Incoming Planters’ Association Chairman proposes 5-point plan for industry revival at 172nd AGM

Malwatte Valley Plantations PLC Director / CEO, Shanaka Samaradiwakara was appointed as Chairman of the Planters’ Association of Ceylon (PAC), while Kahawatte Plantations PLC Director / CEO Binesh Pananwala, was appointed as Deputy Chairman at the Association’s 172^nd Annual General Meeting (AGM) on 19 September at the Cinnamon Grand.

The event was graced by Central Bank of Sri Lanka Governor, Dr. Nandalal Weerasinghe and Sri Lanka Tea Board Chairman, Raj Obeyesekere as Chief Guest and Guest of Honour respectively.   

In his inaugural address, Samaradiwakara outlined a five-point vision for the plantation sector, focusing on value addition, research and development, land-use and productivity, irrigation and long-term security of tenure. He emphasised that the future of commercial agriculture in Sri Lanka would hinge on how effectively all industry stakeholders could work together, while maintaining clear understanding of the ground realities faced by producers.

Value-added tea accounted for more than 50% of total tea export volumes in 2025. Samaradiwakara noted Regional Plantation Companies (RPCs) have accounted for the majority of that volume through continuous investments, including most recently in matcha, green tea and artisanal teas.

In that context, he sought the support of the Sri Lanka Tea Board and the export sector to protect this emerging high value segment, given that significant quantities of green tea and other high-value teas remain unsold at auction while similar products continue to enter the country. "We respectfully request the authorities to review this matter and introduce appropriate measures to support domestic production and value addition," he stated.

On research and development, he observed that commercially viable alternatives to several essential crop protection products remain limited. Accordingly, he called on the Tea, Rubber and Coconut Research Institutes to lead the development of practical, scientifically proven alternatives, while stressing that disease threatening the rubber industry requires immediate attention. “We cannot afford to repeat the experience of the coffee industry, where coffee blight devastated the sector,” he added.

Turning to issues around land-use policies and productivity, he noted that RPCs have diversified for over two decades in response to changing rainfall patterns, introducing crops such as oil palm, pepper and avocado. He warned that these investments are increasingly threatened by unsupportive policy, agricultural theft and crop damage by wild animals, costing companies millions of rupees each month in security. "It is imperative that these investments are protected through strong enforcement, appropriate regulatory reforms, and effective measures to address both agricultural theft and crop damage," he noted. On irrigation, he appealed to the Government to relax archaic restrictions on groundwater use and simplify approvals for drilling tube wells in order to enhance climate resilience.

Addressing security of tenure, he highlighted that replanting often takes more than a decade to generate meaningful revenue, and that uncertainty over lease extensions is making it harder for RPCs to attract foreign direct investment and long-term financing. "If we are to attract fresh capital, accelerate replanting, modernise our plantations and improve productivity, security and certainty of tenure are mandatory," he added.

Complementing these priorities, Chief Guest Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, stated, "The question before planters is no longer simply how much we produce, but how efficiently we produce, what value we create, and how competitive we will be in global markets 10 or 20 years from now." He noted that agricultural exports rose from US$ 2.8 billion in 2024 to US$ 3.1 billion in 2025.

Dr. Weerasinghe also called for climate resilience to be treated as "an economic and investment issue" and for structured long-term financing for replanting, rehabilitation and irrigation, while urging a shift from volume to value and identifying plantation tourism as a way to diversify estate incomes.

Presenting an overview of the Association, outgoing Chairman Sunil Poholiyadde traced the transformation of the RPC sector over three decades. The Association's 23 RPCs manage approximately 154,000 hectares across tea, rubber, oil palm, coconut and other crops. Since 1995, their capital base has grown from Rs. 8 billion to Rs. 108 billion, with about Rs. 290 billion invested in replanting, mechanisation and factory development.

Looking ahead, Poholiyadde identified labour shortages, rising input costs, climate change, limited mechanisation and uncertainty over tenure as key challenges. With only about 88,500 workers on estates, amounting to 10% of the resident population, he noted that wage adjustments must be aligned with productivity-linked employment models.

With estates home to more than a million residents, the sector continues to play an important role in the lives of the communities it has supported for generations. In his concluding remarks, Samaradiwakara said the Association remained committed to building a plantation sector that is “productive, sustainable, competitive, and capable of attracting investments for generations to come”, while continuing to engage constructively with the Government and other stakeholders.

Photo Caption 1: Seated from left to right: newly elected Deputy Chairman of the Planters’ Association of Ceylon (PAC), Mr. Binesh Pananwala; Secretary General, Mr. Lalith Obeyesekere; newly elected Chairman, Mr. Shanaka Samaradiwakara; Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe; and Chairman of the Sri Lanka Tea Board, Mr. Raj Obeyesekere.

Photo Caption 2: Newly elected Chairman of the Planters’ Association of Ceylon, Mr. Shanaka Samaradiwakara, addressing the gathering.