Financial Times

Tess Agro abandons aqua culture project over buffer zone
Tess Agro Ltd has abandoned a Rs. 500 million aqua culture-farming venture in Negombo, planned to start in April this year, due to the 100-metre buffer zone imposed by the government.

The company, engaged in non-traditional agriculture and aqua culture with New Zealand partner, Aqua Systems Limited, planned to farm and export 'Abalone', a type of sea snail, to South East Asian countries such as Singapore and Hong Kong, where it is a delicacy.

"Abalone farming needs fresh sea water and the infrastructure has to be set up near the sea," the firm's CEO Dilshan Fernando said, adding that the 100-metre buffer zone bans buildings close to the sea. He said Abalone is very expensive and the company was planning to export eight tons per month. "We were expecting to add around Rs. 100 million to our bottom line after five years, when we expected to break even," he added.

Back to Business