Government ad hoc policies will make Ceylon tea a thing of the past: Anselm

• He argues that the wage hike threatens the survival of Sri Lanka’s historic tea industry
• highlights the lack of consultation with industry stakeholders before implementing significant policy changes, citing previous decisions such as nationalization, glyphosate ban, fertilizer use
• He believes that this move is unsustainable and would force cuts in core costs that would ultimately impact the quality of the tea
• Calls for the protection of the domestic tea trade for future generations

Industry veteran and founder of Mlesna Tea, Anselm Perera, yesterday issued a stark warning on the future of Ceylon Tea, criticizing the government’s decision to increase the minimum wage by 70%.

Addressing a joint press conference organized by the industry, he said the move threatened the very existence of Sri Lanka’s historic tea industry. “If the government continues to make short-sighted and stubborn decisions, Ceylon tea will become a thing of the past,” Perera said.

Perera expressed frustration at the lack of consultation with industry stakeholders before making major policy changes. “Decisions like nationalization, the glyphosate ban and now these wage increases have been made without consulting us. These decisions caused the decline of our industry. If this happens, future generations will never see Ceylon tea as we know it.

He categorically stated that politicians should not make decisions for the industry. “We, the industry experts, should determine its future. If the sector collapses, the entire economy will suffer,” he stressed.

Perera, who has spent 55 years in the tea industry, highlighted several government policies that have had an adverse impact on the sector. He cited the nationalization of plantations, the ban on the use of glyphosate, recent restrictions on fertilizers for commercial crops and attempts to forcefully increase the minimum wage from next month as examples of harmful decisions.

He called for the protection of the country’s tea industry, urging the government to consider the long-term effects of its policies. “We must protect this national trade for our children and future generations. The survival of Ceylon tea depends on it,” he added.

Perera criticized the recent wage increase, calling it unsustainable for the industry. “If labor costs increase to PLN 50,000 1500 we are unable to sustain the industry. We will be forced to cut back on everything, including fertilizers, energy, transport and social welfare, which will ultimately reduce the quality of our tea.”

He compared the productivity of Sri Lankan workers with that of workers in Kenya and India, where workers produce significantly more tea per day. “In Kenya they get 50 kilograms a day and in India they get 34 kilograms. But here we are far behind, with only 18 kilograms. How can we compete when our costs are so high and our productivity is so low?” he asked.

Reflecting on his extensive experience, Perera noted the industry’s evolution from government control to privatization, emphasizing the need for quality and efficiency. “We export in three main forms: loose tea, finished products and value-added brands. Each of these segments is critical to maintaining the profitability of the industry.”

He explained that value-added tea products attract higher prices due to additional costs such as packaging, export fees and marketing expenses. “When you see Ceylon tea on supermarket shelves, it’s not just the tea you’re paying for. This involves many additional costs. We must maintain high standards to justify these prices, but government decisions undermine these efforts.”