Planters Call for Coordinated Action to Stabilise Sri Lanka’s Tea Industry
By Lakshitha Thiwanka | Business & Agriculture
Sri Lanka’s plantation sector has called for a coordinated national response to stabilise tea production and protect key export markets, as the industry continues to face mounting economic and operational pressures.
Industry stakeholders highlighted that a combination of rising costs, policy disruptions, and external shocks has significantly impacted productivity over the past several years.
Multiple Pressures on Production
Planters point to a series of challenges that have affected output and efficiency, including past policy decisions on fertiliser use, the effects of the COVID-19 pandemic, the 2022 economic crisis, and most recently, extreme weather events such as cyclones.
These disruptions have compounded existing structural issues within the sector, making it increasingly difficult to maintain consistent production levels.
The tea industry, which remains one of Sri Lanka’s largest foreign exchange earners and supports over a million livelihoods, is particularly vulnerable to such shocks.
Rising Costs and Wage Pressures
A key concern raised by planters is the rising cost of production, particularly following recent wage increases.
Daily wages for plantation workers have risen to Rs. 1,750 from January 2026, supported partly by a government subsidy.
While the increase provides relief to workers, industry representatives warn that it has also placed additional financial strain on Regional Plantation Companies, highlighting the need for a balanced and sustainable approach.
Export Market Uncertainty
In addition to domestic challenges, the industry is grappling with volatility in international markets.
Recent data indicates a decline in export volumes, partly due to disruptions in traditional markets and geopolitical factors affecting global trade routes.
Although auction prices have shown some resilience, the overall outlook remains uncertain, with planters emphasising the need to secure and diversify export destinations.
Call for Policy Coordination
Against this backdrop, planters are urging stronger coordination between government agencies and industry stakeholders.
Key areas of focus include:
- Ensuring consistent agricultural policies
- Supporting cost management and productivity improvements
- Strengthening market access and export competitiveness
- Enhancing collaboration across the value chain
Industry leaders stress that fragmented decision-making has contributed to instability in the past, and that a unified approach is essential to restore confidence and long-term growth.
Outlook
Sri Lanka’s tea sector remains a cornerstone of the national economy, but its future will depend on how effectively current challenges are addressed.
A coordinated strategy that balances worker welfare, production sustainability, and global competitiveness will be critical in stabilising the industry and safeguarding its role in the country’s export economy.