Proposed wage increase causes decline in plantation stock prices

COLOMBO (News 1st) - Cabinet approval was granted this week to increase the wage of estate workers to Rs 1000. Following this decision, plantation stock prices declined. Amidst thin trading, Maskeliya Plantations share fell 8% to Rs9-10, while Balangoda Plantations fell 3.48% to Rs11-10 and Kotagala Plantations, which had fallen as low as 5.8% in early trading, pared off with a 1.45% fall to Rs 6.80 at end of the day’s trade. Of 21 plantation stocks being traded, 11 fell while 4 gained and the wage increase would hit the tea industry firms the hardest. The Colombo Stock Exchange closed negative today, with the All Share Price Index dropping by 0.46% to 5,940.99 and the S&P SL20 dropping 0.80% to 2,807.22.