1. ministry of plantation...

Ministry of Plantation Industries - Progress Report 2014

1

1. Ministry of Plantation Industries

The Ministry of Plantation Industries plays a significant role to arrive at economic,

social and environmental development targets in the stable macro-economic

environment envisaged to build through “Mahinda Chintana Idiri Dekma” development

strategy. In line with the national policies to be implemented by the Government, the

Ministry mainly undertakes the activities such as formulation, implementation and

handling of policies, programmes and projects related to the subjects of tea and rubber

of the statutory bodies coming under the preview of the Ministry, the functions related

to the development and researches of the tea and rubber industries and the issuance of

licenses and control of the fragmentation of tea, rubber and coconut estates. Since the

promotion and research activities of the plantation crops which were not specifically

assigned to any other Ministry are also coming under the scope of this Ministry, the

activities related to the expansion of oil palm cultivation have also been carried out

under the Ministry.

The following institutions are coming under the purview of the Ministry of

Plantation Industries to carry out the above activities.

Ministry of Plantation Industries

Tea Sector

Rubber Sector

Services

Projects

Sri Lanka Tea

Board

Tea Research

Institute

Tea Small

Holdings

Development

Authority

Tea Shakthi

Fund

Kalubowitiyana

Tea Factory Ltd.

Rubber

Development

Department

Rubber

Research

Institute

Thurusaviya

Fund

National

Institute of

Plantation

Management

Tea, Rubber

and Coconut

Estates (Control

of

Fragmentation)

Board

Smallholder

Plantations

Entrepreneurshi

p Development

Programme

(SPEnDP)

Introduction


2

By increasing blending and packing of tea locally, to make Sri Lanka

a hub for the tea trade.

To provide incentives for popularizing instant tea.

In order to increase productivity, to take steps to introduce improved

cultivation strains of tea, rubber, coconuts and other export crops.

Support schemes will be introduced for all export crops.

The fertilizer support scheme for all cash crops will be further

extended.

By increasing the productivity of plantation companies leased out to

the private sector, continued employment and better remuneration for

workers will be ensured. These companies will be directed to long

term environmentally-friendly investments in order to conserve the

bio diversity and water resources.

Prospection

The contribution of the Ministry of Plantation Industries towards the

export income of the country which is about 21% at present to be

progressively enhanced in order to achieve the target of the

government to earn an export income of US$ 05 billion by year 2020.

Strategies Identified

Increase of crop productivity utilizing new technological inputs.

Promotion of high quality value added products and local brand names

targeting at growing and emerging market.

Mahinda Chintana Vision for

the Future

Page 91, 92 … .. .


3

VISION

Achieving national

prosperity through

development of the

plantation industry

MISSION

To enhance the productivity,

profitability and sustainability

of the plantation industry

through ensuring an

economically, socially and

environmentally viable

plantation sector


4

The following major activities are carried out for development in the plantation sector in

comply with the Policy framework of the Government of Sri Lanka formulated in the year

2010 by the Ministry of Finance and Planning in line with the “Mahinda Chintana Vision

for the Future.”

Key Prospects

Protection and

conservation of

the ecosystem

through the

sustainable use

of lands

Enhancing the

productivity of

cultivated lands

in the

plantation

sector

Development

of the

Plantation

sector

Increasing the

annual rate of

tea and rubber

replanting

Implementing

research and

development

programmes and

promotion

Value addition

for goods &

services and

promoting

brand names

Promoting the

new planting in

non traditional

areas


5

In line with the Mahinda Chintana policies, the strategic development objectives identified

by the Ministry of Plantation Industries are given below.

Strategic Development Objectives

Strategic

Development

Objectives

Ensuring

sustainable

development

through the

environment

conservation

Supply of

high quality

products to

the local

consumers

Uplifting

living

standard of

the

plantation

community

Enhancing

profitability

of tea small

holders and

plantation

companies

Retaining

the cost of

production

at a low

level

Increase of

the foreign

exchange

earnings


6

Six performance indicators have been identified with the purpose of achieving medium

term development objectives of the Ministry.

Medium Term Development Plans of the Ministry – Up to 2020

Significance of Tea and Rubber Sectors

The relative contribution to the Sri Lanka Gross Domestic Product, of the tea

and rubber production in the agriculture sector is 1.2%.

The foreign exchange earning from tea and rubber based industries in the year

2013 amounts to Rs.323,424 million (US$2,505).

The number of employment opportunities generated in this sector is

approximately 1.5 million.

In addition to the foreign exchange earning and employment generation, the

contribution of the tea and rubber sectors towards the economy of Sri Lanka in

terms of the sectors such as business promotion, rural socio economic

development, poverty reduction and environment conservation is further

significant.


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Details Actual

Number

2013

Targets

2014 2015 2016 2020

Quantity of Production (kg. mn.) 340 344 350 358 386

Productivity (kg/ha) 1,748 1,771 1,803 1,844 1,991

Foreign Exchange Earnings (Rs.

billion)

199 216 234 260 335

Value Addition (%) (Less than

3kg)

39 50 55 60 75

Replanting (ha) 1,479 1,410 1,500 1,700 2,950

New planting (ha) 274 440 650 360 160

Details

Actual

Number

2013

Targets

2014 2015 2016 2020

Quantity of Production (kg. mn.) 130.4 135 142 150 170

Productivity (kg/ha) 1,247 1,250 1,260 1,270 1,500

Foreign Exchange Earnings (Rs.

billion)

124 128 134 155 260

Value Addition (%) 74 76 78 80 95

Replanting (ha) 2,483 3,960 3,850 4,120 4,250

New planting (ha) 2,979 5,000 7,170 7,500 4,000

Tea Sector

Rubber Sector


8

Special Programmes implemented in the year 2014

Distribution of machinery and equipment at a cost of

Rs.21.3 million among 50 tea smallholder societies

and 25 tea factory owners under the first stage of

mechanization of tea plucking in tea small holding

sector and making an arrangement to continue this

programme with the implementation of the second

stage on their responses.

Coordination of the activities for distributing

among the tea small holders the sum of Rs.435.39

million received from the Budget 2014 for

granting subsiides as Rs.5,000 per hectare for

water and soil conservation in the tea lands owned

by the tea small holders.

Implementing Budget Poposals … .. .

An extent of 57 hectares has been

cultivated with rubber in Vavuniya

and Mullaitivu districts in

Northern Province and necessary

actions have been taken to expand

the rubber cultivation in future.


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Implementing Budget Proposals … .. .

Strengthening International cooperations … .. .

An extent of 711 hectares has been

cultivated at present through the

coordination and progress review of the

programme for cultivation of rubber in

10,000 hectares in Ampara District under

the expansion of rubber cultivation to non-

traditional areas.

Planning to establish an office of the

Sri Lanka Tea Board in China for

global tea promotion with the

expansion of bilateral trade relations

with Japan, China and India.

Coordination with the international organizations

related to tea and rubber and coordinating the

implementation of the agreements entered into.

Under the special programme for attraction of

new international tea markets, the delegation

headed by the Hon. Minister and Hon. Deputy

Minister visited Poland, Australia and United

Arab Emirates (UAE) to promote Ceylon Tea.


10

Annual Conference of Natural Rubber Producing Countries

Malaysia … .. .

Reviewing Progress of the Plantation Sector … .. .

Finding solutions to the issues of Regional Plantation Companies at the

Golden Share Holder‟s Meetings chaired by the Hon. Minister of Plantation

Industries and leading them to the targets of the estate economy.

A delegation headed by the Secretary to the

Ministry participated representing Sri Lanka who

held the Chairmanship at the Annual Conference

of Natural Rubber Producing Countries, hosted in

Kuala Lumpur, Malaysia with the participation of

representatives from 11 countries.

As a result of this Annual Conference, in line with

a proposal of the Minister of Plantation Industries

in Malaysia, it was unanimously resolved at the

Conference chaired by Sri Lanka to hold a high-

level meeting of the Ministers of all member

countries targeting at the global issues of the

rubber cultivation.

Progress of the all institutions coming under the Ministry was reviewed by the

Hon. Minister with the participation of all Heads of the institutions.

Making decisions required for the development of tea and rubber sectors

gathering Hon. Minister of Plantation Industries. Hon. Deputy Minister,

Secretary to the Ministry of Finance and Planning, Secretary to the Ministry of

Plantation Industries and all other relevant officials.


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For reinforcement of the Tea Industry … .. .

Joining with Divi Neguma ... .. .

Actions were taken to provide a sum of Rs.16

million to the Regional Plantation Companies

for the purpose of tea replanting under the

Replanting Subsidy Programme implemented

under the Sri Lanka Tea Board.

Initiation of modernization of tea factories

utilizing the additional allocation of Rs.100

million provided for modernization of tea

factories under the Tea Shakthi Fund.

Implementation of various programmes to

be parallel to the inauguration of the stage

VI of Divi Neguma National

Development Programme held on 20th

October 2014.

The activities such as distribution of tea

plants, providing rubber plants for home

garden and infilling, providing plants for

implementation of intercropping

programme, nursery development and

distribution of equipment are being carried

out utilizing Rs.63 million received from

the Ministry of Economic Development.

For modernization of the Rubber Research Institute … .. .

Signing of a Memorandum of Understanding

on 24.10.2014 between the Government of Sri

Lanka and CETC International of China to

obtain Chinese loan assistance for construction

of laborotary complex with modern amenities

to the Rubber Research Institute.


12

Mapping of the cultivated lands ... .. .

Involving with other development activities ... .. .

Participation with all institutions coming under the ministry at “Deyata Kirula”

National Development Exhibition held at the Technical College, Kuliyapitiya in

March 2014.

In terms of a Cabinet Decision, actions were further taken to amend the Acts

related to the all institutions coming under the Ministry in conformity to the

current requirements. Accordingly, actions have been taken to refer the

amendments to be made to the Acts of the Tea Small Holdings Development

Authority, Tea Research Institute and Tea Shakthi Fund to the Legal Draftsman

and further actions are being taken in respect of the amendments to the Acts of

other institutions.

An arrangement was made to give the consent of the Ministry of Plantation

Industries to import the short term requirement of raw rubber for the rubber

related factories established in the Investment Promotion Zones when it is

difficult to cater natural rubber as a raw material to the said factories sufficiently

from the local market. The relevant consent is given to the Bord of Investment on

recommendations of the Rubber Development Department.

Joining with Stakeholders ... .. .

Contribution at ministerial level to Annual Conferences of Planters‟

Association of Ceylon, Tea Exporters Association of Sri lanka and Private Tea

Factory Owners Association.

Mapping of tea and rubber lands based on

the geographical information of

Ratnapura, Kandy, Kegalle, Kalutara and

Matara districts utilizing the allocation of

Rs.12 million in collaboration with the

Department of Land Use Policy Planning

and finalizing the activities of the pilot

project in Galle district.


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Tea plantation was introduced to Sri Lanka by James Taylor in year 1867. The tea

plantation of Sri Lanka has expanded to 123 Divisional Secretaries‟ Divisions of 14

Districts in Up - Country, Mid- Country and Low-Country in Sri Lanka and the total extent

of cultivated lands reported at present is approximately 204,095 hectares.

* Free On Board

The tea production in year 2013 was 340 mn kg and it is projected that the said

quantity will be 344 mn kg in the year 2014.

Accordingly, a considerable increase of 1.2% is expected in the tea production of

year 2014 as against the tea production in year 2013.

Details

(From January to August)

2013 2014 Variance (%)

Tea Production (Mn. Kg.) 223.29 226.79 1.57

Average sale price of tea per kg at

Colombo Auction (Rs. / Kg.)

424.26 474.32 11.8

FOB * price (Rs. / Kg.) 599.41 658.22 9.8

Vision

To ensure the future of the tea industry and promote Ceylon Tea to be the

main partner in the global beverage market through strengthening the tea

small holding sector and the corporate sector for sustainable development.

2. Tea Sector

Overall Performance in the Tea Sector

Expansion of Tea Cultivation

At present, tea cultivation has expanded to an extent of 204,095 hectares of which

121,267* hectares (59.4%) are contributed by the tea small holding sector. Further,

73,445* hectares (36.0%) are owned by 20 Regional Plantation Companies and 9,383

hectares (4.6%) are managed under the government institutions. *Provisional


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The average land extent of a tea small holding is approximately 0.33 hectares and in

pursuance of the criteria available at present, an extent of 4 hectares or less is defined as a

tea small holding.

The tea small holding sector expanding in 3,692 Grama Niladharis‟ divisions of 123 D.S.

divisions in 14 tea growing districts of Sri Lanka, represents about 60% of the total extent

of tea lands and it has expanded immensely in 08 Districts such as Ratnapura, Galle,

Matara, Kandy, Badulla, Kalutara, Nuwara Eliya and Kegalle.

Details Up to August 2014

Production of tea small holders (Mn. Kg.) 164.4*

Contribution of the total tea production (%) 72

Productivity (Kg / made tea / hectare) 2,107

*2.2% increase as against the corresponding period of the last year.

Production of Tea Small Holding Sector – Up to 31st August 2014

Source – Tea Small Holdings Development Authority

Tea Small Holding Sector

Contribution of the Tea Small Holding Sector to the National Production

Annual total production of the tea small holding sector has exceeded 200 mn kg

since year 2004.

This quantity has been increased to 245 mn kg by year 2013


15

Cost of Production

.

