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Kahawatte Plantations redefines future of Lanka’s plantation industry

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Coffee grown in Nawalapitiya Estate

In an era of transformation for Sri Lanka’s plantation sector, Kahawatte Plantations PLC (KWPL) has emerged as a formidable force, redefining the parameters of agricultural excellence, sustainability and inclusive growth. As a Regional Plantation Company operating across the landscapes of Nawalapitiya and Sabaragamuwa, KWPL manages 16 estates spread across 12,356 hectares. The company’s diverse crop mix includes tea, rubber, cinnamon, coffee, coconut, pepper, durian, macadamia and commercial forestry which highlights its commitment to diversification and resilience.

Operating under the stewardship of the MJF Group of Companies, globally recognized for the Dilmah Tea brand, KWPL is nurturing innovation, integrity, and long-term impact. Since its acquisition by the MJF Group in 2002, KWPL has undergone a strategic transformation. Moving away from traditional plantation practices, the company has adopted cutting-edge agri-innovation and sustainable business models. With an ambitious focus on reversing profit erosion and boosting margins, KWPL has implemented lean cost structures, rigorous KPI monitoring, mechanization, and high-efficiency operations across its estates. These strategies have delivered tangible results. The company’s investment in solar and hydro energy systems now saves over Rs. 4 million each month, while the Rs. 120 million solar project at Imboolpittia Estate is expected to generate consistent income for the next two decades. Notably, 70% of this project is funded through grants from the MJF Charitable Foundation.

The tea factory of Houpe Estate

Houpe Estate of Kahawatte located at the foothills of the historic Balangoda hills

Quality, Certification and Market Leadership of Kahawatte

KWPL’s transformation also includes a bold push towards product excellence and diversification. With over 336 hectares under cinnamon cultivation, it became Sri Lanka’s first plantation company to achieve Global GAP certification for cinnamon. The company is also officially registered under the Ceylon Cinnamon Geographical Indication, marking a significant milestone in elevating the credibility of Sri Lankan produce on the global stage. This focus on quality and innovation has paid off handsomely. In 2023 and 2024 alone, KWPL secured over 550 top prices at weekly tea auctions, with estates like Craighead, Queensberry and Kataboola regularly leading in the mid-grown category. Specialty teas such as “Rilagala Curls (Westhall)” and “Silver Green Needles” set records at charity auctions, fetching prices of up to Rs. 1.6 million per lot. KWPL is also breaking new ground through its partnership with the Industrial Technology Institute to commercialize Pentadesma Butter (Kpangnan Butter), derived from a previously underutilized fruit. This venture positions the company at the cutting edge of natural product innovation in the plantation industry.

Environmental Leadership Beyond Compliance

Environmental stewardship is embedded into KWPL’s operations which certainly is not treated as a peripheral responsibility. The company has developed a tea-based agroforestry model in collaboration with the Global Green Growth Institute, Rajarata University and the University of Peradeniya, which integrates biodiversity conservation with productive land use. KWPL’s commitment to sustainability is further evidenced by its management of over 2,000 hectares of timber plantations and 1,600 hectares of conservation forest. One of its standout environmental achievements is the creation of a 3-kilometre biodiversity corridor near the Sinharaja rainforest, developed in partnership with Dilmah Conservation. This project was recognized with the Best Sustainability Project Award at the 2023 Best Corporate Citizen Awards. Adding to its environmental credentials, KWPL also established the One Earth Climate Research Centre at Queensberry Estate which is the first private-sector climate adaptation research station in Sri Lanka, highlighting the company’s leadership in environmental science and policy engagement.

Pentadesma flowers grown in Hunuwella Estate

People-Centered Progress

At the heart of KWPL’s mission is its unwavering commitment to community empowerment. Reflecting the values of the MJF Group, the company’s comprehensive CSR programme supports more than 6,000 plantation workers and their families. Its initiatives encompass early childhood education, elder care, women’s health and scholarships, building a cohesive framework for social upliftment. KWPL has distributed over 2,000 ergonomically designed tea plucking baskets to improve worker wellbeing and safety. It provides scholarships for over 130 students each year, demonstrating a long-standing belief that prosperity must be shared. During the economic hardships brought on by the COVID-19 pandemic, KWPL responded with compassion, distributing Rs. 25 million worth of dry rations to help workers and their families weather the crisis. The company also runs innovative community programmes such as the “Ray of Hope” initiative for children and promotes livelihood diversification through beekeeping enterprises. Further, the “Savings Passbook Programme” for newborns encourages financial literacy from birth, offering families a tangible stake in their children’s future.

