📈 CBSL Governor Urges Plantation Sector to Boost Productivity and Combat Scams

At the 172nd AGM of the Planters’ Association of Ceylon, Central Bank Governor Dr. Nandalal Weerasinghe addressed key macroeconomic growth, cost structures, and reputational risks in Sri Lanka's plantation industry. • Macroeconomic Performance & Export Growth: • GDP grew by 4.2% in Q2 2026 despite geopolitical conflicts and natural disasters. • Agricultural exports crossed US$ 3.1 Bn in 2025 (up from US$ 2.8 Bn in 2024). • Coconut exports reached US$ 573 Mn in 2025, while tea remains the top agricultural export driver. • Rising Production Costs & Output Challenges: • Tea production cost rose from ~Rs. 618/kg (2021) to Rs. 1,043/kg (2025), with labor costs taking up 65%. • Rubber production cost climbed from Rs. 350/kg to Rs. 686/kg, with national output nearly halving over the past decade. • Illegal Investment Schemes Warning: • Governor warned against unregistered deposit-taking scams using the "Plantations" brand and promising unrealistic short-term returns. • Urged the Planters’ Association to partner with law enforcement and the CBSL to protect public savings. • Strategic Recommendations: • Modernize via mechanization, replanting, tech innovation, and climate-resilient practices to compete with global peers. • Shift focus from raw commodities to value-added processing, branding, sustainability, and eco-tourism.