President proposes allocating underutilised State land to returning migrant workers

 Calls for faster completion of 10,000 houses for Malayagam community

 Reviews progress of plantation, community infrastructure and research projects funded under 2026 Budget

 Six State plantation companies report improved profitability this year

 Orders review of State land agreements and calls for stronger safeguards in future allocations

President Anura Kumara Dissanayake yesterday instructed officials to formulate a program to allocate underutilised State land, together with project support services, to Sri Lankan migrant workers returning home after completing overseas employment, as part of efforts to promote productive reintegration and rural economic development.

The directive was issued during a meeting at the Presidential Secretariat to review the progress of projects implemented under the 2026 Budget for the Plantation and Community Infrastructure Ministry and to discuss the Ministry’s proposals for the 2027 Budget.

The discussion included a comprehensive review of development projects implemented by the plantation and community infrastructure sectors, as well as institutions operating under the State plantation companies, with attention also given to priorities and funding requirements for next year.

The President also reviewed major plantation sector initiatives financed through Rs. 1.081 billion in capital allocations, including the estate land surveying program, coconut disease management, the Kapruka Fund, initiatives to boost coconut production and the Northern Coconut Triangle Program.

Reviewing plantation infrastructure projects, Dissanayake stressed the need to complete the program to construct 10,000 houses for the Malayagam community within the stipulated timeframe and hand them over to beneficiaries without delay.

He also noted that weaknesses in the implementation of projects financed through foreign grants and concessional loans had resulted in portions of allocated funds remaining unutilised or being returned, and called for improvements in project execution.

The meeting further assessed the relief program supporting the replanting of tea, coconut and rubber plantations damaged by Cyclone Ditwah.

Officials informed the President that the tea, coconut, rubber, cashew and palmyrah sectors, together with plantation infrastructure development activities, have recorded stronger growth and improved profitability this year compared to the previous year.

Six State-owned plantation entities; Elkaduwa Plantations Ltd., Kurunegala Plantations Ltd., Chilaw Plantations Ltd., Sri Lanka State Plantation Corporation, Janatha Estates Development Board and Kalubowitiyana Tea Factory Ltd., were reported to have made significant progress in improving financial performance.

The President also reviewed crop improvement programs undertaken by the Tea Research Institute, research and development activities and initiatives supporting the replanting of smallholder tea plantations.

Officials noted that around 60,000 hectares of Sri Lanka’s tea cultivation are under smallholders. Of the Rs. 450.06 million allocated in the 2026 Budget for smallholder tea replanting, Rs. 155.07 million has been utilised so far.

The President instructed officials to accelerate the 500 Tea Villages Program by integrating it with other grassroots rural development initiatives, including the ‘Prajashakthi’ program.

The meeting also reviewed the program to revitalise the rubber industry, including the Rs. 137 million allocated to the Rubber Research Institute, as well as ongoing rubber replanting efforts and implementation challenges.

Progress in the coconut sector, including programs to improve productivity, promote value-added products and enhance quality, was also discussed, alongside initiatives implemented by the Palmyrah Development Board and Kithul Development Board.

Officials said Sri Lanka is expected to produce 18,000 tons of cashew this year against an annual national requirement of 25,000 tons, marking a significant improvement over the previous year. Discussions also focused on expanding cashew cultivation across approximately 15,000 hectares in the Northern and Eastern Provinces.

The President further reviewed efforts to consolidate plantation sector institutions and the implementation of Cabinet decisions relating to non-commercial State-owned entities.

He also called for a review of land agreements entered into by previous governments when allocating State land to companies, emphasising the need for stronger contractual safeguards. He instructed the Finance Ministry to appoint a committee to examine and recommend improvements to these agreements.

In addition, Dissanayake directed officials to explore offering programs conducted by the National Institute of Plantation Management through universities in collaboration with higher education institutions, with the aim of strengthening professional training in the plantation sector.