May 28, 2020
Sri Lanka's Ceylon Grain Elevators cites business risks in addition to COVID-19
Feed miller and poultry farmer Ceylon Grain Elevators (CGE) said it faces several risks arising from recently imposed import controls and from exchange-rate volatility.
CGE, together with its subsidiary Three Acre Farms, continues to operate even during coronavirus-related curfew due as it has been declared an essential service by the government, Economynext reported.
Even then, CGE said its business has been disrupted after Sri Lanka printed large volumes of money in March and April, which led to a steep fall in the currency. This led to increased exchange-rate volatility and foreign currency unavailability, the report said.
Import controls akin to a self-imposed trade embargo has also been imposed, resulting in, among others, import suspensions, import bans and tariff hikes.
"As such the overall impact on operations is not immediately predictable", CGE said, as per report.
CGE is the largest poultry player in Sri Lanka. It operates the largest and most modern poultry hatcheries and breeder farms in the country.