Thailand Consortium to invest USD 4 Bn in solar, fuel distribution and sugar factories

Bangkok: Consortium of Thailand investors are keen to invest over USD 4 billion in three key projects in Sri Lanka, said Chairman, DG Enterprise Co. Ltd, Business Solutions, Damrong Theeramoke.

He told ‘Daily News Business’ that these three projects include solar power generation, supplying fuel to Sri Lanka and also building sugar processing factories. He said that they have a series of discussions with the board of investment and they are keen to go ahead with these projects. “What we are first looking for is political stability and continuation of present economic policies. Once they see this they will pump their money to Sri Lanka to commence the projects.”

He said that their biggest investment would be the building of a 400 MW solar power generating facility for which they are seeking suitable land and are ready to invest around USD 2 billion. He also disclosed that they have a single investor who is keen to build several sugar manufacturing facilities in Sri Lanka in areas where there is cultivation.

The present annual demand for sugar in Sri Lanka is around 600,000 metric tons and in 2022, Sri Lanka imported USD 287 million worth raw sugar, becoming the 32nd largest importer in the world. Sri Lanka produces only 4.5% of sugar consumption.

“Hence we see a huge local potential since most of the sugar consumed in Sri Lanka is imported. We will also look at power generation using sugarcane waste and also production of ethanol.”

However, he said they do not hope to get involved in plantation sugar cane and prefer to work with a farmer out grower network. Theeramoke explained that they are also keen to be a supplier to oil distributors in Sri Lanka.

“What we want to do is to supply oil to local players and not get involved in ground level distribution via petrol shades.”

He also said that they have observed that there is a demand for another player for the supply of aviation fuel and this segment will be pursued.

“We are also keen to lease some of the abandoned oil tanks in Trincomalee for this operation.”

Two of the consortium members, Dr. Geeraporn Sucaromana (Managing Director DGE Enterprise Co. Ltd) and Aree Jitniyom (Managing Director Aviorama Travel Agency & Tour Operator -Thailand) also joined the discussion held at the much sought after Via Emilia authentic Italian regional cuisine restaurant in sathorn here. Meanwhile the representative for this consortium in Sri Lanka, Chairman, SunOne (Pvt) Ltd, Lal Silva said that these members had visited Sri Lanka and met several key government policy makers. “This consortium is currently happy with the investment climate in Sri Lanka and has also made huge investments in the petroleum sector in Russia.”