State News 

Plantation Sector commences highly profitable enterprises

Ananda WEDAARACHCHI

Highly profitable enterprises such as Dendro Power Thermal, Mini Hydro Power and Mineral excavation projects have been commenced in the State plantations sector in the central province last year under the State Plantation Asset Management Programme said Additional Secretary Ministry of Defence, Public Security, Law and order, Chairman/CEO Strategic Enterprise Management Agency (SEMA) Willie Gamage.

He said that while scientifically developing the existing traditional plantation crops to reach sustainable profits, it is also beneficial to utilise the plantations valuable assets and resources to receive an additional income. One such example is mini hydro power programmes using waterfalls and streams in plantations to generate 21 MW to the national grid, he said.

As a strategic policy initiative the ministry of Public Estate Management and Development (MPEMD) and SEMA initiated the Plantation Asset Management Business model for the sustainable commercial development of State plantations by identifying a set of high return business resources for development rather than continuing as a traditional plantation management business model, he said.

Explaining the aim of the SEMA’s plantation and Asset Management cluster, he said the SEMA wants to arrange the State plantations with a high level of administrative and financial discipline in order to achieve the expected development and sustainable high profit through a quick turnaround process.

SEMA’s Plantation Asset Management Cluster (PAMC) consists of Janatha Estate Development Board (JEDB) Sri Lanka State Plantations Corporation (SLSPC), Elkaduwa Plantation Ltd (EPL), Kurunegala Plantation Ltd (KPL), Chilaw Plantation Ltd (CPL), the National Livestock Development Board (NLDB) and Sri Lanka Cashew Corporation. The PAMC of SEMA commenced its work programme on 1st June 2006.

According to Gamage the land acquired by the government under the land reform law NO. 1 of 1972 initially was vested in the land reform commission (LRC). They were subsequently vested in the Janatha Estate Development Board (JEDB) and the Sri Lanka State Plantations Corporation (SLSPS).

Most of the land vested in the JEDB and the SLSPC were agricultural land belonging to more than 2,000 private entities, he said. He said the JEDB, and the SLSPC managed the plantations as profitable ventures until the mid 1980s. Since the late 1980s these two “giant” organisations started to make losses owing to a variety of complex reasons such as their large size, poor management, inefficiency, corruption, and leasing out of some estates, and the government’s intention to private some estates. Finally the treasury had to provide disbursements from its meagre funds to pay salaries, EPF, ETF and maintenance of JEDB and SLSPC, he added.

Under the conversion of public corporations and Government owned business undertaking (Act No. 23 of 1987) land owned by JEDB and SLSPC were transferred to Regional Plantation Companies (RPC) on a 99 year lease the popular belief is that most of the profitable and highly productive tea estates were carved out from the land owned by the JEDB and the SLSPC were left with the less profitable and less productive mid country tea land, resulting in further increase in losses an enhanced burden to the treasury, he said.

According to the chairman, SEMA significantly reduced the losses in JEDB, SLSPC and the EPL which were brought under its direct supervision in 2006 under its efficient financial management process.

Willie Gamage who graduated from Sri Jayawardanapura University and the London University has wide experience in management and environmental sectors through his long association with the public sector and the international nongovernmental organisations.

Explaining the objectives and the activities of the SEMA, Gamage said that it is a special organisation established by a statutory declaration of the president. Of the State enterprises those with special significance to the National Economy have been brought under its direct supervision.

It’s one responsibility to convert the State institutions such as State banks, plantations, ports, airports, electricity, water and fuel supply and also the establishment in the State transport sector, all of which perform a very special contribution to the national economy to become more viable and profitable institutions of high efficiency, he said.

He said that it was never an easy task to achieve because at the time SEMA shouldered the responsibility for this, the majority of this institutions were running at a loss and depended entirely on the national treasury.

Twenty entities including State banks, Ceylon Electricity Board, Ceylon Petroleum Corporation, Sri Lanka Ports Authority, Sri Lanka Transport Board, Airports and Aviation Services Ltd, Sri Lanka Railway and JEDB, SLSPC, CPL, EPL, KPL, of the Plantation sector were brought under SEMA in 2006, he said.

