Lanka Salt Hambantota completes Rs. 450 m investment project

Friday, 7 April 2023 00:25 - - {{hitsCtrl.values.hits}}

Commissions pure vacuum dried salt producing plant at Palatupana
Ex-President Gotabaya Rajapaksa ban of imports help boost Lanka Salt output to 110,000 tons last year from 60,000 tons in 2020
To undertake PVD salt exports to Korea and Japan
Achieves highest ever turnover of Rs. 1.4 b in 1Q

Chairman Chaminda Sooriyapatabendhi

Lanka Salt Ltd., Hambantota has invested Rs. 450 million to install a Pure Vacuum Dried Salt Producing Plant at Palatupana slattern.

“We have a very good response for these new products and we hope for the ROI in less than two years,” Lanka Salt Chairman Chaminda Sooriyapatabendhi said.

New products from the factory have already started to roll out and for the first time they are also being directly marketed through Keells, Cargills and Sathosa supermarkets chains.

Currently Lanka Salt has 80% market share in the local salt industry. He said that profits generated though the company were ploughed back to build this factory.

Lanka Salt Director Dinuka Chamara De Silva said that they will also engage in PVD Salt exports to Korea and Japan as there is a huge demand for this PVD salt. He said that one reason for them to invest in this plant was the fact that former President Gotabaya Rajapaksa banned import of salt which created a big demand in Lanka. This resulted in production increasing from around 60,000 tons in 2020 to around 110,000 tons last year.

PVT Slat is also being used by the local medical sector and food processors. Lanka Salt new CEO Dr. Ajith Shanmuganathan said that they have made a turnover of Rs. 1.4 billion for the first quarter ending 31 March 2023 which is an all-time record for the company. “We expect a profit of around Rs. 500 million plus for the quarter,” he added.

He disclosed that in 2019 the company was making huge losses and had financial liabilities to banks, suppliers to the tune of around Rs. 324 million. “But in the last two years the company started to turn around and we have around Rs. 1.6 billion in savings.”