Veterans of the tea industry have criticized the government’s recent decision to increase the minimum daily wage of workers to Rs. 1700, warning that such unsustainable decisions could ultimately lead to the demise of Ceylon Tea.

Speaking at a press conference held in Colombo yesterday (May 27), industry veteran and former Colombo Tea Traders Association Chairman – Anselm Perera declared, “If the Government continues to make short-sighted, stubborn decisions, Ceylon Tea will become a thing of the past.”

He pointed to the nationalisation of plantations, the banning of glyphosate, recent restrictions on fertiliser for commercial crops and the attempts to forcefully implement the minimum wage hike from next month as examples of harmful decisions.

“If labour costs rise to Rs. 1,500 we cannot sustain the industry. We will be forced to cut down on everything, including fertiliser, energy, transport, welfare which will ultimately reduce the quality of our tea,” he added.

Planters Association of Ceylon (PA) spokesperson – Dr. Roshan Rajadurai noted that the cost of production for tea and rubber would rise dramatically, with estimates indicating a minimum 45 percent increase in the cost per kilogramme of tea.

Meanwhile, Minister of Labour – Manusha Nanayakkara and Minister of Water Supply and Estate Infrastructure Development – Jeevan Thondaman had stated that the Regional Plantation Companies that do not pay the minimum wage will have their leases terminated.