Sri Lankan government permits US$ 783 million aloe vera herbal products export venture
The government of Sri Lanka has approved a mega US$ 783 million venture in the country’s North Central Province to grow aloe vera for export of derived herbal products.
The relevant Cabinet paper was submitted by Sri Lanka’s Minister of Finance Basil Rajapaksa and Minister of Lands S.M. Chandrasena.
Accordingly, 66 acres of state lands will be assigned to the venture promoter Aura Lanka Herbals Ltd. on a 30-year lease.
Aura Lanka Herbal Ltd. had submitted a proposal under the ‘Dry Zone Rural Economic Development Aloe Vera Project’ to start an herbal medicine manufacturing industry.
According to reports, the organic farming project is expected to use aloe vera roots, tubers, gel and external parts of the leaves to make high-energy drinks, pills, ointments, inhalers and hair oils.
Sri Lanka’s Government Information Department has stated that of the US$ 783 million, the company is to spend US$ 300 million as capital investment.
Nurseries are to be set up for the production of aloe vera seedlings in 2,000 acres in Rajanganaya and Nochchiyagama Divisional Secretariat Divisions and 102,000 acres in the Anuradhapura District will be used for the cultivation of aloe vera using the plants produced by those nurseries under the said project.
OSL take:
Sri Lanka’s exports sector has shown a steady growth despite challenges posed by the global Covid 19 pandemic. The many trade agreements and concessions enjoyed by the country have also helped boost Sri Lanka’s exports sector. The business conducive environment and the continuously improving ease of doing business environment in the country have attracted many foreign investments to the local exports sector. Given the growth in Sri Lanka’s economy and the business potential in Sri Lanka’s exports sector, foreign businesses/investors could explore the growing opportunities in the sector.
| Article Code : | VBS/AT/03092021/Z_1 |