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| Sunday, 15 May 2005 |
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Business |  |
| News Business Features Editorial
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Large returns on teak plantation investment Vinketh (Pvt.) Ltd. has invited people to invest in a teak plantation by purchasing a 40 perch teak plot. The 100 acre plantation at Mahakumbukkaduwela Puttalam is 50Km away from Chilaw and a three-hour drive from Colombo. During the first phase of the project the company developed 50 acres while the balance will be developed during this year, said the Managing Director of the company Sudath Jayawardhana. He said that once an investor pays Rs. 189,000 he gets a clear deed of transfer for the 1/4 acre plot of land with 135 plants. The company will maintain and protect the plantation for 18 years free. During the process two thinning processes are done. The first is done in the eighth year where 35 trees are removed while in the second thinning process in the 14th year 40 trees are removed. At the end of 18 years the investor gets sixty well matured trees and he can realise a return of Rs six million or more. Jayawardhana said that each stage of the project has been planned meticulously to ensure the final yield. Areas such as obtaining high quality seeds, using tested planting patterns and spacing have received special attention. At maturity we will find a buyer to purchase the timber or if the customer wishes he can keep the trees but he will have to maintain it. Even if all the trees are sold the customer will be the owner of the land. Sri Lankans opt for short term investments because there aren't any long term investment opportunities in the country other than treasury bonds. Speaking of the nature of the investment he said that it is long term as you can get the yield only after 18 years. After careful and long term research we selected teak as it is the most naturally resistant timber for drought and adverse environment conditions. Commenting on this type of investment Jayawardhana said that the short term benefits in this type of investment are that the investor gets the clear ownership of the land through a Deed of Transfer, once the total amount is paid. Another advantage is that the investor could transfer the land with the
trees to whomever he wants. The biggest advantage in this type of investment
is that for a small investment there is a large return after 18 years. One
gets over 21% interest per annum which is more than other conventional
products in the market." |
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