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Monday June 3rd, 2024

Singapore’s G&G bullish on Sri Lanka agro sector after Hatton Plantations buy

ECONOMYNEXT- Singapore-based G&G Group is looking to invest in Sri Lanka’s agriculture sector in the future, an official said after acquiring tea producer Hatton Plantation Plc (HPL) for 1 billion rupees despite heightened risk perceptions.

"We will use HPL as a platform through which we will consolidate in Sri Lanka’s agriculture sector with further opportunities," said Gowri Shankar, a Director of G&G subsidiary Lotus Renewable Energy Pty Ltd.

"We’re looking at not only tea, but other agriculture processes," he said.

The group is investing despite risk perceptions being heightened following Islamist suicide bombings in April.

"We’re passionate and want to support Sri Lanka during its time of need," Shankar said.

G&G, which invests in environmentally sustainable agriculture and energy, will be looking to invest in businesses that cater to both local and export markets in Sri Lanka, Shankar said.

"It is a combination of both, but we will be leaning more towards exports," he said.

HPL’s former owner Sunshine group, separated the tea operations from the rest of its businesses due to volatility of the commodity. Under Sunshine management, the tea firm was among the most profitable.

However, G&G is confident of the tea industry’s prospects in the long run.

"If we were too concerned about the volatility, we would not have invested," Shankar said.

"The investment falls in line with the long-term vision of our group."

G&G’s local subsidiary Lotus Renewable Energy Pvt Ltd will also be looking for more investments in hydro and LNG power generation, he said.

 

You may also read:

 Lotus Renewables buys Sri Lanka’s Hatton Plantations

Sunshine Holdings focusing on consumer and health after Sri Lanka tea farm exit

 

The firm paid a premium to market price for 51 percent. It has an option to buy more stock at the same price.

The stock fell from 6.90 rupees to 6.40 after the blasts. The new buyers paid 8.30 rupees for control. The stock closed trading at 7.90 rupees, up 1.80 rupees.

Net assets per share of HPL was 8.25 rupees in December.

The 1 billion rupee acquisition was financed partly through cash as well as debt, through NDB Bank.

Lotus Renewable Energy has been expanding its energy business with acquisitions including Browns Hydro Power and Zyrex Power over the past three years.

The G&G group has a turnover of 400 million US dollars and employs 20,000 people, according to its website. It farms on 50,000 hectares of land in Australia. Most of its operations are in grains,  pulses and oilseeds. 

The HPL acquisition will add 5,000 hectares and approximately 12.8 million US dollars in revenue to G&G.

It also has interests in companies such as Prima Group subsidiary Ceylon Agro Industries and Origin Teas, which owns 16 plantations in Sri Lanka .

Group Chairman Gary Seaton had held a 45 percent stake in Pussellawa Plantations in the past, before divesting in 2018. (Colombo/May28/2019)

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Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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