LMD 100 SECOND BOARD Q&A

Q: How do you leverage technology to improve efficiency and productivity?

Dr. Rohan Fernando (RF): Since its inception, the company has undergone a vast transformation, strategically investing in technology and diversifying its operations to create long-term value. These initiatives have been precursors to the success of Elpitiya’s story, undoubtedly improving the efficiency and productivity of our business operations.

We have utilised technology, particularly in replacing archaic and cumbersome procedures, as well as enhancing efficiency and productivity at an operational level. Some of our initiatives showcase extremely innovative solutions.

Today, Elpitiya Plantations stands as one of Sri Lanka’s leading regional plantation companies (RPCs), consistently ranking among the top three most profitable RPCs in the country. That in itself speaks volumes about how we’ve leveraged and grown as an organisation.

Q: What is your assessment of Sri Lanka’s economic path, given the multiple crises the nation has faced recently?

RF: Against the backdrop of the country’s economic crisis, the government is instituting structural changes aimed at restoring macroeconomic stability and fostering sustainable growth. These changes include the revision of taxes, reforms in trade, investments and the restructuring of state-owned enterprises (SOEs).

However, the growth prospects of Sri Lanka depend on the progress with debt restructuring and pragmatic implementation of some of these reforms to create the necessary economic growth.

It’s imperative for these initiatives to be executed efficiently and transparently, to instil confidence among investors, and pave the way for a robust and resilient economic recovery.

Q: What measures have been taken to sustain or grow your company in the past 12 months?

Bhathiya Bulumulla (BB): The expansion of the Elpitiya berry project took place over the past 12 months, and we established a retail presence in India for Harrow House products, ranging from tea to spices and others. The company also launched the online store HarrowHouse.lk for the convenience of customers to place orders online.

Elpitiya also set up a research and development arm, for new business innovations and joint ventures. The company has continued to invest in the modernisation of CTC tea processing lines in several estates to increase quality and processing capacities.

Q: What major projects have been undertaken by your company in the context of environmental sustainability?

BB: We were the first RPC to achieve 100 percent solar energy on all our factory rooftops. And we expanded our renewable energy portfolio with estate bungalow rooftops, introducing solar energy with the commencement of the 5 MW Kalkudah ground solar project in Batticaloa.

Elpitiya Plantations is the first RPC in Sri Lanka to collaborate with the Planboo biochar project to claim carbon credits through carbon sequestration, applying biochar in estates to improve soil carbon levels. The objective behind this commitment is to reduce the application of chemical fertilisers by 50 percent.

We have also set an ambitious target for 2030, aiming to reduce chemical fertiliser usage by up to 50 percent, chemical pesticides by 75 percent and weedicide by 65 percent from the base year.

Q: What trends do you observe in your industry – and what have you done as a business to optimise such emerging trends? 

BB: The future prospects for commodity-based business are not that bright and we must diversify into nontraditional businesses using the organisation’s unique asset base.

For example, Elpitiya Plantations has gradually transformed itself from a commodity-based business to a diversified, dynamic and profitable entity with strategic interests in nontraditional crops such as berries (strawberries, blackberries, raspberries and blueberries), renewable energy, ecotourism and value added manufacturing.

This strategic shift reflects our commitment to innovation and sustainable practices, ensuring resilience in an ever evolving market landscape.

Q: And what are the burning issues facing the country as it heads into 2024?

RF: Halting the brain drain, maintaining consistent policies in governance and related areas, addressing concerns highlighted in the IMF’s governance diagnostic assessment, eradicating corruption and establishing a conducive environment to encourage foreign investments are crucial issues that demand attention as we approach 2024.

This strategic focus is essential not only for retaining local talent but also for attracting much needed foreign exchange to Sri Lanka.

Telephone: 4693000 | Email: info@elpitiya.com | Website: www.elpitiya.com