Planters’ Association of Ceylon highlights on resilience, reform and diversification for industry’s success

• Outgoing Chairman Senaka Alawattegama reflects on industry’s success and resilience despite multiple challenges faced over past two years at the 170th AGM
• Highlights on challenges and opportunities in sector, insists on consistent policies to ensure sustainability
• Says diversification within plantation industry is essential for future growth
• Reappoints industry veteran Sunil Poholiyadde as new Chairman who served for four long years

Planters’ Association of Ceylon outgoing Chairman Senaka Alawattegama last Friday underscored the importance of unity, innovation and adaptability in ensuring the industry’s long-term success. Speaking at the 170th Annual General Meeting of the PA, he praised the enduring resilience of the industry, despite facing numerous challenges over the critical past two years.

Alawattegama emphasised the industry’s steadfast commitment to national service and its ability to adapt to evolving global demands, while also highlighting major milestones and obstacles faced by Regional Plantation Companies (RPCs).

Reflecting on the struggles over wage negotiations, he noted that the unresolved issue of wage reform had plagued the industry for over a decade, despite the consistent representations made on the need for definitive wage reforms toward productivity-linked wages.

“We are proud to note that, despite it all, the Planters’ Association and our membership stood firm and did not waver from our calls for wage reform. Today, at long last, we are vindicated, with a new wage structure having been gazetted on Thursday. In addition to setting a daily minimum basic wage of Rs. 1,350, it has also introduced a productivity-linked component, where workers receive Rs. 50 for every kilogram harvested above the estate’s set norms, further incentivising and rewarding efficiency,” he explained. 

Alawattegama expressed the industry’s success in having the initial, unsustainable Rs. 1,700 wage gazette withdrawn calling the final agreement a ‘hard-fought win’ for both employees and RPCs. 

He expressed regret over delays in wage reform, noting that workers could have benefitted from higher wages earlier if negotiations had been approached more collaboratively by Government and trade unions.

He urged future discussions to prioritise the long-term viability of the entire industry, stressing the importance of productivity and affordability.

“As we move forward, decisions related to wages and policies must be made with the best interests of the entire industry — including workers — at heart. We must ensure that our industry remains affordable and sustainable so that it can thrive for generations to come. We sincerely hope that the hard-earned lessons from this latest round of wage negotiations will guide us toward more balanced, constructive discussions in the future, ensuring that both employees’ welfare and the industry’s sustainability remain at the heart of every decision,” he stressed. 

He also pointed to other pressing issues such as the need for crop diversification and the potential of oil palm cultivation.

Alawattegama criticised the resistance to oil palm development as being driven by misinformation and urged for more decisive action to realise crop’s benefits. He also acknowledged the difficulties facing the rubber industry including the unfavourable weather and crop diseases like Circular Spot Lead disease, which have strained RPC’s ability to pay wages.

Looking ahead, he said the industry cannot overstate the importance of policy stability. “The plantation industry operates on long investment cycles, and consistent, rational policy-making is crucial for the industry’s survival and growth. We must call on the Government to ensure that future policies are rooted in science and commercial realities, rather than short-term political gains. One such area is land-use policy. We must advocate for flexible land-use policies that allow RPCs to make the best decisions for their respective estates. Whether this means transitioning from tea or rubber to other more profitable crops or implementing eco-tourism and renewable energy projects, these decisions must be supported by Government policy that enables RPCs to invest confidently for the long term,” he elaborated.

Diversification within the plantation industry, Alawattegama stressed is essential for future growth. “Our commitment to diversification must remain steadfast. Many RPCs have already made great strides in introducing new high value crops, such as coffee, avocado, spices, and berries. These efforts not only open new revenue streams but also mitigate the risks associated with over-reliance on a single commodity.

We must also modernise our approach to operations and productivity. By embracing technological advancements in soil mapping, fertiliser optimisation and supply chain visibility, we can ensure that the Sri Lankan plantation industry remains globally competitive,” he added.

Alawattegama recognised the increasing global demand for sustainably produced goods. “This is a trend that Sri Lanka’s plantation industry must not only follow but lead. By doubling down on sustainable practices — from organic cultivation to environmental conservation initiatives — we can position Sri Lanka as a global leader in the production of premium, ethically sourced agricultural products,” he insisted.  

He also said incentives must be provided to support crop diversification and investment in Research and Development (R&D), adding that the introduction of technology, particularly in the areas of mechanisation, precision agriculture and agri-tech, is no longer optional but necessary for the future sustainability of our industry.

“Collaboration will be key”, Alawattegama stated, highlighting that the challenges ahead cannot be overcome by any single entity. He called for cooperation between RPCs, the Government, trade unions and other stakeholders to ensure the plantation industry remains sustainable, resilient and globally competitive.

The event also saw the reappointment of industry veteran Sunil Poholiyadde as the new Chairman who served for four long years.