Sri Lanka to revise lease agreements between govt. and plantation companies

December 14, 2006 (LBO) – Sri Lanka’s cabinet has appointed a high level committee to help revise lease agreements currently in place between the government and regional plantation companies.

A committee headed by treasury secretary P B Jayasundara will lead the government delegation to hammer out a mutual agreement between the golden shareholder (the government), regional plantation companies and state plantation companies, cabinet spokesman Anura Priyadharshana Yapa told reporters on Thursday.

“The committee will look into key areas like mineral rights, sub-leasing of estates, compensation for lands acquired, new rent agreements and so forth,” Yapa, who is also the Media Minister said.

Some regional plantation companies came under fire recently for sub-leasing their lands to third parties without the consent of the golden shareholder, according to a study conducted by the plantation ministry.

Sri Lanka has privatized around 18 plantation companies since 1993s, which produces some of the best tea and rubber crops.