Speech by PA Chairman, Mr. Sunil Poholiyadde at the Planters' Association of Ceylon AGM 2024

Good evening Ladies and gentlemen, our Chief Guest, Mr Mohan Pandithage and distinguished guests

First and foremost, I want to thank Rohan for his inspiring words. They give me a great deal of courage as I step into my second term as Chairman of the Planters' Association (PA).

I previously served as Chairman for four long years and stepped down without any intention of taking up the baton again. However, under certain circumstances, I was compelled to return to this role, especially since Dushanth has certain official commitments overseas and is unable to take over the chairmanship.

While expressing my gratitude for the kind words about me and the PA, I must also thank our outgoing Chairman, Mr. Senaka Alawattegama, his Deputy, Mr Dushanth Ratwatte, and the entire PA Secretariat for the excellent job they've done over the past two years.

The last four months have been particularly critical for the PA. It has already been mentioned, but Senaka didn't fully convey how challenging the task was. I wish to elaborate on that.

On May 1st, 2023, a proposed wage increase to Rs. 1,700—which included a basic wage of Rs. 1,350 plus a Rs. 350 incentive—was put forward by the Government. Traditionally, wage issues were handled by the Employers' Federation of Ceylon (EFC). However, in this instance, a 70% increase would have nearly demolished this 170-year-old industry.

Due to the seriousness of the issue, PA members decided that we could not rely on any other organization. We took it upon ourselves to bring some sanity to the situation, as a Rs. 30 billion payout would have been unaffordable then and remains so now.

We had to retain our own legal counsel and fight this battle. The PA, led at the time by Mr. Alawattegama and our Secretary General Mr. Lalith Obeyesekere, became deeply involved in extensive legal work. Dealing with top legal counsel is not easy; they require all facts and figures within very short time frames.

Our efforts escalated to the point where we had to file a writ at the Court of Appeal, and eventually, the case reached the Supreme Court. Simultaneously, the Wages Board was convening and making decisions.

Tremendous pressure was placed on the PA as we spearheaded this issue. For the first time in our history, there were protests in front of the PA office on Vajira Road. our members who spoke on behalf of the membership were personally targeted.

Despite all this, the PA persisted. We submitted comprehensive facts and figures to demonstrate to all stakeholders why the proposed Rs. 1,700 wage was unaffordable. I'm glad to say that there were instances where Wages Board meetings extended for four to five hours—something unprecedented in our industry’s history.

With all the arguments and the detailed information we provided, the Wages Board unanimously with the consent of all stakeholders decided on a basic wage of Rs. 1,350, coupled with a productivity component of Rs. 50 per kilo. For the first time since 1992, this wage will remain in place for three years. The first two years will be tough with a 30% increase, but by the third year, we can stabilize once again.

This has been a significant achievement. I want to congratulate Senaka and ably assisted by Mr. Obeyesekere for their extraordinary efforts. I also need to mention Roshan for speaking on behalf of all the companies despite being singled out for threats. This shared effort truly deserves a round of applause.

Ladies and gentlemen, we are stepping into a new era now that the basic wage has been established. This industry has stood strong for 170 years, and sustainability is key. How will we sustain an industry that must accommodate wage increases while competing globally?

It might be in our culture to resist change, but I believe we must become more receptive to technology. Mechanization can provide relief, especially with our diminishing labour force. Since 1992, we've lost 50% of our workforce, which is evident in our production figures. I doubt Sri Lanka will reach even 250 million kilograms of tea this year, although we had initially expected over 300 million.

If we are to maintain production levels across all crops, we must be innovative. The technology exists globally; it's just a matter of us embracing and implementing it. It's time for innovative thinking, new technology, mechanization, and automation in the field and factory. These are key areas we need to focus on in the near future.

In the short term, the PA has other pressing issues to address. One major issue is diversification. Companies began diversifying—particularly in the low country, where we introduced a fourth crop with oil palm in the early 2000s. We had a plan to plant 20,000 hectares, but after completing 11,000, the government halted the project.

In the face of climate change, an agribusiness can't be successful without diversification. There are areas receiving 6,000 mm of rainfall, whereas oil palm requires only 3,000 mm. The return on investment with such high rainfall won't be achieved. Some areas are better suited for rubber, while others could be utilized for different crops.

Diversification was a primary consideration during the privatization process. The PA should uphold the spirit of privatization by exercising our rights and ensuring that authorities respect the agreements made during that time.

Looking ahead, we face an enormous task. With increasing wages, unless we adopt new technologies, we can't assure our industry and shareholders of adequate returns. There's no free money coming in; investments will only flow if there's a promise of returns. It's our duty as planters to ensure these returns if we want to gain the confidence of investors and shareholders.

While there has been excellent work done so far, we cannot rest on our laurels. This is a continuous process, and I look forward to your support and cooperation in taking this association forward.

I also want to take this opportunity to thank our Chief Guest. I am honored that you've continuously attended all our AGMs. Thank you for accepting our invitation once again.

My gratitude extends to our Chairman Mr. Arudpragasam, he has provided me with encouragement, courage, and guidance to accept this position once more.

I am indeed honored to assume this role again in the presence of two distinguished guests. First, Mr. Jayantissa Ratwatte, who was my Managing Director when privatization took place. During his tenure, I had the opportunity to join the corporate management team up until his retirement. Thank you very much for your support and guidance, which have helped me reach this position today.

Secondly, I must mention Mr. Malin Goonetilleke. When I first took over in 2016 as Chairman of the PA, Malin was our Secretary-General. He guided me until I felt comfortable in the role. Thank you, Malin, for your invaluable guidance. Without it, I might not have been able to accept this position once again.

I must also acknowledge our Secretaey General Lalith. He told me, "You need to give something back to the PA, and you need to agree." He gave me no chance or time to disagree.

I also want to say a special thanks to my wife for supporting my acceptance of this position once again. These roles demand a significant amount of personal time that could otherwise be spent with our families. So, thank you to all.

Lastly, to the members of the PA, thank you for placing your trust and confidence in me by electing me unanimously for a second term.

Thank you very much.

Released in September 2024