Sri Lanka plantations with oil palm plunge after uprooting directive
ECONOMYNEXT – Sri Lanka’s plantations stocks plunged after President Gotabaya Rajapaksa said they would be required to uproot oil palm from the fields in stages and said imports of palm oil was banned from April 06, while coconut plantation soared.
Watawala Plantations plunged 7.83 percent falling 4.50 rupees to 53.00 rupees in the first hour of trading on Tuesday.
Namunukula Plantations plunged 3.98 percent or down to 175.00 rupees falling 7.25 rupees.
Kegalle Plantation fell 4.67 percent or 4.60 rupees to trade at 94 rupees a share, Elpitiya Plantation fell 1.10 rupees to 43.000 rupees and Agalawatte Plantation fell 30 cents to trade at 27.70 rupees.
Mahaweli Coconut Plantation gained 20.27 percent or 5.90 rupees to trade at 35.00 rupees.
Secretary to President Gotabaya Rajapaksa, P B Jayasundera had ordered palm oil imports to be banned immediately and firms would be ordered to uproot trees 10 percent a year, a statement from his office said.
Cabinet Co-Spokesperson Minister KeheliyaRambukwella told reporters Tuesday that changes will be done to the Palm oil gazette.
Sri Lanka makes sudden tax changes through midnight gazette raising business risks for investors in what economists call regime uncertainty.
Private property is also expropriated from time to time.
In 2011 Sri Lanka expropriated two listed companies, a hotel and a sugar plantation. (Colombo/Apr06/2021)