Business

Renegotiating plantation company leases mid-tenure could impact FDI, says Advocata Institute

Published

1 month ago

2026/09/7

At present, many RPCs are withholding crucial capital investments

Plans to prematurely renegotiate the lease agreements of Regional Plantation Companies (RPCs) set a dangerous precedent against security of tenure and risk discouraging foreign direct investment (FDI) into state-owned lands, the Advocata Institute warned.

This follows a statement made by President Anura Kumara Dissanayake, who announced that the government is reviewing existing RPC lease agreements, which are not due to expire until 2045, with plans to replace them with new agreements incorporating unspecified provisions on estate worker rights.

Advocata stressed that arbitrary or ad-hoc renegotiations undermine security of tenure and private sector confidence, dampening investment, both domestic and foreign, into Sri Lanka’s state-owned assets.

The institute noted that high-performing RPCs require, at minimum, a credible guarantee that their leases will be renewed beyond 2045. At present, many RPCs are withholding crucial capital investments, such as replanting and infilling, because they cannot break even on replanted land before current leases expire. As detailed in Advocata’s 2023 report, Market Competitiveness of the Tea Industry of Sri Lanka, authored by Dr Sudaraka Ariyaratne, this lack of tenure security gravely hinders the productivity of state-owned plantation lands, which represent a vital national asset.

To address this crisis, Advocata recommended three potential mechanisms. First, the government could provide a credible assurance on lease extensions for high-performing companies. Second, and more preferably, the state could establish a framework allowing the private sector to purchase state-owned plantation lands outright at the end of current lease terms. Third, if the government considers lease extension commitments premature, it could amend existing leases to include provisions compensating leaseholders for unutilised capital investments at the end of the tenure.

Furthermore, Advocata outlined two key policy reforms if the government intends to meaningfully improve the rights and welfare of estate workers.

First, the state should eliminate the attendance-based minimum wage model. This model creates a lose-lose dynamic by inflating production costs for RPCs while capping worker earnings and subjecting them to an abusive supervision structure. Instead, the sector should transition to a revenue-share model where workers receive a portion of auction earnings based on their yield. Operating in a dignified environment akin to smallholders, this model has been shown to increase total worker earnings while reducing unit production costs for RPCs.

Second, the government must accelerate the granting of freehold land titles to estate workers for their current residential housing, which remains state-owned. While initial freehold titles were issued under the previous administration’s Urumaya programme, Advocata urged the current government to expedite these transfers through its Himikama initiative, enabling one of Sri Lanka’s most economically vulnerable communities to begin building generational wealth.

All News Advertisement

Business

Samagi Spice Exports to launch Ceylon Cinnamon based beverage range

Published

37 mins ago

2026/10/16

Priyan

The SPICEUP range of Cinnamon based beverages being launched by Samagi

Samagi Spice Exports (Pvt) Ltd is set to introduce SPICEUP, a new Sri Lankan beverage brand, at its grand launch on Saturday 17 October 2026 at the University of Ruhuna, Matara.

With a history dating back to 1969, Samagi Spice is taking a new step in its business journey by expanding beyond traditional spice exports into value added consumer products.

Through SPICEUP, the company aims to connect Sri Lanka’s internationally recognized cinnamon heritage with contemporary beverage innovation, creating a distinctive identity in the country’s beverage market.

The SPICEUP range will feature a variety of products, including Original, Cream Soda, Power, GO, Cool, Burn, Memo+ and Zingy. Designed to offer consumers a range of refreshment experiences, the products will be available in two packaging formats: cans and plastic bottles, catering to different consumer preferences and occasions.

At the heart of the initiative is the potential of true Ceylon cinnamon as a value-added ingredient in the beverage industry. Rather than limiting cinnamon to its traditional uses, SPICEUP seeks to explore new opportunities for bringing this iconic Sri Lankan spice into everyday consumer experiences.

The initiative also highlights the broader potential of transforming the country’s agricultural resources into innovative products with commercial value.

The launch ceremony will be attended by legendary Sri Lankan cricketer Sanath Jayasuriya as the Chief Guest, alongside representatives from the Export Development Board (EDB), Industrial Development Board (IDB), Cinnamon Research Academy and other industry stakeholders.

