The Cabinet has granted approval for the relief mechanism proposed in the 2026 Budget to uplift the living standards of estate workers, with implementation set to begin on January 1, 2026.

Under the proposal, the minimum daily wage of estate workers will be increased to Rs. 1,550, while an attendance incentive allowance of Rs. 200 per day will also be paid. 

The Government has allocated Rs. 5,000 million in the 2026 Budget to fund the initiative.

For the first six months, the incentive allowance will be paid through plantation companies, after which it will be directly credited to the personal bank accounts of estate workers. 

The Ministry of Plantations and Community Infrastructure has been tasked with making arrangements in consultation with all stakeholders.

The joint proposal, presented by the Minister of Labour together with the Minister of Plantations and Community Infrastructure, was approved by the Cabinet to ensure the effective delivery of the incentive payments to estate workers. (Newswire)

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Samagi Jana Balawegaya (SJB) MP Palani Digambaram today called out some Parliamentarians for opposing the minimum daily wage hike for estate workers proposed in the Budget 2026.

Addressing the Parliament, MP Digambaram praised the government for allocating Rs. 5,000 million to address the wage issues of estate workers. 

He requested the government to clarify whether the payment will be made per day or for an attendance of 25 days. 

“I would like to know this, as there are some opposition factions that oppose this wage hike. MP Namal Rajapaksa and SLMC MP Nizam Kariapper oppose this move because the salaries are being paid from taxpayers’ money. They need to understand that this community has earned for the state over the last 200 years. If not for them, then who do you provide this to?” he questioned. 

MP Digambaram further urged the MPs not to criticize this decision, pointing out that the governments under their parties had failed to provide a wage hike to estate workers. 

“If this government can provide the wage hike, then we must appreciate it and voice our support. I thank the President for increasing the daily wage of estate workers,” he added.  

It has been proposed in the Budget 2026 to increase the current minimum daily wage of Rs. 1,350 to Rs. 1,550 from January 2026. Furthermore, in addition to the salary of Rs. 1,550, it is proposed to pay Rs. 200 as a daily attendance incentive by the government. (Newswire)

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Prime Minister Harini Amarasuriya has emphasized that the government remains committed to improving the quality of life for the plantation community, stating that in the 2026 Sri Lankan budget, a proposal was made to increase the daily wage for plantation workers from Rs. 1,350 to Rs. 1,750. 

PM Amarasuriya said that this includes an increase in the base daily wage to Rs. 1,550, along with a government-proposed daily attendance incentive of Rs. 200, scheduled to take effect from January 2026. 

“This marks the beginning of our efforts to ensure fair compensation and improved living standards for those who sustain the industry. At the same time, the government is committed to advancing the tea sector itself. Our vision is to make the industry more sustainable, competitive, and inclusive,” she said.

The Prime Minister further said that recently, President Anura Kumara Dissanayake handed over 2,000 housing deeds to members of the plantation community who had long been denied the right to hold property, providing them with greater security and stability.

Prime Minister Harini Amarasuriya made these remarks while addressing the inauguration ceremony of the National Tea Symposium (InTSym100) held in Colombo today. 

The Tea Research Institute of Sri Lanka (TRISL) celebrates a century of scientific service to the nation this year, marking 100 years since its establishment in 1925. The Institute commemorates this milestone with the International Tea Symposium 2025, held today and tomorrow at the Cinnamon Grand, Colombo, under the theme “Perfect Sip: Bridging Innovations, Sustainability and Lifestyles.”

This landmark event brings together scientists, researchers, policymakers, and industry leaders from across the globe to share knowledge, explore innovations, and chart the future of the tea industry through collaborative research and development.

A new tea variety, TRI 5000, was presented to the Prime Minister during the ceremony.

Addressing the event, the Prime Minister further stated: “Tea remains a central part of Sri Lanka’s economy, contributing nearly 10% of agricultural exports and supporting the livelihoods of close to two million people. Beyond its economic role, tea is deeply connected to our land, culture, and communities. It sustains families across the sector from smallholders and plantation workers to manufacturers, packers, and exporters.

“Approximately 90% of Sri Lanka’s tea production is exported to more than 140 countries. Since its introduction, tea has represented Sri Lanka on the global stage, with Ceylon Tea recognized internationally for quality and authenticity. As a government, we aim to further expand this progress and have set a target of 400 million kilograms of made tea and US$2.5 billion in export earnings by 2030,” she said.

PM Amarasuriya noted that at the same time, the human dimension of the tea industry must be acknowledged. 

“Women have long played a central role, from plucking to research and administration. More than 60% of the labour force in the sector comprises women. During the COVID-19 pandemic, they continued to work, generating income for the state while others were under lockdown. Their contributions deserve recognition. They have faced significant hardships, from snake bites to injuries sustained while plucking tea leaves. Many still lack proper housing and access to childcare facilities, which adds to their challenges. These women must be provided with access to education, training, safe working conditions, fair wages, and equitable opportunities for advancement,” she added. (Newswire)

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Minister Bimal Rathnayake says the increase in wages for estate workers has become a challenge for the government.

