📈 Sri Lanka to Lease Idle State Plantation Lands for Investment

The Cabinet has approved a proposal to lease underutilised state-owned plantation lands to private investors. This "Stage II" initiative follows a June 2025 decision (Stage I) and aims to enhance productivity, unlock economic value from idle assets, and boost national employment. • Overall Strategy: The move targets improved asset utilization through a transparent, competitive procurement process. It aims to strengthen the financial sustainability of State-Owned Enterprises (SOEs) by reducing the volume of uncultivated land. • Key Entities Involved: • Sri Lanka State Plantation Corporation • Janatha State Development Board • Elkaduwa Plantation Company • Specific Land Highlights: • Tea Sector: Leasing of the 40.48-hectare Mawarala Watte land and tea factory in the Matara District, owned by the Tea Shakthi Fund. • Cashew Sector: Allocation of 1,541 hectares of underutilised land at the Kondachchi Estate, currently under the Sri Lanka Cashew Corporation. • Context & Implementation: The government observed that significant land parcels remained idle after the initial disposal phase. By extending the programme to Stage II, the state seeks to attract investment into agriculture, livestock, and potentially value-added manufacturing to modernize the plantation sector.