The Hon. Gayantha Karunathilleka

¶ 01 Madam Deputy Chairperson of Committees, I will take an additional two or three minutes.

¶ 02 This leaf disease is not limited to Sri Lanka; it has become a major issue for other rubber-growing countries as well. We also see challenges faced by the rubber industry such as the prevalence of informal/low wages, poor estate maintenance, and increasing production costs. We observe that rubber estates are rapidly being subdivided, which severely affects the future of rubber cultivation. In the 1980s, Sri Lanka had about 180,000 hectares under rubber. Today that area has reduced to about 120,000 hectares. Last year, Sri Lanka’s rubber export earnings were USD 994.8 million. If we consider how much we have fallen behind globally, among the 11 natural rubber producing countries, Sri Lanka is ranked 10th. While we exported about 120,000 metric tons in the 1980s, by 2014 we exported only about 16,000 metric tons, a minimal quantity. This shows the gravity of our crisis.

¶ 03 In discussing rubber, I must also note matters with significant present and future impact, such as the shortage of skilled rubber tappers. These could become serious issues. I trust the Government and the Ministry will act to reduce production costs, increase export revenues, stabilize prices, and overcome these challenges.

¶ 04 Since today’s debate touched on rubber, in my final two minutes I wish to raise another matter. If the Minister of Plantation Industries is listening from somewhere—earlier everyone was physically present, now many join online—I wish to highlight issues in the tea industry in our Galle District, which, like rubber, is a key producing district.

¶ 05 There are two main problems in the tea industry today. First, factories do not receive sufficient green leaf, leading to intense competition. Second, fertilizer prices are high and the subsidized fertilizer is not supplied on time. Factories have to tie up capital for about two months waiting to get the fertilizer they need. As a result, smallholders cannot apply fertilizer at the proper time. If, in addition to state institutions, private companies were also allowed to distribute fertilizer, this bottleneck would ease. The quality of green leaf is affected as well. It is evident that small tea holders are unable to apply fertilizer on time and replanting activity remains very weak.

¶ 06 From 1984 to about 2005, replanting and new planting were very low. The ill-advised chemical fertilizer ban imposed by the previous government has caused severe problems to this day. The industry is in an unbearable state. The fertilizer issue has affected both the supply and quality of green leaf. The current Government has targets—for example, the annual production target and how many millions of kilograms we aim to produce each year. In 2013–2014, annual made tea production was about 340 million kilograms. In 2022, with the fertilizer ban, the volume declined significantly. To meet production targets, fertilizer supply and replanting assistance must be genuinely increased. I also propose that when smallholders engage in replanting, they be given a subsistence allowance to cover the loss of income for up to three years.

¶ 07 In my final minute, I wish to speak about cinnamon. The Galle District is the leading district for the cinnamon industry and cultivation. In areas such as Meetiyagoda, Batapola, Ambalangoda, Balapitiya, Karandeniya, Kosgoda, Ahungalla, and Elpitiya, cinnamon cultivation is highly successful. However, today producers face a price collapse. During President Ranil Wickremesinghe’s tenure, two departments related to cinnamon were initiated in the Karandeniya area to support the sector. Currently, production costs have risen. Previously, a kilogram of cinnamon fetched around Rs. 4,500; now it has fallen to about Rs. 3,500. A fertilizer packet that cost Rs. 1,500 then now costs about Rs. 6,500. Earlier, peeling an acre of cinnamon cost about Rs. 20,000; today it exceeds Rs. 50,000. The price decline affects both growers and peelers whose incomes have fallen.

¶ 08 Sri Lankan cinnamon has an excellent global reputation; our cinnamon is regarded among the best in the world. Therefore, protect this industry as well. I request the Minister of Plantation Industries to pay attention to rubber, tea, and cinnamon. Thank you, Madam Deputy Chairperson of Committees, for the additional time granted.