap
HAYC - HaycarbFri Nov 06, 2020 12:11 pmsubash
LWL.N0000 (Lanka Walltiles PLC)Fri Oct 16, 2020 12:50 amsubash

Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Go down
The Invisible
The Invisible
Posts : 3089
Join date : 2016-11-28
Age : 41

Government ready to extend estate leases if more investments made Empty Government ready to extend estate leases if more investments made

Mon Jul 22, 2019 7:38 pm
Message reputation : 100% (1 vote)
Jul 22, 2019 10:07 AM GMT+0530 | 0 Comment(s)

ECONOMYNEXT – Sri Lanka’s government is willing to consider extending leases of plantations to private management companies provided they make the necessary investments needed for their long term sustenance, Plantation Industries Minister Navin Dissanayake said.

The government was concerned by lack of investments by regional plantations corporations (RPCs) in state-owned estates whose management was privatised, he told a news conference.

One particular concern was inadequate replanting of tea as many estates had aging bushes and soils were also depleted of their nutrition.

“The annual target for replanting tea estates is two percent,” Dissanayake said. “But only about 0.5-1 percent happens.”

The government is trying to encourage RPCs to improve the replanting rate as it is important for the long term survival and growth of estates they had leased, he said.

The state-owned plantations, growing mainly tea, rubber and coconut, were given on 53-year leases to RPCs to manage in a privatisation exercise in 1992 meant to ease the burden on the government of financing their losses.

But RPCs had maintained the leases were not long enough for them to make investments whose returns would be felt only in the long term.

The leases are set to expire in 2045.

“If the RPCs want to increase the leasehold we are willing to give longer leases,” Dissanayake said.

“But they must commit to making the required investments. Some companies have abrogated their responsibilities and are not doing well – about 3-4 firms.”

Dissanayake said Sri Lanka needed to ensure its tea production levels did not decrease to prevent loss of tea market share.

“We have to somehow maintain it around the 300 million kilo level. That’s why replanting is so important.”
(COLOMBO, 22 July, 2019)

Back to top
Permissions in this forum:
You cannot reply to topics in this forum