Only 19 years left on estate leases: six key reforms proposed to secure the industry's future

A tea bush planted today yields for five years, takes a decade to earn meaningful revenue and more than 20 years to repay the investment - but only 19 years remain on the leases of Sri Lanka's regional plantation companies. According to the World Bank, Sri Lanka's agrifood system supports one-sixth of national output, more than 40 per cent of employment and 30 per cent of goods exports.

Labour now accounts for about 65 per cent of production cost; a Rs. 200 wage rise has added about Rs. 6 billion in extra costs. Turmoil in the Strait of Hormuz has pushed fertiliser prices from Rs. 100,000 to Rs. 220,000 per metric tonne. Against this backdrop, six key reforms have been proposed to secure the industry's future, while companies are investing in automation, higher-value products and alternative crops.