Opinion

Plantation Workers : Proposed wage hike and related matters

Published

2 years ago

2024/06/27

Dr Parakrama Waidyanatha

President Ranil Wickramasinghe’s pronouncement at a recent political meeting with the plantation workers, that their wages would be raised from Rs 1,000 per day to Rs 1,700, naturally more than delighted the workers. It was, however, clearly a vote catching exercise! The workers would have been even quite contended with a smaller increase of about Rs 200! By contrast, the plantation managers are shocked by the sudden decision without consulting them, and many say that with marginal profits they are making, it is impossible to agree to such a huge increase, and the repercussions of implementation of this decision could be catastrophic! Some companies even claim that they will have to cut back on operational costs by reducing labour employment. As also pointed out by Dr Pethiyagoda in his article, on the same matter, that appeared some day ago in The Island newspaper, such a wage increase decision should have been ideally made in consultation with the Wages Board of the Labour Department following a meeting of the worker representatives and plantation managers. However, there is no argument that the estate workers, many yet living in squalor and poverty, need better wages and living conditions. The potential for generating substantial profits from plantations is there, if plantation managers had done what was needed, and as seen from the information below, giving a livable wage should have been no problem!

A simple calculation shows that that with EPF, ETF and gratuity components the total daily wage increase should amount to about Rs 1167. An approximate calculation of operational costs for tea made by a colleague of mine, an expert in the tea industry, is given in the Table 1 shown here.

With the enactment of the Land Reforms Act of 1972 all foreign company owned plantations numbering to over 500 estates were nationalised and handed over to the state owned State Plantations Corporation (SPC) and Janata Estates Development Board (JEDB) for management. However, on realising that the management of plantations and returns were unsatisfactory, 450 estates were handed over to 22 plantation companies and the remaining 55 estates essentially in the mid country were retained by the JEDB and SPC, handing over 11 of them to the then newly established state –owned Elkaduwa Plantations Limited.

The mid country tea estates were historically running at a loss for a long period as a result of low prices obtained for their teas compared to the upcountry and low country teas. This had led to poor crop management resulting in heavy soil erosion and fertility losses leading to poor yields. Some plantations such as the Mobray Estate, Hindagala, Kandy District, were abandoned or fragmented and sold. Many holdings in the mid country which were diversified essentially into pepper and other spices are making substantial profits.

(See Table 1: General charges: salaries, vehicles and building upkeep, holiday pay, gratuity, head office costs. Field operations: fertiliser and application, weed management, pruning, etc.)

The more recent profit /loss information of the two state enterprises, SPC and JRDB was not available in the public domain. Published data were available online only up 2020 as shown in Table 2.

This means that the government had to dole out large sums to maintain the plantations. Regrettably both companies yet have large extents of old seedling tea as a result of their very low replanting rates which is even below the national average of 0.6%; the recommended rate being 2%. However, a news item in The Island newspaper of 21st Sept. 2022 reported a Rs.100 million profit forecast for the year by the Chairman/JEDB. Similarly, the SPC too is now apparently making marginal profits largely as a result of diversification into forestry and other investments. This should have been done decades ago! On the other hand, the Elkaduwa Plantations Limited which for many years was running at a loss has, in recent years, been making profit as a result of improved crop management, crop diversification and investments in tourism; and recently had a ceremony giving out the newly increased wages to employees.

It is very encouraging to note that the seven plantation companies that had ventured out into oil palm cultivation are making substantial profits of which Watawala which has the largest extent of oil palm is making nearly 75 % profit from it! In April 2021, the former President was driven by unprofessional advice against oil palm and moved to ban it. He even ordered uprooting the existing crop and also totally banned palm oil imports! However, palm oil import ban was lifted a few late later, but the policy to ban oil palm cultivation still exists. The decision was to expand coconut cultivation to meet the national oil demand, without realizing the serious limits to it. The Coconut Research Institute has shown that with global warming and increasing temperatures in the dry zone coconut growing areas in the dry months, such as in some parts of the northern districts, there is poor fruit set. These lands are ideal for expansion of cashew cultivation which yields huge profits.

