Sri Lanka's largest leather producer, Ceylon Leather Products (CLP), has announced the decision to sell off land so that it can raise enough money to clear its debts.

Company chairman, Nimal Samarakkody, has told local media that the decision over which piece of land to sell is ongoing, but the possibilities are either the site of a factory and office, or the site of a tannery, both in the town of Mattakkuliya.

"We want to be debt-free," Mr Samarakkody explained. "We are of the opinion that only companies with low gearing and a low working-capital cycle will survive in the long term due to the escalation of interest charges. Investors should look for companies that are debt free."

He said another part of CLP's ongoing focus would be to grow its export revenue by manufacturing more leathergoods and accessories, a high-growth area worldwide.

As part of this, he said it would revive its DI brand, which he claimed had once rivalled Asian brands such as Bata before falling because of internal difficulties at CLP. The company has appointed marketing expert Dr Uditha Liyanage to its board to help it bring DI back to life.