Business

Plantation companies to lose Rs 500 mn. due to govt. vacillation on oil palm

Published

5 years ago

2020/08/23

Plantation companies will sustain a cumulative loss of more than Rs 500 million within months due to policy inconsistencies and vacillation by the government on a well-regulated expansion of Sri Lanka’s oil palm cultivation, the sector’s apex industry association has warned.

The Palm Oil Industry Association (POIA) said 356,000 oil palm plants imported on the strength of a government decision to expand cultivation have been maturing in nurseries for more than three years, due to the government’s failure to address concerns arising from falsehoods and disinformation spread by misled activists and lobbyists with vested interests.

“About 40 per cent of these trees may already be unviable and we fear that the entire stock may have to be destroyed within the next two months, unless the government resolves this matter expeditiously,” POIA President Dr Rohan Fernando said.

The Palm Oil Industry Association represents cultivators as well as refiners, processors, manufacturers, marketers and sellers of palm oil and other products of the oil palm, who have cumulatively invested Rs 26 billion in the industry.

Sri Lanka has less than 11,000 hectares under oil palm – just over one per cent of the extents under tea, rubber and coconut – and plantation companies had been mandated to increase the total area under oil palm to 20,000 hectares under strictly-enforced guidelines that ensure the industry is environmentally non-invasive, before the government back-pedalled on the plan.

Fernando said the industry’s appeal to the government for permission to plant whatever viable trees are left in the nurseries, would enable the plantation companies to reduce the losses they are faced with and help increase local production of palm oil at a time when imports are being restricted to conserve foreign exchange. He said even if the entire stock of trees had been planted, the country’s extent under oil palm would only have increased by about 2,750 hectares.

“We are also aware that the government is looking at expanding coconut cultivation to which we have absolutely no objection, but experts have calculated that it would take at least 20 years to reach a point where the country’s edible oil requirements can be met by locally-grown coconut,” Fernando said. “There is also concern that coconut oil production is more costly and requires more land than oil palm.”

He pointed out that baseless vilification of the local palm oil industry had resulted in the country producing just 23,000 tonnes of palm oil per annum and the import of a staggering 220,000 tonnes of crude palm oil into the country each year, at a cost of approximately Rs 22 billion.

The government decision to encourage cultivation of oil palm and to increase the country’s extent under the crop to 20,000 hectares was backed by comprehensive conditions and guidelines that would ensure there will be no environmental degradation, no deforestation and no replacement of other viable crops, Fernando added.

However, lobbyists had used the haphazard, unregulated and rapacious early expansion of oil palm cultivation in countries such as Malaysia and Indonesia to create a baseless fear psychosis about the industry, disregarding the fact that Sri Lanka has cultivated less than 11,000 hectares in 50 years.

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Business

Sri Lanka’s apparel sector records 5.42% growth for January-November 2025: November slight dip

Published

8 hours ago

2026/01/3

Thilina Walpola

Sri Lanka’s apparel industry delivered a robust performance during the first eleven months of 2025, with cumulative exports reaching US$4,571.99 million marking a 5.42% increase over the same period last year, according to data released today by the Joint Apparel Association Forum (JAAF).

Sri Lanka’s total apparel exports for November 2025 reached US$367.60 million, representing a slight decrease of 1.96% compared to US$374.94 million in November 2024.

The monthly performance showed mixed results across key markets: United States: US$152.32 million (up 5.79% from US$143.98 million), European Union (excluding UK): US$119.61 million (up 3.35% from US$115.73 million), United Kingdom: US$43.63 million (down 13.83% from US$50.63 million), Other Markets: US$52.04 million (down 19.44% from US$64.60 million)

Strong cumulative performance: January-November 2025

Despite the November softness, cumulative apparel exports for the eleven-month period from January to November 2025 demonstrate solid growth, reaching US$4,571.99 million—a 5.42% increase over the corresponding period in 2024 (US$4,336.84 million).

Year-to-Date Performance by Market:

European Union (excluding UK): US$1,435.39 million (up 13.07%)

Other Markets: US$742.98 million (up 5.75%)

United States: US$1,769.08 million (up 1.73%)

United Kingdom: US$624.54 million (down 0.22%)

Commenting on the export data, JAAF stated “The 5.42% growth in our cumulative exports for the first eleven months of 2025 reflects the resilience and adaptability of Sri Lanka’s apparel sector in navigating a challenging global environment. While we experienced a modest 1.96% decline in November, this should be viewed within the broader context of our strong year-to-date performance.

