Economics

Expert Panel in Sri Lanka Reviews RPC Land Lease; Minister Calls for Action

A panel of experts appointed by the Sri Lankan government is currently scrutinizing lease agreements with Regional Plantation Companies (RPCs), announced Minister of Estate Infrastructure Development Jeevan Thondaman. Thondaman, known for his criticism of RPCs regarding their resistance to paying the latest daily wage of 1,700 rupees per tea plucker, emphasized the need for action against companies that may have compromised government assets. He highlighted the significance of tea estates as assets owned by the Sri Lankan government, stressing the importance of conducting audits to assess any reduction in tea lands leased to RPCs.

The lease review initiative stems from the RPCs’ rejection of President Ranil Wickremesinghe’s announcement to increase the daily wage by 70 percent to 1,700 rupees. Industry experts attribute the challenges faced by tea producers in meeting the increased wage to factors such as the appreciation of the rupee since early last year. Despite the wage hike, Sri Lankan estate workers continue to live in poor conditions, with inadequate infrastructure and facilities, including housing, sanitation, and medical services.

Thondaman expressed his determination to take strong action against RPCs for their failure to maintain tea estates properly, signaling the government’s commitment to addressing longstanding issues within the plantation sector. The minister highlighted discrepancies in RPCs’ compliance with agreements, particularly regarding the replanting of tea, which is essential for sustaining productivity and ensuring the welfare of workers. Thondaman’s remarks underscored the urgency of addressing systemic issues within the plantation industry and enforcing contractual obligations to protect the interests of both workers and government assets.