Sri Lanka’s tea industry is one of the country’s most recognised assets, producing the celebrated Ceylon Tea enjoyed worldwide for its quality and variety. The sector supports over a million livelihoods and remains a major source of foreign exchange. At the same time, it faces longstanding challenges related to worker welfare and growing pressures from climate change.
This balanced examination of the industry’s strengths and areas for improvement offers a clear perspective on its current state and future prospects.
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Economic Importance and Global Standing
Sri Lanka consistently ranks among the world’s leading tea exporters. The industry covers more than 200,000 hectares, primarily in the central highlands, and benefits from diverse growing conditions that produce distinctive flavours.
Performance in recent years has been strong:
- Production volumes have shown steady growth, with increases recorded in most periods of 2025.
- Export earnings exceeded $1.4 billion in the first eleven months of 2025, reflecting robust international demand.
- Ceylon Tea maintains a premium position in key markets, supported by quality standards and certifications.
These achievements contribute significantly to national revenue and employment, reinforcing the sector’s role as an economic pillar.
Worker Welfare and Living Conditions
The industry employs a large workforce, many of whom are from long-established estate communities. While the sector provides stable employment, workers continue to face difficulties that affect their quality of life.
Key concerns include:
- Wages that remain below a comfortable living standard, typically around Rs. 1,350 per day despite periodic adjustments.
- Housing, water, sanitation, and healthcare facilities that often fall short of modern expectations on many estates.
- Higher poverty levels compared to the national average, contributing to ongoing financial strain.
Malnutrition rates in estate communities are notably higher than elsewhere in the country. Stunting and wasting among children, as well as nutritional deficiencies among adults—particularly women who form the majority of pluckers highlight the need for improved household incomes and targeted support programmes.
These issues persist despite the industry’s overall profitability, underscoring the importance of equitable distribution of benefits.
Climate Change and Environmental Pressures
Tea cultivation is highly sensitive to weather patterns, and climate change is introducing new risks:
- Irregular rainfall, prolonged droughts, and intense downpours disrupt production cycles and damage soil.
- Rising temperatures affect leaf quality and increase pest incidence.
- Extreme events, such as recent cyclones and landslides, cause direct losses to crops and infrastructure.
Long-term forecasts suggest potential reductions in suitable growing areas, which could further impact yields and livelihoods if not addressed.
Steps Toward a Sustainable Future
Progress is possible through practical and collaborative measures:
- Fair wage structures and better living conditions supported by industry agreements and certifications.
- Nutrition and health initiatives tailored to estate communities.
- Adoption of climate-resilient practices, including drought-tolerant varieties, improved water management, and agroforestry.
- Value addition through premium and organic products, alongside responsible tourism on estates.
- Policy frameworks that encourage investment in modernisation and worker welfare.
Many stakeholders—producers, exporters, international buyers, and government bodies are already pursuing such initiatives, often in partnership.
Conclusion
Sri Lanka’s tea industry combines remarkable global success with important domestic challenges. Its economic contributions and heritage are undeniable, yet ensuring fair conditions for workers and resilience against climate threats are essential for long-term viability.
By building on existing strengths and addressing these priorities, the sector can continue to thrive while delivering greater benefits to those who sustain it. Ongoing dialogue and evidence-based reforms will play a key role in shaping a more equitable and sustainable future.
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