State-owned plantations to be restructured via PPPs, short-term lease of land for investments

• Sri Lanka to popularise Ceylon Tea in China

 A proposal made by Minister of State Public Enterprise Development Minister Kabir Hashim, to implement a restructuring program to improve performance of State-owned plantation companies was also approved by the Cabinet of Ministers this week. 

According to Karunatilaka, the program will be implemented in Janatha Estate Development Board Sri Lanka State plantation Corporation, Elkaduwa Plantation Limited, Galoya Plantations Ltd. and Sri Lanka Cashew Corporation. 

Presenting the proposal Minister Hashim told Cabinet that although the State-owned plantations provide over 16,000 jobs, the number of external and internal factors including weak financial management, outdated agriculture practices inefficient management practices, poor worker living standards, illegal encroachments and environmental degradation has resulted in underperformance. 

The proposed three-pronged program will focus on establishing Public-Private Partnerships and leasing out of land to small and medium scale investors with sustainable and financial viable plans.

The Cabinet also granted approval to a proposal made by Plantation Industries Minister Navin Dissanayake to promote Sri Lankan produce black tea and hold auctions in China. 

According to the Cabinet Co-Spokesperson Minister Gayantha Karunatilaka, the subject Minister has proposed this in view of the growing popularity for high quality Ceylon Tea in China. 

Pointing out that Sri Lanka needs to promote black tea in China when they are slowly moving to Black tea drinking from green tea, Minister Dissanayake has proposed to develop a comprehensive program to promote Ceylon Tea after discussions with relevant Chinese agencies. Further Sri Lanka is to enter into agreements with Chinese Government hold tea auctions in China. ( CD)