Sri Lankan President Ranil Wickremesinghe made a significant announcement during the May Day rally of the Ceylon Workers’ Congress (CWC) in Kotagala, revealing a 70 percent increase in the daily wage of plantation workers to Rs. 1700. This unprecedented move comes amidst the President’s anticipated run for presidency later this year and aims to address the hardships faced by upcountry communities, particularly those in the plantation sector.
President Wickremesinghe emphasized the pivotal role of upcountry workers in contributing to the country’s economy, particularly through the production of tea and foreign exchange. He acknowledged the challenges faced in recent years, referencing the economic crisis of 2022, and expressed optimism about the nation’s stabilization, including the strengthening of the rupee. The wage hike, announced by Labour Minister Manusha Nanayakkara, is seen as a crucial step to uplift the living standards of plantation workers and garner political support.
The upcountry communities, with a substantial voter base of around 1 million, hold significance in the political landscape. The CWC, a prominent political party in the upcountry, has already pledged its support to Wickremesinghe, signaling potential backing for his presidential candidacy. While Wickremesinghe has yet to formally declare his candidacy, sources from his United National Party (UNP) suggest that he is likely to contest under an independent coalition in the upcoming presidential election scheduled between September 18 and October 18.
The wage hike proposal has raised questions about the feasibility for local plantation firms, given Sri Lanka’s high cost of production compared to other tea-producing nations like India and Kenya. Previous proposals from plantation companies suggested lesser wage increases based on productivity or attendance models. However, the President’s directive has led to the submission of a new proposal by Regional Plantation Companies (RPCs) and the Employers Federation of Ceylon (EFC) to address the wage hike in the plantation sector, amidst ongoing concerns about the cost of living for workers post the economic crisis.