Sri Lanka estate mulls timber exports

June 15, 2011 (LBO) - Sri Lanka's listed Malwatte Valley Plantations is mulling the possibility of exporting processed timber, as the firm has more than a 1,000 hectares of trees, chairman W L Bogstra told shareholders. "The Company’s timber reserves amounting to 1282 hectares have been sparingly harvested in the past," Bogstra said in the annual report.

"The company will study the possibility of harvesting this for exports in the near future, by securing proper treatment and drying plants/machinery."

In the firm's books the company carries timber stocks valued at 577 million rupees. Even this year the firm added 7.7 million rupees to its profits to by revaluing trees.

In 2010 the firm posted 424 million rupees in profits, up sharply from 81 million rupees a year earlier. The firm has tea and rubber plantations. Rubber prices in particular has been high.

Bogstra said the firm has planted rambuttan, a fruit, but heavy rains had disrupted flowering this year. A pepper project has been extended with a further 10,500 vines.

It had found 108 hectares suitable for rubber and in its estates in Badulla and Hali Ela regions.