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Commercial plantations urge immediate government action to prevent industry’s demise

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4 years ago

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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.


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CEAT Kelani crowned ‘Best Tyre Manufacturer’ at inaugural Automobile Industry Awards

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2026/06/21

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CEAT Kelani General Manager – Institutional Sales & OE Mr Indika Ellepola and members of CEAT Kelani team accept the award from the Minister of Industry and Entrepreneurship Development Sunil Handunneththi in the presence of the Chairman of the Automobile Industry Council Mr Ravith Silva and other dignitaries

CEAT Kelani Holdings has been adjudged the Best Tyre Manufacturer in the ‘Component Manufacturer’ Category at the country’s inaugural Automobile Industry Awards presented by the Automobile Industry Council (AIC) of Sri Lanka, in a significant endorsement of the company’s leadership in the country’s fast-evolving vehicle assembly sector.

The awards were presented at Temple Trees at a ceremony attended by government ministers, senior public officials, industry leaders and stakeholders from across Sri Lanka’s automobile ecosystem. Conceived as a national platform to recognise excellence, innovation and sustainability, the awards evaluate performance across criteria including technology, market impact, customer satisfaction and industry leadership.

CEAT Kelani’s recognition reflects its commanding position in the Original Equipment (OE) tyre segment, where the company supplies tyres for more than 90% of the vehicles assembled in Sri Lanka. Having entered the local vehicle assembly industry in 2012 with its first OE tyre supply, CEAT has rapidly established itself as the preferred tyre partner for assemblers, supplying over 150,000 OE tyres annually across a diverse range of vehicles including cars, SUVs, motorcycles, scooters, buses and commercial vehicles.

Today, CEAT tyres are fitted as original equipment on more than 30 locally assembled vehicle models spanning 11 global brands, underscoring the confidence placed in the company’s product quality, consistency and performance.

The company’s leadership in this segment is reinforced by its achievement of IATF 16949:2016 certification, making it the first tyre manufacturer in Sri Lanka to secure this globally recognised automotive quality standard. This certification affirms CEAT Kelani’s capability to meet the stringent requirements of international automotive OEMs while optimising supply chain efficiency and reliability.

CEAT tyres supplied to vehicle manufacturers undergo rigorous validation processes and have demonstrated superior performance across key parameters such as safety, durability, braking efficiency, ride comfort and noise reduction. Low rolling resistance and minimal vibration further enhance driving efficiency and user experience, aligning with global expectations of modern mobility solutions.

Beyond its industrial impact, CEAT Kelani also contributes significantly to the national economy. By manufacturing tyres locally, the company helps conserve valuable foreign exchange through import substitution, while sourcing 100% of its natural rubber requirements domestically, supporting the livelihoods of more than 10,000 rubber cultivator families.

The Automobile Industry Council, the apex body representing Sri Lanka’s automobile sector, was established under the joint leadership of key government ministries and operates as a private-sector-led, not-for-profit organisation. Its mandate includes driving sustainable growth, strengthening industry competitiveness and fostering collaboration between public and private stakeholders.

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ComBank’s ‘Max Loyalty Rewards’ soars to new heights with airline miles option

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2026/06/21

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Reinforcing its commitment to delivering premium lifestyle value and rewarding experiences to its customers, the Commercial Bank of Ceylon has unveiled a significant enhancement to its Max Loyalty Rewards platform, enabling its cardholders to convert reward points into airline miles through a strategic integration with the national carrier’s ‘FlySmiLes’ programme and the frequent flyer programmes of other airlines.

Effective immediately, holders of Commercial Bank Premium and Platinum credit cards and Elite debit cards can seamlessly convert their accumulated Max Loyalty Rewards Points into FlySmiLes miles, unlocking faster access to flights and travel privileges with SriLankan Airlines.

The upgrade also encompasses other international frequent flyer programmes, broadening the global travel options available to eligible cardholders by extending the reach of the platform across multiple international travel networks, the Bank said.

The move represents a decisive step in elevating the everyday utility of credit and debit card spend, allowing routine transactions to translate directly into meaningful travel rewards. With SriLankan Airlines expected to be the preferred choice for the majority of customers, the partnership with the national carrier anchors the proposition, offering both familiarity and tangible value in the conversion of points to miles.

To mark the launch, Commercial Bank is offering a highly competitive promotional conversion rate of six Max Loyalty Rewards Points to one FlySmiLes mile, valid through 31st December 2026. The Bank said this market-leading rate significantly accelerates the journey from daily spend to international travel, enhancing the appeal of the Bank’s card portfolio.

Commenting on this latest development, Hasrath Munasinghe, Chief Operating Officer of Commercial Bank, said the enhancement reflects the Bank’s continued focus on delivering differentiated value to its customers. “Max Loyalty Rewards points are among the most valuable benefits offered to our cardholders, turning everyday spending into rewarding experiences,” he said. “Commercial Bank is also the first and only Bank to offer Max Loyalty Rewards points to both credit and debit cardholders, extending these benefits beyond credit cards. By partnering with SriLankan Airlines and other global carriers, we have significantly strengthened the Max Loyalty Rewards platform. Our cardholders can now think beyond conventional rewards and convert their everyday spending into memorable travel experiences. This is about enabling them to go further, more often, with greater ease.”

The airline miles conversion feature is available at no additional cost to eligible cardholders, with no enrolment or processing fees. Access is fully integrated into the existing Max Loyalty Rewards platform, allowing users to log in with their current credentials, view balances, and convert points instantly alongside standard merchant redemptions.

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Mangala Perera appointed C.W. Mackie Group CEO

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4 hours ago

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2026/06/21

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Mangala Perera

C.W. Mackie PLC has appointed Mangala Perera as its new Group Chief Executive Officer (Group CEO), strengthening its senior management team with an experienced corporate leader with over 26 years of cross-industry experience.

Perera, who has served as a Director of C.W. Mackie PLC since April 2, 2012, currently holds the position of Executive Director – Group Chief Operating Officer of the company. He has held senior roles in marketing and general management both locally and internationally.

In addition to his responsibilities at C.W. Mackie PLC, Perera serves as Managing Director of Sunquick Lanka (Private) Limited and holds directorships at Sunquick Lanka Properties (Private) Limited, Kelani Valley Canneries Limited, Ceymac Rubber Company Limited and Ceytra (Private) Limited. He is also a Non-Executive Director of Phoenix Industries Limited.

Perera’s academic and professional credentials span multiple disciplines, including a Master’s degree in Financial Economics from the University of Colombo, a BSc (Hons.) Special Degree in Marketing Management from the University of Sri Jayewardenepura and a Postgraduate Diploma in Business and Financial Management from the Institute of Chartered Accountants of Sri Lanka.

He is also a visiting lecturer in Postgraduate Studies in Management at the University of Colombo and the University of Kelaniya, and contributes to several national-level project committees and professional judging panels as an active marketing practitioner.

Beyond the corporate sector, Perera has been involved in sports administration and previously served as President of the Sri Lanka Mercantile Volleyball Federation, where he played a key role in promoting volleyball and beach volleyball in Sri Lanka.

The company said the appointment reflects its continued focus on strengthening leadership and driving future growth.

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