Visioning the Future of Plantations

Kahawatte Plantations is investing in a transformative roadmap that seeks to redefine what a modern, responsible plantation company can be. Plans are underway for end-to-end digitization through the implementation of a new ERP system, yield forecasting via drone and multispectral imaging, and the production of biochar from tea waste as a sustainable alternative to inorganic fertilizers. The company also envisions turning its estates into tourism gateways, with initiatives already in motion at Denawaka and Imboolpittia. Expanding its renewable energy footprint and exploring direct-to-consumer channels are further steps in a future oriented strategy that aligns with Environmental, Social and Governance (ESG) principles, carbon neutrality goals and consumer-centric innovation.

As one of the largest landholders in Sri Lanka’s plantation sector, Kahawatte Plantations PLC is leading the industry into a new era. At a time when the sector faces scrutiny around sustainability, profitability and ethical practices, KWPL offers a compelling and transparent model rooted in innovation, inclusivity, and long-term vision.



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Low-quality coal shipment affects Lakvijaya coal power plant operations

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Operations at Sri Lanka’s main coal-fired power facility, the Lakvijaya coal power plant, suffered a significant disruption soon after a new shipment of coal was introduced, raising concerns over generation stability and environmental emissions.

Energy analyst Dr. Vidura Ralapanawa said in a social media post that the plant began using coal from “Ship 11” on Wednesday, following confirmation from officials of the Ceylon Electricity Board (CEB).

However, almost immediately after the new batch of coal was fed into the system, the plant’s generation capacity began to decline due to the poor quality of the fuel.

According to Dr. Ralapanawa, the plant’s output dropped by about 82 megawatts overall. Unit 1 recorded a drop of 45 MW, Unit 2 fell by 15 MW, and Unit 3 declined by 22 MW shortly after the coal was introduced.

The situation worsened later in the night when two coal mills in Unit 3 reportedly became clogged around 11 p.m., causing a rapid fall in generation capacity. Unit 3, which normally operates at a higher output level, was said to be running at around 170 MW following the malfunction.

Coal mills are a crucial component in coal-fired power generation. They grind raw coal into a fine powder before it is fed into the boiler for combustion. Each generating unit at the Norochcholai facility is equipped with five coal mills, and any obstruction in these systems can severely affect plant operations.

When mills become clogged, plant operators often have to rely on diesel-fired burner guns to stabilise the flame inside the boiler. While this helps maintain combustion, it significantly increases operating costs because of the high price of diesel.

The heavy use of diesel has another consequence. According to Dr. Ralapanawa’s post, when diesel firing increases, the plant’s Electro-Static Precipitators (ESPs) must be shut down. ESPs are designed to capture and remove particulate matter such as fly ash before emissions are released through the chimney.

With the ESPs switched off, large amounts of fly ash may be released into the atmosphere, potentially affecting surrounding communities.

Dr. Ralapanawa further noted that the coal shipment appears to have low calorific value, low volatile matter, and high ash content, all of which reduce combustion efficiency. In addition, the coal reportedly has a low grindability index, making it harder to pulverise and increasing the likelihood of mill blockages.

He added that while the immediate clogging of the mills may be cleared within a day, the underlying quality issues with the coal could make the problem persistent.

The development comes amid earlier assurances from officials of the Ceylon Electricity Board that the Norochcholai plant could be operated effectively even with lower-quality coal supplies.

The Norochcholai facility, with an installed capacity of 900 MW, is the largest power station in Sri Lanka and a critical component of the national grid. Any disruption to its operations can have wider implications for the country’s electricity supply, potentially forcing the system to rely on more expensive oil-based power generation.

Engineers are currently working to address the clogged mills and stabilise generation, but energy analysts warn that unless the fuel quality improves, similar operational issues could recur.

By Ifham Nizam

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CSE regains some positive terrain but challenges remain

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CSE trading yesterday was positive overall on account of local economic growth prospects but concerns deriving from West Asian tensions lingered.

The market is still recovering from previous days’ uncertainties, market analysts said.

The All Share Price Index went up by 256 points, while the S and P SL20 rose by 63.8 points. Turnover stood at Rs 5.68 billion with nine crossings.

Seven crossings were reported in HNB Finance where 130 million shares crossed to the tune of Rs 1.1 billion; its shares traded at Rs 8.50, LMF four million shares crossed for Rs 348 million; its shares traded at Rs 87, Commercial Bank 661,000 shares crossed for Rs 142 million; its shares traded at Rs 215, Seylan Bank (Non-Voting) 750,000 shares crossed for Rs 49 million; its shares sold at Rs 75.50, ACL Cables 500,000 shares crossed for Rs 49 million; its shares traded at Rs 98, HNB 100,000 shares crossed for Rs 43.2 million; its shares sold at Rs 432 and Access Engineering 500,000 shares crossed for Rs 38.5 million and its shares fetched at Rs 77.

