Financial Times

Ex-planters offer to take over Eppawela phosphate deposit
The Association of Ex-Planters of Sri Lanka has offered to take over the management of Lanka Phosphate Ltd., the state owned company in charge of the Eppawela phosphate deposit, saying it was in the interest of the plantation industry as the bulk of its productions are used for plantation crops.

"Our main concern is to ensure that this national asset is managed for the benefit of all Sri Lankans and to protect agriculture in this country," the association said in a letter to President Chandrika Bandaranaike Kumaratunga.

It pointed out that according to statistics released by the Public Enterprises Reform Commission (PERC), 89 percent of the total production of Lanka Phosphate Ltd. is used by plantation crops (tea 55%, rubber 16% and coconut 18 % ).

"It is in the interest of the plantation industry that this national asset does not get into the wrong hands on privatisation," association president Lincoln Fernando said. The association, with a membership of 400 planters, wrote to President Kumaratunga after PERC called for expressions of interest from foreign or local agencies to participate in the development of the Eppawela phosphate deposit on a public-private partnership basis.

The ex-planters said they agreed with the assessments of scientists that the deposits could be used by future generations for many years for the benefit of the national.

"It is alleged that the authorities concerned have ignored the Supreme Court ruling to undertake a proper geological survey to assess the extent of the deposits available. It is the view of environmentalists and scientists attached to the National Agriculture Reform Movement that these deposits should be used to produce more fertilizer instead of importing fertilizer for local use," the letter said.

Sri Lanka being an agricultural economy should take steps to safeguard whatever resources of fertilizer available in the country. "As professional planters we have a duty and a responsibility to be active and vigilant, as agriculture is our greatest asset," Fernando said. "We are concerned about plantations and other national resources available in the country, which is part of our national heritage. The aim of our association is to protect agriculture in Sri Lanka and be the watch dogs of the industry."

Fernando also said the ex-planters' offer to manage Regional Plantation Companies was still available at no cost to the national exchequer. He said the association will take steps to produce the total phosphate requirements of the country, so that imports would not be necessary in future, mining of phosphate in future would be limited to the county's requirement only resulting in no over exploitation.

"We undertake to convert Lanka Phosphate Ltd, to a joint stock company with the government continuing to own 50 percent of the shares. We will truly broad base the balance 50 percent of the shares among all stakeholders which will include the plantation sector, agriculture sector, paddy sector, Kapruka Societies, Growers Co-operative Societies, employees of the company and the public, especially residents in Anuradhapura district."

The company will be managed with total transparency on the principles of a 'people's company' where all stakeholders are consulted on major issues in dealing with the affairs of the company.

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