A major highlight of the occasion will be the official unveiling of the SPICEUP product range, followed by the launch of the brand’s official website. The event will also feature the signing of a Memorandum of Understanding (MoU) between Samagi Spice Exports and the University of Ruhuna, marking an important step towards strengthening collaboration between industry and academia.

The proposed collaboration will provide a platform for future research, product innovation and value addition involving true Ceylon cinnamon. By bringing together business expertise and university-based knowledge, the initiative aims to support the development of innovative, value-added products and contribute to Sri Lanka’s potential in international markets.

With its roots in the country’s spice industry and its ambitions in the beverage sector, SPICEUP is poised to begin a new chapter in Samagi Spice’s journey—one that seeks to bring the distinctive identity of Ceylon cinnamon to a new generation of consumers.

Business

Indian business leader urges SL entrepreneurs to tap into India’s rapidly expanding consumer market

Published

16 hours ago

2026/10/16

Thilina Walpola

T. Krishnakumar, Chief Executive Officer of Reliance Consumer Products Ltd (RCPL)

By Sanath Nanayakkare

Speaking at the Sri Lanka Economic and Investment Summit 2026, T. Krishnakumar, Chief Executive Officer of Reliance Consumer Products Ltd (RCPL), emphasised that local enterprises can unlock substantial economic benefits by strategically aligning with India’s booming consumer base.

Addressing business leaders and policymakers at the Shangri-La Hotel in Colombo, Krishnakumar highlighted that geographical proximity and rich cultural ties provide a natural foundation for deeper commercial collaboration.

He noted that instead of viewing bilateral trade narrowly, regional partnerships should act as conduits to build robust, scalable enterprises capable of plugging into wide-reaching regional value chains.

“For Sri Lankan exporters dealing in traditional staples as well as value-added goods, accessing India’s rising middle class presents a phenomenal growth window,” he said.

Drawing insights from Reliance Consumer Products’ rapid expansion – which scaled efficiently to thousands of employees and multi-billion-dollar metrics – Krishnakumar stressed that modern corporate success relies on disciplined execution, localised consumer understanding, and smart technology integration.

Furthermore, he underscored that while rapid growth is critical, businesses must consistently anchor their models in affordability and consumer trust.

Concluding his address at the summit, the RCPL chief noted that pairing regional trade integration with resilient business practices and predictable regulatory frameworks will be vital as Sri Lanka transitions firmly toward accelerated economic development.

Addressing the Summit during a subsequent fireside chat, President Anura Kumara Dissanayake underscored that a core concern currently being targeted by the government is developing a critical mass of local entrepreneurs equipped to engage with international enterprise counterparts.

Business

SriLankan Airlines wins prestigious SATA 2026 Visitors’ Choice Award for Leading International Airline

Published

17 hours ago

2026/10/16

Thilina Walpola

SriLankan Airlines has once again been honoured with the prestigious Visitors’ Choice Award for Leading International Airline at the South Asian Travel Awards (SATA) 2026, reaffirming its continued recognition in the regional travel and tourism industry. The airline, which has received this award in previous years, was the only international airline to be recognised in this category at this year’s event. The 10th anniversary edition of the awards ceremony was held earlier this month at Hotel Barcelo Nasandhura in Male, Maldives.

Recognised as one of the key events on the Maldivian tourism and travel industry calendar, SATA celebrated its 10th anniversary on a grand scale, bringing together prominent industry stakeholders, including Government Ministers, distinguished dignitaries, diplomats and senior representatives from leading airlines and their respective head offices.

Commenting on the achievement, Dimuthu Tennakoon, Head of Commercial, SriLankan Airlines, stated, “We are honoured to receive this recognition at the South Asian Travel Awards 2026. Being named the Leading International Airline in the Visitors’ Choice Awards once again is a meaningful acknowledgement of our commitment to serving our passengers and strengthening our presence in the region. This award inspires us to continue enhancing the travel experience we offer and to build stronger connections with the markets and communities we serve.”

Complementing its commitment to service excellence, SriLankan Airlines offers an extensive flight network with convenient connections to destinations across the globe. In South Asia, the airline operates nearly 130 flights each week to 15 destinations across India, Pakistan, the Maldives, Nepal, and Bangladesh. With schedules thoughtfully designed to suit the needs of travellers, SriLankan Airlines provides seamless connectivity for those visiting Colombo for business or leisure, as well as passengers travelling onwards to destinations worldwide.