Sri Lanka on Friday signed a landmark agreement to raise the daily wage of plantation workers to 1,750 rupees, a move described by industry representatives as the largest wage increase in the plantation sector’s 200-year history.
The agreement was signed at the Ministry of Plantations and Community Infrastructure between the government and regional plantation companies, formalizing a key proposal made by President Anura Kumara Dissanayake in the 2026 national budget.
Under the agreement, the current daily wage of 1,350 rupees will increase by 400 rupees. Plantation companies will contribute 200 rupees, while the government will provide the remaining 200 rupees as support, bringing the total daily wage to 1,750 rupees.
The revised wage will be paid to workers starting Feb. 10, officials said.
President Dissanayake first announced the wage proposal while presenting the 2026 budget to Parliament on Nov. 7 last year, outlining plans to implement the increase in two stages. The proposal received support from opposition lawmakers Jeewan Thondaman, Mano Ganesan, Palani Digambaram and V. Radhakrishnan, who voted in favor of the budget.
Following the budget’s approval, discussions were held with regional plantation companies by a government delegation led by Minister of Plantations and Community Infrastructure Samantha Vidyaratna and Deputy Minister Sundaralingam Pradeep to finalize the wage structure.
On Jan. 19, the Cabinet approved relief measures outlined in the budget to improve living standards in estate communities. Cabinet spokesperson and minister Dr. Nalinda Jayatissa said 5 billion rupees had been allocated this year to implement the proposals.
The wage agreement was signed by Prabath Chandrakeerthi, secretary to the Ministry of Plantations and Community Infrastructure, in the presence of officials from the Wages Board and representatives of plantation companies.
The Planters’ Association of Ceylon said plantation companies are expected to spend more than 6 billion rupees to fund their share of the wage increase. (NewsWire)