Sunday Sep 08, 2024
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By Charumini de Silva
President Ranil Wickrem-esinghe yesterday called on the plantation industry to abandon the traditional ways and shift to a thriving agro business model to maximise earnings.
Delivering the keynote address at the inaugural session of the Colombo International Tea Convention 2024, themed ‘Tea, a lifestyle and a livelihood’, he outlined the critical role of the tea industry in economic transformation and the broader challenges facing the country.
The two-day convention saw over 750 participants including 150 foreign delegates.
“Let’s be realistic. We are a country that broke up our capital formations which came out of land plantations about 30 to 40 years ago. Now we are trying to replace that and bring plantations up to play a role in the future. Thus, I do not think we need plantations; rather we need a thriving agro business, both small and large management companies who will look at the highest earnings possible. So that is the beginning. We have to start reforming from inside,” he stressed.
He underscored the importance of re-evaluating Sri Lanka’s traditional agricultural practices, particularly within the tea industry and posed critical questions about the future trajectory of the sector, urging stakeholders to consider diversification beyond tea and embrace smart agriculture practices. Highlighting the potential of forestry and upcoming opportunities in agro business across different regions of the country, he emphasised the need for innovation and exploration.
Wickremesinghe underscored the importance of embracing smart agriculture and expanding agro business opportunities across the country.
“What is the model for our businesses? We have smallholders. How can the plantation industry transition into agro business? Will we focus solely on tea, or will we embrace smart agriculture in our regions? You have the means to decide, which could include forestry. In the future, new lands will open in other parts of the country for agro business growth, offering opportunities to explore,” he added.
He noted the success of Sri Lankan companies establishing themselves abroad.
“Some of our companies have expanded abroad and established themselves successfully. I have no objections to this. This isn’t an issue for the Government as long as we maintain our dominant role in the market. Given that condition, we can proceed because Sri Lanka must lead in the market,” he said.
Wickremesinghe asserted that the tea industry must innovate to meet the expectations of millennials and Gen Zs.
“Considering the future of tea, will people consume tea as we do? What will millennials, Gen Z and others prefer? This future lies beyond Sri Lanka. The challenge lies in penetrating markets like Europe and America. Will they prefer iced tea or other tea drinks? It’s uncertain,” he stressed.
He claimed that except for the promotional and research and development efforts in Sri Lanka, the industry has not come up with innovative solutions to cater for the new generation.
President also addressed the pivotal role of research and development, particularly through institutions like the Tea Research Institute (TRI).
He called for collaborative efforts between the Government and the private sector to bolster research capabilities and drive innovation in the tea industry and beyond.
Touching upon environmental concerns, the President announced forthcoming climate change legislation and environmental laws aimed at achieving net-zero emissions ahead of schedule.
These initiatives, he noted, would support sustainable practices in agriculture and enhance Sri Lanka’s environmental stewardship.
Referring to international trade and market access, Wickremesinghe highlighted the difficulties posed by international sanctions, particularly those affecting trade with Russia.
He urged the tea industry to find innovative ways to maintain access to these crucial markets despite geopolitical constraints.
“Sanctions have not in any way set back Russia, they have somehow or other entered into Asia. The problem is for those of us who have to trade with Russia and maybe those will require a new look. But we have to wait for the outcome of the US Presidential Election. Till then, use your means of how you get your tea across to Russia, which I should not know,” he quipped.
Wickremesinghe highlighted the ongoing Parliamentary debate on economic transformation, acknowledging the hardships endured over the past two years.
He highlighted the need for foreign exchange to support economic benefits and the Government’s ambition to transform the economy into a highly competitive, export-oriented one over the next decade.
“As we are meeting here today, the Parliament is debating the Economic Transformation Bill. I need not tell you what we underwent in the last four years. But as we emerge from bankruptcy, we must remember that we still need foreign exchange to pay for our goods. The principles and institutions are contained in this Bill, which is being debated today. I hope both sides of the house will vote for it, though there is a big question mark,” he said, noting the necessity of modernising the economy from its traditional, feudal roots to a more contemporary structure.
He cited the historical significance of the tea industry in driving economic change in the 19th and 20th centuries, attributing much of the country’s capital formation to the plantation sector, especially tea.
Wickremesinghe also said Ella would not have been a tourist attraction without the tea industry coming into being.
The President emphasised the importance of resolving remuneration issues for plantation workers, who have been among the hardest hit by the country’s recent economic challenges.
“Those who work in the plantations have faced the worst during our bankruptcy. We must also ensure fair compensation and support small enterprises to overcome their debts incurred,” he added.
The President also addressed the need to tackle multidimensional poverty in plantation areas, particularly in Nuwara Eliya. “The poverty indicators in Nuwara Eliya are very high, higher than some of the Northern areas that were affected by the war,” he revealed.
He suggested that integrating line room areas and their surrounding regions back into Government control and creating villages could help alleviate some of these challenges.
“To ensure that we transition to agro-business, we will now extract all the line room areas and the surrounding areas and take them back to the Government to re-gazette them as villages so that the line room concept will disappear as people start building. No one lives next to a factory. They come from nearby,” he pointed out.