One of the main objections to oil palm cultivation is that it consumes excessive water causing dryness in soil. However, this is a faulty observation , and as shown in Table 3 the soil water consumption of coconut and oil palm are comparable and much less than that of rubber or tea. .

As regards return on investment, oil palm is far ahead of the other plantation crops as shown in Table 3. The commodities prices may be higher now , but the relative picture is yet depicted in Table 3. (Source: Solidaridad: ‘Myths and Truths Of Oil Palm’ (2022)

The national annual vegetable oil demand is about 250,000 MT over 70% of which is met from palm oil imports, the local contribution from palm oil and coconut being only 6% and 10% respectively. In fact the seven or eight plantations that diversified into oil palm are making substantial profits. For example, the Watawala Plantations PLC, the leading palm oil producer, with over 3,000 hectares of this crop is gaining about 85% of the profit from it. Clearly, the SPC and JEDB and even other plantation companies should, diversify some of the lands into this crop, at least to produce the national vegetable oil requirement and save the associated foreign exchange. There is also growing interest especially among rubber smallholders to grow oil palm and it is reported that more than 500 of them have already ventured out to do so because of poor returns from the rubber. So oil palm could be the game – changer!

With the little diversification into forestry and other ventures, it is heartening to learn that SPC and JEDB are now making at least marginal profits. The Tea Research Institute’s calculations shown on Table 4 show that even growing Gliricidia which can be done at minimal cost would be more profitable than maintaining old seedling tea! Had these corporations ventured out into diversification earlier the losses could have been avoided. (See Table 4 Source: Tea Research Institute.)

The state- owned coconut based plantation companies, Kurunagela (KPL) and Chilaw are making huge profits not only because of good coconut prices but because of intercropping, crop diversification, cattle farming and other ventures. KPL which like the SPC and JEDB was running at a loss in 2005, with change in management, made huge strides in income generation over the years and has made over Rs 500 million net profit in 2023, a substantial share of it coming from investments in other ventures than coconut.

In conclusion, there is no argument that the workers should be amply paid, and this could be done with visionary resource management and good agricultural practices that could yield profits. Impressive vision and mission statements as also beautiful photos in annual reports are inadequate! The government should take immediate action to privatise state owned plantations as well as privatised poor performing ones and hand them to proven performers.

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Opinion

Lankan hotels and price discrimination

Published

7 hours ago

2026/07/15

Sahan Weerasooriya

In planning a long trip to Sri Lanka from the UK, I was disappointed to see different hotel pricing for foreign visitors when compared to local rates. Like many travellers, I prefer to book directly with hotels, rather than international hotel consolidators, as more money goes to local businesses. But the assumption that foreigners should pay more is simply distasteful. As such, I’ve chosen another long-haul destination that does not follow such practices, and hope that Sri Lanka will change its approach to overseas visitors in the near future.

Neil Roskilly Wetherlee UK

Opinion

When will this craziness end?

Published

1 day ago

2026/07/14

Sahan Weerasooriya

Trump with his ‘FIFA Peace Medal

We are living in ‘Trump times’ characterised by never ending craziness but it is not confined to the USA alone. I will come to our part of the world later. As a large part is due to Trump, perhaps, normalcy may return when he ends his second term on 20th January 2029, at 12.00PM Eastern Standard Time. We cannot be sure of that either because the ‘Great man’ may decide to govern the world for ever, after having purchased Greenland and forcing Canada to be the 51st state of the US!

Trump had an unprecedented opportunity, being only the second to be elected to a non-consecutive second term as the US President, the other being Grover Cleveland at the tail end of the nineteenth century. If only he kept to his campaign promises, his name would have been written in history in golden letters but the complete transformation, following the election, is likely to make his name go down as one of the craziest!

