Business

Hatton Plantations looks to gain on its robust capital structure

Published

11 months ago

2025/01/17

Seated from left: Menaka Athukorala,CEO & MD HPL PLC, Gary Seaton ,Chairman G&G Group of Companies ,Singapore, Gowri Shankar, CEO G&G Group of Companies, Singapore. Standing from left: Waruna Fernando, Deputy CEO, HPL PLC, Nisal Rukshan , Assistant Manager Plantations and Leisure, HPL PLC.

Looking for opportunities to invest in tourism and solar power verticals

Says ‘would be happy to talk to right partners’

By Sanath Nanayakkare

Getting a more realistic control over historical truth and the current significance of a company will probably be the prime concern of a potential investor looking for a strategic tie-up with a particular company, before he or she decides to invest in it.

In that context, Hatton Plantations may not have a ‘story’ to tell, but rather a ‘credible report’ to present because many investors might be cynical about listening to stories.

Hatton Plantations PLC is a subsidiary of G&G Group of Companies, a Singapore-based conglomerate whose chairman is Gary Seaton from Australia who first visited Sri Lanka in the 1970s as a backpacker tourist. Then he and his family started looking at business opportunities in Sri Lanka in the 1980s and bought the first tea company in 1996 after the plantations privatization programme came into effect in Sri Lanka. That was the well-known Pussellawa Plantations spanning across 10,000 hectares.

Then they sold it in 2017 and bought Hatton Plantations (HPL PLC) in 2019 which has 7,500 hectares on 13 estates.

Today HPL PLC has 12 tea processing factories with a combined green leaf capacity of 155,500 kg per day. It uses Orthodox, CTC, Leafy, and Green Tea manufacturing methods supported by versatile production facilities. It engages in the production of high and medium-grown teas in the key regions of Watawala, Hatton, and Lindula.

Hatton Plantations PLC, was the highest producer amongst all the Regional Plantation Companies (RPCs), having sold a quantity of 6,484,037.50 kgs with an average of Rs.1,134.11 for the year 2024, preceded by equal performances in the three previous years. And HP PLC is one company that has been replanting for the past four years continuously – a key factor that has contributed to its continuous growth.

Speaking to the media at the Company’s office in Peliyagoda recently, Gary Seaton said. “We have a vision to further expand into plantation, and we also look at two other business verticals: renewable energy and tourism. We very much believe in transitioning from fossil fuels to renewables. Sri Lanka is one of those few remaining countries that hasn’t industrialized everything and that’s very much aligned with the vision of Hatton Plantations PLC. We understand the challenges Sri Lanka faced in the last 40 years. But despite those challenges, we are with Sri Lankans. Many Sri Lankans are leaving Sri Lanka to go abroad, but we are coming from abroad to operate from Sri Lanka. We are doing it the other way around,” he said on a lighter note.

Menaka Athukorala, CEO & MD Hatton Plantations PLC said,” As part of the diversification, we are going into coffee in a major way. We initiated this project three years ago and we have already planted coffee on 100 hectares, and we are already harvesting coffee. A total of 500 hectares of coffee will be planted in the next 3 to 4 years. Our total investment in coffee would be Rs. 1 billion and we have already invested Rs. 200 million. With this, our per hectare income grows with the optimum use of the land while getting the best productivity from our workforce in a mutually beneficial way.” he said.

Gowri Shankar, CEO G&G Group of Companies, Singapore noted,” There’s a shortage of coffee in India, so it will be a potential market for our unique Sri Lankan coffee brand apart from the U.S., and Australia markets. South India loves coffee over tea and North India’s preferred beverage is tea. So, our coffee has a great opportunity to enter the South Indian market. Hence, we are looking at these three key markets for exporting our coffee.”

“Some other companies also have started growing coffee, but we are the largest producer of coffee at present. We will be setting up our coffee processing unit in the next two years which will cost about Rs. 200- 300 million. By 2026, HPL PLC’s coffee will come to the local market and exports will commence in 4 years down the line”, Menaka Athukorala said.

Touching on their tea plantations, HPL PLC said that they have started deploying mechanization, precision agriculture and tech solutions to make their operations more efficient.

HPL has already started using drone technology to apply Foliar Spray on some of their estates to deliver essential nutrients directly to the tea leaves.

“Drones are being used in pilot projects to streamline the operational process, to increase the productivity in the fields and to make the monitoring more efficient and automative,” they said.

“We are upgrading the facilities being provided to our field workforce with convenient access to toilets and bathing places. We have a workforce of 4,000 on permanent basis and an equal number on a casual basis. The issue of labour wages has not caused us much of a problem because we have so many welfare activities that ensure our workers’ well-being.”