Year Cost of production

per kg of green leaf

(Rs.)

2012 40.70

2013 42.60

The production margin per kg of green

leaf in year 2013 is 22.39. (without

overhead expenses)

Issues and challenges further encountered by the


Unstable market price

Increase in cost of production

Gradual decrease in the production of tea in certain districts

Labour shortage

Higher cost of tea replanting

Main reasons caused for the encouragement of Tea Small Holders

Tea Replanting Subsidy (Rs.350,000 per hectare)

Tea New Planting Subsidy (Rs.250,000 per hectare)

National Fertilizer Subsidy Programme of the Government. (A 50 kg sack

of mixed fertilizer is Rs. 1,300 and a 50 kg sack of unmixed fertilizer is

Rs. 1,200)

Research and extension services impemented by the Tea Research

Institute, Tea Small Holdings Development Authority and Sri Lanka Tea

Board


16

Special courses of action taken for enhancement of the


Implementing Tea Replanting, Tea New Planting and Crop Rehabilitation

subsidy programmes.

Conducting awareness and training programmes for tea planting permit

holders.

Production and issue of tea planting training materials.

Training for establishment of input nurseries and provision of inputs.

Training of commercial nursery owners and supervision of nursery

activities.

Providing shoots of improved cultivars from TSHDA Mother Bush

nurseries to the tea growers and commercial nursery owners.

Training of trainers on cultural practices such as plucking, pruning, shade

management etc.

Conducting individual farm visits and group extension programmes.

Checking of Soil samples for PH.

Conducting awareness programs for leaf suppliers and dealers to improve

green leaf quality

Strengthening Community Based Organizations, Tea Small Holder

Societies.

Making the farmers aware of the farm management for additional income

earning.

Granting a subsidy of Rs.5000 per acre for soil & water conservation for

productivity improvement with special emphasis on improvement of

fertilizer use efficiency.

Popularizing use of machinery with a view to reducing cost of production.


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Under restructuring of the large scale estates owned by the government, 23 private

plantation companies were established in year 1992 and management of the said large scale

estates was entrusted with them. Subsequently, the estates were leased out to the said

companies for a period of 53 years from the year 1995.

Production of Tea in Corporate Sector (Up to August 2014)

Source: Sri Lanka Tea Board

Corporate Sector

At present, 73,445 hectares have been cultivated with tea under 20 plantation

companies.

Further 9,383 hectares have been cultivated in the estates coming under the

government institutions.

At present, about 28% of the total tea production is produced under the corporate

sector.

The contribution of tea production from January to August 2014 is 27.5%.


18

The total tea production in the first 8 months from January to August 2014 was 226.8 mn

kg showing 1.6% increase as against the tea production of 223.3 mn kg recorded during the

corresponding period of the year 2013.

Tea Production as per the Main Tea Producing Methodologies

(From January to August 2014 )


Productivity of the Tea Sector The average productivity of the tea sector in year 2013 was 1,748 kg per hectare

and it is about 3.5% growth compared to the average productivity of 1,688 kg per

hectare in year 2012.

Period Productivity

Kg. / Ha.

2013 1,748

2014 (Estimated) 1,771



Tea Production

Production

Methodology

Production

(Mn. Kg.)

Orthodox Black Tea 211.5

C.T.C. Tea 13.1

Green Tea 2.2

Total 226.8

93%

6%

1%

Orthodox

Black

TeaC.T.C.

Tea


19

The growth of the tea production as per the main tea producing methodologies in year 2014

as against the production in the corresponding period of the year 2013 is given in the Chart

below.

Tea Production as per the Main Tea Producing Methodologies


Elevation wise Tea Production Mn. Kg


Elevation From January to August

Variance (%) 2013 2014

High Grown 49.68 54.68 10.1

Medium Grown 37.19 33.31 -10.4

Low Grown 136.42 138.80 1.7

Total 223.29 226.79 1.6

0.00

50.00

100.00

150.00

200.00

250.00

Orthodox Black Tea C.T.C. Tea Green Tea

206.40

14.50 2.40

211.5

13.1 2.2

Kg

.

Category From Jan. to Aug. 2013

From Jan. to Aug. 2014


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Agro Climatic Zone wise Tea Production

Mn. Kg

Agro Climatic

Zone

From January to August

2013 2014 Nuwara Eliya 2.713 4.963

Western Hill

Country

33.709 36.285

Mid-Country 30.048 29.531

Udapussallawa 5.790 4.436

Uva 20.294 20.235

Low Country 130.736 131.344

Total 223.291 226.794 Source: Sri Lanka Tea Board

It is projected that the tea production in year 2015 will be 350 mn kg.

Tea - Cost of Production

The average cost of production per kg of made tea in corporate and

private sector tea factories is about Rs. 422.67 in the year 2014.

However, the average sale price per kg of tea from January to August

2013 and 2014 is as follows.

Area

Average sale price (Rs.)


Variance of

the average

sale price

(%)

2013 2014

High Grown 390.71 429.55 9.9

Medium Grown 381.40 420.33 10.2

Low Grown 447.19 503.73 12.6

All elevations 424.26 474.32 11.8


Accordingly, the amount of dividends of the producer has increased in

year 2014 as against the year 2013.


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The average sale price per kg of tea in the first 08 months of the year 2014 has increased to

Rs. 474.32 from Rs. 424.26 in the corresponding period of the year 2013, recording a

growth of 11.8%.

Tea Market Data

Details

(From January to

August) Variance

2013 2014 Quantity %

Total quantity of tea sale

(Mn. Kg.) 230.9 225.0 -5.9 -2.5

Average sale price per kg

of tea (Rs.) 424.26 474.32 50.06 11.8

Data on Colombo Tea Actions

Year

(January

to

August)

High grown tea Medium grown tea Low grown tea All elevations

Quantity

(Mn. kg.)

Price

(Rs. /Kg)

Quantity

(Mn. kg.)

Price

(Rs. /Kg

Quantity

(Mn. kg.)

Price

(Rs. /Kg)

Quantity

(Mn. kg.)

Price

(Rs. /Kg

2013 49.94 390.71 37.59 381.40 143.34 447.19 230.87 424.26

2014 49.42 429.55 35.41 420.33 140.21 503.73 225.03 474.32


It is an established fact, that global tea production in both forms (black & green) registered

the highest ever crop figure during 2013 and exceeded 6 billion kilos for the first time ever.

Many analysts estimated that world tea production had a surplus of around 100 m. kgs.

between the supply and demand equation but significantly confined to CTC type of teas and

green teas. The orthodox type of specialty teas which constitutes 94% of the production in

Sri Lanka did not prove the availability of any excess tea between the demand and supply.

As such, while most other global auction centers showed a prominent decline in tea prices,

Colombo Auction prices reflected buoyancy.

Tea Market

Global Demand and Supply of Tea Market


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The performance of Ceylon Tea becomes even more remarkable due to the fact that most of

the major tea buying countries such as the Russian Federation, Iran, Syria, Iraq and Libya

are going through heavy turmoil situations and economic crisis.

Global Tea Market - Top Five Tea Producers

Country Quantity of Production

(Mn.Kg)

Growth

(%)

2012 2013

China 1,790 1,924 7.5

India 1,126 1,200 6.6

Kenya 370 432 17.0

Sri Lanka 328 340 3.5

Vietnam 190 180 -5.1


Sri Lanka remains in the third place among the world leading tea exporters.

Global Tea Market -Top Tea Exporters

Country

Quantity of Exports (Mn.Kg)

Growth (%)

2012 2013

Kenya 430.2 494.3 14.9

China 321.8 332.4 3.3

Sri Lanka 306.0 309.2 1.0

India 206.2 215.5 4.5

Vietnam 144.0 140.3 -2.6 Source: Sri Lanka Tea Board


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Sales Details of Main Tea Auction Centres in the World


Accordingly, the average sale price per kg of Ceylon tea has exceeded the prices of other

countries. The reasons for this higher value are securing Sri Lanka the main position in

production of Orthodox black tea in the world market, available of shortage of Orthodox

black tea in the world market, export of value added tea with a brand name and supply of

high quality tea to the market exceeding other teas.

Tea Exports of Sri Lanka are available in various forms and at present, more promotional

programs have been implemented to expand the tea export quantities. Exports of value

added tea instead of ordinary bulk tea exports are always encouraged. The export revenue

of the year 2013 amounted to Rs.199.4billion and showed a growth of 10.54%

comparatively to the year 2012.

Auction

Centre

From January to August

Variance 2013 2014

Quantity

Mt Price per kg

(US$) Quantity

Mt Price per kg

(US$)

Quantity

Mt Price per

kg

(US$)

Colombo 230,865 3.31 225,033 3.63 -5,832 0.32

Kolkata 92,986 2.85 74,903 2.66 -18,083 -0.19

Cochin 35,520 2.02 35,536 1.70 16 -0.32

Chittagong 29,383 3.22 35,297 2.07 5,914 -1.15

Mombasa 266,816 2.53 256,666 2.10 -10,150 -0.43

Jakarta 23,332 2.06 17,768 1.68 -5,564 -0.38

Guwahati 66,605 2.41 45,127 2.32 -21,478 -0.09

Malawi 7,083 1.89 7,895 1.43 812 -0.46

World 752,590 2.78 698,225 2.63 -54,366 -0.15

Tea Export


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Data on Tea Exports

Details

(From January to

August)

Growth

(%) 2013 2014

Export Quantity (Mn.Kg) 205.7 214.7 4.4

Export Revenue (Rs.Bn) 123.3 141.3 14.6

FOB Price 599.4 658.2 9.8

Data on Exports and Re-exports of Ceylon Tea

Category


Orthodox black tea Green tea Instant tea Total

Quantity

(Mn. kg.).

F.O.B.*pric

e per kg

(Rs.)

Quantity

(Mn. kg.)

F.O.B. price

per kg

(Rs.)

Quantity

(Mn. kg.)

F.O.B. price

per kg

(Rs.).

Quantity

(Mn.

kg.)

Average

F.O.B.

price

per kg

(Rs.)

2013

Exports 197.16 580.69 1.76 1,204.70 1.11 99.29 200.04 588.51

Re-Exports 4.15 802.78 1.51 1,490.22 0.0001 2,052.10 5.66 986.08

Total 201.31 - 3.27 - 1.1101 - 205.70 -

2014

Exports 205.12 640.49 2.00 1,198.71 1.36 1,129.01 208.48 649.04

Re-Exports 4.61 770.69 1.60 1,527.74 0.0019 934.10 6.22 966.04

Total 209.72 - 3.60 - 1.3619 - 214.7 -

Source: Sri Lanka Tea Board * F.O.B. – Free on Board


25

Data on Tea Exports up to 31st August 2014

Black Tea Quantity

(Kg.) Value (Rs.)

FOB (Rs. / Kg)

Tea Bags 17,256,598 18,853,689,603 1,092.55

Tea Bulk 82,314,526 48,304,871,826 586.83

Tea Packets (4g-1kg) 66,995,796 42,381,683,211 632.60

Tea Packets (1Kg-3Kg) 2,001,519 1,239,249,832 619.15

Tea Packets (3Kg-5Kg) 13,639,381 7,996,322,276 586.27

Tea Packets (5Kg-10Kg) 22,914,189 12,603,650,993 550.04

Sub Total 205,122,009 131,379,467,742 640.49

Green Tea Quantity

(Kg.) Value (Rs.)

FOB (Rs. / Kg)

Tea Bags 606,098 1,085,152,667 1,790.39

Tea Bulk 715,847 429,814,474 600.43

Tea Packets (4g-1kg) 637,033 838,227,196 1,315.83

Tea Packets (1Kg-3Kg) 1,294 1,674,899 1,294.36

Tea Packets (3Kg-5Kg) 4,415 4,599,742 1,041.84

Tea Packets (5Kg-10Kg) 33,855 36,204,831 1,069.41

Sub Total 1,998,542 2,395,673,809 1,198.71

Instant Tea Quantity

(Kg.) Value (Rs.)

FOB (Rs. / Kg)

Packets (>3Kg) 1,363,693 1,539,186,276 1,128.69

Packets (4g-1Kg) 38 473,506 12,460.68

Sub Total 1,363,731 1,539,659,782 1,129.01

Quantity

(Kg.) Value (Rs.)

FOB

(Rs. / Kg)

Total Exports

(Without RTD) 208,484,282 135,314,801,333 649.04

Tea – Ready to Drink

(RTD) 9,774 1,840,074

188.26



26

Data on Tea Re-Exports up to 31st August 2014

Black Tea Quantity

(Kg.) Value (Rs.)

FOB

(Rs. / Kg) Tea Bags 2,099,958 2,043,415,988 973.07

Tea Bulk 719,816 316,115,488 439.16

Tea Packets (4g-1kg) 1,764,693 1,173,901,562 665.22

Tea Packets (1Kg-3Kg) 11,309 8,442,009 746.49

Tea Packets (3Kg-5Kg) 7,365 5,547,820 753.27

Tea Packets (5Kg-10Kg) 6,730 5,347,617 794.59

Sub Total 4,609,871 3,552,770,484 770.69

Green Tea Quantity

(Kg.) Value (Rs.)

