The Hon. Ajith Agalakada

¶ 01 Hon. Deputy Chairperson, thank you for the opportunity. During the Committee Stage of the Budget, today we debate the Head of Expenditure of another very important Ministry – the Ministry of Plantations and Community Infrastructure.

¶ 02 This Ministry is extremely important to our country. Why? As you know, a main reason for the recent crisis was the lack of foreign exchange – the dollar shortage. Historically, one of the primary sources bringing dollars to Sri Lanka has been the plantation industry. Even today, the plantation industry plays a crucial role in earning foreign exchange, and a significant portion of our people are engaged directly and indirectly in its production and services. Because many people are involved, we consider this Ministry important.

¶ 03 Globally, countries are known for various reasons. Our nation’s name was carried internationally by our plantation industry: “Ceylon Tea,” “Ceylon Cinnamon” are widely recognized, sometimes more than the country’s location itself. Thus, plantations are a critical sector for our economy. Historically, too, this sector has shaped us, for better or worse. It was in search of spices like cinnamon that Lourenço de Almeida landed by chance in Sri Lanka, driven by high European demand and limited supply. The Portuguese profited enormously exporting our spices. The Dutch, too, identified spice varieties and, rather than merely felling forest cinnamon, began cultivating it, first around Colombo – Kuruladuwatta, Kadiran, Atchariyawatta, etc. Later the British shifted focus from cinnamon to coffee and then to tea, transforming the plantation sector. Today, through tea, coconut, rubber, cinnamon, palmyrah, kithul and others, we can drive the economy forward. Yet in recent times, due to lack of planning, vision, and proper attention, the sector has declined. Some past rulers and leaders have allegedly acquired acres of tea and coconut for Rs. 3.50 per acre under their names. In Monaragala, where I live, we saw Janatha Estates Development Board lands being registered at cents-on-the-acre rates. Due to such shortcomings, we lost opportunities to build a strong economy.

¶ 04 I represent Monaragala District. Under this Ministry, our main plantation crops are rubber and cinnamon. The first rubber sapling in Sri Lanka was planted in 1876. Although rubber is native to the Americas, our district’s Divisional Secretariat divisions – Monaragala, Bibila, Medagama, Madulla, Buttala, Wellawaya, Siyambalanduwa, Badalkumbura – are successfully cultivating rubber. Some 15,000 to 18,000 smallholders are engaged. Even with climatic shifts, rubber planting proceeds well. Nationally, rubber is cultivated on about 246,520 acres, yielding about 69,000 metric tons last year. We aim to increase this to 78,000 metric tons this year. Current average yield is around 944 kg/acre; we aim to raise it to about 1,017 kg/acre. Export earnings were USD 990 million; we hope to reach about USD 1,070 million by year-end.

¶ 05 We have allocated Rs. 17,808 million this year for plantation sector development, with Rs. 12,038 million for capital expenditure.

¶ 06 While the Hon. Minister is present, I propose: Monaragala is rich in land, but individuals alone cannot expand sufficiently. Therefore, let us establish a Government-led project to cultivate 250–300 hectares anew, bringing in new participants. Our target next year is to plant 655 hectares afresh; let 250–300 hectares of that be a Monaragala project to boost rubber. Also, there is a shortage of rubber plants. We plan to produce 581,000 new plants this year through nurseries; funds have been allocated. Two nurseries at Padiyathalawa and Kumbukkan Oya are functioning. Padiyathalawa can produce 50,000–60,000 plants, and the other about 300,000. Both can be further expanded. From the Rs. 12,038 million capital provision, let us upgrade these nurseries to meet Monaragala’s needs.

¶ 07 In addition, at Kumaradolawatta we had a crepe rubber factory employing 30–40 previously. Due to effluent treatment system faults, it is now defunct. We used to produce 4,000–5,000 kg per day; now about 2,000 kg per day of latex is just sold in liquid form. I request the Minister to revive the Kumaradolawatta rubber factory to produce high-quality rubber, adding value and reputation for Sri Lanka.