Business
Commercial plantations urge immediate government action to prevent industry’s demise
RPCs allege discrimination by authorities on allocation of fuel for leaf and latex transport and power generation
Calls for radical and bold reforms to resuscitate industry including allowing hybrid $ auctions
Calls for additional assistance to increase production to enhance dollar earnings and measures to reduce high COP
The Government’s failure to allocate fuel quotas to the Regional Plantation Companies (RPCs), together with continuous power disruptions and uninformed policymaking, is bringing Sri Lanka’s commercial plantations to a standstill. Due to the lack of fuel, all leaf and latex transport operations have been severely impacted and there is insufficient fuel to operate standby generators.
Accordingly, the Planters’ Association of Ceylon (PA), demanded that authorities take immediate action to prioritize Sri Lanka’s plantation industry which contributes over USD 1.5 billion to Sri Lanka’s export revenue.
Commenting on the dire situation, PA media spokesperson, Dr. Roshan Rajadurai cautioned that the Government’s continuing failure to give any priority whatsoever to the needs of RPCs and the broader industry, together with a series of catastrophic policy blunders had resulted in severe disruptions to production and transport and rapid escalation of production cost of tea by around 30% from the beginning of 2022.
“RPCs will no longer be able to continue operations as usual if real and meaningful solutions are not provided immediately,” emphasised Dr. Rajadurai. “Despite our critical contribution to the industry and the Sri Lankan economy, the authorities have failed to understand our value. Instead they have continuously discriminated the RPCs even in the past, as compared with other export industry stakeholders and the rest of the plantation sector.”
“Our sector was severely disrupted even before the current domestic economic crisis by uninformed policy making decisions, including the completely irrational ban on import of essential agriculture inputs. The issues we are seeing now across the economy are directly connected to this unplanned, unscientific, and short-sighted approach to policy,” Rajadurai added. “While at long last, the Government has publicly accepted the failure of this policy, the once vocal proponents of such unsound claims are nowhere to be seen although the industry continues to pay the price, despite our repeated warnings and admonitions about the ill effects of such policy.”
While the Government retracted its decision to ban imports of agricultural inputs such as fertiliser, recommended weedicides, fungicides and pesticides, these have not been available since April 2021. The bureaucratic processes required for the bans to be lifted takes a long time, and have obstructed imports, creating severe shortages. Compounding these challenges, the depreciation of the Rupee and the global increase in commodity prices have resulted in the price of these essential inputs skyrocketing. For instance, the price of fertiliser used for tea has increased 25-fold from before the ban; from approximately Rs. 30,000 per metric tonne (MT) of urea to Rs. 750,000 per MT and prices are still increasing.
As a result, the cost of production of 1kg of tea has now risen to nearly Rs. 800. However, at the Colombo Tea Auction, the Net Sale Average (NSA) of high-grown tea was only around Rs. 717, up to end March 2022.
In addition, the unavailability of inputs will reduce yields and quality in the long run. Despite better weather compared to last year, the industry has seen a decline in tea and rubber crops this year, compared with the corresponding period of last year, as the lack of agricultural inputs such as fertilizer, weedicides and fungicides begin to take effect. With tea and rubber being perennial/long-term crops, such adverse effects on yield could be felt throughout the productive life of the plant. Rubber cultivations too have been impacted by fast-spreading diseases such as pesta. In the absence of necessary inputs to arrest their spread the disease has already resulted in a 30% – 40% crop loss.
Tea estates operate throughout the 24 hours of the day and require uninterrupted electricity to do so. If, for instance, the withering operation is disrupted/interrupted for a few hours, bacterial contamination takes place, drastically reducing the quality of the tea produced. Acknowledging this, the authorities have allocated fuel quotas to the rest of the industry value chain for them to continue operations by running their generators during power cuts, but the RPCs have been inexplicably ignored.
Transporting inputs and raw materials such as green leaf and latex to and between large land areas in commercial estates and transporting produce to Colombo have also become extremely difficult due to the lack of fuel. This will lead to the complete breakdown of estate operations and consequently the RPCs will not be able to operate the estates leading to severe and serious social unrest under these present volatile situations in the country. Over 1 million people reside within the country’s large commercial estate sector and their livelihood is totally dependent on the plantation economy.
