Aug 16, Colombo: Sri Lanka's Kotagala Plantation which belongs to Lankem Ceylon PLC has planned to expand its rubber cultivations to Cambodia.
The Company is planning to set up a 15,000 hectare rubber plantation there, says Lankem Chairman, A. Rajaratnam.
Kotagala Plantation has identified new investment opportunities in Cambodia in the rubber plantation sector due to limited land available in Sri Lanka for large scale expansion into rubber planting and scarcity of labor.
The planting in Cambodia is expected begin at the latter part of the next financial year and crops are expected approximately within six to seven years.
"The area that finally will be cultivated in Cambodia is nearly four times as large as the company's cultivations in Sri Lanka and will be key to securing the company's future financial success", Rajaratnam mentioned in his review in the company's annual report.
Required approvals for this investment amounting to Rs.1.575 billion have been obtained from the authorities in Sri Lanka and the Company is expecting to commence planting operations in the year 2013/2014.