Sri Lanka’s Watawala Plantations invests Rs. 1 billion into its dairy operations
Watawala Plantations of Sri Lanka has reportedly decided to invest Rs. 1 billion into its dairy operations.
Watawala Plantations Managing Director Vish Govindasamy has said that Rs. 1.06 billion will be invested in Watawala Dairy Ltd as equity.
The funds will be used for capital restructuring of Watawala Dairy, including converting a related party debt of Rs. 450 million into equity.
Watawala Dairy reportedly has a dairy farm with over 1,000 milch cows, set up in 2018.
The business is expected to become profitable in three years.
Watawala’s parent Sunshine Holdings has sold its tea business Hatton Plantations for Rs. 1 billion last week.
OSL take:
The investment of Rs. 1 billion in the dairy sector by Sri Lanka’s Watawala Plantations shows the growing opportunities in the country’s dairy sector. The government of Sri Lanka is engaged in a programme to uplift the country’s dairy sector. Foreign businesses could explore opportunities in Sri Lanka’s dairy industry and also look at forming partnerships with local companies to enter the dairy business in the country.
| Article Code : | VBS/AT/06062019/Z_3 |