Govt. adopts Ceylon Tea Village model

Saturday, 27 June 2026 01:23 - - {{hitsCtrl.values.hits}}

Targets $ 2.5 b export earnings by 2030

Plantations and Community Infrastructure Minister Samantha Vidyarathna

The Government is moving to restructure its smallholder tea sector through a large-scale “Ceylon Tea Village” program aimed at boosting productivity, value addition and export earnings, while repositioning the industry towards a $ 2.5 billion annual export target by 2030.

Plantations and Community Infrastructure Minister Samantha Vidyarathna told Parliament that the initiative, built around 500 cluster tea villages countrywide, will be key to lifting finished tea production to 400 million kilograms while improving farmer incomes and strengthening the country’s global positioning in premium tea markets.

The program, implemented through the Tea Small Holders Development Authority (TSHDA), Tea Research Institute (TRI), Sri Lanka Tea Board (SLTB) and National Plantation Management Institute, will begin with 144 tea villages in 2026 across 14 districts, with an official launch scheduled for 15 July.

The model is designed to integrate productivity upgrades, modern cultivation practices, infrastructure development and cooperative structures at the village level.

The Minister said the reform push is also intended to bridge long-standing structural weaknesses in the smallholder segment, including low yields, weak value addition and limited integration with tourism and branded exports. The program will also promote tea-linked tourism and introduce value-added products as part of a broader effort to shift Sri Lanka from bulk commodity exports towards higher-margin branded positioning.