FOB

(Rs. / Kg) Tea Bags 744,943 1,617,968,408 2,171.94

Tea Bulk 90,189 49,118,162 544.61

Tea Packets (4g-1kg) 538,834 653,588,220 1,212.97

Tea Packets (1Kg-3Kg) 2,330 1,266,092 543.39

Tea Packets (3Kg-5Kg) 440 912,090 2,072.93

Tea Packets (5Kg-10Kg) 226,625 126,659,432 558.89

Sub Total 1,603,361 2,449,512,404 1,527.74

Instant Tea Quantity

(Kg.) Value (Rs.)

FOB

(Rs. / Kg) Packets (>3Kg) 1,918 1,776,299 926.12

Packets (4g-1Kg) 58 69,486 1,198.03

Sub Total 1,976 1,845,785 934.10

Quantity

(Kg.) Value (Rs.)

FOB

(Rs. / Kg)

Total Exports

(Without RTD) 6,215,208 6,004,128,673 966.04

Tea – Ready to Drink

(RTD) 4,328,964 435,074,440 100.50


Data on Tea Exports up to 31st August 2014

Quantity

(Kg.) Value (Rs.) FOB (Rs. / Kg)

Exports 208,484,282 135,314,801,333 649.04

Re-Exports 6,215,208 6,004,128,673 966.04

Total 214,699,490 141,318,930,006 658.22 Source: Sri Lanka Tea Board


27

There are 156 tea export destinations up to August 2014. The main destinations of Ceylon

Tea, the quantity and value of exports are given below.

Main Destinations of Ceylon Tea Exports

(Up to August 2014 )

Country Quantity

(Mn.

Kg.)

Value

(Rs.Bn)

F.O.B.

price per

kg

(Rs.)

Market

Contribution

Growth

Turkey 29.85 18.53 620.54 14.3% 13.7%

Russia 29.13 19.57 671.76 14.0% 14.5%

Iran 19.70 13.80 700.25 9.5% 10.2%

Iraq 13.88 7.06 508.71 6.7% 5.2%

UAE 12.22 6.95 568.89 5.9% 5.1%

Syria 8.74 5.38 616.08 4.2% 4.0%

Kuwait 8.15 3.81 467.89 3.9% 2.8%

Libya 8.13 3.79 466.62 3.9% 2.8%

Azerbaijan 6.76 4.27 631.02 3.2% 3.2%

Japan 6.65 4.58 689.27 3.2% 3.4%

The Cess income earned from tea exports for the period from January to August 2013

amounted to Rs. 1,458 million and it was Rs. 1,514 million during the corresponding period

of the year 2014 showing 3.8% growth.

Value Added Tea Exports

Year

Value Added Tea %

Total exports

with re-exports Total exports without

re-exports 2012 40.2 38.3

2013 39.3 37.9

2014 (Estimated) 50.0 43.0


28

Issues/Challenges Related to the Tea Industry of Sri Lanka

Low Productivity in tea lands.

High cost of production.

Labour shortage in some areas.

Skilled labour shortage at factory level.

Low adoption of modern technology low capital investment.

Prevailing tariff constrains in the market for „„Ceylon Tea‟‟.

To incline the “brand name” deviating from the market opinion based on

the origin of tea, held by the consumers of prime tea importing countries.

Inadequate production of Tea Bags, Instant Tea, Green Tea and other tea

products.

Insufficient supply of green tea which is also not compatible with the

higher demand internationally.

Inadequate replanting.

Misuse of “Ceylon Tea” brand name and illegal trading of refused tea.

Increasing exports by Kenya, Indonesia and Vietnam.


29

Special activities undertaken in Year 2014

Any offence under Tea Control Act No. 51 of 1957 may impose a fine and

it has been increased from Rs 50, 000 to Rs 500,000/-.

Suspension of registration of LNSA tea factories. (Low Net Sale Average

Factories which are not following GMP standards).

Introducing incentives for investigation teams.

Continuation of "B Leaf 60" to improve leaf standard.

Launching of Global market campaign.

Poster campaign in all regions together with tea factories to improve the

leaf quality.

Factory based awareness programs for small holders.

Based on the warehouse inspection survey (2013), ordered to take

necessary actions to upgrade the warehouses that ranked under the poor

category. Renewal of registration will not be considered if they are unable

to upgrade the warehouse as advices.

Special Investigation to minimize the malpractices on tea (In export

process and in the local market).

Re-commencement of the registration of tea lands which are above the 10

acres of extent.

Reintroduction of the project for installation of quality systems in tea factories-

CQC.


30

The rubber plantation which was introduced to Sri Lanka by Sir Henry Wickham in year

1876 has mostly expanded in the traditional rubber growing areas of Sri Lanka such as

Colombo, Gampaha, Kalutara, Kandy, Matale, Galle, Matara, Kurunegala, Badulla,

Ratnapura and Kegalle districts. Since the opportunities to further expand the rubber

cultivation in traditional areas are limited, the rubber cultivation has been initiated in non-

traditional areas such as Monaragala, Hambanthota and Ampara districts on the policy

decision taken by the government and at present, preliminary actions have been initiated to

expand the rubber cultivation to Vavuniya and Mullaitivu districts in Northern Province.

ශ‍ර කාවේ ර ර ක ෂේ ‍ර ේ ‍රමකව ර කනයකෂේ සගයක ශකවකව වේකසරේයක ළ රේ කාේ

ව අාර, ආ කථව ප‍රතලකේයකට අතාරර, රය රගේර ආශ කකයකෂේ වත ළ රටශ,

සරයර හාවේම ර තටත ේකගණව ර ේ ර ක සත රයයෂේ න කතේණක කරත ශ

ළ වත නයේ ර ක රගේර ාරදර ත ප‍රචලතා කර ේ වේලය අරකයාේරකෂේ සර.

The root causes for such drop in the production were decline in the prices of rubber

and unfavourable weather conditions prevailed in the rubber growing areas.

The rubber production in the year 2013 recorded 130,421 mt and it is projected that

the said quantity will be 135,000 mt in the year 2014.

Details


2013 2014 Variance

(%)

Rubber Production (Mt.) 79,999 74,365 -7.0%

Total foreign exchange earning from

rubber exports (Rs. Mn.)

75,421 80,361 6.5%

Vision

Enhancement of the national production and increase of the foreign exchange

earnings through expansion of the quality and productive plantation and creation

of an environment conducive for the improvement of economic conditions and

social status of the people who engage in the rubber industry.

3. Rubber Sector

Overall Performance in the Rubber Sector


31

Expansion of Rubber Cultivation

At present, rubber cultivation has expanded to an extent of 133,668 hectares of

which 85,083 hectares (63.4%) are contributed by the rubber small holding

sector. Further, an extent of 48,585 hectares (37%) is managed under the

corportate sector.

The estimated extent of rubber lands in year 2014 is 140,000 hectares due to the

rubber new planting in traditional and non-traditional areas. 111,200 hectares of

the total extent of lands are mature (tapping) rubber lands and 28,800 hectares

are immature rubber lands. Since the trend to move away from the rubber

cultivation has decreased at present and the rubber cultivation has been expanded

to non-traditional areas such as Ampara, and Vavuniya Districts, it has been

projected that the total extent of rubber lands will be expanded to 148,000

hectares in year 2015

Details of district wise extents of rubber lands (Hectares)

District 2010 2011 2012 2013

Kalutara 166.82 213.09 145.160 269.09

Kegalle 349.38 351.85 279.920 439.30

Gampaha 29.02 60.481 66.990 86.11

Kurunegala - - 38.360 79.98

Kandy - - 11.270 26.57

Matale - - 11.330 14.73

Ratnapura 125.98 165.374 254.019 339.88

Galle 68.76 91 61.097 89.48

Matara 66.30 84.412 92.453 127.59

Hambanthota 36.02 32.25 26.102 38.65

Colombo 18.70 39.381 57.822 72.50

Monaragala 329.94 310.37 48.510 558.00

Badulla 115.50 146.93 39.100 129.63

Ampara 11.00 44.72 137.500 402.93

Vavuniya - - - 36.80

Anuradhapura - - - 3.60

Polonnaruwa - - - 3.03


32

The rubber small holders make a greater contribution to the cultivation in the rubber sector

same as in the tea sector. In terms of the Rubber Control Act, No.11 of 1956, an extent of

10 hectares or less is defined as a rubber small holding. However, the lands of up to 50

acres or 20 hectares are considered as rubber small holdings for the administrative

convenience.

Rubber Small Holding Sector

Main reasons for encouragement of rubber growers

Rubber Replanting Subsidy (Rs.175,000 per hectare)

Rubber New Planting Subsidy (Rs.150,000 per hectare)

National Fertilizer Subsidy Programme of the Government (A 50 kg sack of

mixed fertilizer is Rs. 1,300 and a 50 kg sack of unmixed fertilizer is Rs.

1,200)

Necessary steps were taken to further develop the rubber cultivation as high

quality and productive plantation through the policy decisions taken by the

government for enhancement of the rubber industry of Sri Lanka, guidance

and encouragements.

Programmes were implemented continuously through the Rubber

Development Department, Rubber Research Institute and Thurusaviya Fund.

(Good agricultural practices such as application of fertilizer and fixing of rain

guards to rubber cultivation)

The total extent of lands under rubber replanting at the end of year 2013 under

the Rubber Replanting Subsidy of Rs.268.76 million is 1,782.17 hectares.

Further, total value of the subsidy granted for Rubber New Planting Programme

in year 2013 amounted to Rs.167.73 million and the extent of lands cultivated is

1,574.12 hectares.

At present, the extent of rubber small holdings is approximately 85,083 hectares

and it is 63% of the total extent of rubber lands. The rubber small holders have

scattered in 19 Districts of the country and their contribution to the national rubber

production is about 77%. The interest of the rubber small holders to the rubber

cultivation has further improved due to the fertilizer subsidy granted continuously

to the rubber small holders under the National Fertilizer Subsidy Programme and

the increased rubber planting subsidy.


33

20 Nos. of the Plantation Companies privatized in year 1992 engage in the rubber

cultivation. The lands in extent of more than 50 acres or more than 20 acres are considered

as the lands under the corporate sector.

A productivity of 1,247 kg per hectare had been reported in year 2013 amidst the

unfavourable weather conditions and the relative low prices due to the new planting and

replanting subsidy of the government, motivation of the farmers to obtain maximum output

from the available rubber lands, fixing of rain guards and conducting training programmes

continuously.

The rubber production in the first 08 months from January to August 2014 was 74,365 mt.

It is about 7% decrease compared to the rubber production of 79,999 mt recorded in the

first 08 months of the year 2013. The root causes for such drop in the production were

decline in the prices of rubber and unfavourable weather conditions prevailed in the rubber

growing areas. Further, it is projected that the total rubber production in the year 2014 will

be exceeded 135,000 mt.

Period Productivity Kg. / Ha

2013 1,247


Corporate Sector

Productivity of the Rubber Sector

Rubber Production

At present, the extent of rubber lands under the corporate sector is approximately

48,585 hectares and it is about 37% of the total extent of rubber lands. The rubber

holdings of the corporate sector have scattered in 12 districts of the country and their

contribution to the national rubber production is about 23%. This sector is

significant in the local rubber industry due to the production of finished products

purchasing raw material of the rubber small holders. The national fertilizer subsidy

granted continuously to the corporate sector from May 2011 on the government

policies has caused to increase the contribution of production in this sector.


34

Category wise Rubber Production

(From January to August of 2013 and 2014)

Source: Rubber Development Department

Accordingly, the rubber sheet production which makes the largest contribution to the total

rubber production had increased by 1,794 mt (5%) in the first 08 months of the year 2014

compared to the first 08 months of the year 2013.

Further, it is projected that the rubber production in the year 2015 will be approximately

142,000 mt.

The average cost of production per kg of rubber for small holdings amounted to Rs.136.00

in year 2012. It has increased to Rs.150.00 in the year 2013. As well, it is projected that it

will be increased to Rs. 165 in the year 2014.

Cost of Production


35

The average price of all types of rubber declined in the first 08 months of the year 2014

compared to the first 08 months of the year 2013. The average prices of the Colombo

rubber auction under RSS types during the corresponding period of the years 2013 and

2014 are given in the Chart below.

Average Auction Prices for RSS Types

(From January to August of 2013 and 2014)

Source: Rubber Development Department *RSS – Ribbed Smoked Sheet rubber

The average price per kg of RSS-1 in the first 08 months of the year 2014 varied at a range

of Rs. 264 – Rs. 321 and since the average cost of production per kg of natural rubber was

about Rs.150 in the year 2013, the dividend of the growers was more than Rs. 100 even

under low prices.