“We are going to set up a vocational training institute on our estate in Hatton to train the children of our workers in various crafts. With the new-found skills, they can choose to work with us or go and be employed or self-employed elsewhere. We believe such socially responsible activities will foster stronger bonds between the company and the employees. That bond will take care of the whole ecosystem of Hatton Plantations for many years to come,” they said.

“For diversification in tourism, we are looking at strategic partnerships whose mainstream business is tourism. We don’t want to get into their line of business. As the infrastructure is already there with HPL’s holiday bungalows and picturesque tea estates, we will see who understands its value and bring their expertise of tourism to our assets. We will see how we can leverage those assets together with them and grow the business,” Gowri Shankar said.

Hatton Plantation PLC’s profit before tax was Rs. 1.2 billion in 2024. This year it will be slightly less because of the wage increase, and it is expected to be close to one billion rupees in FY 2024/25. And in FY 2025/26, the company expects a PBT of Rs. 1.3 billion when tech modernizations are successfully implemented.

“We have liquid cash assets that we would like to channel into these verticals. In the meantime, we are looking at the possibility of investing in tea plantation in Kenya as there is an opportunity to produce orthodox leafy teas in that country – where your yields are higher and profit margins are much greater,” they said.

The media was told that HPL was keen on investing in viable solar power projects anywhere in Sri Lanka that generates more than 5 megawatts of power.

Currently, HPL has eight hydro-power plants generating 12 megawatts. Lotus Hydro Power of the Group is the highest dividend-yielding company in the domain with around 14% yield rate, consistently maintaining it from 2014, except for the crisis-years in Sri Lanka.

“Hatton Plantations is willing to allocate Rs. 1 billion to invest in a viable solar project and we’d be happy to talk to the right partners”, “Gary Seaton said.

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Business

Ceylon Chamber partners with members and relief agencies to deliver Cyclone Ditwah relief

Published

22 hours ago

2025/12/12

Thilina Walpola

In response to the devastating impact of Cyclone Ditwah, The Ceylon Chamber of Commerce has been actively supporting national relief and recovery operations in collaboration with the Government of Sri Lanka, key partners, and its members.

As a co-chair of the Sri Lanka Preparedness Partnership (SLPP) alongside the Disaster Management Centre (DMC), the Ceylon Chamber together with Janathakshan, played a central role in coordinating emergency response efforts, ensuring rapid and efficient assistance to affected communities. From 28 November to 6 December 2025, the Chamber mobilised volunteers across the Chamber Secretariat, member companies MAS Capital Pvt. Ltd – Intimates Division, Aitken Spence PLC, and university student groups, contributing more than 190 hours of service and answering over 40,000 emergency assistance requests to support the DMC’s 24-hour Emergency Operations Center.

The Chamber also provided support to the DMC for the Rapid Disaster Needs Assessment (RDNA), assisting with data analysis of calls received and the development of the direct community needs component of the RDNA, which informed government planning and coordination of relief distribution.

With the generous support of its member companies, the Ceylon Chamber facilitated the collection and handing over of financial aid and essential relief items to affected areas. The Chamber is deeply appreciative of Aitken Spence PLC, BASF Lanka (Pvt) Ltd.. CDK Philip Hospital, Central Finance Company PLC, Cinnamon Hotels & Resorts, Devi Trading Company, Eastern Merchants PLC, Emar Pharma Pvt. Ltd., Finagle Lanka Pvt.Ltd., H Connect International Pvt. Ltd., Hemas Manufacturing (Pvt) Ltd., John Keells-Cinnamon Life, John Keells Holdings, John Keells Properties, Lakdhanavi, Lauke Shipping, Oxford College of Business, Perera & Sons, Shanthi Textile, Union Assurance PLC, Union Bank of Colombo PLC, Walkers Tours, Wealthtrust Securities Ltd., and a large number of private donors, both individuals and companies, for heeding the nation’s call, supporting communities and industries hardest hit by Cyclone Ditwah, and contributing to ongoing recovery and rebuilding efforts across the country.

Beyond immediate relief, the Chamber continues to support preparedness initiatives ahead of the North East Monsoon Season 2025, reinforcing resilience and readiness across the country.

“We are deeply grateful to our member companies and volunteers for stepping up in this critical time – demonstrating once again that the private sector has and will continue to play a strong and supportive role in ensuring stability and sustainability for Sri Lanka at all times’, said Krishan Balendra, Chairperson of the Ceylon Chamber.

Business

Fluctuating fortunes for bourse in the wake of selling pressure

Published

22 hours ago

2025/12/12

Thilina Walpola

The CSE kicked off yesterday on a bullish sentiment, but by the middle of the session it turned negative due to heavy selling pressure. Later, though, it returned to positive territory, market analysts said.

