Marginalization of Tea Estates in Sri Lanka in the Changing Global and National Context

Abstract

Sri Lanka is the largest tea exporter in the world, and tea has been produced mainly on plantation estates from colonial era. But it is losing its competitiveness on global market. Besides the nationalization between 1972 and 1992 further decreased international competitiveness. Since the 1990s the production has been growing in the southern low-lands with predominantly small holdings. Plantation tea estates in hilly and mountainous areas are affected by their reduced international competitiveness, and abandonment of tea production in some land resulting in grave environmental consequences. These tea estates also have problems with a shortage of workforce mainly comprising of former migrants taken by the British Empire from India, higher costs of production etc. In such unfavorable situation some tea estates started to introduce organic tea farming and other various elements of post-productivism. These make them different from traditional plantations with their methods focused on productivity alone. Organic tea estates are, however, also not economically and socially sustainable and enhancement of their value is necessary.