The Hon. K.V. Samantha Viddyarathna - Minister of Plantation and Community Infrastructure

¶ 01 Hon. Chairman, as Minister, I note that 29 departments, corporations and statutory boards fall under us, sustaining the livelihoods of millions. We have about 246,520 acres of rubber, 167,500 acres of tea, and 1,180,000 acres of coconut supporting our economy and society.

¶ 02 I thank President Anura Kumara Dissanayake. Compared to the past, this Ministry has been allocated Rs. 17,888 million, of which Rs. 12,038 million is capital for development—significant historically.

¶ 03 Let me address key crops: where we were, where we are, and our targets and path.

¶ 04 Coconut faces the most acute crisis now. While weather matters, policy, planning and governance matter more. Weak political stewardship failed these sectors. Our Ministry has capable, knowledgeable, motivated officials; with sound policy and leadership we can lift these sectors.

¶ 05 People now lack coconuts in a country famed for coconut, tea and rubber. We cannot fix yields in three months—fertilizer effects take over a year on palms. We regret resorting to imports of coconut oil and other inputs due to poor planning.

¶ 06 Examples of politicization and misuse: - Halawatha Plantations’ 2023 revenue was Rs. 796.68 million, but illegal sand mining by politicians and associates caused a state loss of Rs. 746.6 million per Auditor General—nearly the entire revenue. - At Kurunegala Plantations, 76 fertile acres were taken to a company (63200 Farmers’ Company) chaired by then Minister Salinda Dissanayake; now his spouse chairs it. Another 21 acres, 1 rood, 13 perches were given to an associate, declared “barren.” How can plantations thrive under such abuse?

¶ 07 We are preparing a proper plan. With UNIDO we are formulating a 10-year coconut sector plan and a national plantation policy to be submitted to Cabinet soon, alongside a coconut master plan.

¶ 08 Data: In 2024, production was 2,754 million nuts (Coconut Research Institute). The national need is ~3,000 million. The shortfall is about 250 million nuts, not 2 million per day as stated earlier. Our target is 2,900 million in 2025; by 2030, 4,200 million.

¶ 09 Exports: In 2023 coconut-based exports earned USD 700.47 million. We project USD 900 million in 2025 and USD 1.5 billion by 2030. This year we plan 36,000 new acres via replanting, infilling and home gardens. We have prepared 2.56 million seedlings. Thanks to the Russian Federation’s assistance, a ship of MOP was received. We will convert for coconut use and provide subsidized fertilizer: a Rs. 9,000 bag at Rs. 4,000 to smallholders (≤5 acres). Subsidy outlay: Rs. 5,670 million; 56,700 MT to be distributed starting this month.

¶ 10 On pests/diseases: “White fly” and Weligama coconut leaf wilt are key. The previous Rs. 3,000 per tree grant will be increased to Rs. 10,000, with Rs. 110 million allocated. For the Northern Coconut Triangle, we will develop 16,000 new acres with Rs. 500 million; supply 1,024,000 seedlings and free fertilizer (Rs. 81.9 million). For 9,608 acres, small drip irrigation systems will be provided at Rs. 13,000 per acre.

¶ 11 Raising yields: Average is ~55 nuts/tree/year; South India achieves ~80 in similar agro-climates. We aim to raise to 80 nationally by 2030 through moisture conservation, pest control and fertilizer.

¶ 12 Budgetary support: Rs. 750 million capital to the Coconut Development Authority; additional 20,000 acres elsewhere. CRI research gets Rs. 100 million; Kaprukā Fund Rs. 20 million. Beyond Budget, other agency funds will be leveraged. In 2025, CDA will invest Rs. 554.39 million; Kurunegala Plantations Rs. 1,936.67 million; Halawatha Plantations Rs. 1,235 million in coconut development.

¶ 13 Tea: Once the “King” of teas, we fell from world No. 2 in 1962 to No. 4 today; Kenya rose from No. 6 to No. 3. Failures lie in planning, policy, leadership, and corruption. We will reverse decline progressively, focusing on smallholders (75% of producers). We are drafting necessary policy changes, simplifying and widening fertilizer support, ensuring quality, and opening procurement to multiple suppliers. Budget allocates Rs. 800 million for fertilizer support; we expect Rs. 2,000 million from the Tea Board for a total of Rs. 2,800 million.

¶ 14 Quality and markets: We will improve leaf standards and productivity. With French technical assistance via the Tea Board, we will obtain GI certification for “Ceylon Tea” in Europe.

¶ 15 Budget line items: Rs. 35 million for plastic crates/nylon bags; Rs. 60 million for high-density planting; Rs. 35 million for greenleaf-friendly plucking; Rs. 61.2 million for research; Rs. 585.21 million for replanting; Rs. 275.1 million for new planting; Rs. 550.33 million for rehabilitation.

¶ 16 On past misuse: Tea promotion spent Rs. 4,953.83 million including an eight-year ad that never aired; a website cost Rs. 172.9 million but had minimal overseas reach. Projects (ASMP, STaRR) saw political interference and alleged fund misuse; we have initiated inquiries.

¶ 17 Targets: 2024 tea output 262.15 million kg; target 275 million kg in 2025, and 400 million kg in five years. Export revenue was USD 1.4 billion; target USD 1.7 billion in 2025 and USD 2.5 billion by 2030.

¶ 18 Underutilized estates: Both state and private. We will allocate such lands to capable private parties under conditions to generate income and uplift the poor—not as idle land grants.

¶ 19 Rubber: Sri Lankan rubber once ranked 4th globally; now around 12th. Domestic production is ~65,000 MT, while industry needs ~150,000 MT, forcing imports. Smallholders contribute ~75%. 2024 export revenue was USD 990 million; target USD 1,070 million in 2025 and USD 2 billion by 2030. Across tea, coconut and rubber, current export earnings are about USD 3 billion; we plan to raise to USD 6 billion in five years.

¶ 20 Actions: Resume tapping on existing trees through training and rain-guards; fertilizer support resumes this year. New planting 1,640 acres; replanting 860 acres; Rs. 146 million for nurseries; Rs. 60 million for rain-guards; Rs. 3,336.1 million for sector support; Rs. 43 million for fertilizer; Rs. 204 million for research.

¶ 21 Community Infrastructure: Many estate families lack land and housing; they even lack addresses and proper birth registrations. Under Indian assistance, 4,700 new houses will be built; 1,300 ongoing houses will be completed this year; total 6,000 houses targeted. Rs. 1,800 million for estate community facilities and vocational training; Rs. 600 million for child-friendly classrooms; Rs. 763 million to complete unfinished houses; Rs. 3,500 million Indian aid for new houses; Rs. 650 million for child nutrition and development.

¶ 22 We will also focus on cinnamon, palmyrah, cashew and kitul. Cinnamon exports were USD 176 million last year; target USD 260 million in 2025 through expansion and technology. We will develop palmyrah in the North. We request this House’s support to implement these plans.