Business

How to pay more than Rs. 1,000 per day to tea estate workers

Published

6 years ago

2020/11/29

by Remy Jayasekere, Chartered Engineer

In the recent past there have been several articles written opposing the government decision to increase the wages of tea estate workers. On November 21, the Island newspaper published an article titled “Tea industry experts willing to learn the magic formula …” written by a spokesman for the Planters’ Association. Its theme was that under the present conditions it is not possible to increase wages.

There is a 1,000 acre tea plantation called Nerada in far north Queensland in Australia (neradatea.com.au). It produces 6.6 million kg of leaf and 1.6 million kg of made tea annually. Total labour force is less than 50 and the factory is manned by four people in a shift. The minimum hourly wage in Australia is about AUD 20 or around SLR 2,500 which works out to SLR 20,000 for an eight-hour day. Nerada pays above minimum wages so that they can retain talent.

Leaf plucking is done by one machine for the whole plantation – therefore there is only one tea plucker at any time and plucking is a 24-hour operation. The plantation is family-owned and they have developed all the technology themselves – no Tea Research Institutes or Tea Boards.

If Nerada can pay SLR 20,000 per person per day why can’t Sri Lanka pay SLR 1,000 per day? The answer is simple – at Nerada 50 people produce 1.6 million kg of made tea annually which works out to 32,000 kg per person annually. This is worth about AUD 150,000. Pay the worker AUD 50,000 per year and the company has AUD 100,000 per person per year for other things.

This has been achieved through innovation which has resulted in mechanisation and automation of processes. SL has not innovated, continuing to do things the way they have been done for ages. This could be the net result of many decisions taken in the past such as nationalisation of the plantations, regional plantation companies (RPC) not owning the plantations, therefore milking them rather than developing them and general backwardness of the country in developing and employing modern technology.

RPCs have managed the plantations for more than 25 years and if they are interested in developing the plantations, they had ample time to do so. However, they have chosen to remain in the dark ages without any innovative thinking and actions and now are arguing against wage increases. SLR 1,000 is around USD six per day which is not much higher than the extreme poverty level defined by the UN. The actions of the government, the plantation companies and the planters have made sure the workers remained in poverty during the past and now want to ensure that continues into the future.

In the 1980s Singapore had the problem of being turned into a large garment manufacturing centre which they did not want. The government increased the wages of garment factory workers – the message was innovate and produce more per worker or close down. History shows they all closed down and engaged in other pursuits. The Sri Lankan government should be congratulated for taking this bold step of increasing wages – the message is clear, innovate or we will change the agreements. How can you let the RPCs hold a large proportion of the population as well as the economy of the country hostage.

What is stopping us from using a company such as Nerada as the benchmark and trying to achieve what they have achieved. Let me list a few steps.

1. Green leaf – Nerada produces 6600 kg per acre per year. Considering it is one plantation, as a country can we aim for at least half of that. I am sure everyone knows what to do – the list is long. Definition of innovation – 5% is knowing what to do and 95% is doing it.

2. Plucking – This possibly is the highest cost item in the production of tea in Sri Lanka. Two excuses are given for not mechanising plucking – the terrain does not allow for mechanised plucking and mechanised plucking reduces the yield. New replanting areas should have the terrain modified to enable mechanised plucking. The myth of reduced yield does not stand against evidence from Nerada

3. Factory – There are more than 700 tea factories in Sri Lanka employing large numbers of people. Factories in some areas cannot find enough people to man them. Most of these people are used for transporting material from one process or machine to another and in some cases to watch and operate machines. At Nerada all these operations are automated and only four people are required in a shift. Why not scrap the existing factories and build new ones – the payback will be very quick. One of the big problems in the past was trying to modify existing factories which limits possibilities. Do not think outside the box. Think there is no box.

4. Then there are other minor things that go beyond what Nerada has done – using solar energy for the driers and using dehumidified air for withering. Nerada has no need for producing dehumidified air as the humidity in that area is very low.

5. The workers cannot do anything about these. The government, RPCs and management have to take the initiative to improve our plantations. There are no bad soldiers – only bad officers

I believe I have made a case for increasing wages of plantation workers and hope the RPCs will look at this in a positive manner.

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Business

SLEIS 2026 to examine Sri Lanka’s energy transition and its implications

Published

8 hours ago

2026/09/26

Thilina Walpola

Reliable and affordable energy is essential to Sri Lanka’s economic growth, industrial development and competitiveness. As the country seeks to strengthen energy security while reducing its dependence on fossil fuels, the energy sector will be a key area of discussion at the Sri Lanka Economic & Investment Summit 2026, organised by The Ceylon Chamber of Commerce on 12-13 October 2026.

