Business
Ceylon Agro Food Technologies: Cultivating solutions for Sri Lanka’s agri-crisis
At a facility in Hokandara, a powerful vision for Sri Lanka’s agricultural future is taking shape. Here, veteran engineer – businessman Susantha Gunawardene presides over a team of energetic young mechatronics – software engineers and scientists at Ceylon Agro Food Technologies (CAFT). They are developing tools to solve a crisis crippling the nation’s most vital crops: a severe labour shortage and dwindling productivity.
The scene is a compelling blend of experience and innovation. Drones used for precision spraying on tea estates are being calibrated next to mechanized coconut climbers and automated paddy seeders. This is the frontline of a quiet revolution aimed at securing the future of Sri Lanka’s tea, coconut, and paddy sectors.
The Root of the Problem
“I set up this company in 2020 to address the two critical issues facing our agriculture: the lack of labour and the lack of productivity,” explains Gunawardene. He paints a stark picture of a generational shift. The younger generation from estate areas is increasingly opting for less physically demanding jobs in cities, leaving behind an aging workforce.
This exodus has dire consequences. In the tea sector, industry sources suggest some Nuwara Eliya estates have only two workers for every ten needed.
“About 15-20% of green leaf isn’t plucked on time,” Gunawardene notes. This delay harms the quality of Ceylon Tea and could reduce export value. Similarly, a shortage of skilled climbers means coconuts go unharvested and pest control, like tackling the white fly menace, is neglected. Paddy cultivation faces a similar challenge, with younger generations hesitant to take up traditional farming.
Tech-Driven Solutions for the Field
CAFT is tackling these challenges head-on with targeted, home-grown technology. The company’s young, passionate team sees this not just as a business, but a national imperative. “We believe that for major crops like paddy, tea, and coconut, there is no way forward without deploying automated methods,” the team stated collectively. “The nation must facilitate food security and increase yields to ensure economic stability,” they said.
Their work is already showing remarkable potential:
Tea Cultivation: CAFT uses drones for the foliar application of fertilizer. “Manually, it takes two workers five to six hours to spray one hectare. With our drones, we cover the same area in just 30 minutes,” says Shashimal Mudalige, Head of Commercial Business Operations.
Manula Pramuditha , Tea Automation Engineer said, “Our tea estates especially in the up-country areas have shade trees to maintain a conducive climate for tea. Flying a drone amidst these shade trees and in the mountainous terrain is a challenge. We need to apply foliar spray at the level of the tea canopy. Since we cannot move behind the drone, we had to develop an autonomous drone that will fly itself”.
The team is also fine-tuning a mechanical tea harvester, poised for commercial use next year.
Paddy Farming: Instead of manual broadcasting, CAFT employs automated drone-based seeding. Drones deposit patented water-soluble capsules containing paddy seeds directly into the soil in a uniform pattern. This method not only facilitates mechanical weeding but has shown the potential to increase productivity by 30-40% “said Dulanji Karunaratna” Manager – Agriculturist.
Coconut Production: “Coconut tree climbing needs skill and carries a risk” says Robotics Engineer Thisaru Guruge. This has resulted in a shortage of tree climbers, therefore CAFT is developing a patented robotic solution. A ground-operated machine with a robotic arm can safely access the tree crown to harvest nuts, pollinate, apply pesticides, and perform essential cleaning, boosting tree health and yield.
A Strategic Partnership for Growth
A major milestone for CAFT was its 2023 joint venture with Elpitiya Plantations PLC, which is part of Aitken Spence. Elpitiya acquired a 50% stake, providing powerful synergy. “It’s great to have a partner who is also a customer,” says Gunawardene.
CAFT is currently conducting extensive R&D trials, including drone spraying and harvesting, on an Elpitiya estate in Pussallawa. Using remote sensing technology (NDVI) to monitor crop health and they are meticulously comparing drone-managed fields with manually managed ones. “We have to prove the case that these technologies are financially beneficial and sustainable,” Gunawardene asserts.
This partnership provides a real-world testing ground and a direct path to commercialization. With a current fleet of 11 drones for tea and paddy, CAFT plans to add more than 20 drones to the operation by next year, marking its transition from an R&D firm to a fully commercialized agro-tech service provider.
