Sri Lanka’s struggle with plantations after nationalisation took a new turn after privatisation and its success is due to the untiring efforts of private sector planters. Anura Ekanayake, a former Chairman of the Ceylon Chamber of Commerce and a person who has experience in the plantations sector where he was involved in the nationalisation as [...]

The Sundaytimes Sri Lanka

Labour-hit plantations mul out- grower system model

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Sri Lanka’s struggle with plantations after nationalisation took a new turn after privatisation and its success is due to the untiring efforts of private sector planters.

Anura Ekanayake, a former Chairman of the Ceylon Chamber of Commerce and a person who has experience in the plantations sector where he was involved in the nationalisation as well as in the privatisation of plantations, complemented the private sector planters for their great feat, when he made the keynote address at the 159th AGM of the Planters Association of Ceylon (PAC) held recently in Colombo.

At this AGM, Ranjan Rajadorai took over from Lalith Obeysekera as the Chairman, PAC for 2013/14. Dr. Ekanayake encouraged and assured the planters that though there are issues confronting the industry, the planters have done a wonderful job for the country and for its economy.

There is a greater future lying ahead when the planters venture to do things differently, and fully absorb the available modern technology and technical expertise.

Quoting the great scientist Albert Einstein, he said that expecting different results by doing the same thing over and over again is insanity. He stressed the need to change and make a difference.

Dr. Ekanayake identified several things to make this change. He said instead of using computers, some estate officials still use large ledgers and account books. Superintendents come to Colombo for meetings without a laptop or even a calculator.
Going back to the plantation nationalisation era, he said that the value of plantations at that time was Rs 5 billion and today in his calculations it would be Rs 40 billion.

Due to debts in the plantation nationalisation – the two state banks – Bank of Ceylon and the People’s Bank were in dire straits. He said that the privatisation of plantations ushered Sri Lanka into a modern economy and helped modernise the country.

Dr. Ekanayake told the planters that ,“I remain optimistic all the challenges can be overcome. I say this as I have seen the transformation for the last 20 years”.

The plantation industry is like the geese that lay golden eggs. The plantations have to be looked after, nurtured, put money, spent time and the results are in the long run and those who have diversified, while maintaining their present crops have reaped results and there are success stories. The areas for diversification could be, he pointed, vegetables, dairy, hydro projects and many other things.

He said “look for other avenues that could make a difference”.

There are other avenues of finding capital, other than investing what they earn. He said, there are financial instruments like debentures, stock market, joint ventures, capital market, etc. He said that telecommunications which is very much advanced in this country could also be used.

Mr. Obeysekera touched upon the issues they have been facing and said that some plantation companies are losing ownership of property due to the actions of the government and stressed the need to get these lands back.

He also pointed out issues faced with regard to collective agreements, wage increases gratuity payment increases, no productivity increase, labour shortages and the fluctuating commodity prices.

He said that unlike earlier, the present day estate youth do not like to work in estates, but preferred to move to cities compelling them to go for less labour intensive crops like oil palm. Mr. Obeysekera said that because of labour shortages in estates, they are also looking for an out-grower system.

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