He revealed that both the Ministry of Plantation Industries and the Ministry of Finance are continuously intervening in this matter.

“Wages for estate workers are low. This is an industry. We saw in the recent past that taxed businesses had obtained profits. The Ministries of Plantation Industries and Finance are working to increase the wages of estate workers. We regret that we have been unable to do so yet,” he said. 

Minister Rathnayake assured that the government will not abandon the task, adding that the government will fulfil its responsibility. 

He further expressed hope that the matter will be resolved in the next few months. 

Minister Rathnayake made these remarks while speaking to the media following a site visit to the Nanu Oya railway station yesterday. (Newswire)

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A Gazette notification has been issued cancelling the Gazette that was previously issued increasing the daily minimum wage of an estate worker from the tea and rubber industries to Rs. 1700. 

The new Gazette notification, issued by the Ministry of Labour, directs the payments to be made through the Wages Board.

As per the previous Gazette issued in May this year, the minimum daily wage of a plantation worker was set at Rs. 1,350, together with an allowance of Rs. 300 and another allowance of Rs. 80.

However, in July, the move was challenged in court by 21 plantation companies, including Agarapatana Plantations Ltd., seeking a writ order invalidating the Gazette notification.

Following this, the Supreme Court of Sri Lanka had also issued an interim injunction preventing the implementation of the Gazette on increasing the daily minimum wage of Estate Sector workers. (Newswire)

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The Supreme Court of Sri Lanka today issued an interim injunction preventing the implementation of the Gazette on increasing the daily minimum wage of Estate Sector workers.

The Supreme Court today issued the interim injunction after granting leave to proceed with a petition that had been filed challenging the minimum wage hike. 

The petition had been filed by several plantation companies against the wage hike for estate sector workers. 

In May this year, a Gazette notification was issued stipulating the daily minimum wage for estate sector workers to be Rs. 1,700.

The Extraordinary Gazette No. 2381/35 of April 25, 2024, was approved by the Minister of Labour and Foreign Employment Manusha Nanayakkara, with the new regulation coming into effect from May 21, 2024.

At the time, Minister Nanayakkara also warned that plantations that do not pay their workers the newly stipulated minimum wage will be reacquired by the government.

However, the Planters’ Association of Ceylon strongly opposed the government’s wage hike of Rs. 1700 for plantation sector workers, stating it objects to the Government’s arbitrary, reckless, unilateral decision to drastically hike minimum wages for tea and rubber sector workers by an unprecedented 70%. (Newswire)

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The government is ready to face any situation if the estate companies take court action against the government’s decision to increase the wages of the estate workers’ community, Minister of Estate Infrastructure Development, Jeevan Thondaman announced. 

Minister Thondaman disclosed that previously, plantation companies which claimed an inability to augment the basic salary of workers even by a single rupee, have proposed a Rs.200 increase in the basic salary for estate workers following the government’s declaration of a daily wage of Rs.1700. 

The minister emphasized that the companies have the ability to increase the wages of estate workers.

“In the wake of a severe economic crisis affecting the country, estate workers are one of the groups most affected. Continuing long-term suffering amid economic turmoil, their struggle revolves around the pivotal issue of wages.

“In response, the government has taken decisive action by officially mandating a daily wage of Rs.1700 for estate workers under the leadership of President Ranil Wickremesinghe, through a gazette notification. It is now imperative for estate companies to adhere to this official judgment. Additionally, the government is prepared to confront any legal challenges from estate companies contesting the wage increase for plantation workers,” he said.

Minister Thondaman pointed out that the plantation companies previously claimed an inability to raise the basic salary of their workers even by a rupee, but upon the issuance of a government gazette notification setting the daily wage for plantation workers at Rs.1700, the same companies promptly augmented the basic salary by Rs.200. “This demonstrates their capacity to improve the wages of estate workers,” he said.

The minister further said that concurrently, the government is actively enhancing the estate community’s standard of living by addressing housing shortages among plantation workers, expanding educational and employment opportunities, and now, increasing salaries. This concerted effort undoubtedly serves our estate community well, providing tangible benefits to our people.

“However, as the election season nears, certain parties tend to make a slew of promises to our people. Among these pledges, some claim to transform estate workers into small estate owners. However, they often fail to elaborate on the mechanisms behind such proposals,” he added.

Minister Thondaman made these remarks while addressing a press briefing held at the President Media Centre on Monday (May 13).

Jeevan Thondaman, who is also the Minister of Water Supply, addressed the severe shortage of drinking water in the Jaffna peninsula.

The minister said the Jaffna peninsula has long struggled with a severe shortage of drinking water, necessitating urgent solutions. 

“Currently, only 11% of the peninsula enjoys access to clean drinking water. However, with the ongoing construction of a desalination plant, nearly 40% of the Jaffna peninsula will soon have access to drinking water. This could be pointed out as a considerable development in addressing the issue of water scarcity,” he added. (Newswire)

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