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Sri Lanka to open rice flour factory with state backing

Jan 20, 2011 (LBO) - Sri Lanka is opening a rice flour factory with a loan from a state bank re-financed by the central bank, the monetary authority said.

The central bank said the monetary "in association with several key stakeholders and two state banks, is currently promoting rice based industries in the country with a view to utilize excess rice to produce value added agro based products.


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"As estimated by the Department of Agriculture, the paddy production in the country will increase substantially once paddy lands in the Northern and Eastern provinces are cultivated totally," the Central Bank said in a statement.

"Hence, the excess rice production needs to be diverted to produce other value added rice based products in order to maintain market stability with a remunerative price for the farmers in the regions."

Sri Lankan farmer cannot produce international grade rice that can be readily exported and rulers have to find way to force people to eat the produce.

Sri Lanka's rice is already among the most expensive in the world and prices spike above the so-called 'food crisis' levels of 2008, prompting the ad hoc freeing of trade to

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