COLOMBO – Sri Lanka’s plantations stocks plunged after President Gotabaya Rajapaksa said they would be required to uproot oil palm from the fields in stages and said imports of palm oil was banned effective April 6, while coconut plantation soared.
Watawala Plantations plunged 7.83% falling Rs 4.50 to 53.00 rupees in the first hour of trading on Tuesday (6).
Namunukula Plantations plunged 3.98% or down to Rs 175.00 falling Rs 7.25.
Kegalle Plantation fell 4.67% or Rs 4.60 to trade at Rs 94 a share, Elpitiya Plantation fell Rs 1.10 to Rs 43.000, and Agalawatte Plantation fell 30 cents to trade at Rs 27.70.
Mahaweli Coconut Plantation gained 20.27% or Rs 5.90 to trade at Rs 35.00.
A statement from the President’s office on Monday (5) said Secretary to the President, P. B. Jayasundera had ordered palm oil imports be banned with immediate effect and instructed plantation companies to uproot 10% of oil palm trees a year.
Cabinet Co-Spokesperson Minister Keheliya Rambukwella told reporters on Tuesday that changes will be done to the Palm oil gazette.
Sri Lanka makes sudden tax changes through midnight gazette raising business risks for investors in what economists call regime uncertainty.
Private property is also expropriated from time to time.