Regional plantation companies (RPC) have invested significant capital towards development of the industry from field to factory including Rs. 70 billion towards replanting, infrastructure development, factory development and other essential capital inputs.
“During the same period, RPCs paid Rs. 6.7 billion in lease rentals and Rs. 1.7 billion in income taxes, further underscoring their role as key economic contributors,” said Chairman, Planters’ Association of Ceylon Senaka Alawattegama. In addition to freeing the Government and the taxpayer of this significant financial burden, RPCs also invested significant capital towards development of the industry from field to factory including Rs. 70 billion towards replanting, infrastructure development, factory development and other essential capital inputs. During the same period, they paid Rs. 6.7 billion in lease rentals and Rs. 1.7 billion in income taxes, further underscoring their role as key economic contributors.
He added that despite challenges like COVID-19 and economic crises, Sri Lanka’s plantation industry remain a key economic pillar. Privatization in 1992 increased operational efficiency and reduced the government’s financial burden.
“RPCs have diversified crops, invested in environmental conservation, and improved worker welfare.”
Had privatization not gone ahead, and assuming that losses remained constant, taxpayers would have been forced to pay Billions between 1992 to the present day. The privatization of the plantation sector marked a significant turning point, transferring management to Regional Plantation Companies (RPCs).
During the 1995/96 period, shareholders made significant investments based on opportunities highlighted in the bid documents. These opportunities included setting up hydro-power projects, forestry, agricultural diversification, and giving total autonomy on land utilization. RPCs quickly recognized the need for diversification. They focused on cultivating oil palm in suitable areas and have since led the charge in crop diversification. Today, a significant hectarage of RPC land is dedicated to diverse crops.
Additionally, RPCs have spearheaded the revival of Sri Lanka’s dormant coffee industry and initiated forestry projects. RPCs have led the industry in replanting efforts, covering over 60% of VP tea and over 70,000 hectares of rubber. They have adopted stringent environmental protection standards, with 13 out of 21 RPCs securing the Green Frog seal of compliance, meeting the prestigious Global Sustainable Agriculture Network standard.
Many RPCs are also certified by the Forest Stewardship Council, ensuring responsible forest management and supply chain practices.
Since privatization in 1992, RPCs and the Plantations Human Development Trust (PHDT) have made significant strides in improving housing and infrastructure for plantation workers.
The PHDT, a tripartite body comprising government, trade union, and RPC representatives, has significantly reduced the number of workers living in line rooms. By 2022, 65,000 new housing units were provided, each valued at approximately Rs. 1.2 million.
Additionally, 116,000 residences have been upgraded and 134,000 individual toilets constructed. RPCs support over 1,382 Child Development Centers, providing quality early education and nutrition to approximately 25,000 children.
They have invested Rs. 800 million in clean drinking water and sanitation projects, benefitting 15,000 families. Key health indicators, including infant and maternal mortality rates, have significantly improved under RPC management. In 2021, the infant mortality rate in RPC estates was 1.55 per 1,000 live births, compared to the national rate of 9.5. Maternal mortality rates and low birth weights have also seen notable reductions.
The transformation brought by privatization has led to remarkable improvements across the plantation sector. .
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