He said that those organisations were grouped in five main sections namely as Financial Services Cluster, the utilities cluster, the transport and logistics cluster, the plantation asset management cluster and the labour relations and special projects unit to achieve better financial performance and provide quality service.

Explaining the SEMA’s future Gamage said that SEMA will continue its vigorous turnaround process to achieve its expected benefits.

With regard to the alternative assets and projects identified by SEMA and the plantations, expression of interests will be publicised and upon evaluation selected projects will be implemented, he said.

EDB to revive Expo Exhibitions

Hambantota to be re-awakened soon:

Sri Lanka Export Development Board intends reviving the Expo Exhibitions in place of the Mahapola fairs one time popular, organised by the Ministry of Trade.

The first of this kind of exhibition is to be held in the electoral seat of the President who has tremendous vision to regenerate the people of the South.

As history proves the people of the South has been marginalised and the vibrations has echoed in two principle insurrections, this country recorded in the post independence era. It was revealed in the fact finding report by Rev. Croose of the National Seminary in a fact finding report that the uneven distribution of opportunity caused the youth unrest in 1971. When we go into the novel written by Leonad Woolf the picture of sullen, stupid folk of Hambantota dominates the chapters in the text Village in the Jungle.

The traditional Kachcheri, the Harbour and the Court House was notable in the characteristics of any report on Hambantota. With the coming into power by the Peoples Alliance regime under the President Rajapaksa and he himself being a son of Ruhuna it is his dream and determination to develop the infrastructure base needed for a speedy take off in economic and social activity in the then Ruhunu Rata.

The Planning and Research from Colombo in airconditioned rooms, enjoying the best perks in the world with free participation in trade fairs, awareness seminars, workshops have all contributed to keep the people of the South marginalised. As once observed in the House by non other than the Member of Parliament from Hambantota Sajith Premadasa M.P. saying that the rich being 20 per cent consume around 53 per cent of the national income. This disparity has to change in any country if the people of that country are to be contented in what ever the religion they may practice. We cannot afford to continue to give fuel cheap to a minority segment of the population, irresponsibly at the expense of the majority who is grappled by the economic burden.

One time President Junius Richard Jayawardena said either export of perish. We have to export to reduce the balance of payment with India the neighbouring partner. We have entered into a bilateral agreement with India and almost have finalised the CEPA for professional services. We have created some of the best brains from the South, Jayawadenas and Dharmadasas who excel to be the best service providers in South Asia.

With our highest literal standards prevailing now in the South we can export quality services in the hospitality industry, IT, engineering, tailoring or maintenance work ect. Ever since the Chandrika Kumaranatunga administration we have introduced IT to schools curriculum and e - commerce has been made popular among rural schoolchildren.

Export Development as it stood upto nearly a quarter century was mooted towards promotional effort in foreign lands and the recent right about turn to regional inward looking approach has gained momentum.

Its founder late Lalith Athulathmudali closely supervised the work programme of the EDB during his ministership and was personally checking all the reports forwarded by officers participating in foreign assignments and even checking their activities on the phone in the night.

As CBI in the Netherlands, has recently advocated in one of their recent publications the need to travel all over the world in the name of export promotion was a concept of the past. Do your regional work and link them to the chain of international export chain was what is required. Export Agencies do spend large sums of public funds on overseas missions, workshops and training of govt. officials which in turn have no bearing to product development, marketing or relevant supply base in respective product development.

As the former Chairman EDB puts it export agencies need not reintroduce the past business practices but must go for innovative methods to update the technology that can facilitate the SMEs to balance their way. The technology is the cyber network. EDB should only facilitate and not involve in export development as it was done in the past.

The new export culture demands new technology in rural agriculture, industry, fisheries and in farming.

There is no system to cover these channels at present. The Eastern Province is waiting for these promotional efforts including the South. It is with best intentions that the EDB has decided on Regional Officers at Ampara and Hambantota.

Former Chairman Rohanta Athukorale’s writing has revealed that the Western Province GDP growth equals mighty China or India at the threshold of the Ruhuna Expo’ 2008, and it is the principle challenge posed to the Southern Province to rise up to this competition and claim their share in the economic cake. It is with this intention the 2008 budgetary allocation of 500 million was set apart with good hope for the development of Regional Productive Village reawakening export effort.

Bandula Nonis

(Writer attached to the Business Information Service EDB)