Business
‘Diversification vital for the long-term stability of the RPCs’

Should optimise assets, not limit themselves to being solely agriculture businesses
By Bhathiya Bulumulla
Over the past three decades, the Regional Plantation Companies (RPCs) have established themselves as a critical stakeholder of Sri Lanka’s plantation industry.
The RPCs were formed in 1992, primarily with the intention of bringing in the private sector, to improve the efficiency of the country’s large-scale estates involved in the cultivation of tea, rubber and other plantation crops. However, it is evident that the RPCs have gone beyond this mandate and that their actions have elevated Sri Lanka’s entire plantation sector.
This is evidenced by the numerous global certifications obtained by the RPCs, which have been critical in enabling Ceylon Tea to earn a premium over its competitors in the international market. The RPCs also contribute significantly to the country’s economy, both as a major employer and a generator of export earnings.
However, the RPCs are now facing challenges on multiple fronts. It is evident that the RPCs cannot focus solely on the production of commodities, especially given Sri Lanka’s high production costs. To be financially sustainable and to continue to contribute to the country’s economy, the RPCs must adopt a different business model.
In order to do so, firstly, RPCs must no longer see themselves as being solely agriculture businesses nor should they limit themselves to the plantation sector alone. They should instead diversify in a manner that optimises the economic benefit of the assets under their management. Many forward-thinking RPCs were quick to come to this realisation, diversifying into sectors like renewable energy, other profitable plantation crops and commercial forestry, as far back as early 2000s.
RPC-led vertical and horizontal integration
The RPCs must consider the feasibility of both horizontal and vertical integration, as well as product and market diversification. Prudent use of this approach has already yielded lucrative dividends for several RPCs. For instance, some have diversified within the plantation sector, successfully tapping into the high-value market for spices. Others have diversified into other industries, with many RPCs investing in hydro and solar energy projects.
The RPCs should also think out-of-the-box in these instances. For examples my company, Elpitiya Plantations PLC, partnered with a foreign company, to develop a state-of-the art adventure park as well as to cultivate and market strawberries. We are also testing the feasibility of growing several other types of berries in Sri Lanka, given the lucrative market for the product. Similarly, we are also establishing cultivations for hass avocado, which has a relatively long shelf life and hence is suitable for exports, pineapple and as well as bamboo – both edible types and those which can be used for fabric production.
Such diversification is vital to improve long-term business sustainability and avoid the proverbial risk of ‘putting all eggs in one basket’. These are strategies which will not only benefit RPCs but also their employees and the wider economy. Diversification would create new employment opportunities which are more aligned with the aspirations of the youth, who do not wish to engage in tea plucking or other similar activities. Addition of new high-value exports can assist in diversifying Sri Lanka’s export portfolio, which has been largely stagnant.
In addition to diversification, adoption of mechanisation is also important, particularly in addressing the labour shortage and high production costs in RPC estates. While mechanical harvesting cannot be used in all areas, given especially that many tea fields are located on elevations/slopes, the RPCs are cultivating new tea fields in a manner that would make them well-suited for mechanised plucking. Besides plucking, mechanisation has been used widely in field activities to overcome labour shortage and to increase productivity.
Broad stakeholder collaboration essential
RPCs cannot make such sweeping changes unilaterally. We require the total support of policymakers and all industry stakeholders – including the trade unions and local politicians. We must work together to develop a visionary framework for these reforms. Crucially, these measures must also be presented to employees, and the general public, so that further reforms are undertaken on the basis of an informed majority consensus.
Policy consistency is critical to enable the RPCs to make business decisions with confidence. This has been an area of concern in the recent past – particularly in terms of policies on importation and usage of agro-chemicals, synthetic fertilizers and the cultivation of oil palm.
Business
Cabinet approves CECB as consultant for renovation of the Karainagar boat yard project

The Cabinet of Ministers has approved the proposal presented by the Minister of Fisheries, Aquatic and Marine Resources to seek the services of the Central Engineering Consultancy Bureau as a consultant for the renovation of the Karainagar boat yard project and allocate 40 million rupees from the Treasury for the expenditure to be borne by the Government of Sri Lanka.
[A memorandum of understanding was signed by the President during his official visit to India in December 2024. , to obtain a grant from the Government of India for the renovation of the Karainagar Boat Yard
According to the MOU, the responsibility of providing the technical consultancy service for the project and exempting the goods and equipment related to the grant from taxes has been assigned to the government of Sri Lanka.]
Business
‘Transformative infrastructure’ installed at Colombo West International Terminal