Local Rubber Market


36

Average Colombo Auction Prices for Various Types of Rubber

Price

From January to August 2014

Price of RSS (Rs./Kg) Price of Latex Crepe (Rs./Kg Price of Scrap Crepe

(Rs./Kg)

RSS1 RSS2 RSS3 RSS4 RSS5 LC1X LC1 LC2 LC3 LC4 1XBr 2XBr 3XBr 4XBr

Average 294 287 277 272 268 316 307 274 245 228 220 213 209 201

Maximum 321 316 290 284 275 349 340 322 298 273 256 253 237 227

Minimum 264 256 257 254 242 297 287 257 221 205 198 190 193 185


The rubber production of Sri Lanka is about 1.08% of the total global rubber production

and about 82% of the production is consumed by the local producers. However, the changes

in the price of global economy and demand and supply of the rubber directly affect to the

local rubber price

Rubber Production

(Association of Natural Rubber Producing Countries) ‘000 Mt

Country From January to August

2014

Indonesia

Malaysia

India

Vietnam

China

Sri Lanka

Philippine

Cambodia

Thailand

2188.3

511.9

510.0

550.0

486.0

86.4

63.6

52.5

2,331.0

Total 6,779.7

Source: Association of Natural Rubber Producing Countries

It is projected that the growth of the global natural rubber production in the year 2014 will

be 1.9%. As per the projections of the International Rubber Study Group (IRSG), the total

global natural rubber production and the consumption in the year 2014 will be about

12,275,000 mt and 11,904,000 mt respectively. However, further expansion of rubber

cultivation in Sri Lanka as well, is economically advantageous since the demand for rubber

will increase in future with the global economic growth.


37

The raw rubber export of Sri Lanka from January to August 2014 was 12,848 mt and it is

17% of the total production of 74,365 mt in the same period of year 2013.

Export of Rubber


Accordingly, the raw rubber export in the first 08 months of the year 2014 has dropped by

about 13% as against year 2013. The reason for the drop is that 61,772 mt of raw rubber

had been value added locally during the relevant period of year 2014.

The category wise rubber exports from January to August 2013 and 2014 are given in the

Table below.

Year (January –

August)

Quantity of

Exports (Mt.)

Rubber

Production (Mt.)

Exports in

Production %

2013 14,791 79,999 18

2014 12,848 74,365 17

Rubber Exports

Locally value added products, appeared a significant

trend

Tyre and tube

Rubber plates

Sheets and belts

Surgical and other gloves

Carpets

Mats and other rubber based products


38

Category wise Rubber Exports

Mt.

Category

From January to

August

2013 2014

Sheet 3,327 1,584

Sole Crepe 1,165 1,519

Latex Crepe 7,817 7,766

T.S.R 1,603 817

Centrifuge/Other 879 1,162

Total 14,791 12,848


The Cess income from rubber exports, imports and local industries from January to August

2013 amounted to Rs. 1,487.2 mn and the Cess income during the corresponding period of

year 2014 amounted to Rs.1,385.7 mn.

Cess Earnings

Rs. Mn

Cess Category January - August

2013 2014

Export 285.6 222.2

Import 1,027.3 1,009.2

Local Industries 174.3 154.3

Total 1,487.2 1,385.7

The total foreign exchange earnings from rubber exports during the period from January to

August 2014 amounted to Rs.80,361 mn and it is 6.5% increase as against Rs.75,421 mn of

export income in the corresponding period of year 2013. The export income from category

wise rubber exports during the first 08 months of year 2013 and 2014 is given in the Table

below.


39

Value of category wise Rubber Exports

Rs. Mn

Category

January - August

2013 2014

Raw Rubber 5,939 4,687

Finished

Products

69,482 75,674

Total 75,421 80,361


Value Added Rubber Products

A quantity of 61,772 mt of rubber was value added during the first eight months

of the year 2014 and As well as year 2013, tyre and tube, rubber plates, sheets

and belts, surgical and other gloves, carpets, mats and other rubber based

products were significant among them . This is 6.8% decrease as against the

value addition of 66,261 mt. recorded during the relevant perion in year 2013.

The total natural rubber quantity used for production in the year 2013 was

107,259 mt and it is projected that the relevant quantity will be approximately

100,000 in year 2014.

The foreign exchange earnings from the export of value added rubber products

during the period from January to August 2013 amounted to Rs. 69,482 mn and

it is Rs.75,674 mn during the corresponding period of year 2014.

Further, as a result of making efforts by many manufacturers of rubber based

finished products to reach the international standards using new manufacturing

methods for modernization of their products, the natural rubber quantity used for

finished products further will take a higher percentage of the total production.

The target of the Ministry of Plantation Industries is to take necessary measures

to use about 80% of the total local rubber production for value added products

by year 2016.


40

Issues related to the Rubber Sector

Insufficient of the supply of high quality plants tolerant to various climatic

conditions and meet the requirement for expansion of the cultivation.

Practical difficulties for further expansion of rubber plantation to the

traditional areas due to the urbanization and industrialization.

Shortage of skilled rubber tappers.

Decline in the prices of rubber.

Low interest of the rubber small holders in utilization of new techniques such

as fixing of rain guards.

Practical difficulties to use lands lawfully for the expansion of rubber

cultivation to non- traditional areas.

Insufficient of the researches related to the diversification of rubber products.

Insufficient of application of fertilizer to the mature plantation.

Special courses of action taken for enhancement of the rubber sector

Producing high yielding quality budded plants.

Maintaining a replanting rate at 3%.

Expanding rubber cultivation to non-traditional areas.

Adopting good agricultural practices and increasing the productivity.

Implementing rubber tapping training programmes.

Revising Cess Levy in respect of the decline in the price of rubber and taking

necessary actions to set a fixed price for rubber.


41

The beginning of the oil palm cultivation in Sri Lanka has been reported in an area of 20

hectares of Nakiyadeniya estate in year 1969. Generally, the areas where the annual

rainfall is more than 1800ml, temperature is 20 C˚ - 40 C˚ and sun setting is more than 05

hours per day are suitable for the oil palm cultivation. Accordingly, there is a feasibility to

grow oil palm in the districts of Galle, Matara, Kalutara, Colombo, Kegalla, Gampaha,

Kurunegala, Kandy, Matale and Ratnapura.

The oil palm cultivation initiated in an area of about 20 hectares of Nakiyadeniya estate in

year 1969 had been expanded to 1,200 hectares by year 1974. By year 2000, it was further

expanded to 03 State Plantation Companies in Kalutara and Matara districts. For the first

time, oil palm refinery factory was established in Kalutara district in year 2007. At present,

the oil palm cultivation has expanded in approximately 7,953 hectares. Out of that, five

Regional Plantation Companies manage 7,934 hectares and Sri Lanka State Plantation

Corporation manages 19 hectares.

The following Table provides year 2013 details of expanding the extent of oil palm

cultivation in the estates which are managed by the Plantation Companies

Vision

Contribution to the national economy through development of oil palm as a

commercial crop to meet the local edible oil requirement and saving the foreign

exchange for import of edible oil.

Expansion of Oil Palm Cultivation

4. Oil Palm Sector


42

Expansion of the Oil Palm Cultivation - (2013) Hectares

Plantation Company Extent

under

Mature

Extent

under

Immature

Total

Extent

Agalawatta

Watawala

Namunukula

Elpitiya

Kotagala

(SLSPC)

997

1,935

1,128

843

01

19

300

994

679

493

563

-

1,297

2,930

1,807

1,336

564

19

Total 4,924 3,029 7,953

Source: Planters‟ Association of Ceylon

Sri Lanka State Plantation Corporation (SLSPC)

Details of the oil palm production of the Regional Plantation Companies in year 2012 and

2013 are given in the Table below.

Oil Palm Production of Plantation Companies - (2012/2013)

Mt.

Plantation Company Year

2012 2013

Agalawatta 6,809 7,421

Watawala 29,733 32,796

Namunukula 14,088 15,788

Elpitiya 10,716 10,892

Kotagala - 0

SLSPC 289 69

Total 61,635 66,966

Source: Planters‟ Association of Ceylon

Sri Lanka State Plantation Corporation (SLSPC)

As per the Table above, the oil palm production has increased by 8.6% in the year 2013

Compared to the year 2012.

Overall Performance of the Oil Palm Sector


43

Making recommendations to import the seeds required for oil palm cultivation of the

Plantation Companies under tariff concessions is done by the Ministry of Plantation

Industries. Further, the Ministry gives its support for coordination of studies and promotion

campaigns on the use of oil palm cultivation and importance of its expansion as well.

Accordingly, the recommendation has been made to import of 51,000 seeds required for the

Plantation Companies to cultivate during the year 2013 and recommendation has been

given to import 102,000 seeds in the first 8 months of year 2014.

At present, the estimated productivity of the oil palm production in Sri Lanka is

approximately 3.4 mt per hectare.

Saving of the foreign exchange incurred for import of vegetable oil.

Reducing the variations of the prices for coconuts in the local market.

Sustainable use of the lands while assuring the use of uncultivated bare lands for the

oil palm cultivation.

Possibility to supply of high quality palm oil to the local market.

While using uncultivated lands owned by the Plantation Companies and the lands of

small holders, it has been targeted to expand the extent under oil palm cultivation in

Sri Lanka up to 25,000 hectares within next 10 years.

Taking actions to expand Oil Palm cultivation targeting at Low Grown areas under

crop diversification at regional level on climatic changes.

Oil Palm Research Division has been installed at the Coconut Research Institute to

conduct researches continuously.

Give assurance to make capabilities to import quality seeds from some other

countries in addition to Papua New Guinea.

Productivity of Oil Palm

.

Advantages achievable from the Oil Palm Cultivation

Future Plans for the Oil Palm Sector

.


44

The total revised estimate for the Ministry and the institutions coming under the Ministry

up to 30th

September 2014 amounts to Rs. 5,014.68 million. Its progress is given in the

Table below.

Financial Progress of the Ministry and the Institutions coming under its purview up to

30th

September 2014

Rs. million

Commercial enterprises coming under the Ministry namely, Kalubowitiyana Tea Factory

Ltd. and Tea Shakthi Fund are not allocated funds by the Treasury.

Institution Capital

amount

Recurrent

amount

Capital

expenditure Recurrent

expenditure

Capital

Progres

s %

Recurrent

Progress

%

Ministry 996.48 151.2 319.3 104.14 32 69

Sri Lanka Tea Board

70.0 140.0 35.0 99.0 50 71

Tea Research

Institute of Sri Lanka 133.5 300.0 44.38 210.6 33 70

Tea Small Holdings

Development

Authority

600.0 275.0 414.05 195.94 69 71

Rubber Development

Department 1,123.0 213.9 666.09 163.77 59 77

Rubber Research

Institute of Sri Lank 84.2 252.5 22.9 192.32 27 76

Thurusaviya Fund

6.9 12.0 5.11 9.07 74 76

National Institute of

Plantation

Management

25.0 31.0 14.8 18.40 59 59

Smallholder

Plantations

Entrepreneurship

Development

Programme

600.0 - 233.93 - 39 -

Total

3,639.08 1,375.6 1,755.56 993.24 48 72

5. Financial Progress of the Ministry of Plantation Industries


45

A number of 439 large scale estates more than 50 acres in extent, managed by the Janatha

Estates Development Board (JEDB) and Sri Lanka State Plantation Companies (SLSPC)

were vested in 23 Regional Plantation Companies in 1992 and privatized. The lands of

these estates still remain under the supervision of JEDB and SLSPC. The management and

plantations of the said estates have been handed over to the Regional Plantation Companies

on the lease basis of 53 years. The role of this Division is to execute the powers entrusted

with the Secretary to the Treasury as the Golden Shareholder of these RPCs, on behalf of

the government. Accordingly, functions performed by this Division are given below.

Granting approval for the amendments to the Articles of Association.

Inspecting the functions of Regional Plantation Companies (RPCs) and accordingly,

review of the progress.

Monitoring of replanting and field development activities.

Inspection of the factory modernization and continuation of human resources

development activities.

Looking into the matters such as prevention of soil erosion, application of fertilizer,

conservation of water sources & water catchments and environment conservation

activities related to the estates.

Inspection of management irregularities in the estates.

Monitoring of sub leasing and transfers made by the Plantation Companies.

Taking action to release the lands leased out to the RPCs, for public purposes.

Monitoring of reforestation management programmes and making recommendations

on field inspections for timber felling.

Collection of lease rentals to be paid by the RPCs to the Government.

Taking action in respect of the squatters for establishment of possession of the state

lands.

Identification of cultivable but uncultivated lands managed by the Regional

Plantation Companies

In line with the consent given by the Plantation Companies, demarcation of the lands

identified at district level and preparation of land use plans are being carried out in

collaboration with the District Secretaries. It has been decided to conduct a meeting

Plantation Management Monitoring Division

6. Progress of Development Divisions/ Projects of the Ministry

Progress of the year 2014


46

with the participation of Hon. Minister of Economic Development, Hon. Minister of

Plantation Industries and all relevant officials to review the progress and to obtain

instructions in respect of the manner in which this programme is to be implemented in

future.

Recovering lease rentals from the Regional Plantation Companies

Although the estimated arrears of lease rentals to be collected during the year 2014 was

Rs. 144 million, Rs. 156 million has been recovered as at 31.08.2014. The estimated

amount of lease rentals to be collected for the year 2014 is Rs. 811 million of which

Rs. 272 million has been recovered as at 31.08.2013.

Financial Progress Review of the Regional Plantation Companies

Proper studying and analyzing of quarterly and annual accounts statements of the

RPCs and thereby, instructing to the Companies to make rectifications where

necessary actions are being undertaken and arrangements have been made to continue

it more regularly. Moreover, a data base on the financial and physical progress of the

Plantation Companies is maintained and action has been taken to furnish the required

details to the relevant sectors.