Driven by the ingenuity and enthusiasm of its young talent, Ceylon Agro Food Technologies is not just building machines; it’s cultivating a sustainable and prosperous future for Sri Lankan agriculture.Please log on to www.agrofoodtech.lk for more information. The company can be reached via its hotline: 077 688 6607.
By Sanath Nanayakkare
Business
Cabinet approves restructuring of the Sri Lanka Housing Development Finance Corporation Bank and the State Mortgage and Investment Bank
The Sri Lanka Housing Development Finance Corporation Bank, incorporated under the Sri Lanka Housing Development Finance Corporation Bank Act No. 7 of 1997, is a licensed specialized bank listed on the Stock Exchange.
The prime objective is to provide housing finance and other related services. The State Mortgage and Investment Bank, established under the State Mortgage and Investment Bank Act No. 13 of 1975, is a fully state-owned licensed specialized bank that provides housing-related mortgage credit facilities. Both of these banks are relatively small financial institutions with a small market share.
The Central Bank of Sri Lanka has indicated that the current business models of these banks are unsustainable due to their limited deposit-raising capacity, poor profitability, and inability to meet minimum capital adequacy requirements.
Accordingly, the Cabinet of Ministers has approved the proposal presented by the President, in his capacity as the Minister of Finance, Planning, and Economic Development, to take necessary steps to transfer all the shares of the Government of the Sri Lanka Housing Development Finance Corporation Bank to the Bank of Ceylon and to continue operations as a subsidiary bank of the BOC Bank, and to acquire all the shares of the State Mortgage and Investment Bank for the People’s Bank and to continue operations as a subsidiary bank of the People’s Bank, with the objective of ensuring the stability of the entire banking
sector and protecting the requirements of the depositors.
Business
Cabinet approves establishment of Information Technology Services subsidiary for Bank of Ceylon
The Bank of Ceylon has identified the necessity of strengthening its digitalization capabilities in order to respond to changing customer demands and maintain the competitiveness of the banking sector.
Therefore, it has been planned to establish an Information Technology Institute affiliated with the bank that comprises IT
professionals to support the optimization of IT operations of the Bank of Ceylon and provide information and communication technology solutions and services that facilitate digital transformations.
Accordingly, the Cabinet of Ministers has approved the proposal presented by the President, in his capacity as the Minister of Finance, Planning, and Economic Development, for the BOC Management and Support Services (Pvt) Ltd, which was established in 1992 to meet the manpower requirements of the Bank of Ceylon and seized operations in 2007, to be reestablished under the name of BOC IT Solutions (Pvt) Ltd, as a fully associated institute of the Bank of Ceylon.
Business
JAAF welcomes 2026 Budget focus on exports, urges clarity on implementation and policy stability
The Joint Apparel Association Forum (JAAF) has welcomed the Government’s 2026 Budget, recognizing its emphasis on export-led growth, investment facilitation, and continued macroeconomic stability. The industry body commended the clear direction towards strengthening Sri Lanka’s external sector and building investor confidence, while also urging consistent implementation of reforms to sustain momentum.
The apparel industry Sri Lanka’s largest industrial export earner viewed the renewed focus on digitalization, and trade facilitation, enhanced capital allowances as positive steps that could enhance competitiveness and attract much-needed foreign investment.
Reform of the Department of Inland Revenue, the introduction of RAMIS 3.0 and the roll out of E invoicing have been among the asks of industry as we move into the post SVAT removal era.
However, JAAF reiterated that policy execution and continuity will be crucial in translating these commitments into tangible outcomes.
JAAF Secretary General Yohan Lawrence said “The 2026 Budget demonstrates encouraging intent to build a stronger export economy, but consistency and clarity in policy implementation are what ultimately drive confidence. The apparel sector continues to operate in a highly competitive global environment where even minor disruptions can affect thousands of jobs and livelihoods. We urge the authorities to maintain open dialogue with the private sector to ensure that reforms are implemented with minimal friction”.
JAAF further noted the importance of aligning policy with sustainability goals and market access requirements under key preferential schemes. Ensuring stable energy costs, facilitating renewable adoption, and enhancing logistics competitiveness were identified as critical enablers for continued export growth.
The association reiterated its readiness to collaborate with the Government to advance a unified national export strategy one that supports industries, SMEs, and the workforce driving Sri Lanka’s recovery.
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