Oct 25, 2014 (LBO) – Sri Lanka government to increase replanting subsidy to small medium tea planters from 875,000 rupees to one million rupees per acre, President Mahinda Rajapaksa said presenting a budget for 2015. The extent of the islandâ€™s tea plantations is 206104 hectares of which 70 percent are small holdings that are cultivated by 397223 small holders who produce 1.5 million kilos of tea.
Sri Lankaâ€™s tea consumption per person per year is 1.3 kilo grams.
Majority of them are produced in Ratnapura, Galle and Matara District respectively. He further said, the government suggests to increase the new planting subsidy from 625,000 rupees to 750,000 rupees.
The move comes in the wake of labour shortages faced by the island’s agriculture sector.
Sri Lanka tea small holders contributes more than 70 percent of the national tea production.