Government approves US$ 783mn export-oriented aloe vera-based herbal medicine project

The government has approved a US$ 783 million aloe vera -based herbal medicine manufacturing project titled ‘Dry Zone Rural Economic Development Aloe Vera Project’ in the Anuradhapura District targeting exports.

The Cabinet of Ministers on Monday approved a joint proposal put forward by Minister of Land S. M. Chandrasena and Minister of Finance Basil Rajapasksa to grant 66 acres of land on lease basis for 30-years to Aura Lanka Herbals (Pvt) Ltd led by Dr. Chandika Viranjith Thambugala to construct and maintain the factory and operating office premises and also the storage and operational aspects of the project.

The total investment of the project is estimated at US$ 783 million including US$ 300 million as the capital investment, according to the Government Information Department. 

Initially, the company plans to set up nurseries for the production of aloe vera seedlings in 2, 000 acres in Rajanganaya and Nochchiyagama Divisional Secretariat Divisions, which would be used to setup 102,000-acre aloe vera plantation in the Anuradhapura District later on. 

Under the project, the company plans to use aloe vera roots, tubers, gel and external parts of leaves to produce high-energy drinks, pills, ointments, inhalers and hair oils.

“It is proposed to involve families who own land on grants and licenses and families who enjoy government lands for cultivation of the project,” the Government Information Department said. The government has also agreed to provide applicable tax concessions for the project. According to Aura Lanka Herbals, it aims to uplift the indigenous medicines innovating products from the aloe vera plants while supporting the economy.

“The idea is to develop the economy of Sri Lanka while uplifting the indigenous medicines innovating products from the Aloe Vera plants. We are expected to promote our traditional techniques and indigenous medicine to the international market through Aloe Vera cultivation in Anuradhapura District,” it said.