Business

A turnaround in farmers’ opinion of oil palm cultivation

Published

2 years ago

2024/01/4

Sahan Weerasooriya

Farmers who supported the ban on the crop in 2021 now want it lifted

by Sanath Nanayakkare

Oil palm cultivation which underwent heavy criticism in Sri Lanka due to environmental concerns and subsequently led to a ban imposed on it by former president Gotabaya Rajapaksa in April 2021 is now taking an interesting turn of events due to tea and rubber smallholders’ insufficient incomes and what they describe as ‘better awareness’ of oil palm cultivation.

With just over two and a half years, the very same tea and rubber smallholders who had protested against the cultivation of oil palm in their region are now appealing to the government to lift the ban and allow them to cultivate oil palm in their tea and rubber lands as an intercrop.

This surprising development in the rural agri-sector was revealed to The Island Financial Review (IFR) when it met with farmer members of Haritha Derana Society – a group of tea and rubber smallholders in Baduraliya, Matugama in Kalutara district recently.

“First of all, we must say that we were at the forefront of the campaign against oil palm cultivation which partly influenced the ban on the cultivation of oil palm in 2021 by the then president Gotabaya Rajapaksa. When we think back to what motivated us to join the protest bandwagon in 2021 and the current state of things on the ground, we feel remorse and guilt for not acting on wiser judgment. In fact, we were emotionally influenced by popular opinion that prevailed at the time, and we went with the flow without considering the true environmental science behind oil palm cultivation,” farmer Siripala Edirisinghe said.

“The effect of oil palm on groundwater resources isn’t significantly different from that of rubber. Scientifically, it is a fact that a single oil palm tree consumes about 249 litres of water per day against 63 litres by a rubber tree. However, the consumption of water per hectare of oil palm is only slightly higher than that of a hectare of rubber because fewer oil palms are planted per hectare. A hectare of rubber requires 31,500 litres of water per day while a hectare of oil palm requires 34,680 litres. This has been scientifically calculated and publicized”, farmer M.S. Samaranayake said.

“Oil palm cultivation in Galle district commenced about 50 years ago – long before in Kalutara district. However, there have been no reports to date of water shortages in Galle district due to oil palm. Kalutara district receives an annual average rainfall of about 318 millimeters and the region has 267 rainy days on average. This means it rains 73% of any given year. This year it was even more as you know. So, there is no basis for the concern that oil palm cultivation can lead to a deficit in water resource,” farmer T.A. Chandralal said.

“Lots of rain in our district has had an adverse impact on our tea and rubber plantations but not on oil palm estates. Heavy, unseasonal rains have drastically reduced rubber tapping in our region deeply eroding the income of rubber smallholders. Our tea growers also feel the impact of Climate Change on their ever-declining harvests and dwindling incomes. If you check tea brokers’ reports at the Colombo Tea Auction, you will see that the total auction offerings have declined fairly sharply and overall quality of Sri Lankan tea is barely maintained. So, the future indicates that our tea and rubber stallholders are between the devil and the deep blue sea. However, amidst these threats, we are encouraged to see the emerging awareness about oil palm as a vibrant, high-performing industry in Sri Lanka. Therefore, we urge the government to lift the ban and allow oil palm cultivations in our lands ensuring minimum side effects to the environment,” he said.

“Unlike tea and rubber, we need to work less time on oil palm lands between planting and fruit-bearing stage. It will give us a lot of time to attend our household chores and take care of our children’s wellbeing and school work and get them to attend school every day without playing truant and get better grades. I am sure if oil palm cultivation is allowed by the government, there will be a lot of female labour participation in the plantation sector. No other daily plantation work can give enough freedom to a poor working mother,” farmer Kumari Damayanthige said.

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Business

A Historic First: Sri Lanka’s capital market leaders bring investor forum to Saudi Arabia

Published

8 hours ago

2026/02/6

Thilina Walpola

Key dignitaries at the Saudi investor forum

The Securities and Exchange Commission of Sri Lanka (SEC) and the Colombo Stock Exchange (CSE), in association with the Embassy of Sri Lanka to the Kingdom of Saudi Arabia, successfully convened an investor forum on Saturday 24th January 2026 at the Radisson Blu Hotel, Riyadh Convention & Exhibition Center. Alongside the forum, the SEC and CSE facilitated a meeting with the Public Investment Fund (PIF) which is Saudi Arabia’s main sovereign wealth fund.

The forum was organized to engage directly with the vibrant Sri Lankan expatriate community in the Kingdom and international investors, highlighting compelling opportunities within Sri Lanka’s capital market following the country’s successful exit from sovereign default and restoration of macroeconomic stability.

The forum was marked by the presence of several senior level policy officials, market leaders and market regulators including; Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL); Chathuranga Abeysinghe, Deputy Minister of Industry and Entrepreneurship Development; Ameer Ajwad Ambassador of Sri Lanka to the Kingdom of Saudi Arabia.; Senior Prof D.B.P.H. Dissabandara, Chairman of the SEC; Ray Abeywardena, Director of CSE; and Dr. Naveen Gunawardane, Co-Founder and Managing Director of Lynear Wealth Management.

