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Tuesday April 23rd, 2024

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.

Related

Sri Lanka President bans palm oil imports, plantations to uproot oil palm

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)

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Iran President to open Sri Lanka $514mn irrigation, hydro power project

MULTIPURPOSE: Uma Oya multipurpose development project is the largest since the end of the Mahaweli projects.

ECONOMYNEXT – Iran President Seyyed Ebrahim Raisi will inaugurate an irrigation and hydropower project that was designed and built by Iranian engineering firm and was also initially financed before international sanctions hit the project.

The Uma Oya (River) project will irrigate 4,500 acres of new agricultural land, generate 290 Gigawatt hours of electricity and also provide drinking water, a government statement said.

Sri Lanka had awarded an engineering, procurement, construction (EPC) to Iran’s FARAB engineering group to design and construct the 514 million dollar multipurpose project in 2010.

The project was funded until 2013 with a million US dollar credit from the Export Development Bank of Iran but international sanctions prevented the country from continuing financing, a government statement said.

The project continued with funding from Sri Lanka. Sri Lanka had since repaid 19.3 million dollars of the credit and 35.2 million remains outstanding.

The Uma Oya project has a 120MW of hydro power generators, which can generate 290 Giga Watt hours of energy.

Each year 145 million cubic metres of water will be taken from Uma Oya to the Kirindi Oya river valley after generating electricity in an underground power station.

It will irrigate 1,500 hectares of existing agricultural and 4,500 hectares of new land in the Moneragala district, where crops can be cultivated in both the Maha and Yala seasons.

About 39 million cubic meters of water will be used for drinking and industrial purposes.

Two reservoirs built at Dyraaba and Puhulpola in Uma Oya basin is connected by a 3.98 kilometre conveyance tunnel and water is taken through a 15.2 kilomtre headrace tunnel to an underground power station. A tailrace tunnel takes water from the power station to the Kirindi Oya basin.

The project was originally expected to be completed in 2015, but due to financing delays and later water leaking into the headrace tunnel and the Covid pandemic had delayed it. The project completion date was extended to March 31, 2024 and defect liability date to March 31, 2025.

(Colombo/April23/2024 – CORRECTED Iran President Seyyed Ebrahim Raisi will inaugurate an irrigation and hydropower project that was designed and built by Iranian engineering firm.)

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Sri Lanka state oligopoly allowed to import some black gram

ECONOMYNEXT – Sri Lanka has allowed the import of some black gram, by three state agencies, according to a gazette notice issued under the hand of President Ranil Wickremesinghe.

Import licenses will be given for 2,000 metric tonnes of the seed classified under HS Code 7312.31.22 and 29.

Sri Lanka State Trading Corporation, National Food Promotion Board and Sri Lanka Hadabima Authority is to be given import licenses.

Traders have resorted to smuggling some types of black gram (ulundu) mis classified as chick peas, to get over high taxes and import restrictions.

Tamil legislators have also protested the import controls, which they go into several key ethnic foods they consume. (Colombo/Apr23/2024)

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Sri Lanka Foreign Ministry consular division shifted to Battaramulla

ECONOMYNEXT – Sri Lanka’s Foreign Ministry said it consular division would be shifted to the Suhurupaya building in Subuthipura, Battaramulla from May 02, 2024.

Document authentication services provided by the Consular Affairs Division in Colombo will be suspended on 29 and 30 April 2024 held transfer the Electronic Document Authentication System (e-DAS) to the new premises at Suhurupaya.

Urgent applications for authentication to the Consular Division in Colombo, or any Regional Consular Offices by 4.15 pm on 26 April 2024, the Foreign Ministry said.

Regional Consular Offices in Jaffna, Trincomalee, Kurunegala, Kandy and Matara will remain open to accept applications.

Authenticated documents will be delivered to the applicants only on Thursday, 02 May 2024.

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