Structural Reform Focus in Canada-TPA Economic Talks 📈

• Overall Figures & Trade: Sri Lanka maintained a strong trade surplus with Canada in 2025, with bilateral trade reaching approximately US$ 540 Mn. While the apparel sector earns over US$ 5 Bn (net of raw material imports), the tea sector generates US$ 1.2–1.3 Bn annually via a domestic value chain, making it a vital pillar for foreign exchange stability. • Sector Breakdown & Vulnerabilities: Despite the tea sector's importance, plantation communities face extreme structural disparities. Data following the recent Ditwah crisis shows that while these communities are <1% of the total population, they accounted for 11% of deaths and 28% of missing persons. Currently, over 158,000 individuals remain displaced nationwide. • Policy & Structural Reform: The Tamil Progressive Alliance (TPA) is pivoting from wage-based debates to land ownership and "structural inclusion." Key proposals include: • Establishing a Non-Territorial Community Council (NTCC) for coordinated governance. • Accelerating land allocation and permanent resettlement (stagnant for 4 months post-disaster). • Shifting international aid to specifically target underserved plantation clusters, particularly in the Kandy District. • Strategic Outlook: The TPA urges a transition from a "labour identity" to an integrated economic community. The goal is to modernize the plantation sector into a productivity-driven component of the national economy through land rights and human capital development.