Coco Lanka Ltd is setting up an organic products manufacturing facility here as a Sri Lanka-Netherlands joint venture. A proposal to set up an organic products manufacturing facility as a joint venture is to be presented at the Annual General Meeting of Coco Lanka scheduled to be held on August 29.

The company will invest 50% of the stated capital by transferring part of its property, plant and equipment to this joint venture with Martien Witsenburg Holding BV of the Netherlands. Company secretary M. Sakthivel told The Sunday Times FT the project is at the preliminary stage and this special resolution should be passed at the company AGM for it to go ahead with its implementation. In its annual report, chairman of the company Dr.S.R. Rajiyah said the net post tax profit of Coco Lanka was Rs. 13.1 million for the financial year 2007/2008, down from Rs 20.4 million in the corresponding year.
Turnover of the company was however higher at Rs. 1.2 billion million against Rs.810 million in the earlier year.

Dr. Rajiyah noted that if the company is to retain market share internationally it may be forced to accept lower margins due to competition from the Far East which doesn’t face problems such as Sri Lanka. He added that a proper foreign exchange policy which takes into account local inflation and cost becomes a necessity for the export trade.