Monitoring of Timber Harvesting

As per the five year management plan, actions are being taken by this Division for

granting approval required for timber felling in the estates managed by the plantation

Companies, with the involvement of the other relevant government institutions. The

field inspections and other necessary actions have been taken by this Division in respect

of the timber felling in 47 estates managed by 07 Plantation Companies from

01.01.2014 to 15.09.2014. In addition, approval has been granted for the removal of

trees in other various occasions (Ex: - Trees dangerous for lives and other properties,

trees to be removed for establishment of high tension power lines, trees to be removed

for other public purposes such as housing projects and playgrounds etc., trees to be

removed whenever required for crop diversification and unnecessary trees shading to

the cultivations).


47

Release of lands for public purposes of the government

Necessary actions are being taken by this Division to obtain approval of the Golden

Share Holder on the consent of the Plantation Companies in respect of the release of

estate lands managed by the Regional Plantation Companies for development activities

of the government and other public purposes and conducting relevant field inspections

as the case may be.

During the period from 01.01.2014 to 15.09.2014, actions have been taken in respect of

around 32 requests made to this Division regarding the acquisition of estate lands for

the activities such as highways, industrial parks, supply of water facilities and other

infrastructure development and in addition, actions have been taken in respect of the

requests made for 18 housing projects, 11 schools, 03 estate hospitals, 26 religious

places, 18 cemeteries and 72 requests for playgrounds and other welfare activities. In

addition, 07 field inspections related to the cases hearing at the court in respect of the

release of lands for public purposes have been conducted.

Eviction of squatters in the government owned lands

This Division acts in respect of the squatters and unauthorized constructions in the estate

lands managed by 23 Plantation Companies in terms of the provisions of the State Lands

(Recovery of Possession) Act No.1979 pertaining to the recovery of possession of the

state lands to the government.

During the period from 01.01.2014 to 15.09.2014, actions are being taken by this

Division in respect of 785 such cases in the estates managed by 23 Plantation

Companies. 15 field inspections related to the cases hearing at the court in respect of the

unauthorized use of estate lands have been conducted.

Sub-lease of the lands managed by the Regional Plantation Companies

As per the conditions referred to in 04 (a) of the Lease Agreement entered into between

the government and the Regional Plantation Companies, the Plantation Companies

reserve the right to sub lease the said lands to a 3rd

party for various activities aiming at

the development of the country ( Eg:- Construction of Telecommunication towers and


48

Mini hydro power stations). These activities are carried out by this Division as per

approved specific procedure and necessary actions are also taken by this Division to

obtain approval of the Golden Share Holder for the purpose.

During the period from 01.01.2014 to 15.09.2014, approval of the Golden Share Holder

has been granted to sub lease approximately 12 plots of lands from the estates managed

by 23 Plantation Companies to various parties for the purposes referred to above and

actions are being taken by this Division in respect of such 15 requests.

Cadastral surveying in the estate lands

After the cadastral surveying in the estate lands were re-commenced with the

involvement of the Surveyor General‟s Department and the Regional Plantation

Companies, surveying in 19 estates owned by 07 plantation companies is being

conducted to be in line with the “Bim Saviya” programme implemented by the

government from 01.01.2014 to 15.09.2014. Surveying in some estates has been

completed and at present, 29 maps including the year 2013 have been handed over to this

Division.

Complaints from the public

Necessary actions are being taken with the assistance of the Plantation Companies in

respect of the various complaints and requests on the estate sector made by the people to

H.E. the President and Hon. Minister of Plantation Industries and the Division has taken

actions in respect of around such 650 requests during the period from 01.01.2014 to

15.09.2014.

Conducting Golden Share Holder’s Meetings

Three Golden Share Holder‟s Meetings chaired by the Hon. Minister of Plantation

Industries and attended by the Regional Plantation Companies, Planters‟ Association and

other relevant government institutions have been conducted during the period from

01.01.2014 to 15.09.2014 and the discussions on the short term and long term economic


49

and social issues in the estate sector and the practical solutions to be taken for the issues

were held thereat and the companies have been made aware to take necessary actions.

The special attention was drawn and necessary courses of action have been taken by this

Division in respect of the matters discussed on the estate sector at the District

Development Committee Meetings presided over by H.E. the President in Ratnapura,

Matale, Badulla, Galle and Kurunegala districts.

Coordination of the functions of Consultative Committee Meetings and appointed

Sub-Committee Meetings on the affairs of Plantation Industry

During the period from 01.01.2014 to 15.09.2014, the priority has been given to 150

requests and issues referred to the Consultative Committee by the Hon Members of

Parliament. As well, coordination of the all activities including preparation of Terms of

Reference of the Sub-Committee appointed to study and make recommendations on the

issues arisen in respect of the obligations and duties of the plantation companies which

were previously owned by the government and privatized later and submission of the

copies of lease indentures pertaining to over 400 estates to the members of the

Committee are being undertaken by this Division.

Implementation of the Housing Project in the estates of Regional Plantation

Companies (RPCs) under the project implemented by the Urban Development

Authority for construction of 50,000 houses for providing housing facilities to low

income familities

In this context, actions are taken by this Ministry to obtain the consent of the RPCs to

release the identified lands in Deniyaya and Agalawatte areas. As well, actions are also

being taken to submit the details of the selected RPCs in Badulla, Ratnapura and Nuwara

Eliya districts to the Urban Development Authority.


50

The Smallholder Plantations Entrepreneurship Development Programme (SPEnDP) has

been funded by the International Fund for Agricultural Development (IFAD) and the

Government of Sri Lanka.

The main target of this programme is to increase income and livelihood of the marginalized

smallholder tea producers in eight Divisional Secretaries‟ Divisions of the mid-country

region, covering Kandy, Nuwaraeliya & Kegalle Districts and poor upland crop farmers in

eight Divisional Secretaries‟ Divisions of intermediate zone of Moneragala District who

wish to take up smallholder rubber plantation.

39,250 persons living in 8,700 household units of the said areas are the immediate

prospective beneficiaries of this programme and actions have been taken to encourage them

to undertake tea planting in 250 hectares in Mid-country region and rubber planting in

5,000 hectares in Moneragala district.

Smallholder Plantations Entrepreneurship

Development Programme

Donor Agency : International Fund for Agricultural

Development (IFAD)

Donor Agency : 05.11.2007

Total Cost : US$ 28.0 million

Project Period : From 05.11.2007 to 31.12.2016

Purposes of the Programme

Enable smallholders to develop sustainable out-

grower systems with nucleus estates and down-

stream processing enterprises

Promote and consolidate effective partnerships

between the target groups and private and public

sectors.


51

Community Development & Strengthening of Grassroots Institutions

47 Nos. of rural roads were constructed at a cost of Rs. 24.225Mn.

113 matching grants (MGs) worth of Rs. 5.54 mn were provided to selected

entrepreneurs to develop income generating activities.

The project has obtained the service of out side service provider for strengthening of

Village Rubber Development Clusters (VRDC), providing matching grants and

formation of business groups and in this context,

- 32 preliminary awareness programmes were conducted at VRDC level and 688

beneficiaries were attended. 271 beneficiaries have been selected for future training

programmes.

- 04 business planning training programmes were conducted with the participation of

90 beneficiaries.

Thirteen business groups were formed and registered through a service provider at a

cost of Rs.1.3 million for 400 beneficiaries to whom grants were provided to support

their income generating activities under the Mid Country Sub-Programme.

51 training programmes were conducted at a cost of Rs.1.09 million for 1,652

beneficiaries who engage in income generating activities.

During the period under review, 09 leadership training programmes were conducted

for 191 beneficiaries at a cost of Rs. 0.118mn.

Progress from January to August 2014


52

An art competition was held and gifts were awarded at a cost of Rs.0.38 million to

improve skills and talents of the school children of the VRDC farmers.

Identification of suitable locations for construction of 20 wells were completed at a

cost of Rs.0.93 million in collaboration with the Ground Water Section of the National

Water Supply & Drainage Board to supply drinking water requirement of the rural

folks living in the identified areas in Monaragala district.

Capital grants of Rs 1.7 million were provided to 2400 beneficiaries of 240 Savings

and Credit Groups formed under the Mid Country Sub-Programme.

Rehabilitation of Doragala Irrigation Tank in Udapaltha DS division was executed at a

cost of Rs. 5.4mn which benefits 54 farm families to cultivate vegetables in 25

hectares.

Two operational manuals one for entrepreneurship groups and another for Savings and

Credit Groups formed under the Mid Country Sub-Programme were prepared, printed

and introduced at a cost of Rs. 1 million.

Two social development programs were conducted for the beneficiaries in Aranayake

and Doluwa DS divisions with the collaboration of Sri Lanka Police.


53

Agriculture Development and Crop Diversification

A sum of Rs.54.3 million has been provided as rubber subsidies to 2,698 beneficiary

farmers who maintain rubber cultivations successfully.

Technical training programmes were conducted at a cost of Rs.0.316 million with the

participation of 643 rubber growing beneficiaries.

25,632 cocoa plants and 15,900 passion fruit plants were distributed among the

beneficiaries at the cost of Rs.2.8 million to maintain intercropping with rubber

cultivation.

Subsidies of Rs.16 million were provided for replanting in 32 hectares of tea owned by

300 beneficiary families.

Subsidies of Rs.1.87 million were provided for infilling in 50 hectares of tea owned by

500 beneficiary families.

Export crops were provided at the cost of Rs.1 million

for intercropping in 50 hectares of tea smallholdings

owned by 500 beneficiary families.


54

Providing raw material to produce compost for vegetable cultivation and providing

subsidies for cultivation of Gliricidia in 21 selected lands with the purpose of soil

conservation.

Completing the survey of lands at the cost of Rs.4.02 million to establish the

ownership of 336 holdings owned by 300 beneficiary families in Kegalle and

Bulathkohupitiya Divisional Secretaries‟ Divisions and 450 holdings owned by 400

beneficiary families in Doluwa and Udapalatha Divisional Secretaries‟ Divisions.

Marketing, Processing & Value Addition

Construction of shops besides main roads in Monaragala district at the cost of Rs.1.28

million.

02 milk collecting centres have been established in Buttala and Madulla D.S. Divisions

at the cost of Rs. 2.06 million.

72 goats (Male/Female) have been distributed at the cost of Rs.0.25 million under 31

Matching Grants and improved dairy cattles were provided to 72 families at a cost of

Rs.3.58mn under the Mid Country Project.

Conducting 30 training programmes for 305

beneficiaries on replanting of tea, intercropping

of export crops, soil conservation through the

relevant line agencies.


55

240 Bee boxes, Face Covers, Honey Extractors and Smokers were given to 80

beneficiaries under the Mid Country Project to develop Bee Honey production

programme at a cost of Rs. 0.21mn.

Eighty beneficiaries were selected and trained for Kithul Development program in

Kothmale DS division. Two Brix meters, two for sucrose testing kits and 80 boiling

pans were provided at a cost of Rs. 0.24mn.

One hundred and eighteen beneficiaries formed in to two business group and 32

Protective nets were provided at a cost of Rs 0.15mn. Market linkages were formed

with two private foliage exporting companies.

17 entrepreneurship training workshops were conducted at the cost of Rs.0.95 million.


56

Microfinance Credit Programme

Loans worth of Rs 43.62mn were granted to 141 rubber smallholders and 248 tea

related beneficiary families under the concessionary interest rate jointly with the

Commercial Banks.

Construction of access roads & farm tracks in Monaragala district rubber cultivated

lands, construction of 100 drinking water wells for each VRDC & tea replanted lands

in Mid-country area at the total estimated cost of Rs. 83mn.

Formation of Village Rubber Development Clusters (VRDC), strengthening them

financially and structurally, formation and establishing small scale business groups,

enhancing VRDC capacity to be village entrepreneurs in order to take up various

village development activities at the cost of Rs.40mn Similar activities will be carried

out in Mid-Country area.

Under the development assistance of rubber small holdings and tea smallholdings the

project will spend RS.262.8mn during 2015-2016. The payments for rubber & tea

subsidies are the major activities.

The project will provide agricultural inputs for tea, rubber and intercropping such as

cocoa, pepper and maize cultivations at the cost of Rs.30.2mn during 2015-2016

100 small scale (100kg capacity) rubber sheet processing centres will be established in

2015-2016 at the cost of Rs.80mn.

The project will grant Rs.126.8mn for agriculture, income generation and self-

employment activities at the rate of 9% interest during next two years.

The project will provide matching grants for poor beneficiaries to start small scale

businesses, self-employment and livelihood development activities such as dairy

framing, goat farming, chicken farming etc. at the cost of Rs.91.7mn.

Project will start outcome measuring and impact monitoring of project activities during

next two years.

Under the proposed dairy development programme project has already taken steps

provide 300 high yielding cattle to its beneficiaries and it will continue during next two

years too as a part of livelihood development programme.

Targets for the year 2015


57

7. Progress of the Institutions coming under the Ministry

Sri Lanka Tea Board

The Sri Lanka Tea Board was established on 01st

January 1976, under the Sri Lanka Tea Board

Law No. 14 of 1975, as amended by Act No. 17

of 1985, No. 44 of 1990, No. 29 of 2003, and

No. 44 of 2006. The main functions of the Sri

Lanka Tea Board are to regulate, develop the tea

industry and promote Sri Lanka Tea (Ceylon

Tea) globally.

Prioritized Areas

Registration of Tea Factories and Green

Tea Dealers.

Taking necessary steps for Reasonable

Price Payment.

Implementation of GMP Improvement

Programme.

Inspection on Adulteration and quality

certification of tea.

