Sri Lanka’s Ceylon Cold Stores in US$20mn expansion
ECONOMYNEXT – Ceylon Cold Stores Plc, a unit of Sri Lanka’s John Keells Holdings, which owns the Elephant House ice cream brand said it started a 3.0 billion rupee (20 million US dollar) factory to expand capacity.
The expansion will be at the Seethawaka industrial zone, Jit Guneratne told EconomyNext. Its existing factory is at Ranala, in the Colombo district.
"In the Frozen Confectionery segment, production of the impulse range of products is near maximum capacity," Chairman Susanthe Ratnayake told shareholders.
Ceylon Cold Stores also owns the Elephant House soft drinks brand.
The firm has 18 flavours of drinks and 32 flavours of ice cream.
In 2015 beverage sales rose 26 percent and ice cream revenues rose 21 percent, Ratnayake said.
Sri Lanka’s new administration raised state sector salaries and printed money to keep interest rates artificially low and the budget deficit expanded, expanding demand and pushing the country into a balance of payments crisis.
Growth is expected to be moderate in 2016 as an International Monetary Fund backed stabilization program and currency depreciation undermines people’s income.
Falling international commodity prices in the wake of tighter US monetary policy has however dampened overall inflation in Sri Lanka.
(COLOMBO, May 30 2016)