Sri Lanka Kelani Valley profits up on rubber

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

Oct 31, 2011 (LBO) – Sri Lanka’s Kelani Valley Plantations group said profits grew 116 percent to 77.8 million rupees in the September 2011 quarter with revenues growing 55 percent to 1,510 million rupees, helped by rubber. In April, wages of plantation workers were raised by a nation-wide collective agreement. Tea is labour intensive compared to rubber.

The group reported earnings of 2.29 rupees for the quarter. For the nine months to September it reported earnings of 8.5 rupees per share on total profits of 273 million rupees, up 76 percent.

It does not pay management fees to the managing agent, DPL Plantations.

In the nine months group revenues from tea was 3.19 billion rupees but it lost 13.9 billion rupees in the business.

Rubber revenues were 1.31 billion rupees but gross profits were 506.8 million rupees in the nine months.