• All Island Federation of Tea Smallholder Development Societies Chairman Jagath Pathirana says wage hike force tea smallholders to contemplate switching to alternative crops or manage financial burden
• Raises serious concerns about minimum wage increase to Rs. 1,700 starting next month
• Highlights significant financial strain on already struggling tea smallholders with high operational costs
• Calls on Govt. to pay more attention to tea smallholders, who produce 75% of the country’s total crop
• Asserts wage hike poses substantial financial challenges to sustainability and productivity

The All Island Federation of Tea Smallholder Development Societies Chairman Jagath Pathirana stated yesterday that the Government’s decision to increase the minimum wage has compelled them to contemplate either switching to alternative crops or finding ways to manage this financial burden.

“We are forced to consider whether we  should switch to alternative crops or somehow adapt to this financial burden,” he said addressing a joint media briefing yesterday.  He raised serious concerns over the Government’s decision to increase the minimum wage to Rs. 1,700 starting next month. 

Pathirana highlighted the significant financial strain this will impose on tea smallholders, who already struggle with high operational costs.

“Managing the costs of fertiliser, plucking and weedicide is already a daunting task. With the new wage hike, these challenges will only intensify,” he detailed the challenges faced by tea smallholders. 

“The Government must give more attention to the tea smallholders, who produce 75% of the country’s total crop.”

The tea smallholders are a crucial component of Sri Lanka’s tea industry, contributing significantly to its output. 

The Federation represents a substantial portion of the tea industry, with 500,000 employees and 5,000 societies spread across 13 districts and eight regional organisations. 

The Federation’s concerns underscore the broader challenges faced by the plantation sector amid rising operational costs and economic pressures. 

Pathirana stressed on the potential negative impact of the wage increase on both the industry and the livelihoods of those engaged in it.

“This decision will drastically affect our industry and the people who depend on it,” he stated. 

However, the wage hike presents a substantial financial challenge that threatens their sustainability and productivity.

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