Sri Lanka state-run cashew firm losing money

July 03, 2011 (LBO) – State-run Sri Lanka Cashew Corporation is losing money, has low productivity of its lands, and is depending on Treasury handouts to operate, a finance ministry report said. The Cashew Corporation made one percent of the country’s annual production of 8,000 metric tonnes but there wasn’t enough focus on developing cashew lands owned by the state enterprise, the report said.

The focus instead was in implementing a subsidy schemes for private cashew growers.

In 2010 74 percent of the firm’s 124 million rupee spending had been met by the Treasury out of taxes collected from the people. No data was given for losses in 2010. But in 2009, a government report said the firm had revenues of 77 million rupees, had lost 105 million rupees and had 202 workers. The Treasury had given 87.5 million rupees including