Sri Lanka on Friday signed a landmark agreement to increase the daily wage of plantation workers to Rs. 1,750, a move described by industry representatives as the largest wage hike in the plantation sector’s 200-year history.
The agreement was signed at the Ministry of Plantations and Community Infrastructure between the government and regional plantation companies, formalizing a key proposal announced by President Anura Kumara Dissanayake in the 2026 national budget.
Under the agreement, the current daily wage of Rs. 1,350 will be increased by Rs. 400. Of this amount, plantation companies will contribute Rs. 200, while the government will provide the remaining Rs. 200 as support, bringing the total daily wage to Rs. 1,750.
Officials said the revised wage will be paid to workers with effect from February 10.
President Dissanayake first unveiled the wage proposal while presenting the 2026 Budget to Parliament on November 7 last year, stating that the increase would be implemented in two phases. The proposal received bipartisan support, with opposition lawmakers Jeewan Thondaman, Mano Ganesan, Palani Digambaram and V. Radhakrishnan voting in favour of the budget.
Following the approval of the budget, discussions were held with regional plantation companies by a government delegation led by Minister of Plantations and Community Infrastructure Samantha Vidyaratna and Deputy Minister Sundaralingam Pradeep to finalize the wage structure.
On January 19, the Cabinet approved relief measures outlined in the budget aimed at improving living standards in estate communities. Cabinet Spokesperson and Minister Dr. Nalinda Jayatissa said Rs. 5 billion has been allocated this year to implement these proposals.
The wage agreement was signed by Prabath Chandrakeerthi, Secretary to the Ministry of Plantations and Community Infrastructure, in the presence of officials from the Wages Board and representatives of plantation companies.
Meanwhile, the Planters’ Association of Ceylon said plantation companies are expected to incur costs exceeding Rs. 6 billion to fund their share of the wage increase.
