COLOMBO - Sri Lanka's tea producers on Monday condemned a government order to increase wages by 70%, saying it would make their tea globally uncompetitive and reduce dollar earnings essential for the island nation to emerge from a financial crisis.
The government has ordered worker salaries be increased to 1,700 rupees per day from 1,000 rupees, which the industry says will increase tea production costs by 45%. "This is unsustainable and unfair. This decision was made without proper consultation and will result in the quality of Sri Lanka's tea declining," PAoC spokesperson Roshan Rajadurai told reporters.The industry must start paying the salary increase from next month, Sri Lanka's Labour Ministry said on Sunday, warning that plantation companies refusing to comply could be taken over by the government.
Plantation companies and worker unions have been negotiating for months to increase salaries, which unions contend is essential as Sri Lanka's financial crisis plunged around a quarter of the population into poverty in 2023.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.