It is a moot point whether even Trump knows what he is going to do that day, when he wakes up, considering the illogicality of some actions, best illustrated by the ad-hoc imposition of tariffs without any discussions or negotiations. The adverse effects of these, to the world economy, is yet to be seen compounded, of course, by the continuing war with Iran. He promised to be a ‘Peace-maker’ but turns out to be a war-monger, like many of his predecessors! His excuse was that he went to war because he was denied the Nobel Peace Prize.

Well, he got the FIFA Peace Prize from FIFA President Gianni Infantino, another shameless leader who is ruining the ‘Beautiful Game’. When a US team member was given the red-card, Trump, who claims to know better than referees, decided it was not so, with a successful appeal to Infantino. During the next World Cup match, Belgium, supercharged with this injustice, thrashed the USA team 4-1.

Even the Semiquincentennial celebration of the US was not about the country but about himself! In fact, a cynic may point out that most of what the US has left behind, over the 250 years, is death and destruction. Paradoxically, whilst fighting a war with Iran to prevent it acquiring nuclear capabilities, the US is the only country to have dropped Atom Bombs, not one but two. Even though Japan was on the verge of admitting defeat, ‘Little Boy’, a uranium-based bomb, was dropped over Hiroshima on 6th August, 1945. Not giving time for Japan even to consider surrender, the second ‘Fat Man’, a plutonium implosion bomb, was dropped over Nagasaki, just three days later. Why did the US drop two A-bombs in rapid succession? It was to test the two different types of bombs they had.

Over the past 250 years, the US has started wars in many countries and, in most instances, lost leaving behind a trail of devastation and destruction. In spite of all that, it is continuing its war with Iran, a war that was started with false intelligence supplied by the war-monger Netanyahu who predicted the instantaneous fall of the Clerical regime in Iran. This war has turned out to be a blessing in disguise for Iran, as it realised the economic value of the Strait of Hormuz. The language Trump uses in reference to Iran is despicable. What sane person, nay a world leader, refers to flattening of a country and erasure of a civilisation?

Back in Sri Lanka, we know that most of our modern-day politicians are also self-serving. They are also very good at amassing wealth, when in power, just like the Trump family had done. However, what is of concern is the rapid decline in the standards of some vital professional classes. Special reference has to be made to the Attorney-General’s Department. Perhaps, the present holder is a decent man but some of his predecessors brought the high position into disrepute.

Dappula Livera allegedly concocted a conspiracy theory about the Easter Sunday terror mastermind as President Gotabaya Rajapaksa denied him an extension in service as the Attorney General. If he has any information about such a conspiracy, it is his bounden duty to come out with facts but has not done so.

A remark recently made by Deputy Solicitor General Dileepa Pieris about gallantry medals awarded to military personnel is said to have caused an affront to the dignity of Air Force officer Shantha Jayathilleke, who has received the highest decoration awarded to a living officer and sought to represent the interests of former Director of State Intelligence Service Maj. Gen. (retd.) Suresh Sallay as permitted by the Penal Code.

When political leaders and professionals holding high office behave in this manner, is there any hope for the nation?

By Dr. Upul Wijayawardhana

Opinion

Prime Minister’s contribution to education reforms

Published

1 day ago

2026/07/14

Sahan Weerasooriya

PM Dr. Amarasuriya

Education has always been one of the strongest foundations of Sri Lanka’s social and economic development. In today’s rapidly changing world, however, education must prepare students not only for examinations but also for life, employment, innovation, and responsible citizenship. Recognising this need, the government of Sri Lanka has introduced a new programme of education reforms. As Prime Minister and Minister of Education, Higher Education and Vocational Education, Dr. Harini Amarasuriya has played a leading role in guiding and promoting these reforms, with the aim of creating a more inclusive, modern, and student-centered education system.

