Sri Lanka’s Sadaharitha signs agarwood tech-sharing deal with Malaysian firm
Daily FT: Sadaharitha Plantations Ltd., said it has successfully entered into an agreement with agarwood growers in Malaysia to share and sell its proprietary “SP Tech” for the inoculation of agarwood trees. This technology, developed through years of rigorous research and development, is designed to boost resin production in agarwood trees using natural ingredients. Initially, this agreement will witness the inoculation of one million agarwood trees annually, while three new agarwood product factories will be set up in Malaysia, across different states.
The agreement marks a pivotal achievement not only for Sadaharitha but also for Sri Lanka’s commercial forestry sector. By 2028, the developments resulting from this agreement are expected to meet up to 30% of the world’s demand for agarwood oil.
This strategic partnership underscores the credibility and trust placed in Sadaharitha by international partners, affirming the company’s position as a trailblazer in the industry. Sadaharitha’s innovative “SP Tech” represents a significant advancement in multiplying agarwood yield, and meeting the global demand for high-quality agarwood products. This achievement aligns with the company’s long-standing commitment to sustainable practices and green investment, having planted over one million trees and served over 47,000 satisfied customers, both locally and globally, a statement from the Company said.
Sadaharitha Group Chairman Sathis Navarathna said, “Our expansion into the Malaysian market through technology export and expertise sharing reflects our pioneering spirit and dedication to environmental stewardship. By exporting our unique, home-grown technology and techniques, we are both enhancing our global footprint and contributing to Sri Lanka’s foreign income earnings. We are also proud to announce that this partnership with Malaysia is the largest programme of its kind in the history of the industry, highlighting the trust and confidence the world places in Sadaharitha.”
OSL take:
Sri Lanka’s ongoing economic expansion has witnessed the emergence of many new avenues of business/investment opportunities. This expansion could be attributed to the strength and growth of the country’s private sector. The resilience of Sri Lanka’s private sector was witnessed during the challenging economic conditions faced by the country during the past few years. However, with Sri Lanka’s economy back on the growth path, the country’s private sector is also engaged in an expansion programme that has opened up new business/investment opportunities in the country. The latest agreement between Sri Lanka’s Sadhaharitha and a Malaysian firm is indicative of this expansion programme. With Sri Lanka’s overall economic expansion while on the path to becoming an emerging business destination in the South Asian region, foreign businesses/investors could confidently explore growing opportunities in the country. While foreign businesses/investors explore the expanding opportunities in Sri Lanka, local businesses could also look at expansion programmes by forming collaborations with foreign businesses/investors.