Israel companies to invest in Lanka’s dairy industry

Tuesday, 6 March 2012 00:30 - - {{hitsCtrl.values.hits}}

The Government has decided to privatise the state-owned farm in Polonnaruwa, Ministry of Livestock and Rural Community Development officials said.

Accordingly, the 2000-acre farm which is under the purview of the Livestock Development Board will be given to two Israeli companies.

Under the agreement, the two Israeli investors should bring 2,000 dairy cows to Sri Lanka within two years and US $ 31.7 million needs to be invested within 18 months according sources said.

The investors need to pay 1.25% of income of the farm to the Government within the first ten years. From then up to 30 years they should pay 1.5% of the income to the government.

The investors are also required to guarantee the employment of the workers.