In the retail market companies that mainly contributed to the turnover were; HNB Finance Rs 331 million (34.8 million shares traded), Lanka Credit and Business Finance Rs 184 million (21.6 million shares traded), LOLC Holdings Rs 180 million (320,000 shares traded), Commercial Bank Rs 167 million (774,000 shares traded), Softlogic Capital Rs 138 million (twelve million shares traded), Sampath Bank Rs 124 million (789,000 shares traded) and ACL Cables Rs 123 million (1.26 million shares traded). During the day 330 million share volumes changed hands in 36639 transactions.

It is said that the banking and financial sectors performed well. HNB Finance was active in the financial sector, while Commercial Bank and HNB were active in the banking counters.

Further, National Development Bank has received Colombo Stock Exchange approval in principle to list Rs 16 billion of 11.50, 11.04 and 11.85 percent debentures, it said in a CSE filing.

NDB will issue 120 million Tier 2, listed, rated, unsecured, subordinated, redeemable Basel III compliant GSS+ bonds with a non-viability conversion, at Rs 100 each.

Yesterday the rupee was quoted at Rs 310.70/85 to the US dollar in the spot market, weaker from Rs 310.30/60 the previous day, dealers said, while bond yields were broadly steady.

By Hiran H Senewiratne

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Indian Ocean under fire: Parliament explodes over the sinking of ‘IRIS Dena’

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A new crisis looms with a second Iranian vessel at the doorstep

Sri Lanka’s parliament became a secondary battleground yesterday as the sinking of the Iranian frigate IRIS Dena ignited a fierce debate over national sovereignty, regional maritime priciples, and the government’s perceived ‘strategic paralysis.’

While the Navy’s rescue of 32 sailors was initially painted in shades of heroism, Opposition MPs have now unfurled a narrative of missed warnings and geopolitical betrayal.

In a scathing address, Opposition firebrand Chamara Sampath Dissanayake challenged the circumstances of the vessel’s arrival in Sri Lankan waters. The IRIS Dena had been a guest of the Indian Navy during the MILAN-2026 exercises just days prior. Dissanayake alleged that at the conclusion of the fleet review, the vessel was effectively ‘put out’ of India, leaving the crew with no choice but to steer toward Sri Lanka.

“This was a deliberate attempt by the host to put a guest in harm’s way,” Dissanayake charged, stopping just short of naming India directly while making the implication undeniable. He argued that Sri Lanka had been ‘set up’ to deal with the fallout of a targeted strike that occurred only 11 nautical miles from Galle.

The debate took a darker turn when SJB MP Mujibur Rahman dropped a bombshell regarding the timing of the attack. Rahman alleged that the IRIS Dena had signalled for permission to enter Sri Lankan waters 11 hours before it was struck by U.S. torpedoes.

“Why did the authorities keep silent?” Rahman demanded. He blasted the government for failing to act on humanitarian grounds, suggesting that Colombo’s hesitation provided the necessary window for what U.S. Defense Secretary Pete Hegseth termed a ‘Quiet Death.’ Rahman’s critique painted a picture of a government ensnared in superpower machinations, unable to uphold the principles of the Indian Ocean as a ‘Zone of Peace.’

Responding to the barrage of questions, Cabinet Spokesman Dr. Nalinda Jayatissa confirmed a chilling new development: a second Iranian vessel is currently positioned in the Exclusive Economic Zone (EEZ) off Colombo.

While Jayatissa assured the House that the President and the Security Council are ‘fully aware’ and making ‘necessary interventions’ to protect those on board, the lack of specific details fueled further anxiety. Political analysts suggest that the government’s failure to announce a clear, proactive neutral policy has left it in a state of ‘vacillation,’ unable to decide whether to grant refuge to the second ship or risk another tragedy on its doorstep.

The parliamentary clash was punctuated by the visit of former president Ranil Wickremesinghe to the Iranian Embassy yesterday to offer condolences for the passing of Supreme Leader Ayatollah Ali Khamenei. Wickremesinghe had warned on March 2 – just 48 hours before the sinking – that the current ‘leadership eviction’ methodology in the Middle East could destabilise the Indian Ocean.

As the death toll from the IRIS Dena stands at 87 with 60 still missing, the ‘can of worms’ opened in parliament reveals a nation at a crossroads. The government’s silence during the Dena’s final hours and its current ‘intervention’ with the second vessel will likely define Sri Lanka’s standing in a rapidly fragmenting global order.

As the House adjourned, one question remained hanging in the air: In the face of a superpower conflict, does Sri Lanka have the ‘backbone’ to be truly neutral, or is it merely a spectator to its own maritime destiny?

by Sanath Nanayakkare

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