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| Sunday, 31 March 2002 |
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Master Divers seeks self-sufficiency in sugar Master Divers Ltd., which last week bought a 53.3 per cent stake of Pelwatte Sugar Industries Ltd (PSIL), plans to expand operations to enable Sri Lanka to achieve self-sufficiency in sugar and increase employment. Ari Wickremanayake, Chairman of Master Divers, speaking to the Sunday Observer, said he wants the country to be self-sufficient in sugar, thereby saving valuable foreign currency and also providing employment to youth. He said that at present only 10 per cent of the country's sugar requirement is produced locally (cultivating 3000 hectares of sugar cane) while 90 per cent is imported, costing the government Rs 10,000 million annually. "Therefore if we cultivate 30,000 hectares of sugar, we can save valuable foreign exchange while giving employment, generating power, making alcohol and a host of other products." Mr Wickremanayake said that as sugar cane is a crop harvested annually, he also wants sugar cane farmers to engage in livestock and dairy farming. He hopes to give two cows to each family and buy back the milk and sell it in packeted form. At present 80 per cent of the milk requirement is imported. "If we can be self-sufficient in sugar and milk, I do not think we will need to borrow money," he added. Master Divers purchased 36.2 million shares of PSIL for Rs 300 million at the rate of Rs 8.25 per share. Prior to the purchase, Master Divers had a three per cent stake in PSIL. As it owns a 53 per cent stake, Master Divers will announce a mandatory offer shortly to buy the remaining stake of PSIL. The issued share capital of PSIL is 67.9 million Rs. 10 shares. Mr Wickremanayake said that he will start talking to the plantation companies who are uprooting rubber and selling it for firewood to get them engaged in cultivating sugar. He said that if we get our act together, we can produce sugar, sell it and save the foreign exchange and also give employment. Mr Wickremanayake's primary business is shipping, ship salvage and bunkering. He is also shortlisted for the purchase of the balance 49 per cent of Shell Gas Lanka and is one of the 17 bidders for Lanka Marine Services Ltd., the bunker supplying monopoly subsidiary of the Ceylon Petroleum Corporation. At present he is the Chairman of the State Engineering Corporation. Master Divers owns nine per cent of Bogawantalawa plantations, 20 per cent of Colombo Dockyard and one third of Aitken Spence Plantation Management Ltd., which manages Elpitiya Plantations. PSIL was incorporated in 1981 as a private company, as a joint venture between the government, Booker Agriculture International-UK, Kerry Engineering Hong Kong and Commonwealth Development Corporation. It was listed in 1984 with 10 per cent of the shares being offered to the public. PSIL has a subsidiary - Pelwatte Sugar Distilleries Ltd., which produces spirits for liquor and cosmetics. It was earlier managed by Booker and subsequently by Guandong International Technical cooperation, China and thereafter by in-house plantation managers. |
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