Key facts
- Sri Lanka's tea industry is a significant contributor to the nation's foreign exchange earnings, exceeding $1.4 billion in exports in early 2025.
- Plantation workers, many from the Malaiyaha Tamil community, face low wages, typically around Rs. 1,350 per day, and inadequate living conditions.
- Climate change is impacting tea cultivation through unpredictable rainfall, droughts, and extreme weather events, affecting crop yields and quality.
- The industry supports over a million livelihoods and covers more than 200,000 hectares of land.
- Efforts are underway to improve worker welfare, adopt climate-resilient practices, and add value through premium products.
Sri Lanka's renowned Ceylon Tea industry, a significant source of foreign exchange and employment, is grappling with deep-seated issues of worker inequality and the escalating impacts of climate change. Plantation workers, many belonging to the India-origin Malaiyaha Tamil community, continue to face low wages, typically around Rs. 1,350 per day, which are insufficient to meet rising living expenses. These communities also often lack adequate housing, sanitation, and healthcare facilities, leading to higher poverty and malnutrition rates compared to the national average.
The industry, which covers over 200,000 hectares and supports more than a million livelihoods, generated export earnings exceeding $1.4 billion in the first eleven months of 2025. Despite these economic achievements, the benefits are not equitably distributed.
Furthermore, the cultivation of tea, which requires specific environmental conditions, is increasingly vulnerable to climate change. Scientists have observed rising temperatures, unpredictable rainfall patterns, prolonged dry spells, and more frequent extreme weather events such as cyclones and landslides. These changes stress tea plants, reduce productivity, and increase the risk of soil erosion, potentially impacting future yields and livelihoods.
Efforts are being made to address these challenges, including the adoption of climate-resilient agricultural practices like drought-resistant varieties and improved water management. There is also a focus on adding value through premium and organic products, as well as exploring responsible tourism on estates. Collaborative initiatives involving producers, exporters, international buyers, and government bodies aim to foster a more sustainable future for the industry and its workers.