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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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Development deficit getting in the way of SL joining RCEP – Trade Ministry Secretary

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6 hours ago

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2026/06/16

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Principal panelists at Pathfinder Foundation forum.

Sri Lanka is not quite ready to join the Regional Comprehensive Economic Partnership (RCEP), since it is lacking sufficient development, Trade Ministry Secretary K.A. Vimalenthirarajah said.

‘At present the Trade Ministry is establishing Sri Lanka’s readiness to join RCEP, which consists of 15 countries, through several channels, Vimalenthirarajah said at a recent round table discussion titled, ‘Sri Lanka’s Pathway to RCEP and the Emerging Global Trading Order’, organized by the Pathfinder Foundation and held at the Colombo Club, Taj Samudra.

‘Sri Lanka is actively accelerating its compliance efforts to join the 15-nation RCEP having submitted its required accession questionnaire in early 2026, he explained.

Vimalenthirarajah added: ‘The Cabinet has established a high-level policy and working committee and also obtained some technical assistance from multilateral partners because complying with RCEP requirements is challenging. Subsequently, this body responded to the follow-up questions that came up and had discussions with RCEP representatives and it expects more follow-up questions with regard to Sri Lanka’s readiness to join RCEP.

‘Sri Lanka has also secured political and diplomatic support from current RCEP members, including Australia, New Zealand, and Indonesia, to facilitate its entry process.’

Meanwhile, state officials, including Industries and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe, are implementing key economic structural reforms, a new tariff policy, and transparent investment criteria required by the bloc. Because formal accession protocols for RCEP are still being finalized, Sri Lanka is also simultaneously negotiating bilateral trade and investment agreements with regional members to accelerate integration.

Abeysinghe, participating virtually in the event said that Sri Lanka cannot achieve sustained export growth and attract large-scale investment by relying solely on its domestic market. ‘As a small economy, the country’s future lies in deeper integration with regional and global value chains. RCEP connects 15 economies, including Japan, South Korea, Australia, New Zealand, China and ASEAN member states, collectively accounting for nearly 30% of global trade, he explained.

Abeysinghe added: ‘Access to such a market would create new opportunities for Sri Lankan businesses, particularly the country’s Small and Medium Enterprises (SMEs), which currently contribute only around 10 percent to national exports.

‘However, Sri Lanka is at least a decade behind in implementing many of the reforms required to fully participate in modern global trade. Recognizing this challenge, the government is now moving forward with several critical reforms: A new tariff policy to improve competitiveness and eliminate barriers to trade, transparent and predictable investment criteria, investment facilitation reforms to improve the ease of doing business, new legislation including the Public-Private Partnership (PPP) Act and SOE reforms to strengthen investor confidence and measures to improve investment protection and unlock new sources of capital, including venture capital and angel investment funds.

‘Sri Lanka’s exports currently stand at approximately US$ 17 billion and have grown only gradually over the years. Expanding market access through bilateral and multilateral agreements, while continuing domestic reforms, is essential if the country is to achieve its long-term economic ambitions.’

By Hiran H Senewiratne

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Pussalla Agri Ventures secures EU, USDA organic certs, paving way for high-value exports

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6 hours ago

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2026/06/16

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Roshan Ranawake, Managing Director of Control Union Sri Lanka, presents the certification to Philip J. Wewita, Chairman of Pussalla Agri Ventures (Pvt) Ltd, in the presence of Dr. Chamindi Jayasooriya, Director, and members of the Pussalla Agri Ventures team.

In a landmark development for Sri Lanka’s organic spice sector, Pussalla Agri Ventures has been awarded both EU Organic and USDA Organic certifications for its premium Ceylon cinnamon products. The certifications were officially conferred at Control Union Sri Lanka, signaling a major milestone in the company’s strategic transformation toward fully certified organic operations.

The recognition strengthens Pussalla Agri Ventures’ position as an emerging exporter of certified organic products, with its flagship offering, organic Ceylon cinnamon (Cinnamomum verum, also known as Cinnamomum zeylanicum), cultivated in Sri Lanka’s traditional cinnamon-growing regions.

Notably, the dual certification opens doors to some of the world’s most lucrative and compliance-driven organic markets, including the European Union and the United States.

Pussalla Agri Ventures began its structured transition into organic cinnamon cultivation several years ago, building a fully integrated system covering cultivation, processing, and value addition. The company currently manages extensive cinnamon cultivation lands and operates under strict organic agricultural principles, ensuring compliance with global certification standards.

These certifications, issued through Control Union Sri Lanka, validate that the company’s farming and processing systems meet rigorous international requirements, including restrictions on synthetic chemicals, comprehensive traceability controls, and environmental sustainability practices. These certifications add to an existing portfolio that already includes SL GAP, Food GMP, and Cosmetic GMP certifications.

Company representatives described the achievement as a “milestone” in the Pussalla organic journey, one that paves the way for expanded access to premium export markets in Europe and the United States. According to them, the certifications are expected to enhance buyer confidence, particularly among health-conscious consumers and clean-label food brands.

Pussalla Agri Ventures emphasised that its organic cinnamon is sourced entirely from its own cultivated estates.

“This estate-to-exporter integration ensures full control over quality, traceability, and processing integrity. The company’s model allows cinnamon to be harvested, processed, and packed under continuously monitored conditions, maintaining strict alignment with international organic standards,” they noted.

Speaking further they said:

“Sri Lanka supplies the majority of the world’s True Ceylon Cinnamon, a spice prized for its delicate aroma, low coumarin levels, and reputed medicinal properties. The growing global demand for certified organic spices has created new opportunities for local producers who meet international compliance standards. Pussalla Agri Ventures’ certification achievement places it among a select group of Sri Lankan exporters adopting globally recognised organic systems, thereby enhancing the country’s reputation in high-value spice markets.”

“As organic food sales continue to rise in North America and Europe, certifications such as these are becoming essential rather than optional. For Pussalla Agri Ventures, the journey from conventional to certified organic is not merely a compliance exercise but a strategic repositioning aimed at long-term sustainability and premium pricing power.”

By Sanath Nanayakkare

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NCCSL to host seminar on data protection & privacy

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6 hours ago

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2026/06/16

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The National Chamber of Commerce of Sri Lanka (NCCSL) will host a timely and insightful seminar titled “Data Protection & Privacy: Safeguarding Businesses in the Digital Era” on 18th June 2026, from 9.00 a.m. to 12.30 p.m., at the National Chamber of Commerce Auditorium, Colombo 10 with the objective of enhancing awareness among businesses on emerging cyber risks, data protection requirements, and digital security best practices.

As organizations increasingly rely on digital platforms, online transactions, cloud-based systems, and data-driven operations, protecting sensitive information and ensuring privacy compliance have become critical priorities for organizations of all sizes. The seminar aims to provide practical knowledge and strategic guidance to help businesses strengthen resilience against cyber threats while fostering trust and confidence among customers and stakeholders.

Interested parties are encouraged to register by contacting Udula – 0714034775/ 0114741788  | udula.nccsl@gmail.com or Nishanthi – 0762555707 | nishanthi@nationalchamber.lk

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