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 contact.lankaninvestor@gmail.com if you face any technical difficulties when posting
Search
Display results as :
Advanced Search
Latest topics
Pandora PapersSat Oct 09, 2021 5:39 pmchutiputha
ExpolankaMon Aug 30, 2021 1:44 pmyellow knife
SL in ChartsFri Aug 20, 2021 7:53 amyellow knife
Top Foreign Trading Today Fri Jun 25, 2021 9:53 pmSAGA
Directors' Dealings Fri Jun 25, 2021 9:51 pmSAGA
AMF Historical Prices Thu Jun 24, 2021 2:01 pmSAGA
Browns Investments updateTue Feb 02, 2021 2:38 pmYin-Yang
ACL CablesWed Dec 30, 2020 7:22 pmsubash
Disclaimer


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 : 3116
Join date : 2016-11-28
Age : 42

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