Raigam invests Rs. 1.5 Bn in rice bran and soya oil plant in Dambulla | Daily News

Raigam invests Rs. 1.5 Bn in rice bran and soya oil plant in Dambulla

Raigam Group of Companies will invest Rs. 1.5 million to set up one of Asia’s largest oil extraction plants in Dambulla, Raigam Group Chairman CEO, Ravi Liyanage, told Daily News Business on the sidelines of the 19th Tele’es Awards launch on Tuesday.

Dr Liyanage said the factory will be put up in Athabadiwewa in Dambulla on a seven acre land belonging to them and a unique feature of the project is that they also received a grant of USD 100 million under the agriculture modernization project program of the World Bank. Here rice bran oil and soya oil will be produced which is a first in Sri Lanka.

“We have already commenced construction and the factory will be completed by August 2023. Raigam will then reinvest a further Rs. 1.5 billion to increase capacity in the second phase.”

He said that the main raw material used for the production process would be rice bran and soya. We have already come to a forward buying agreement with the North Central and Eastern Province farmers who have already commenced planting around 1,500 acres. Our target is to have 7,000 acres of Soya plantations to meet the supply to our factory.”

He said after they commenced the project a kilo of soya which was sold for Rs 125 has increased to Rs 325.

Dr. Liyanage commenting on their salt plains said during the last 3 years the country experienced heavy rains, comparatively, about 30% higher than that of an average year. The yearly rainfall in Puttalam area used to be around 900 -1100 millimeter. Last three years it crossed the 1,500 millimeters mark and because of the high rainfall there has been a drop in salt production. Also, there was scarcity in the availability of industrial salt. Despite this Raigam managed to sustain its salt production, and they also export salt flakes to niche markets in Japan and Australia. He said they made a bid for the abandoned slatern project in Elephant Pass, and they were also shortlisted. However, the project is now at a standstill sans any feedback from the government.


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