Business
Hatton Plantations looks to gain on its robust capital structure
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.
Business
Priority areas for deepening Japan-SL economic ties
Japan Business Council (SLJBC) of The Ceylon Chamber of Commerce recently held its 47th AGM, with the Ambassador of Japan and the Patron of the Council, Akio ISOMATA, attending as the Chief Guest.
Addressing the gathering, Ambassador ISOMATA outlined three priorities for deepening bilateral economic relations: an effective and forward-looking trade and investment policy, the promotion of domestic industrial policy, and expanded investment in renewable energy. He noted that Sri Lanka’s ongoing review of its Free Trade Agreement policy would be important in shaping the country’s future negotiating landscape. He encouraged Sri Lanka to look Eastward toward Southeast Asia and Japan, proposing that the country adopt an export-oriented industrial model. The Ambassador welcomed the Government’s National Export Development Plan 2026 and National Mineral Policy 2026 as consistent with Japan’s vision of connecting Sri Lanka’s export-related manufacturing sectors with India’s high-growth manufacturing base.
In his address, President Athulla R F Edirisinghe reflected on nearly seven decades of humanitarian and development support extended by Japan to Sri Lanka, and paid tribute to the Chairman of the Sasakawa Peace Foundation Yohei Sasakawa, for his magnanimity in establishing the Foundation. Reflecting on the history of Japanese investment in the region from the 1970s onward, he observed that Sri Lanka had missed many opportunities to attract Japanese foreign direct investment. Highlighting the 2025 proposal for a Sri Lanka – Japan Economic Corridor by the Ministry of Economy, Trade, and Industry Japan, he called on Sri Lankan businesses, industry associations, and the wider community to come together in dialogue with the Government to ensure the country does not miss this opportunity as well.
2026/27 Committee: President: Athulla R F Edirisinghe – Director, Hirohama Ceylon (Pvt) Ltd, Senior Vice President – Ruwan Waidyaratne – Managing Director, Hayleys Advantis Ltd, Vice – President – Shamil Mendis – Managing Director, Spear International (Pvt) Ltd, Treasurer – Rohitha Mendis – Managing Director of Prudential Shipping Lines (Pte) Ltd, Immediate Past President – Mahen Kariyawasan – Managing Director, Andrew The Travel Company (Pvt) Ltd, representatives from Amano Lanka Engineering (Pvt) Ltd, BOV Capital (Pvt) Ltd, Brandix Apparel (Pvt) Ltd, Heritage Teas (Pvt) Ltd, Kalhari Enterprises (Pvt) Ltd, Lanka Harness (Pvt) Ltd, Dentsu Grant (Pvt) Ltd, MAC Holdings (Pvt) Ltd, and Vidullanka PLC. By invitation: HVA Foods PLC (subsidiary of George Steuart & Co), Spillburg Holdings (Pvt) Ltd, and Vaughan Chemicals (Pvt) Ltd.
The Sri Lanka – Japan Business Council plays an important role in promoting trade, tourism, and investments between Japan and Sri Lanka. For membership inquiries contact Kiyara at The Ceylon Chamber of Commerce via E-mail: businesscouncils1@chamber.lk or Tel.: 011 5588875/ 5588800.
Business
Rekawa turns turtle conservation into a 30-year community business model
By Ifham Nizam
What started 30 years ago as an effort to protect sea turtles has evolved into a community-based economic model that has generated livelihoods, attracted tourists and transformed Rekawa into one of Sri Lanka’s best-known nature tourism destinations.
The Rekawa Turtle Conservation Project, launched on September 2, 1996, by the Turtle Conservation Project (TCP) in partnership with the Department of Wildlife Conservation and the Rekawa community, marked its 30th anniversary last week, demonstrating how biodiversity protection can become an economic opportunity for communities living alongside sensitive natural resources.
Speaking at the anniversary celebrations, TCP chairman Thushan Kapurusinghe said the project currently provides direct livelihoods for 28 people, but its economic impact extends considerably beyond those directly employed by the programme.
‘Today, 28 people directly earn their livelihood through this project. But its impact goes far beyond those 28 individuals, Kapurusinghe said.
He pointed to the transformation of the area over the past three decades, arguing that the growth of tourism in the community has been closely linked to the turtle conservation programme.
‘If you travel from Netolpitiya to this area, you can clearly see how much the village has transformed over the years. There is no doubt that the growth of tourism in this community has been driven by the Turtle Conservation Project, he said.
The economic significance of Rekawa lies in its ability to convert the protection of a natural asset into a source of recurring community income.
Tourists do not come to Rekawa merely to see a beach. They come to witness sea turtles emerging from the ocean and nesting in their natural habitat—a tourism experience that depends directly on the continued protection of the nesting beach.
Kapurusinghe said tour operators regularly bring visitors to Rekawa, with some tourists traveling there after visiting major attractions such as the Kandy Esala Perahera.
The model represents a fundamental shift from viewing conservation as an expense to recognising biodiversity as an economic asset that can generate sustainable livelihoods when properly managed.
The 30th anniversary celebration at the Rekawa Turtle Conservation Project Information Centre brought together Southern Wildlife Region Director of the Department of Wildlife Conservation Channa Suraweera, government officials, conservation organisations, community representatives and long-standing supporters of the initiative.
Individuals who had contributed to the project over the past three decades were also recognised with awards for their service to sea turtle and environmental conservation.
Rekawa’s experience has attracted international attention because of precisely this combination of conservation and community development. The project has received international recognition as well as the Green Employment Award from the Ministry of Environment and Natural Resources. Earlier international recognition included a highly commended ‘Tourism for Tomorrow’ award, while the project’s turtle-watch programme subsequently received further recognition in responsible tourism and conservation.
Business
Ceylinco Life brings premium policyholders closer to the magic of the Kandy Perahera
For an evening, the timeless spectacle of the Kandy Esala Perahera unfolded at especially close quarters for a select group of Ceylinco Life’s most valued policyholders and their families, who were hosted to an exclusive viewing experience by the Company’s Customer Relations Division.
Held at the Ceylinco Life Kandy Branch on Kings Street, the annual event coincided with the second Randoli Perahera, bringing guests into the heart of one of Sri Lanka’s most spectacular expressions of culture, tradition and pageantry.
As the procession made its majestic passage through the streets of Kandy, guests enjoyed VIP seating at a prime vantage point, allowing them to experience the colour, movement and grandeur of the Perahera up close. The evening offered a fitting setting for Ceylinco Life to celebrate its enduring relationships with its premium clientele.
The experience extended well beyond the spectacle outside. Guests were welcomed with evening refreshments and an exclusive dinner buffet presented by the prestigious Amaya Hills Resort, adding a fine-dining dimension to an already memorable evening.
Families, too, were at the centre of the occasion. A private movie theatre experience provided entertainment for children and adults alike, while each attending family received a beautifully framed family photograph as a personalised souvenir, a tangible reminder of an evening shared together against the backdrop of one of Sri Lanka’s most treasured cultural traditions.
Besides being a much sought-after opportunity to watch the Perahera, the occasion was an expression of appreciation. Through its continuing Customer Relationship Management activities, Ceylinco Life seeks to create experiences that recognise its most valued policyholders not simply as customers, but as relationships to be celebrated and nurtured. And on this particular August evening, the enduring splendour of the Kandy Perahera provided the perfect setting for doing just that.
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