The session, “Beyond Fossil Dependence: Balancing Security, Sustainability, and Growth,” will examine how Sri Lanka can diversify its energy sources, accelerate renewable energy adoption and attract investment while ensuring a reliable energy supply for businesses and households. Discussions will also consider the infrastructure and policy frameworks needed to support the country’s transition towards a modern and competitive energy system.

Ms. Edore Onomakpome – Regional Infrastructure Industry Manager – Bangladesh, Sri Lanka and Nepal, at the International Finance Corporation will keynote the session, and join the panel discussion featuring G.M.R.D. Aponsu – Secretary to the Ministry of Energy, Damitha Kumarasinghe – Director General (Chief Executive Officer), Public Utilities Commission of Sri Lanka, and Manjula Perera – Managing Director, WindForce PLC. The discussion will be moderated by Sheran Fernando – Senior Advisor, Plus94.

The session will also explore the role of public-private collaboration in developing new energy solutions, encouraging investment and creating opportunities within Sri Lanka’s evolving energy sector. It will consider how energy policy and investment decisions can support both economic expansion and the country’s longer-term sustainability objectives.

The Sri Lanka Economic & Investment Summit 2026 is supported by its valued sponsors and partners. Platinum Sponsor – Standard Chartered Bank Sri Lanka, Gold Sponsor – VISA Worldwide (Pvt) Ltd., Bronze Sponsor – South Asia Gateway Terminals (Pvt) Ltd., Strategic Development Partner – Asian Development Bank, Telecommunication Partner – Dialog Telecommunication, Television Partner – Dialog Television, Session Sponsors – David Pieris Motor Company (Pvt) Ltd., Hemas Holdings PLC, Sunshine Holdings PLC, International Construction Consortium (Pvt) Ltd., Official Logistics Partner – Hayleys Advantis Limited, Official Airline – SriLankan Airlines Ltd., Official Hospitality Partner – Shangri-La Colombo, Airline Partner – China Eastern Air Holding Co. Ltd.

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).

Business

A fresh chapter for the George Keyt Foundation: A renewed commitment to the Sri Lankan art ecosystem

Published

8 hours ago

2026/09/26

Thilina Walpola

The George Keyt Foundation (GKF), dedicated to preserving the legacy of modernist painter George Keyt and fostering local art, has announced strategic appointments to its leadership team, bringing together a mix of global academic expertise, corporate leadership, and artistic passion. These enhancements aim to inject fresh expertise and academic depth into the Foundation’s long-term vision.

Establishment of the New Advisory Committee

To broaden its operational reach and deepen its engagement with the global art market, the George Keyt Foundation has established an Advisory Committee. The newly appointed committee members include:

• Dr Sujatha Meegama is a Senior Lecturer in Buddhist Art History at the Courtauld. She is an acclaimed art historian, author and academic, bringing specialised knowledge in South Asian art history to guide the foundation’s curatorial and educational directives.

• Dr Shamil Wanigaratne: A clinical psychologist, author, and avid art historian, Shamil will lend his unique perspective to help the foundation design meaningful public outreach and cultural preservation strategies.

• Abbas Esufally: A veteran corporate leader and patron of the arts, Abbas is transitioning from his role as a GKF Trustee to this advisory position, where he will continue to offer his sharp business acumen and extensive network.

New Trustee Appointment

Leesha Captain has been appointed to the Board of Trustees. Inspired by Sri Lankan artists, Leesha is a recognised supporter of the local art scene. Leesha’s hands-on perspective will strengthen the foundation’s core team as they develop and design new art programs.

A Vision for the Future

“These new appointments mark an exciting chapter for us as we build on our decades-long history of promoting Sri Lankan artists,” says Malaka Talwatte, Chairman of the Foundation. “The combination of Leesha on the board, alongside the diverse expertise of our new Advisory Committee, will significantly amplify our efforts in curating high-profile exhibitions and expanding local and international partnerships”.

Business

Sun Siyam Pasikudah celebrates World Tourism Day with culture, cuisine and community

Published

8 hours ago

2026/09/26

Thilina Walpola

Sun Siyam Pasikudah, part of the Privé Collection under Maldivian-owned Sun Siyam Resorts, will mark World Tourism Day on 27 September 2026 with a full day programme celebrating the culture, cuisine and natural beauty of Sri Lanka’s east coast, paired with community focused sustainability activities.

The celebrations open with a special buffet of authentic Sri Lankan cuisine, followed by a street food festival showcasing regional snacks and traditional sweets rarely found on resort menus. A signature World Tourism Day mocktail and cocktail, created for the occasion, will be served through the day, while traditional Sri Lankan cultural dance performances bring the island’s heritage to life for guests.

Beyond the festivities, the resort has planned a tree planting activity with guests and a beach or park clean up campaign, both reflecting Sun Siyam Pasikudah’s ongoing commitment to responsible tourism along Sri Lanka’s northeast coast.