There was satisfactory buying pressure latterly, both in retail and institutional entities, following the return to normalcy of economic activities driven by international support for rebuilding the country.

Amid those developments both indices moved upwards. The All Share Price Index went up by 60.33 points while S and P SL20 was up by 11.67 points. Turnover stood at Rs 5.55 billion with nine crossings.

Top seven crossings were: Sunshine Holdings 13.6 million shares crossed to the tune of Rs 462 million and its shares traded at Rs 35, JKH 9.5 million shares crossed for Rs 198 million; its shares traded at Rs 21, Laugfs Gas (Non-Voting) 1.2 million shares crossed for Rs 73.2 million; its shares traded at Rs 61 Tokyo Cement (Non-Voting) 730,000 shares crossed tfor Rs 66.1 million; its shares traded at Rs 87, Commercial Bank 185,000 shares crossed for Rs 37 million and its shares sold at Rs 200, Access Engineering 300,000 shares crossed for Rs 23.1 million; its shares sold at Rs 77 and Laugfs Gas 300,000 shares crossed to the tune of Rs 22.4 million; its shares sold at Rs 73.90.

In the retail market top seven companies that mainly contributed to the turnover were; Colombo Dockyard Rs 485 million (two million shares traded), JKH Rs 468 million (22.4 million shares traded), Dialog Axiata Rs 245 million (8.4 million shares traded), Sunshine Holdings Rs 198 million (5.7 million shares traded), ACL Cables Rs 122 million (481,000 shares traded) and Lanka Credit Business and Finance Rs 108.5 million (11.4 million shares traded). During the day 171 million shares volumes changed hands in 34388 transactions.

It is said that manufacturing sector counters, especially JKH and Sunshine Holdings, led the market while the banking sector also fared reasonably well, especially Commercial Bank. The telecommunication sector, mainly Dialog Axiata, also performed well.

Meanwhile, Cargills Bank is looking to raise Rs 2.5 billion through a rights issue of shares at Rs 8.50 each to support lending activities.

It also will issue 294,200,000 ordinary voting shares at a ratio of 14 new ordinary shares for every 45 existing ordinary shares. The issue is expected to raise Rs 2,500,700,000 in capital, CSE sources said.

Yesterday, the rupee was quoted at Rs 308.95/309/05 to the US dollar in the spot market, weaker from Rs 308.80/90 the previous day, dealers said, while bond yields dropped significantly.

A bond maturing on 15.02.2028 was quoted at 9.05/15 percent, down from 9.15/20 percent.

A bond maturing on 15.09.2029 was quoted at 9.50/52 percent.

A bond maturing on 01.07.2030 was quoted at 9.55/65 percent.

A bond maturing on 15.12.2032 was quoted at 10.20/30 percent, down from 10.25/30 percent.

A bond maturing on 15.06.2035 closed at 10.63/70 percent.

By Hiran H Senewiratne

Business

HNB tops TAB Global Ranking as “Sri Lanka’s Strongest Bank”

Published

22 hours ago

2025/12/12

Thilina Walpola

HNB PLC, the leading private bank in Sri Lanka, has been awarded the title of Strongest Bank in Sri Lanka for 2025 by TAB Global. The recognition was confirmed following the release of the TAB Global World’s 1000 Largest and Strongest Banks Rankings, with the announcement made recently

HNB’s Managing Director / CEO, Damith Pallewatte, stated that the accolade underscores the bank’s unwavering commitment to sustained financial strength and strategic resilience. “This honour shows the resilience and clarity of purpose that guide our institution. Our teams advanced through demanding cycles with discipline and accountability. The recognition confirms the trust placed in us by customers, investors and partners and it reinforces the duty we carry as a leading private bank. We remain fully committed to safeguarding long-term strength while contributing to Sri Lanka’s economic advancement with integrity and resolve.”

HNB achieves a landmark distinction in the 2025 rankings, establishing itself as Sri Lanka’s strongest bank. The assessment highlights HNB’s balance sheet quality, prudent risk discipline and the bank’s consistent ability to maintain stability through varied economic conditions. The ranking places HNB alongside leading global financial institutions acknowledged for sustained strength, institutional reliability and capacity to absorb external shocks.

Foo Boon Ping, President and Managing Editor at TAB Global, stated: “HNB demonstrated strong fundamentals and consistent delivery across multiple stress indicators. The bank’s performance placed it ahead of its domestic peers and aligned it with institutions recognised for structural strength. The ranking reflects measurable outcomes drawn from transparent criteria.”