Planters’ Association Warns of 'Price Cliff' Over Proposed 13.6% Tariff Hike 📈

The Planters’ Association of Ceylon (PA) has raised urgent concerns over the CEB’s proposal to increase electricity tariffs by 13.6% in Q2 2026, warning it threatens the global competitiveness of Sri Lanka's primary exports. • Overall Impact: The industry faces a "price cliff" in April after a previous tariff freeze. High energy costs are inflating the cost of production for tea and rubber processing, which require 24-hour factory operations. • Sector Grievances: Unlike other export sectors in processing zones, Regional Plantation Companies (RPCs) are charged standard industrial rates. The PA is lobbying for a dedicated "Agricultural Export" tier or concessional "green tariffs" to reflect their role in earning foreign exchange. • Sustainability & Innovation: To combat rising costs, RPCs are aggressively diversifying into renewable energy: • Bogawantalawa: Committed over Rs. 300 Mn to solar and hydro projects. • Talawakelle Tea Estates: Invested Rs. 59.3 Mn in rooftop solar (2024/25). • Efficiency: Implementation of ISO 50001 standards, IE3 motors, and VSDs has already reduced emissions by thousands of tons of CO2 equivalent. • Strategic Goal: The PA emphasizes that fair pricing is essential to allow reinvestment into renewable energy and ESG initiatives, ensuring the plantation sector aligns with national net-zero targets while remaining viable in international markets.