The Government has unveiled a major funding plan for the plantation sector in Budget 2027, aiming to lift export earnings from the current USD 3 billion to USD 5 billion by the end of the decade.
Presenting the Budget, President Anura Kumara Dissanayake outlined a strategy to revitalise the tea, rubber, coconut and palmyrah industries while improving the livelihoods of plantation workers and smallholders. A total of Rs. 13 billion has been allocated for plantation sector development in 2027.
Much of the funding will go to tea. Rs. 730 million is set aside to establish 500 tea villages across the Southern, Sabaragamuwa, North Western, Western, Uva and Central Provinces, to boost productivity among smallholders, who account for nearly 70% of national tea production. Growers will also receive a Rs. 5 billion fertiliser subsidy of Rs. 4,000 per bag, while Rs. 820 million is allocated to help small-scale estate owners with replanting and filling vacant areas.
The coconut industry will receive Rs. 2.5 billion through a Coconut Rehabilitation Project to improve the productivity of underperforming estates. In the rubber sector, the Government plans to support replanting, encourage cultivation in non-traditional areas and invest in new research, with Rs. 1 billion for a fertiliser subsidy and Rs. 650 million for cultivation and productivity initiatives. A further Rs. 100 million will go towards modernising the palmyrah industry, focusing on value-added products, innovation and SME development in the Northern, Eastern, North Western and Hambantota districts.
On worker welfare, Rs. 3 billion has been allocated for estate infrastructure, including field rest rooms, toilet facilities and the rehabilitation of Praja Shakthi centres. Estate workers will continue to receive the Rs. 200 daily incentive allowance introduced last year, with provisions made to maintain it throughout 2027.
Looking ahead, with the lease agreements of Regional Plantation Companies due to expire in 2045, a Cabinet-appointed committee has been tasked with reviewing the agreements, assessing estate productivity and ensuring that the interests of both estate owners and workers are protected.