Govt. expects 24 new entrants to plantation sector

Wednesday, 16 November 2016 01:31 - - {{hitsCtrl.values.hits}}

Space for about two dozen new entrants will be created when land restrictions are placed on plantation companies, Finance Minister Ravi Karunanayake said yesterday.

Addressing the post-Budget summit organised by the Ceylon Chamber of Commerce, the Finance Minister defended the Budget proposal to limit land given to Regional Plantation Companies to 5,000 acres, insisting that such a move would boost competition and encourage new investment.

Under a separate proposal, land held by State-owned plantation companies would also be opened up for a public private partnership.

“This will create space for about 24 new companies to enter the industry. Successful existing plantation companies can apply for extra parcels of land and their offers will be first considered by the Government. This policy is very fair and the best for stakeholders,” he said responding to questions.

Sri Lanka’s plantation industry has been suffering under a perfect storm caused by a drop in local production, higher wage demands and low international prices.