Conducting Leaf Quality Improvement

Programme.

Facilitating for Re Planting Subsidy

Scheme.

Facilitating for Factory Modernization

Subsidy Scheme.

Registration of Exporters, Tea Packers

Importers and warehouses.

Global and Local tea promotion campaigns.

Testing of tea samples and verification of

samples.

Vision

To position Ceylon Tea

as the “most aspired

beverage” in the global

market.

Mission

To increase the foreign

exchange earnings to the

country through

sustainable development

of the industry and

thereby ensuring the

economic development

of the plantation

community.


58

Registration of 26 Local Tea Packers to establish minimum standards for local

consumers.

Re-registration for 500 tea lands which are more than ten (10) acres in extent.

Establishment of Barcode system to secure the sampling and analytical procedure.

Automation of Pre auction and Pre Shipment sampling.

Strengthen the audits under B Leaf 60 Program to enhance the quality of green leaf

up to 60%.

Introduced the computerized Online Authorization for exports.

Analytical and testing report generations through system. [

Introduced an e-mail address for Exporter communication.

Initiated random group visits to collect samples.

Factory Modernization Subsidy Scheme (FMSS) paid Rs.5.02 million for 8

factories.

Rs.16.31 million has been paid as subsidy payments under the Tea Replanting

Subsidy Scheme.

Reintroduction of the project for installation of quality systems in tea factories-CQC

(Ceylon tea Quality Certificates)-39 new factories implemented under the CQC.

Providing machines and accessories to 25 factories under introducing and

facilitating the projects for mechanization of tea harvesting.

Facilitating SLSI-SLTB Product quality certification system.

Conducting 6 Awareness Programs for Registered Tea Manufactures and 15

Programs for Green Tea Dealers.

Registration of Tea Factories and Green Tea Dealers.

Restoration of Registration - 02, Suspension of Registration - 03, Suspension of Sales

-12.



59

Details of the inspections conducted during the period under review are given in the

Table below.

Inspection Type

No. of

Inspections

GMP Improvement Programmes 173

Surprise Inspection for Adulteration 64

Pre-Auction Samples 2,922

Warehouse Inspection 54

Inspection of Local Packers‟ Offices 72

Exporter Office Inspection 47

5211 Cusdec Selection for sampling.

Identifying 23 Shipments for below Standards.

No. of lines denatured is 29.

No. of Import Permits issued is 346. Details of the registrations and renewals during the period under review are given in

the Table below.

Category No. of Registrations Renewals

Packers 67 464

Exporters 32 390

Warehouses 44 253

Packets 170 -

Importers 10 64

Introduction of new tests parameters such as total Poly Phenols and Catechins of

Black and Green Tea, Urea, Gluten, Sugar according to the industrial requirements.

Renewal of Sri Lanka Cricket sponsorship for the 2nd year.


60

Launch of "Ceylon Tea Moments" a unique one stop tea shop/tea house at Race Course.

Participated in Joint bilateral Economic Commission meetings in Iran & Iraq.

Soft launch of Ceylon Tea campaign in UK through Harrods Knightsbridge.

Finalization of marketing communication strategy programs for Australia Japan, UK and

Latin America (Brazil & Chile).

Progressing with Market Communication Strategy programs for USA, Russia, UAE,

China and Poland.

Arrangements for next "Estate Tea of the Year" competition in Dubai February 2015.

Continuation of the registration process of Geographical Indications of the Ceylon Tea

name (Jordan & Lebanon) and seven agro-climatic regions names/logos in identified

target markets (Japan & USA).

Registration of the Ozone friendly logo and the renewal of the Lion Logo trade mark in

Japan, EU, Malaysia, Kuwait & Syria.

Tea promotion with other state bodies such as National Craft Council.

Finalization of Dubai & Sharjah Airport Advertising program.

Appointment of Honorary Tea Commissioners for UK & Netherlands.

Organizing & participation at 09 international trade fairs & exhibitions.

Maximize the testing capacity of the labs with existing facilities.


61


“Ceylon Tea” campaign in 25 countries.

In line with the Global Ceylon tea campaigns, advertising on

TV/Radio/Press.

Ensuring higher price for leaf producers.

Further promotion of value added tea exports and reaching the

revenue above US $ 2 million.

Trade fair participation and conducting promotion campaigns in

existing markets and new markets.

Promotion of tea through country promotion campaigns and joint

promotion campaigns with other government agencies.

Introduction of accreditation for sampling and inspection by Sri Lanka

Tea Board.

Introduce new tests related to Tea Industry.


62

Tea Research Institute of Sri Lanka

The Tea Research Institute (TRI) which was

established in 1925, as there was a need in the

industry for professional tea research, operates

in terms of the Tea Research Board Act, No. 52

of 1993. The objective of the institute is to

conduct scientific and technological research

on tea, study all issues related with the tea

plantation and collect and disseminate the

knowledge and information gained thereby.

Vision

To achieve excellence in

tea research, generating

and transmitting new

technologies to make Sri

Lankan tea competitive

and the most preferred tea

in the world.

Mission

To generate, introduce and

transfer scientific

knowledge and technologies

appropriate to improve

productivity and quality of

tea production in a most

profitable manner.

Prioritized Areas

Crop improvement.

Land productivity improvement.

Impacts of climate change, adaptation &

mitigation of adverse impacts.

Mechanization of Agricultural Practices in

tea sector.

Crop management and introduction of

nursery management techniques.

Tea processing technology and new

machinery and new methodologies for tea

processing.

Introduction and improvement of value

added tea products.

Finding and popularizing health benefits

of tea.

Technology dissemination and services to

stakeholders.


63

Under the project for mechanization of tea harvesting in tea small holdings sector,

04 initial awareness programmes for 430 participants covering all the regions and

07 TOT programmes for 220 participants were conducted.

Distribution of machineries among 50 small holders‟ societies and 25 tea

factories.

Distribution of machineries in second round is in progress.

Application of molecular technology to support genetic conservation & improvement

of tea.

SQI validation extended to corporate sector plantations to cover major soil series under

agro ecological regions during replanting period and the researches on bio fertilizer

suitable for tea cultivation conducted using BFBF formulation revealed that the

application of non-organic fertilizer could be reduced by 50% in the application of this

fertilizer to the tea nurseries

Improvement of land productivity through agronomic practices.

Adaptation to the impacts of climatic changes & mitigation of adverse impacts.

Recommendation of an integrated crop protection approaches, to minimize economical

damage & address health, safety & environmental issues & meet consumer

requirements.


Under breeding of new tea cultivars to improve

productivity, quality & to face emerging

challenges, around 300 plants developed for

further evaluations.


64

H.E. the President conferred awards to the scientists of the Tea Research Institute of

Sri Lanka at the 5th Plantation Crop Research Symposium held on 15.10.2014 at the

Bandaranayake Memorial International Conference Hall (BMICH).

A method to prepare a stabilized catechin mixture which can be incorporated into

cosmetics as antioxidants was developed.

Implementation of socio-economic studies and application of Geographic Information

System (GIS) to tea sector.

Three TOT programs for the Para Trainers groups of Kahawatte and Watawala

Plantations, one familiarization program for para trainer group of Kahawatte

plantations were conducted. Two PEA programs were conducted by Watawala

Plantations with the participation of Para trainers, management and the TRI.

The energy consumption of tea factories could be

minimized through using Tea Processing Technology.

In line with the new technology introduced for

production of black tea under the value addition, new

product development and product diversification, the

possibility to extract protein containing in refuse and

spent tea and use it as a food source was established.


65


Recommendation of improved TRI 5000 series cultivars and issue of

planting materials to improve productivity, quality and to face emerging

challenges.

Increase the number of seedgardens up to 11.

Distribution of TRI 3000 and 4000 series 7 million cuttings among growers.

Introduction of low cost tissue culture techniques to produce planting

materials in commercial scale.

Identification of drought resistant varieties of TRI 5000 series suitable 1-2

varieties for mid country.

Identification and recommendation of 1-2 varieties with drought resistance

and 2-3 varieties with pest and disease resistance for different tea growing

regions.

Development of strategies with respect to integrated soil management.

Conduct 30,000 analyses for soil, plants and fertilizers.

Recommendation of 1-2 new grass varieties for soil rehabilitation.

Recommendation and introduction of a package and a user guide on rain

water harvesting and conservation.

Recommendation and introduction of 1-2 new shade tree varieties.

Make predictions on Carbon fixation according to different weather and

climatic conditions.

Comparison of requirements of Live Termite with the data available on

climate change, Computer modeling and making predictions on the damage

by Tea Tortix.

Recommendations for different potting media, different bag dimensions and

recommendation of the most ideal shade percentage and bag dimensions.

Introduction of high quality 1 acariicide, 1 fumigant, 1 pesticide having

minimized residuals, which suit for small and large scale tea growers and

favourable to the environmental conditions. Launching 20 awareness

programs of Integrated Pest Management Practices.

Establishment of laboratory facilities in Deniyaya Regional Centre for pest,

mite, and nematode assessments for small and large scale tea esate holders.


66

Recommendation of proper spacing for Cassia and Caliandra for

introduction of Cassia and Caliandra stem cuttings as bio fuel.

Identification of parameters and development of models to examine the

importance of fluidization parameters for producing quality black tea.

Development of automated energy optimizing self-withering system for

minimizing cost of production through development of energy optimizing

techniques.

Promotion of effective and efficient tea grading mechanism for promotion

and development of factory machineries.

Improving the quality of instant black tea optimizing the parameters such

as temperature and pressure.

Identification of strategies to minimize productivity variations in the tea

cultivation of low country tea small holders.

Identification of strategies to reduce cost of production and increase

competitiveness through analyzing competitiveness of world tea market.

Continuing studies to introduce out grower model that can be succeeded in

both social and economic conditions as a solution to labour shortage and to

reduce cost of production.

Conduct 3 adoptive trials and surveys on newly introduced technologies.

Advisory circular – 2900, Tea estate visits- 575, small holding tea estate

visits- 250, Training programs- 520, Commercial nursery inspection 500-

600 and establishment of 2 techno parks.

Conduct 15-20 Para extension programs for the co-operate tea sector.

Under the organization of seminars for stake holders, organizing two E &

E (English) forums, two E & E (Sinhala) forums , 8 Regional Scientific

Committee seminars , 4-6 Exhibitions 1 extension work shop.


67

The Tea Small Holdings Development

Authority is a statutory organization established

under the Tea Small Holdings Development

Act, No.35 of 1975 to identify, register and

monitor tea small holdings, formulate strategies

to improve production and productivity of tea

small holders, provide welfare facilities,

relevant incidental technical and support

services and subsidies to the tea small holders.

Tea Small Holdings Development Authority

Vision

To create an economically &

socially sustainable tea small

holding sector

Mission

To improve productivity and

quality in the tea small

holding sector through

providing excellent support

services.

Prioritized Areas

Implementation of Tea Replanting

Subsidy Scheme, Tea New Planting

Subsidy Scheme and Crop

Rehabilitation Subsidy Scheme for tea

small holdings.

Provision of support services such as

distribution of fertilizer, planting

material, implements and transport

facilities.

Implementation of extension and

advisory services.

Registration of small holder

development societies, control and

provision of assistance to registered

society members and formulating of

Rules & Regulations.

Promotion of investment in Tea Small

Holdings.

Collect data on tea small holding

sector and make aware of

development capabilities of tea small

holdings.

Improve the quality of green leaf in

tea small holdings.


68

Land preparation of 369 hectares at a cost of Rs.93.6 million under tea replanting has

been completed and soil rehabilitation in 430 hectares under the first stage and 415

hectares under the second stage were undertaken and 339 hectares have been

replanted with tea.

Tea new planting in 296 hectares at a cost of Rs.12.03 million has been initiated.

Crop rehabilitation (infilling) in tea lands at a cost of Rs.2.105 million was

undertaken and 96,479 plants under the first stage and 134,000 plants under the

second stage have been distributed among the farmers.

162,236 shoots of new cultivars vegetatively propagated by mother cultivations have

been provided to the commercial plant nurseries, tea small holders, institutional

nurseries and other required persons as well.

7,879 soil samples for pH have been checked to maintain a replanting rate of 2% and

7,880 soil samples for pH have been checked to improve pruning practices on 10%.

126 mt of Dolomite has been supplied to the farmers under the loan scheme.

Utilizing provisions of Rs. 19.88 million allocated by the Ministry of Economic

Development under the Divi Neguma Programme, distribution of 780,000 plants

among 780 beneficiaries to initiate tea new planting, providing 100,000 plants to the

targeted 416 beneficiaries for tea infilling, supply of 26,000 pepper plants to 1040

farmers for intercropping are in progress.

Visiting 15,008 small growers at their farms and resolving their issues.

Awareness programmes have been conducted as follows for various stakeholders at

various occasions for enhancement of the tea small holding sector.



69

Conducting of Awereness Programmes

Project for mechanization of tea leaf plucking in the tea small holding sector

During the year 2014, The Tea Small Holdings Development Authority had

distributed 50 Nos of machinery and equipment package for the 50 Nos Tea Small

Holder Development Societies and the expenditure for them was Rs. 283,970/- .

Under above selected societies 500 Nos of farmers were trained as machine operators.

