Proper management vital for profit making

Given the policy framework and proper management the public sector could takeover the entire plantation sector and make loss making institutions profitable, said Deputy Minister of Public Estate Management and Development, S. Nijamudeen addressing the media on the progress made by the Chilaw Plantations Ltd (CPL).

The CPL made a post tax profit of Rs. 153 million within six months subsequent to the take over by the government from Wayamba Plantations (Pvt) Ltd. (WPPL).

Nijamudeen said this is a commendable achievement as the CPL under the WPPL for 16 years had made only a profit of Rs. 400 million.The CPL within a short period settled the private management agent fees of Rs. 124 million and paid bonuses to employees amounting to around Rs. 12 million last year.

The progress made by the CPL under the private management was not satisfactory.The welfare of employees had not been attended and the maintenance of the institution had been neglected”, he said.

The Ministry officials also recognised the need for private public collaboration to ensure effective management of organisations.

The coconut plantation industry has failed to make a significant progress with production dropping to unsatisfactory levels.The grievances of coconut growers and mill owners have not been properly addressed.

CPL was set up under the Companies Act of 1982 when Regional Plantation Companies (RPC) were formed in 1992 by vesting lands owned by the JEDB and SLSPC from lands acquired by the Land Reform Law No. 1 of 1972 to the Land Reform Commission (LRC) and subsequently vested with the JEDB and SLSPC.

The institution was handed over to the WPPL under the privatisation program in 1992. CPL has been a profit making company with high productive coconut lands in Puttalam, Chilaw, Kurunegala, Gampaha and Colombo. The extent of coconut cultivation of the CPL is 11,555 acres and has around 950 employees.

The Ministry of Public Estate Management and Development with the Strategic Enterprise Management Agency (SEMA) has launched a five-year development plan to increase profits, production and provide incentives and reward schemes for employees.

Director Plantations, Strategic Enterprise Management Agency (SEMA), Dr. Sunil Jayasekara said by turning CPL into an efficient and profitable venture it is being proved that public enterprises could be managed well to be profit making. (LF)