“Particularly encouraging is our 13.07% growth in the European Union market, which demonstrates the success of our strategic focus on strengthening relationships with EU buyers and meeting their increasingly stringent sustainability and compliance requirements. Similarly, our continued growth in the US market, despite tighter margins, shows that Sri Lankan manufacturers remain competitive on quality, delivery, and ethical manufacturing standards”.

Business

Sri Lanka highlighted as a popular tourism hotspot among South Korean travelers

Published

8 hours ago

2026/01/3

Thilina Walpola

Sri Lanka Tourism, in collaboration with the Embassy of Sri Lanka to the Republic of Korea, is providing support for the two VVIP South Korean Buddhist delegations visiting the country, demonstrating solidarity and strengthening cultural and religious ties with Sri Lanka.

The first delegation included Anunayake thero of Jogye order , South Korean chief Buddhist monks and devotees arrived in Sri Lanka consisting of 120 , on 01st December 2025, with the intention of undertaking a pilgrimage tour and highlighting Sri Lanka’s importance as a major Buddhist attraction for Buddhists around the world.

As same as the first delegation, the second VVIP Buddhist delegation which arrived on the 10th of December, 2025, was also given warm and a colorful welcome at the Bandaranaike International Airport, complete with a Cultural Dance troupe and a group of Sri Lankan children to greet them upon their arrival, making them feel at home and happy to see such a sensational sight. Ms . Thanuja Muniweera , Deputy Director and also the officer in charge of the Korean Market , was there to welcome the much revered guests . The delegation consisted of 150 visitors including both priests and devotees.

Led by Ven . Hyeil, , Chief priest of Haeinsa Temple , the main purpose of this visit is to show Sri Lanka as a welcoming and culturally vibrant destination. This will be a great opportunity to show the importance of the Korean Market as an emerging market and also promote Buddhist and Pilgrimage Tourism. South Koreans are known to be travelling in large numbers, including December 2025. The South Korean Buddhist delegation is one such example.

Business

Sunshine Holdings joins S&P Sri Lanka 20 Index

Published

8 hours ago

2026/01/3

Thilina Walpola

Shyam Sathasivam

Diversified conglomerate Sunshine Holdings PLC (CSE: SUN) has been included in the S&P Sri Lanka 20 Index, following the 2025 year-end index rebalance announced by the Colombo Stock Exchange (CSE) and S&P Dow Jones Indices. The inclusion takes effect from 22 December 2025, after market closing on 19 December 2025.

The S&P Sri Lanka 20 Index represents the 20 largest and most liquid companies listed on the CSE, selected based on stringent criteria including market capitalisation, liquidity, financial viability and sustained profitability. Constituents are weighted by float-adjusted market capitalisation, with a single-stock caps to ensure balanced representation.

Commenting on the milestone, Sunshine Holdings Group Chief Executive Officer, Shyam Sathasivam, said, “Our inclusion in the S&P Sri Lanka 20 is the result of more than five decades of collective effort and perseverance by our people, past and present, who have built Sunshine Holdings into the institution it is today. This recognition reflects the strength of our foundations, the discipline with which we have grown, and the consistency of our performance across business cycles. As we move forward, we remain focused on building resilient businesses, upholding strong governance standards and delivering sustainable long-term value to all stakeholders.”

The S&P Sri Lanka 20 Index is constructed in line with global index methodologies and international best practices, with all constituents classified under the Global Industry Classification Standard (GICS®). Eligibility requires a minimum float-adjusted market capitalisation of Rs. 500 million, a six-month median daily value traded of Rs. 250,000, and positive net income over the twelve months preceding the rebalancing reference date.

Sunshine Holdings’ inclusion in the S&P Sri Lanka 20 reflects the Group’s long-term capital markets journey, evolving from a closely held family enterprise into a widely held blue-chip listed company. Over the years, the Group has focused on building institutional credibility, strengthening governance standards and expanding its shareholder base, resulting in a current market capitalisation of approximately LKR 70 billion, underscoring its scale and relevance within the Colombo Stock Exchange.