Training Programme Training

Programme Participation

Awareness programmes for permit holders

447 11,490

Establishment of input supply nurseries for permit

holders

73 1,020

Training of commercial nursery owners

116 1,587

Training on tea planting

262 8,055

Improve harvesting practices

724 18,094

Farmer training programmes on pruning practices

493 12,607

Awareness programmes on soil management

1,117 113,067

Training programmes on shade establishment &

management

546 32,950

Training on nutrient management

571 20,488

Training programmes on plucking

301 7,094

Conduct joint awareness programmes on leaf quality 71 4,414

Progress of Implementation of Budget Proposals


70

Soil & Water Conservation Development Programmes

Progress of Soil & Water Conservation Development Pogramme as at 31

st August 2014

District No of Societies

No of

Acres

No of Small

Holders

Subsidy

Rs.

Galle 135 21,866 30,540 57,039,474

Matara 155 27,018 35,237 67,600,000

Kandy 23 503 737 1,907,082

Badulla 153 11,979 18,035 29,935,211

Kalutara 192 13,036 15,897 30,910,531

Ratnapura 13 781 774 3,283,750

Nuwara Eliya 949 949 2,372,500

Kegalle 1,000 1,000 2,196,143

Total 671 77,132 103,169 195,244,691

Implementation of Tea Replanting Programme

Land Preparation (Ha.) - 1942

Soil Rehabilitation I (Ha.) - 1722

Soil Rehabilitation II (Ha.) - 1270

Tea Planting (Ha.) - 1205

Maintenance (Ha.) - 1090 Provision of Implements (No.) - 1428

Implementation of Tea New Planting Programme

Land Preparation (Ha.) - 503

Tea Planting (Ha.) - 467

Maintenance (Ha.) - 445

Implementation of the programme of 854,643 plants for

Crop Rehabilitation

Implementation of the programme to improve quality of

leaf

Implementation of the Soil & Water Conservation

Subsidy Scheme

Taking steps to Strengthen Tea Small Holdings

Development Society


71

Modernization of Yatinuwara Tea Factory has been started.

Tea Shakthi Fund


Vision

To be the centre of excellence

committed to the

advancement of the economic

and social wellbeing of tea

small holders.

Mission

To manage Tea Shakthi Fund

efficiently and effectively to

uplift the living standard of

its members.

Objectives

To inculcate the saving habits in

and to improve the economic and

social status of tea small holders.

To promote necessary

investments related to the tea

industry.

Marketing, promoting and

developing the products of such

tea factories.

Taking necessary steps to uplift

those who engage in the

production of tea as tea small

holders.

Tea Shakthi Fund had been incorporated as a self-financed

entity, under the Parliament Act, No.47 of 2000.

During the period from January to 31st

August 2014, the Tea Shakthi Factories have

collected 5,546,770 kg of green leaf and

produced 1,175,912 kg of tea.


72

The amount of proceeds from the sale of Tea Shakthi tea at the Colombo Tea

Auction was Rs. 488.17 million.

The profit earned from Mawarala Estate amounts to Rs.1.7 million.

Productions of Kothmale Factory are being carried out successfully from 14th

July

2014 under the new management.

A sum of Rs.7.5 million has been provided by the International Fund for

Agricultural Development (IFAD) for development of Mahaweli Factory and the

modernization of the factory has been commenced utilizing the said sum of money.

Tea Shakthi Welfare Project has provided Rs.6.8 million of benefits to 375

members by the end of August 2014.

Tea Shakthi Pension Scheme is being implemented in collaboration with the

Agricultural and Agrarian Insurance Board and at present, 530 Tea Shakthi

members have entitled to draw Tea Shakthi Pensions.

Training workshops were conducted for Management Assistants covering the entire

Tea Shakthi Fund operation.

The Tea Shakthi fertilizer project earned Rs.2.1

million from the sale of 910.23 mt during the

period under review.

The local tea sale division has earned Rs.1.8

million from the sale of 3.85 mt.


It is projected to receive 13,179,150 kg of green leaf and to produce

2,833,580 kg of tea thereby.

To earn Rs. 89.3 mn through the sale of 4,200 mt. of Tea Shakthi fertilizer.

To earn Rs. 9.3 mn through the sale of 15,934 kg of tea in the local market.


73

Kalubowitiyana Tea Factory Ltd.

The Kalubowitiyana Tea Factory Ltd. which is

being operated on self-financed basis was

incorporated as a government entity on 30th

September1992. The Kalibowitiyana Tea

factory with the production capacity of

1,350,000 kg per year, Derangala Tea factory

with the production capacity of 485,000 kg and

Hiniduma Hills Tea factory with the production

capacity of 485,000 kg are operated under the

company.

Vision

To be the most recognized model

in manufacturing and marketing of

best Sri Lankan CTC and

Orthodox Tea.

Mission

To manufacture superior quality,

tasty and consumer friendly Sri

Lankan Tea aiming at internal and

external markets.

Objectives

Utilizing the maximum capacity

of the tea factories.

To meet green leaf requirement

through company own tea

plantations and undertaking tea

new planting.

To become a model in the low

grown tea industry.

To meet the capital investment

requirement.

To motivate the staff.


74

Productions

No.

Descripti

on

Kg

Kalubowitiyan

a Tea Factory

Derangala

Tea Factory

Hiniduma

Hills Tea

Factory

01 Green

Leaf

Estimate

Kg.

3,478,000 1,031,000 837,200

Actual Kg.

2,934,419 894,795 455,477

Percentage

% 84.37 86.79 54.4

02 Tea

Producti

on

Estimate

Kg 747,000 218,440 179,945

Actual Kg

630,651 182,477 93,657

Percentage

% 84.42 83.54 52.02

03 Gross

Sale

Average

Estimate

Rs.

557.50 475.63 479.38

Sales price Rs. 551.94 521.03 523.64

04 Tea production for 100

kg of green leaf

Kg 21.49 20.39 20.56

05

Profit

/Loss

Rs.

12,254,358.46

(1,711,988.58)

(8,701,463.84)

A Colour Separation Machine was installed to Derangala Tea factory and ISO 22000,

HACCP, GMP Quality Certifications have been received for both Derangala and

Kalibowitiyana Tea factories.



75

A line of CTC machines were installed to the Kalibowitiyana Tea factory.

A Winover and two Michisifters were installed to Hiniduma Hills Tea factory to carry

out production activities efficiently.

The profit carried by the company from January to June 2014 amounted to Rs.

1,773,128.00.


Installation of Hot Water Generator System to Kalubowitiyana Tea

Factory in order to save fuel cost.

Construction of building for Kalubowitiyana Tea Factory to store

1500 yards of firewood.

Increase of annual tea production of Derangala Tea Factory up to

350,000 kg.

Increase of annual tea production of Hiniduma Hills Tea Factory up to

260,000 kg.

Establishment of tea plant nurseries.


76

Rubber Development Department

The Rubber Control Department was established under the

Ordinance No.6 of 1934. It was reorganized as the Rubber

Development Department in 1994. The Rubber Replanting

Subsidy Act No. 36 of 1953 was implemented in 1953 for

replanting of rubber. There was legal provision for the

implementation of export duty in terms of section 7 of the Rubber

Replantation Funds Act No. 36 of 1953.

As per the Gazette No. 1518/18 dated 30th

August 2008

containing the Cess Regulations on Natural Rubber No. 01 of

2007, there is provision to charge a Cess of raw material required

for natural rubber based products manufactured for the purpose of

export or local consumption. The power of above Cess collection

vested to the Director General of Rubber Development

Department. The department is liable to act for enhancement of

the rubber industry in Sri Lanka while paying special attention to

the rubber smallholders.

Prioritized Areas

Rubber New Planting and Replanting

Subsidy Programme.

Granting subsidies for intercropping in the

immature phase of rubber cultivation.

Conducting training programmes for Latex

Harvesting Assistants.

Producing high quality rubber plants in the

plant nurseries owned by the Department.

Registering rubber traders, shippers and

rubber product manufacturers and issuing

annual licenses.

Levying Cess.

Vision

Management of the rubber

plantation industry for the

socio-economic

development in Sri Lanka.

Mission

Execution of the legal

provisions for qualitative

and quantitative

development of the rubber

plantation industry, supply

of financial subsidies,

agricultural inputs and

extension services for the

cultivation of rubber.


77

Activities Physical

Targets

2014

Physical

Progress Progress

%

Rubber replanting

(Traditional) - Hectares 2,050 730 36

Rubber new planting

(Traditional) - Hectares 1,920 409 21

Rubber new planting (Non-

traditional) - Hectares 5,670

2.83

(Licenses have

been issued for

318 hectares)

0.04

Rubber replanting

(Corporate sector) -

Hectares 1,640

(Licenses

have been

issued for 706

hectares)

Intercropping (Traditional)

- Hectares 270 110 41

Intercropping (Non-

traditional) - Hectares 330 17 5

Rain Guards (Smallholding

sector) - Hectares 1,500 192 13

Rain Guards (Plantation

Companies) - Hectares 5,000

(Licenses

have been

issued for

4,809

hectares)

Training of Latex Harvesting

Assistants – General

(Traditional) - Persons 2,220 1,367 62


Assistants – General (Non-

traditional) - Persons 680 440 65


Assistants – Professional -

Persons 330 306 93

Training of Bud Grafters -

Persons 270 180 67

Plant production - Plants 2,450,000 1,220,205 50



78

In order to further enhance rubber cultivation to non-traditional areas, providing high

quality plants for new planting of rubber in 10,000 hectares targeting at the Ampara

and Mahaoya areas and improve plant nurseries.

New planting programme in Ampara

Year Extent of land cultivated

Hectares

2012 137.50

2013 402.93

As at 31st

August 2014 Licenses have been issued for 41.88

hectares

Expenditure for development of nurseries from 2012 to 2014

Activity Expenditure

for 2012

Rs. mn

Expenditure

for 2013

Rs. mn

Expenditure up

to 31st August

2014 Rs.

mn

Improving nursery

irrigations 19.34 12.02 1.25

Purchasing nursery

equipment 0.32 3.99 -

Nursery constructions 9.62 18.69 6.05

Under the new planting of rubber in Vavuniya District in Northern Province,

the rubber cultivation has been initiated in approximately 37.2 hectares

Progress of Implementation of Budget Proposals


79

Progress of Implementation of Divi Neguma National Development

Programme.

Programme Physical

Targets Progress as at

31.08.2014

Supply of budded

rubber plants for

infilling in rubber

smallholdings (Plants)

100,000 Beneficiaries are being

identified and 8,397

rubber plants have

been distributed.

Providing new

technological rubber

tapping knives (Knives)

3,230 1,682 tapping knives

have been distributed.

Supply of plants for

intercropping (Plants) 18,200 Banana 2,554 Banana

have been distributed.

For nursery

development activities

07 Preparation of

estimates and

procurement

activities are in

progress.

Total 12.53 0.82

Progress of other institutionally implemented programmes up to 31st August

2014.

Providing facilities in collaboration with the Sri Lanka Institute of Information

Technology to get rubber prices through the Short Message Service (SMS).

The basic needs report to develop the computer system of the Department has

been prepared.


80

Activities

Financial

target for

planting in

year 2015

Rs. million

Physical

Target


Assistants – General (Traditional) -

Persons

3.41 2,340


Assistants – General (Non-traditional) -

Persons

1.07 740


Assistants – Professional - Persons 2.99 390

Training of Bud Grafters - Persons 0.27 270

Rubber replanting (Traditional) -

Hectares 109.40 2,145

Rubber new planting (Traditional) -

Hectares 82.75 1,970

Rubber new planting (Non-traditional)

- Hectares 218.40 5,200

Rubber replanting (Corporate sector) -

Hectares 86.73 1,700

Intercropping (Traditional) 2.95 295

Intercropping (Non-traditional) 4.60 460

Rain Guards (Smallholding sector) 21.00 1,500

Rain Guards (Plantation Companies) 70.00 5,000



81

Rubber Research Institute of Sri Lanka

Vision

To emerge as the centre of

excellence in providing

high quality rubber with

scientific technologies to

the rubber Industry for

enhancement of the

industry.

Mission

To make optimum

contribution to the rubber

industry and the economy

of Sri Lanka by

disseminating the modern

technology through the

advisory services identified

through economically

productive and

environment friendly

innovations.

Prioritized Areas

Introduction of high yielding clones,

agronomic practices and suitable

technologies to rubber growers.

Multiplication, dissemination, maintenance

and evaluation of the Germplasm collection

of Hevea.

Expansion of rubber cultivation in Northern

and Eastern provinces.

Providing training and extension services to

rubber growers, producers and other

relevant parties.

Control and suppression of the white root

disease spreading at present.

Popularization of rubber plantation as an

environmental friendly long term income

generating commercial crop.

The Rubber Research Scheme formed by the Rubber

Research Ordinance on 30th

August 1930 was

incorporated as Rubber Research Institute by

Parliamentary Act in 1951. The main objective of the

Institute is to undertake biological researches in the

rubber plantation, researches on chemistry of natural

rubber latex and technology for manufacturing of

articles. Further, technology exchange programmes are

conducted for the relevant officials and stakeholders and

training & extension services are provided by this

Institute.


82

Basic requirements were completed on the project of multiplication, dissemination,

maintenance and evaluation of the Germplasm collection of Hevea obtained from 1981

IRRDB expedition from Amazon.

A company has given consent to manufacture products utilizing a new invention, the

nitrosoamine free preservative for natural rubber latex

Development of a rubber latex based adhesive to cater a glove industry.