In a landmark move for Sri Lanka’s logistics landscape, EFL Project Logistics has completed a critical phase of deliveries for the Colombo West International Terminal (CWIT), a transformative infrastructure project poised to reshape the country’s role in global maritime trade.
CWIT—a collaboration between Adani Ports and SEZ Ltd (51%), John Keells Holdings and the Sri Lanka Ports Authority—is set to be the island’s first fully automated deep-water terminal. As it gears up for full commercial operations in 2025, the recent arrival of high-tech port handling equipment marks a key economic inflection point for Sri Lanka.
Speaking exclusively to The Island Financial Review on the impact, Mohamed Niyas, General Manager – Project Logistics at EFL, said, “The logistics we executed for CWIT are more than just cargo movements; they are catalysts for economic transformation. These deliveries—ranging from electric inter-terminal trucks to automated gantry cranes—are essential to positioning Sri Lanka as a sustainable, high-capacity transshipment hub.”
Among the highlights of the operation were 62 state-of-the-art Sany electric trucks and massive quay and gantry cranes, representing not only a technical leap but also a green one. These advancements contribute to CWIT’s eco-efficient design and bolster Colombo’s capacity to handle up to 15 million TEUs by 2026.
Economically, the development of CWIT—and EFL’s role in its expedited setup—signals a push for increased foreign direct investment, enhanced export competitiveness and job creation across the logistics and engineering sectors. As Niyas emphasized, “We are not just helping move cargo; we are enabling national economic value. Every successful delivery brings us closer to a future where Sri Lanka is a leading player in the South Asian maritime corridor.”
With global shipping routes evolving and automation driving next-gen port operations, CWIT is seen as a strategic asset for long-term growth. EFL’s role in the project showcases the kind of logistics innovation necessary to support this ambition—efficient, sustainable and globally competitive.
By Ifham Nizam
Business
Marine Tourism Roadmap for Sri Lanka launched by SLTDA

Sri Lanka marked a major milestone in its tourism development efforts with the official launch of the Marine Tourism Roadmap on April 10 in Colombo. This initiative, led by the Sri Lanka Tourism Development Authority (SLTDA) with support from the Asian Development Bank (ADB) under its technical assistance program TA9881 SRI: Supporting Tourism Resilience, lays the groundwork for a new chapter in tourism and the nation’s blue economy.
The Marine Tourism Roadmap was developed through an extensive process of data collection, stakeholder consultations and site visits conducted by the ADB appointed international consultant together with officials of the SLTDA. The final validation of the Roadmap was done by the Marine Tourism Steering Committee, which included representatives from key marine related public and private sector institutions. International expertise was provided by Ms. Aleksandra Dragozet (CEO & Founder – Sea Going Green), ADB’s appointed marine tourism consultant, whose guidance ensured the strategy aligned with global best practices for sustainable tourism. The SLTDA officials, Dr. Prasad Jayasuriya, Director-Tourism Planning, Development & Investments and S Dadeepan, Assistant Director-Tourism Planning & Development coordinated all meetings, site visits and activities with relevant stakeholders and the Steering Committee.
The Marine Tourism Roadmap emphasizes a balanced approach between conservation and economic development, promoting eco-friendly activities such as diving, snorkeling, ship wreck diving and marine wildlife watching. These activities are designed to support local livelihoods while safeguarding Sri Lanka’s rich marine biodiversity, particularly coral reefs, marine mammals, and fragile coastal habitats that face increasing environmental pressure. The strategy outlines two categories of coastal destinations: areas covering Kalpitiya through Galle to Trincomalee, which possess established marine tourism industries; and areas covering Mannar, Jaffna and the North-Eastern coastal belt, which are recognized for their emerging tourism potential. Notably, Sri Lanka’s ocean territory is nearly seven times larger than its landmass, highlighting the vast, untapped opportunities for marine-based tourism. The roadmap presents both short-term and long-term implementation strategies, aiming to develop sustainable marine tourism infrastructure, enhance visitor experiences, and ensure the protection and resilience of marine ecosystems in the years ahead.
The Roadmap itself was the result of collaboration among stakeholders covering coastal areas of Negombo, Kalpitiya, Mannar, Jaffna, Mullativu, Trincomalee and Galle and also the Steering committee members representing 18 key marine related public and private sector institutions including Presidential Secretariat, Ministry of Tourism and the SLTDA. This unified approach ensured that the document reflects the diverse perspectives of stakeholders directly involved in marine and coastal tourism development.
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