Govt. to hand over lands of loss-making tea plantation companies to smallholders

• Ten out of 20 major plantation companies currently inoperative 
• President instructs to identify causes for their losses and inactivity 

The government is planning to hand over the lands belonging to the loss-making plantation companies to tea smallholders, as a pilot project, a statement by the President’s Media Division (PMD) said.

According to the PMD, 10 out of the 20 major plantation companies are currently inoperative. It has also been pointed out that the production capacity of plantation companies has been on the decline in an environment where small tea estates achieve higher productivity. 

President Gotabaya Rajapaksa yesterday instructed officials to identify the causes for the losses and inactivity of these companies within a short period of time and provide permanent solutions to the issue.

The president made these remarks during a meeting to discuss the future activities of the Company Establishment Reforms, Tea Estate Crops, Tea Factory Modernisation and Tea Export Diversification State Ministry, held at the Presidential Secretariat, yesterday.

The president yesterday announced the plans to acquire the lands with gem deposits, belonging to plantation companies, for the benefit of the mining industry. During the meeting, the president emphasised that the tea industry, which has suffered a severe setback at present, should be revived based on a holistic approach. Experts in the field pointed out that long, medium and short-term plans should be implemented after scrutinising the loss-making estates, in order to increase tea exportation and its revenue. 

The president said the objective should be to reclaim the status enjoyed by Ceylon Tea in the global market in the past while identifying the factors contributed to the downfall of the industry. 

“The losses at plantation companies should be thoroughly investigated in a context of where the infrastructure facilities, including roads, hospitals, schools and sanitation have been provided by the government,” said Head of Presidential Task Force on Economic Revival Basil Rajapaksa. 

During this meeting, the need to rehabilitate the tea estates and regularise cultivation to produce higher yields was discussed in detail.

Basil Rajapaksa pointed out the need to provide relief to tea growers to engage in self-employment or other livelihoods, until the tea plants reach the yielding stage. Experts believe that the setback in the tea industry is caused due to the ignorance of the findings made by the researchers in the field. They highlighted the requirement of prioritising research developments and pursuing new markets for the product. 

Attention was also paid to the possibility of expanding the Bio Tea industry and securing a better profit from its high demand in the world market. The president emphasised the importance of strengthening the plantation management and supervision.

Plantation Minister Ramesh Pathirana, State Minister Kanaka Herath, Basil Rajapaksa, Secretary to President P.B. Jayasundera, secretaries of the Cabinet and state ministries, officials of the line institutes, representatives of tea estate owners and planters were present at the discussion.