For the plantation sector to continue operations, uninterrupted power and fuel – including for internal transport – need to be provided as priority. Since suppliers are also now demanding for payments in foreign currency, the RPCs are also strongly urging the authorities to allow tea producers participating at the Colombo Tea Auction to obtain their payments from tea exporters in foreign currency.
A hybrid system, which allows exporters to pay tea producers in foreign currency and local buyers of tea to pay in Rupees is prudent and fair, considering how other export industries are allowed to obtain payments in foreign currency. Notably, 95% of Ceylon Tea is exported and the industry is a major generator of valuable foreign exchange for the country.
Given the sharp increase in the cost of vital agri inputs, the RPCs also urge the Government to include the commercial plantation sector in any beneficial scheme through which such inputs are made available to producers, using funds from multilateral agencies. The RPCs provide a range of services and care for a population of over 1 million residing in the estates and also support the smallholders by processing their tea leaves and rubber latex, serving as a vital cog in the industry’s supply chain.
In the medium to long-term, the RPCs see stable policymaking made in consultation with industry practitioners as essential for the growth and economic sustainability of the plantation industry.
Janashakthi Life, the flagship company of JXG (Janashakthi Group), delivered a strong first-half performance in 2026, with Gross Written Premiums (GWP) increasing by 36% year-on-year to Rs. 5.11 billion. The Company’s growth significantly outpaced the industry’s 20.8% growth during the period, reflecting continued demand for its life insurance solutions and progress in expanding its customer base and strengthening its market presence.
The Company’s balance sheet also continued to expand, with total assets increasing to Rs. 41.14 billion as at Q2 2026, compared to Rs. 40.37 billion at the end of 2025. The growth reflects the continued scale of the business and provides a stronger platform to serve an expanding policyholder base while investing in the capabilities required to support its next phase of growth.
During the first half, Janashakthi Life paid Rs. 2.24 billion in claims and benefits, reaffirming its commitment to supporting policyholders when it matters most. These payments provide essential financial support at critical moments in the lives of individuals and families, highlighting the vital role of life insurance in protecting their financial wellbeing and long-term security.
The Company remained profitable during the period, recording Profit Before Tax (PBT) of Rs. 271 million, excluding the surplus transfer for the period. With the declaration of the surplus transfer, profitability is expected to be substantially higher. Janashakthi Life remains focused on strengthening earnings quality, managing costs effectively, and translating business growth into sustained improvements in overall performance.
Annika Senanayake, Chairperson of Janashakthi Insurance PLC, said, “The performance in the first half reflects the strength of Janashakthi Life’s business and the opportunities that exist to further develop the life insurance market in Sri Lanka. We remain focused on building a business that combines sustainable growth with sound fundamentals, while making insurance more accessible to a wider segment of the population. As part of JXG, Janashakthi Life is well positioned to leverage the Group’s financial services ecosystem and continue strengthening its position in the market.”
Ravi Liyanage, Director/CEO of Janashakthi Insurance PLC, said, “The first half delivered strong growth across key areas of the business, with GWP increasing 36% to Rs. 5.11 billion. In all key segments, namely regular business, group life business and single premium business, the Company has outperformed the industry significantly, demonstrating its market challenger behaviour. The Company is strengthening its stability, crossing LKR 41 billion in assets under management. Our focus now is on building on this momentum through stronger distribution, improved productivity and disciplined cost management, while continuing to enhance the customer experience by providing an unmatched service throughout the lifespan of the service contract.”
The first-half performance provides a strong platform for Janashakthi Life to build on its growth plans for the remainder of the year. The Company will continue to focus on expanding access to life insurance, strengthening customer relationships and developing solutions that respond to changing financial priorities.
With GWP growth significantly ahead of the industry, a growing asset base and increased claims and benefits delivered to policyholders, Janashakthi Life continues to build scale across its core operations. The Company remains focused on disciplined growth, stronger execution and improving the quality of its performance, with the objective of creating sustainable value for policyholders, shareholders and the wider business.
