Two state-owned fertilizer companies earned Rs. 480Mn. net profit

The two state-owned fertilizer companies Lanka Fertilizer Company and Colombo Commercial Fertilizer Company have managed to earn a net profit of Rs.480 million in the year 2023.

Accordingly, the Colombo Commercial Company has earned a profit of Rs.360 million and the Ceylon Fertilizer Company has earned a profit of Rs.120 million this year.

Yesterday (28) a discussion regarding the further expansion of the services provided to the farmers through these two fertilizer companies was held under the participation of the Minister of Agriculture and Plantation Industry, Mr. Mahinda Amaraweera. Dr. Jagath Perera, the chairman of the two government-owned fertilizer companies, who participated in the event, informed the minister that they have been able to earn a net profit of Rs.480 million in this year.

Also yesterday, the Minister offered an incentive to all the employees based on the income earned by the two government-owned fertilizer companies. Rs.20 million have been set aside for this purpose and steps have been taken to offer an incentive equal to two months’ basic salary to all the 420 employees working in these two companies.

Minister of Agriculture and Plantation Industry Mr. Mahinda Amaraweera advised the chairman of these two companies that these two fertilizer companies are currently supplying the fertilizers required for agriculture and to further expand those activities and work for the sale of pesticides. The minister also mentioned that if it is necessary to amend the laws, the government will support them to take steps for that.

The minister also emphasized that since the government will withdraw from the fertilizer supply system in the near future, these two corporations should implement a fertilizer supply system in competition with the private sector.

Currently, private companies are exploiting the farmers by selling insecticides and herbicides at high prices. In order to abolish the dictatorial situation in this business, competition must be created under the intervention of the government. The best option for that is to work for the sale of pesticides under the two fertilizer companies.

Currently, 18-20 percent commission is given in the sale of pesticides, so farmers are able to get pesticides at a concessional price of about at least 12 percent. Therefore, the minister advised the chairman Dr. Jagath Perera to take steps to expand the business activities of the two government-owned fertilizer companies.

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