Govt. increases wages for plantation workers; issues warning to non-compliant RPCs

State Minister of Plantation Enterprise Reforms and Finance  Ranjith Siyambalapitiya has confirmed that the Government has issued a new gazette on 21 May, mandating an increase in the wages of plantation workers. 

According to the gazette, the basic salary of plantation workers will rise to Rs. 1,350 per day, effective immediately. This increment includes a total increase of Rs. 1,700, incorporating a Rs. 350 special allowance.

He confirmed the implementation of this wage increase speaking during a press briefing held in Deraniyagala – Dangampala last Friday. 

Siyambalapitiya highlighted that around 24 Regional Plantation Companies (RPCs) currently lease Government-owned plantation land. He warned that if any company claims inability to pay the increased wages, the Finance Ministry will form a committee to investigate the issue. The committee will assess whether these companies’ financial difficulties stem from external factors or internal management problems.

The State Minister emphasised that companies failing to meet the new wage standards due to internal inefficiencies risk losing their leases. He also stated that the Government is prepared to terminate tax agreements with non-compliant companies and seek new investors for the estates.

These new investors will be selected through a competitive process, focusing on their capability to manage export-oriented operations, ensure employee welfare, enhance infrastructure, and incorporate new technologies.

Siyambalapitiya assured that the Government is committed to improving the living standards of plantation workers. He stressed that the new lease agreements would prioritise investors who demonstrate a strong commitment to these principles.