Sri Lanka tea estate gets govt nod for tie up

Oct 06, 2011 (LBO) - Sri Lanka's Bogawantalawa Tea Estate, a listed firm said it has received approval from the state to transfer management of three factories and land to the domestic arm of a US based tea marketing firm. Bogawantalawa Plantations said in a stock filing that it had received the nod from the 'golden shareholder' to enter in to an investment and operating agreement with US-based Walters Bay Tea Estates LLC and Walters Bay Tea Estates (Pvt) Ltd of Sri Lanka (WBTE SL).

WBTE SL will mange three factories, and 708 hectares of land which includes 194 of planted tea and 380 hectares suitable for planting tea, until June 21, 2045.

Over the next five years WBTE US and WBTE SL plan to invest 4.

5 million US dollars.

In the three years to June 2014, Bogawantalawa Plantations will get 30 million rupees a year, and 40 million rupees in the two years after.

From July 01, 2016 to July 2017, 45 million rupees will be paid. From July 2017 to June 2045 the payment will be increased by Sri Lanka's gross domestic product deflator.