Watawala Plantations PLC has entered into a share sale and purchase agreement on 21st March
with Aruna Moragoda, who owns a 100% stake in Moragoda Agro Services (Pvt) Ltd for Rs.88.5 million.
Moragoda Agro Services engages in the business of cultivating cattle fodder.
Watawala Plantations’ fully owned subsidiary, Watawala Dairy manages a herd of 1,632 dairy cattle with a state-of-the-art milking parlor that can produce over 6 million liters of fresh milk annually.
The sourcing of local feed at a reasonable cost has become a challenge due to import restrictions imposed on maize. Last year, prices of maize doubled adding a spike to the cost of feed which is the single most significant item of cost. .