Natural rubber / styrene butadiene rubber / palmyra fibre composites suitable for tyre

treads were produced.

Nano reinforced nitrile rubber based adhesive was developed to bond nylon fabric onto

the vulcanized rubber surface.

The expensive Polyurethane, used as a coating material for coir pith and silicone soap,

used as the medium which enhance the water absorption capacity of coir pith were

successfully replaced by a cheap, readily available binder and soap.

Preservative system consisting of a readily available, non toxic, low cost chemical was

developed to produce low ammonia centrifuged latex with low VFA and high MST

values for latex based products manufacture and applications have been forwarded for

Patent License for this process.

It was found that chemical stimulations used for rubber seeds and seedlings are

tolerable to the unfavourable environmental conditions.

Effect of nitric oxide on growth and rooting of rubber seedlings



83

The expansion of rubber cultivation in the Eastern province would minimize the

environmental harshness to some extent and create an eco-system where farmers find it

easier to engage in cultivation.

Study of the effect of rubber cultivation standing in Vavuniya district on the

environment, society and economy.

Expansion of nursery area and establishment of agricultural wells and irrigation systems

at a cost of Rs. 1.66 million for enhancement of the productivity of the nursery at

Monaragala Sub Station.

Maintaining adaptive research trials at Monaragala and Polgahawela Sub Stations and

initiating new planting at a cost of Rs. 0.821 million.


84

Popularization of intercropping with rubber for enhancement of land consumption and

contribution to the farmers‟ economy.

2,000 rubber plants were distributed among 100 persons in Kandy district.

500 families who could undertake home gardening have been identified from 8

Divisional Secretaries‟ Divisions including Moneragala, Siyabalaanduwa, Medagama

and Wellawaya in Moneragala district and plant distribution is in operation.

500 families who could undertake home gardening have been identified in Galle

district.

2500 farmers have been identified in Ampara district and a participatory programme

was conducted for 200 farmers.

500 families who could undertake home gardening have been identified in Vauniya

district and 500 families who could undertake home gardening in Trincomalee district

have been identified.

Implementation of Divi Neguma National Development Programme


09 awareness programmes were conducted in

Kalutara district and 2404 relevant persons were

made aware and 87,100 rubber plants were

distributed among 4355 families.


85

The following special projects are to be implemented since year 2015 in addition to the

research and development activities carried out by the Rubber Research Institute.

Project

Objective

Improvement of standard small

latex coagulation tanks for

small holders. (2015)

Encouragement for manufacturing of high

quality sheet rubber and manufacturing

10,000 kg dry rubber per day

Development of new fertilizer

mixture for the rubber grown in

the Red Brown Earth soil in the

dry zone of Sri Lanka (2015 –

2020)

To identify new fertilizer recommendations

appropriate for soil nutrition in the said area.

Evaluation of growth and

productivity of rubber

cultivation in drier areas of

Badulla district for expansion of

rubber cultivation in the area.

(2015-2025)

To identify rubber cultivars suitable for the

area.

To expand rubber cultivation in drier areas in

Badulla district.

Productivity improvement in

existing rubber lands in

Monaragala area. ( 2015-2020)

To develop maintenance of immature

cultivations and to improve the productivity

of rubber lands in the area through the correct

harvesting technologies.

Increased adoption of rubber

cultivation in Mullaitivu district

through financing unemployed

women. (2015-2020)

To promote rubber cultivation in Mullaitivu

district by providing financial support to

unemployed women.

Identification of pests and

diseases in non-traditional

rubber growing areas and to

develop suitable strategies to

control them. (2015-2020)

To improve the productivity through

appropriate management strategies,

identifying diseases and pests affect to the

rubber economy.

Estimation of productivity of

the smallholders. (2015-2016)

To estimate productivity of the smallholders

and develop productivity maps covering all

rubber growing districts.



86

Thurusaviya Fund

Vision

To elevate the local rubber

industry as the foremost

foreign exchange earner in

Sri Lanka.

Mission

To uplift economic

conditions of the rubber

small holders through the

improvement of

productivity and quality of

the rubber industry.

Prioritized Areas

To inculcate and promote the savings

habit in, and uplift the economic and

social status of rubber smallholders.

To establish rubber prosessing units

for manufacture of yield of the rubber

smallholdings.

To register and regulate Rubber

Smallholdings Development Societies

referred to as “Thurusaviya Societies”

and to provide assistance to the

members of such societies registered

with the Fund.

To take such measures as may be

necessary for the improvement and

well being of those engaged in the

production of rubber in smallholdings.

The Thurusaviya Fund, which was established under the

Parliament Act No.23 of 2000 functions to strengthen rubber

small holders who make large contribution to the production of

the rubber sector and thereby, uplift their economic and social

status. At present, 680 No. of Thurusaviya Societies have been

formed mobilizing rubber small holders scattered at village

level in the districts of Kalutara, Ratnapura, Kegalle, Kandy,

Matale, Kurunagala, Galle, Matara, Hambanthota, Colombo,

Gampaha, and Monaragala. A contribution is made through

these societies to create favourable market for rubber, improve

the quality of products, enhance the habit of saving and develop

technical know-how.


87

Providing a loan Rs.12.3 mn under a concessionary intrest jointly with the Bank of

Ceylon to 67 beneficianary.

Making arrangements to construct one day drying 20 smoke houses with new

technology.

Conducting 25 awareness programmes at district level.


Cummencing productions of group processing

centers established at Hemmathagama in

Kegalle District and Lunugama in Gampaha

District.

Taking actions to distribute 90 smooth rollers

and diamond rollers to Thurusaviya societies

under the subsidy scheme

Taking actions to distribute 4000 rubber

coagulation pans to Thurusaviya societies for

producing Rubber Sheet No.01.


88

Constructions of the Himbutugoda Group Processing Center in Galle District and

Kehelowitigama Group Processing Center in Rathnapura District are being carried

out on the technical advices of the Rubber Research Institute (RRI).


Intervention to retain the members attractively through the formation of

new Thurusaviya societies, promoting members and conducting

awareness programmes.

Construction of model Group Processing Centers at Divisional

Secretaries‟ Divisions.

Providing 30 Nos. of new technological one day drying smoke houses and

pairs of rubber rollers to 120 Thurusaviya societies under the subsidy

scheme.

Providing 10,000 rubber coagulating pans and 4,000 improved tapping

knives for producing Rubber Sheet No.01 in line with the

recommendation of RRI.

Providing loans under the loan scheme of the Thurusaviya societies for

replanting, new planting, construction of smoke houses with new

technology and purchasing equipment for rubber based industries.

Conducting training programmes in respect of the production of RSS

No.1, latex based products and rubber planting.

Strengthening established 692 societies and

formation of new Thurusaviya Societies.


89

National Institute of Plantation Management

Vision

To be the Centre of

Excellence in providing

training and conducting

consultancy and research on

Plantation Management.

Mission

To elevate the professional

competence of all human

assets in the Plantation

Industry towards perfection

through quality training.

Prioritized Areas

Conducting academic courses and

training programmes in order to meet

the training needs of the smallholders

involved in cultivation of plantation

crops such as Tea, Rubber, Coconut,

Sugarcane, Cashew and Palmyra who

contribute around 75% to the total

plantation produce.

The National Institute of Plantation Management

(NIPM) was established by the National Institute

of Plantation Management Act No. 45 of 1979 to

conduct academic courses and training

programmes related to the plantation sector.


90

Conducting 22 income generating programmes.

Conducting 194 programmes for development of the plantation sector.

Training programmes

No of

programmes

No of

participants

Income

generated

Academic and Professional 7 208 6.55

Management Development 8 232 0.65

Skill Development 2 39 0.68

Worker Development & Project

Programmes

1 49 0.05

Special Training Programmes 4 93 0.56

Total 22 621 8.49



91

Capacity Building Programmes

Capacity Building

Programmes

No of

programmes

No of

participants

Cost (Rs Million)

Rubber smallholders &

workers

113 8,869 3.74

Coconut smallholders 35 2,066 1.11

Tea smallholders 31 2,152 0.93

Sugarcane smallholders 11 547 0.26

Other programmes 4 132 0.13

Total 194 13,766 6.17

Workshop, conducted to the stakeholders who are interested in the institution

A one day workshop was conducted at HARTI on 01.09.2014 with the participation of

CEO‟s of the Plantation Companies, heads of plantation Research Institutions,

representatives from Private Tea Factory owners, Planters Association, Small holders,

Brokers, Exporters, and Board members of the NIPM to identify the needs of the


92

stakeholders. The prospectus and training schedules are being prepared on the outcome of

the workshop to meet the stakeholder‟s needs.

Smallholder programmes

Income Generating Programmes

Description

No.of

Programm

es

No of

participants

Projected

cost (Rs.

Million)

Programmes for rubber related small

holders

120 6,000 6.00

Programmes for tea related small holders 100 5,000 5.00

Programmes for coconut small holders 50 2,500 2.50

Programmes for sugarcane growers 15 750 0.75

Other programmes 15 750 0.75

Total 300 15,000 15.00

Training Programme

No.of

Programmes

No of

participants

Projected

income

( Rs.000)

Academic and Professional 16 315 9.65

Management, Technical, and Business

Developments

13 245 0.93

Skill Developments 5 100 1.75

Worker Development 3 150 0.06

Induction Courses for planter trainees 5 75 3.83

Basic Courses 8 160 2.33

Special Demand driven courses 20 225 2.00

Total 70 1,270 20.55



93

Although provisions were incorporated in the Tea and Rubber Estates (Control of

Fragmentation) Act No.02 of 1958 for control of fragmentation of tea and rubber estates,

provisions were not made available in the said Act for control of fragmentation of coconut

estates.

The land owners assigned their lands to land sale agencies due to the economic collapse

prevailed in or about the year 2005 and the productive coconut lands were auctioned

speedily. Accordingly, the coconut yield dropped rapidly and coconut based market was

threatened thereby.

Having lengthy study on this matter, Tea and Rubber Estates (Control of Fragmentation)

Act No.02 of 1958 was amended by the Tea and Rubber Estates (Control of Fragmentation)

(Amendment) Act No.20 of 2005.

In terms of the said Act, a formal mechanism was formulated to control fragmentation of

tea, rubber and coconut estates and accordingly, approval of the Tea, Rubber and Coconut

Estates (Control of Fragmentation) Board should be obtained for transfer of the ownership,

sale, assigning as a gift or exchange of the coconut estates. The transfers made deviating

from such provisions will become null and void.

In terms of the amendments made to the Act No.02 of 1958 by the Act No.20 of 2005,

transfer of the ownership of the tea and rubber estates more than 20 hectares and coconut

lands more than 04 hectares with the prior approval of the Board or subject to the

conditions of the Board will become enforceable in the Law.

Since approval of the Board should be obtained under the provisions section 8(1) B of the

Act in transferring of lands as a single unit even not resulting a fragmentation, approval of

the Cabinet of Ministers has been obtained to amend the Act of Fragmentation relevant to

Section 3, 5 and 8 (1) (A) having considered the requirement to transfer lands without delay

and to minimize the difficulties faced by the people. Approval of the Cabinet of Ministers

has been obtained to reduce the limit for coconut lands up to 02 hectares and at present, the

amendments have been referred to the Legal Draftsman. Further, having considered the

timely needs, preliminary actions are being taken to make relevant amendments to the

composition of the Board of Directors of the Tea, Rubber and Coconut Estates (Control of

Fragmentation) Board.

At present, a large No. of applications is being received by the Board and the Board plays a

vital role to further protect the staple economic crops such as tea, rubber and coconut.

Tea, Rubber & Coconut Estates (Control of Fragmentation) Board


94

Year

No. of

Applications

submitted to

the Board

Method

of

transfer

Extent of land applied Extent approval granted

Acres Roods Perches Acres Roods Perches

2010

473

Single

units

4,731

02 09

4,731

02

09

Other* 5,860

00

02

3,302

01

10

Total 10,591 02 11 8,033 03 19

2011 589

Single

units

11,251

03

17

11,251

03

17

Other* 6,772

03

33

4,421

01

08

Total 18,024 03 10 15,673 00 15

2012 566

Single

units

1,697

02

00

1,697

02

00

Other* 10,623

03

16

7,719

03 31

Single

units 12,321 01 16 9,417 01 31

2013 530

Single

units

2,027

03

05

2,027

03

05

Other* 10,473

00

33

6,443

02

18

Total 12,500 03 38 8,471 01 23

From

January

to 31st

August

354

single

units

1,623

00

22

1,623 00

22

Other* 9,749

02

31

6,682

03

20

Total 11,372 03 13 8,306 00 02

* Transfers to children and other persons / institutions subject to conditions of the Board

Progress of the Tea, Rubber & Coconut Estates (Control of

Fragmentation) Board in previous years


95

09 Board Meetings have been held from 01.01.2014 to 31.08.2014.

364 applications have been submitted to the Board of Directors.


Details of the applications received

Description

No. of

applications

Applications from Kurunegala District 178

Applications from Puttalam District 76

Applications from Gampaha District 52

Applications from other Districts apart from the above

Districts

48

Total No. of applications received 354

No. of applications brought forward from the last year 22

Applications incomplete and referred to obtain reports 12

No. of applications received – District wise

1. ministry of plantation...

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