Plantation Sector

Long ago, (up to 1950s), tea, rubber and coconut were the major cash crops. The exports brought in substantial earnings and there was a surplus of balance of payments and a healthy foreign exchange reserves. In those days even a government clerk or a school teacher could afford a car and had a enviable lifestyle. Today it is unimaginable for a government clerk or rural teacher to enjoy the same lifestyle of their predecessors.

Those days the tea and rubber plantations were managed by English masters who were paid high to ensure profitability of the plantations they managed.

Today the balance of payment is in deficit and instead of reserves there are huge amounts of external debts. Even with greater industrialisation and export of manufactured goods. These long term (up to 50 years) debts will be left to the future generations to repay, for no fault of theirs.

Majority of the plantations are running at a loss because of high labour cost and declining commodity prices.

Ministry of Plantation Industries is responsible for plantation industries in Sri Lanka. This ministry provides financial incentives to create new plantations and to rejuvenate existing plantations. It also provides research support and many other incentives. Plantation Management Monitoring Division monitors the performance of the plantations and takes remedial actions where there are lapses.

The ministry also encourages planting of intercrops in rubber plantations by giving seedlings of appropriate crops. It gave 25,632 cocoa plants and 15,900 passion fruit plant for intercrop planting. Intercrop planting gives additional revenue to the holders without having to incur capital expenditure on lands and other amenities.