• Plantation Min. cites lack of ETF deductions, comparatively higher income 
• Tea smallholders plagued by attendance issues, lack of guaranteed price for leaves  

The Plantation Industries Ministry explained that the recently proposed wage increase for the plantation sector will not apply to smallholder tea estate workers. The ministry justified this exclusion on two key grounds, noting that these private-sector workers do not have mandatory Employee Trust Fund (ETF) deductions, and they already earn a higher comparative income than workers on Government-owned estates.

Speaking to The Daily Morning, Media Secretary to the Minister of Plantation Industries and Community Infrastructure, Chamal Sayuranga defended the position, clarifying that the proposed wage increment applies only to the Governmental plantation workers while private sector entities, including smallholders, would likely raise wages independently in order to remain competitive.

In the recent Budget, President Anura Kumara Dissanayake proposed raising the daily minimum wage for estate workers from Rs. 1,550 to Rs. 1,750, effective 1 January of next year (2026). However, this increase applies only to workers on large estates, effectively sidelining the smallholder sector.

This stance has drawn criticism from smallholder representatives, who argue that they are being pushed to the brink. Smallholder tea estates, which account for 75% of Sri Lanka’s gross tea production, are now facing an unpredictable and competitive labour market.

“Workers readily go to another estate that offers a higher wage for the day. This makes consistent worker attendance in the estates very difficult to guarantee,” said the former President of the Smallholder Tea Estate Development Committee, Indika Yasaratne. Yasaratne explained to The Daily Morning that the situation has become so dire that smallholders must now visit labourers’ homes in the afternoon of the previous day to personally secure their attendance for the next day’s work. Compounding the issue is the Government’s refusal to agree upon a guaranteed price of Rs. 300 per kilogram of tea leaves after accounting for primary expenses. Smallholders state that at current rates, their operations often leave little to no profit. “With no support from the Government to solve these problems, we are finding it really hard to continue with this job,” Yasaratne added, highlighting the threat faced by a group that forms the backbone of Sri Lanka’s tea industry.