Political representatives call for restructuring of plantation sector

• Suggest new agreement should be established to include plantation workers as partners after State Minister Lohan Ratwatte confirms Govt.’s consideration of extending the leases of RPCs
• Urges Govt. to issue an order ensuring suitable wages for workers
• Planters Association wants Govt. to allow RPCs to continue their operations

By Vikey Wignesh

Political representatives from the upcountry region have urged the Government to undertake a comprehensive restructuring of the plantation sector. This call for action comes amidst discussions about extending the leases of privatised Regional Plantations Companies (RPCs) in Sri Lanka.

Plantations State Minister Lohan Ratwatte, confirmed that the Government is considering extending the leases of RPCs and emphasised the need for national policies to drive the sector forward. “What Sri Lanka needs is national policies. We need to get that in place. Whatever government comes in does whatever they want. If we want to go forward, we have to have national policies. So, we are working on that,” Minister Ratwatte stated during a press conference.

In response to this development, Tamil Progressive Alliance Leader Mano Ganesan and Badulla District Member of Parliament Vadivel Suresh have expressed their opinions on the matter. While supporting the extension of lease periods, they emphasised the importance of restructuring the plantation sector and protecting the rights of plantation workers.

Speaking exclusively to the Daily FT, TPA Leader Mano Ganesan stated, “I will not say that the government should take over the plantation sector from private companies. However, three plantation companies under the Government’s management are performing poorly, greatly affecting the people working there.”

Ganesan further added, “We have no objection to private companies managing the plantation lands. However, it is crucial to ensure that workers receive fair wages and their rights are protected. If the lease period is extended, a new agreement should be made, including clauses that make the plantation workers partners in the process.”

Echoing similar sentiments, Member of Parliament Vadivel Suresh stressed the Government’s responsibility to ensure suitable wages for plantation workers. He emphasised the need to address daily livelihood challenges faced by these workers and called for the issuance of an order to increase their salaries.

“If the lease for plantation companies is to be extended, it should be restructured, and arrangements should be made to benefit the people,” Suresh asserted.

In response to these discussions, Planters Association of Ceylon media spokesman Dr. Roshan Rajadurai voiced support for extending the lease agreements. He highlighted the successful performance of private companies and emphasised their significant contributions to the Sri Lankan economy. The spokesman stated that their company pays an annual fee of 80 million rupees for the lease and argued for the Government to allow them to continue their operations.

When asked about the suggestions made by MPs Mano Ganesan and Vadivel Suresh, the spokesman stated that plantation employees are already considered partners within the company and receive dividends if the company performs well, indicating an existing framework for worker participation. 

Dr. Rajadurai further commented that he cannot provide a specific response without knowing the details of the proposal put forward by the trade unions. RPCs were leased to the private sector with a 50-year lease on the land in the 1990s.