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Sri Lanka's Economy

Ceylon Tea and Plantation Exports

How tea, rubber and coconut plantations built Sri Lanka's colonial economy, why tea remains a major export, and the lives of plantation workers of Indian origin.

Ceylon tea is famous worldwide.

History

  • Under British rule, coffee plantations failed due to disease in the 1870s.
  • Planters switched to tea, and later rubber and coconut.
  • James Taylor started early commercial tea planting.

Workers

  • Plantations were worked by Tamil labourers brought from southern India.
  • Many were made stateless after independence under citizenship laws of 1948; most later gained citizenship over decades.
  • Plantation workers have remained among the poorest groups.

Exports today

  • Tea remains a major export, around 1.3 billion dollars a year.
  • Sri Lanka is one of the world’s top tea exporters.
  • Buyers include the Middle East, Russia and Turkey.

Challenges

  • Ageing bushes and low yields.
  • Labour shortages.
  • Fertiliser shortages in 2021-22 cut output.
The tea estate

On a hill estate in Nuwara Eliya, workers of Indian Tamil origin pluck tea leaves, continuing a tradition that began in the 1800s.

Thinking Sri Lanka always grew tea

Tea replaced coffee after disease in the 1870s.

Key takeaways
  • Tea replaced coffee in the 1870s.
  • Tamil labourers from India worked the plantations.
  • Many were made stateless after 1948.
  • Tea remains a major export.
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