Sri Lanka’s sugar market to receive boost through foreign investment
Sri Lanka’s sugar market is expected to receive a boost with the final leases for the Kantale Sugar Factory being signed and handed over to MG Sugar.
MG Sugar is owned 51% by the government and 49% by Moussy Salem and Mendel Gluck, representing SLI who have invested years into developing a world class team.
The investors have reportedly developed all engineering design, the teams are instructed, and the plans are set for implementation.
According to local media reports, the landmark project will have a 27.5 MW maximum capacity cogeneration plant from biomass, with an export of 10 MW to the National Grid.
The factory will produce 80,000 tons of direct consumption sugar per annum to the local market, resulting in foreign exchange import savings of approximately US$ 50 million per annum, a report in the local media stated.
Accordingly, the factory is to utilize leading European equipment and Israeli technology for agriculture and irrigation.
Introduction of a state-of-the-art drip irrigation system into Sri Lanka is expected to enable the project to save on water usage and also create new opportunities to deploy the same system nationwide.
Media reports further stated that the plans will also outline additional infrastructure development in the area.
OSL take:
The development programme launched by Sri Lanka has opened up many business/investment opportunities in the country. Interested business/investors could also explore forming partnerships/joint ventures with local companies in need of restructuring. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have made it a business hub in the South Asian region.
| Article Code : | VBS/AT/23122020/Z_3 |