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per hectare are around Rs.25,000-50,000.

Last year also saw the Browns group divesting the rubber-heavy plantation companies Agalawatte Plantation PLC and Pussellawa Plantations Ltd to the furniture giant Damro, which may cut down the rubber trees for furniture production, followed by replantation.

Kegalle Plantations recommended protectionism to boost the rubber prices.

“If the Sri Lankan government brought restrictions on importation of natural rubber to the Board of Investment (BOI) industries, an improvement in prices locally could also be seen,” the company said.

The Central Bank data showed that rubber and plastic production capacity utilization in the country is relatively stable, indicating high imports compensating for low local production.

The low rubber prices resulted in the industrial rubber product exports growing 8.26 percent YOY to Rs.111.79 billion, while the agricultural rubber exports grew 34.10 percent YOY to Rs.4.58 billion.

Analysts opine that the import policies of China, which currently has a large rubber stock, would be the decider in the future global rubber prices, as the Asian giant’s middle-income segment booms and demands products that have rubber components.

Analysts said investors are still waiting to see the impact of the recent floods and landslides, caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh food produce and staple food items, analysts said.