Further reinforcing its strong market standing, Janashakthi Life was recognised among Sri Lanka’s 50 Best Workplaces™ for 2026 by Great Place To Work® Sri Lanka and was also named among Brand Finance’s Sri Lanka 100 Most Valuable Brands. These recognitions reflect the Company’s continued focus on building a strong brand, delivering value to customers and creating a high-performing organisation. (JXG)
Major Japanese business group sees long-term potential in Hunas Holdings as the two organisations explore new opportunities for growth in Sri Lanka
Hunas Holdings PLC is entering a new phase of growth through a collaborative partnership with CCH Co., Ltd. (CCH INC.), a major Tokyo-based business group with experience across business process outsourcing (BPO), in-house services, investment, mergers and acquisitions, and business development.
The partnership follows a period in which Hunas Holdings maintained a measured approach to new investments amid volatile market conditions, focusing on identifying the right opportunities and international relationships capable of creating sustainable long-term value.
Founded in Japan in 2008, CCH has grown into a significant and diversified business group with interests across multiple industries. Its approach combines investment with M&A, business development and operational expertise, enabling the company to play an active role in the businesses and markets it enters.
For CCH, the partnership represents an opportunity to bring this experience to Sri Lanka through Hunas Holdings, an established local group with a strong platform and long-term growth ambitions.
Yoshihiko Tanabe, Director of CCH Co., Ltd., said: “Through our discussions with Hunas Holdings, we see a company with strong foundations, local expertise and a clear ambition for growth. We believe there is meaningful potential in bringing the strengths of CCH and Hunas Holdings together. I am excited about this partnership, and particularly about some of the projects and opportunities we are already exploring together. There is much to look forward to soon”
For Hunas Holdings, the collaboration marks a renewed chapter of investment and international partnership, while for CCH, it reflects confidence in Hunas Holdings and the opportunities presented by the Sri Lankan market.
Dr. Harini Amarasuriya, Prime Minister of Sri Lanka, will deliver the keynote address at a special session on day 2 of the Sri Lanka Economic & Investment Summit 2026 organised by The Ceylon Chamber of Commerce, titled “Nation Building in the Digital Age”, on 13 October 2026 at the Shangri-La Colombo.
The session will examine how Sri Lanka can use artificial intelligence, digital transformation, innovation and education to accelerate economic growth, improve productivity and build a knowledge-driven economy. As technology reshapes industries and the nature of work, the discussion will focus on how Sri Lanka can develop the capabilities needed to remain competitive and create opportunities for future generations.
The Prime Minister will be joined by Waruna Sri Dhanapala, Secretary, Ministry of Digital Economy; Prof. Roshan Ragel, Senior Lecturer in Computer Engineering, University of Peradeniya; and Sanjay Shah, Founder and CEO, Elevante AI, who together will add perspectives from government, academia, and industry. Vinod Hirdaramani, Chairman of Hirdaramani Group and Deputy Vice Chairperson of The Ceylon Chamber of Commerce, will moderate the session.
The discussion will look at the opportunities and challenges presented by emerging technologies, including artificial intelligence and automation, and their potential to transform industries and create new areas of economic activity. It will also consider the role of digitalisation in improving public services and supporting entrepreneurship.
Education and skills development will be another important part of the conversation, particularly as the demand for new capabilities grows alongside technological change. The panel will consider how Sri Lanka can prepare its workforce for future jobs while developing an environment that supports innovation and technology-led businesses.
The session will also look beyond technology itself to the wider conditions needed for a digital economy to grow. Policy, investment, infrastructure, education and collaboration between government, industry and academia will all have a role in determining how effectively Sri Lanka can turn technological change into economic opportunity.
Held under the theme “Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy,” SLEIS 2026 will offer perspectives from senior policymakers, business leaders, investors and international experts over two days of discussions on Sri Lanka’s economic direction, investment opportunities and the reforms needed to support future growth.
Registrations are now open at https://sleis.chamber.lk/. For more information, contact Alikie on 011 558 8805 (alikie@chamber.lk) or Shanuka on 0701082541 (events.division@chamber.lk).
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