In his welcome address, Ameer Ajwad stated, that a significant opportunity remains in broadening public participation in the capital market of Sri Lanka. As financial literacy and investment awareness among potential investors are limited, the investor forum would serve to bridge the knowledge gap. The forum offered an excellent opportunity for first-time investors, overseas investors, and those seeking to enhance their knowledge, to learn how to invest prudently, manage risk, and build wealth with discipline and confidence. Ambassador invited participants to make full use of the presence of high-level authorities from Sri Lanka’s key financial institutions, such as the Central Bank of Sri Lanka, the SEC, and the CSE, and to explore investment opportunities in Sri Lanka’s capital market, not only as a pathway to financial growth but also as a meaningful contribution to Sri Lanka’s resilience and long-term prosperity.

Business

CIC Holdings’ 9MFY26 revenue reaches Rs.70 bn

Published

8 hours ago

2026/02/6

Thilina Walpola

Agriculture-rich diversified conglomerate CIC Holdings PLC (CSE: CIC) recorded a consolidated revenue of Rs. 70.28 billion for the nine months ended 31 December 2025 (9MFY26), reflecting an increase of 8.69% YoY compared to the corresponding period of the previous year.

The Group’s gross profit increased by 10.11% to Rs. 18.42 billion, with the gross profit margin for the period under review improving to approximately 26%, supported by disciplined pricing and product mix optimisation. Profit after tax (PAT) increased to Rs. 5.97 billion from Rs. 5.70 billion in the corresponding period of the previous year, despite losses incurred in parts of the Group’s agri operations following the impact of Cyclone Ditwah, which disrupted cultivation activity during the Maha season.

The Group’s Crop Solutions sector remained the largest contributor to consolidated revenue, accounting for approximately 44.7% of total revenue, followed by Livestock Solutions at 21% and Health & Personal Care at 20.18%. The remaining sectors, Industrial Solutions and Agri Produce, contributed 8.6% and 6.4% to Group turnover respectively. Health and Personal Care , particularly export-driven product lines, recorded improved performance during the period, alongside continued growth in feeds, poultry, and veterinary care solutions, which supported the Group’s overall operating results.

Despite cyclone-related disruption to cultivation cycles, the Group delivered a strong operating performance, with EBITDA and operating profit (EBIT) both recording year-on-year growth. Operating profit (EBIT) closed at Rs. 9.67 billion, compared to Rs. 8.62 billion in the corresponding period of the previous year, reflecting the strength of the Group’s diversified portfolio and disciplined cost management.

During the period in review, key Group businesses across the five industry sectors, namely Crop Solutions, Agri Produce, Livestock Solutions, Industrial Solutions, and Health & Personal Care, continued to perform resiliently. Crop Solutions revenue increased from Rs. 28.06 billion to Rs. 32.32 billion, while Livestock Solutions revenue grew from Rs. 13.35 billion to Rs. 14.60 billion. Health & Personal Care revenue improved from Rs. 14.29 billion to Rs. 14.46 billion, supported by herbal health product exports and steady domestic demand. Revenue from Agri Produce increased from Rs. 4.35 billion to Rs. 4.64 billion, while Industrial Solutions revenue rose from Rs. 6.07 billion to Rs. 6.28 billion.

Commenting on the performance, CIC Holdings Group CEO Aroshan Seresinhe said, “Despite the disruption caused by Cyclone Ditwah to agricultural activity during the Maha season, the Group remained focused on supporting farming communities through well clean-up operations, field renovation, and the restoration of cultivation activity.

Business

CSE regains some of its bullish verve as turnover hits Rs.11 billion

Published

8 hours ago

2026/02/6

Thilina Walpola

CSE trading reflected a bullish trend yesterday due to positive quarterly corporate earnings coupled with lower Treasury Bill yields, market analysts said.

Further, institutional participation contributed more than 50 percent to the day’s turnover.

Amid those developments both indices moved upwards. The All Share Price Index went up by 63.67 points, while the S and P SL20 rose by 12.58 points.

Turnover stood at Rs 11.1 billion with10 crossings. The top seven crossings were: JKH 189.5 million shares crossed to the tune of Rs 4.2 billion; its shares traded at Rs 22.70, HNB 3.5 million shares crossed for Rs 1.48 billion; its shares traded at Rs 422, Hemas Holdings 11 million shares crossed for Rs 376.2 million; its shares traded at Rs 34 20, Commercial Bank 1.5 million shares crossed for Rs 336.8 million; its shares traded at Rs 224.50, Sampath Bank 600,000 shares crossed for Rs 93.6 million; its shares sold at Rs 156, Laugfs Gas 868,000 shares crossed for Rs 51.6 million; its shares sold at Rs 71 and Sierra Cables 1 million shares crossed for Rs 36.7 million; its shares sold at Rs 36.70.

In the retail market top seven companies that mainly contributed to the turnover were; Ceylon Land Equity Rs 385 million (20 million shares traded), Commercial Bank Rs 373.9 million (1.7 million shares traded), Luminex Rs 247.2 million (26.7 million shares traded), Colombo Dockyard Rs 152 million (one million shares traded), TJ Lanka Rs 152 million (four million shares traded), Easter Merchants Rs 142 million (8.7 million shares traded) and RIL Properties Rs 116.9 million. During the day 441.3 million share volumes changed hands in 44406 transactions.

It is said that manufacturing sector counters, especially JKH, led the market while the banking sector also performed well, especially HNB and Sampath Bank. Further, the capital goods sector too performed well.Yesterday the Central Bank’s US dollar buying rate was Rs 305.78 and selling rate Rs 313.32.

By Hiran H Senewiratne