One of the Prime Minister’s most significant contributions has been providing a clear vision for transforming the education system. Rather than focusing only on examination results, the reforms seek to develop students’ creativity, critical thinking, communication skills, problem-solving abilities, and emotional well-being. This approach recognizes that success in the twenty-first century requires a broad range of skills that go beyond memorisation.

A major feature of the reforms is the introduction of a new curriculum. The Prime Minister has emphasised that revised syllabuses will be introduced in stages, beginning with Grades 1 and 6, before expanding to other grades over the following years. The updated curriculum is designed to make learning more engaging, practical, and relevant to modern society. It encourages inquiry-based learning, teamwork, creativity, and the application of knowledge to real-life situations rather than relying solely on textbook learning.

Teacher development has also been identified as a key priority. The Prime Minister has repeatedly stressed that meaningful reforms cannot succeed without well-trained and motivated teachers. As a result, the government has planned professional development programmes to help teachers understand the new curriculum, adopt modern teaching methods, and integrate digital technology into classroom instruction. Strengthening teachers’ skills ensures that students receive a higher quality education and are better prepared for future challenges.

Improving school infrastructure is another important contribution under the Prime Minister’s leadership. Many schools across Sri Lanka continue to face shortages of classrooms, laboratories, libraries, and digital learning facilities. The reform programme aims to reduce these disparities by giving priority to improving physical infrastructure, upgrading learning environments, and ensuring that children from rural and urban areas have more equal educational opportunities. These investments are expected to create safer, more effective, and more inclusive learning spaces for all students.

The reforms also place strong emphasis on digital education. As technology continues to shape every aspect of modern life, students need digital literacy to succeed in higher education and future careers. The Prime Minister has supported initiatives to expand the use of digital tools in teaching and learning while encouraging schools to make greater use of educational technology. By promoting digital learning, the reforms seek to narrow the technological gap between schools and prepare students for a knowledge-based economy.

Another noteworthy contribution is the promotion of vocational and skills-based education. Traditional education has often placed greater emphasis on academic achievement, while practical skills received less attention. The new reforms aim to change this balance by introducing vocational subjects within the school system and creating clearer pathways for students who wish to pursue technical and vocational careers. This approach helps students develop employable skills while supporting the country’s economic growth and workforce needs.

The Prime Minister has also encouraged a more balanced approach to student assessment. Instead of measuring success only through final examinations, the reforms seek to include continuous assessment, classroom activities, projects, and practical learning experiences. Such an approach recognises different learning styles and provides students with more opportunities to demonstrate their abilities. It also reduces excessive pressure associated with high-stakes examinations and supports the overall development of children.

Inclusivity is another important aspect of the Prime Minister’s contribution. The reform process has involved experts, educators, and advisory committees representing diverse communities. The government has emphasised that curriculum development should reflect fairness, inclusiveness, and respect for Sri Lanka’s multicultural society. By involving different stakeholders in the planning process, the reforms aim to build a national education system that serves all children equally.

Despite these promising initiatives, implementing large-scale education reforms is not without challenges. Teacher training, infrastructure development, adequate funding, and effective monitoring are essential for the long-term success of the programme. Public awareness and cooperation among parents, teachers, school administrators, and policymakers will also play a vital role in ensuring that the reforms achieve their intended outcomes. Sustained commitment from the government and continuous evaluation will be necessary to address emerging issues and improve implementation over time.

The Prime Minister of Sri Lanka has made a significant contribution to the country’s new education reforms by promoting a modern, inclusive, and future-oriented vision for education. Through curriculum modernization, teacher development, improved infrastructure, digital learning, vocational education, and better assessment methods, the reforms seek to prepare students not only for examinations but also for lifelong learning and responsible citizenship. If implemented successfully, these reforms have the potential to strengthen Sri Lanka’s education system, reduce inequalities, and equip future generations with the knowledge, skills, and values needed to contribute positively to national development in an increasingly competitive global environment.

Saumya Aloysius
saumyaaloysius@gmail.com