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Tea Cultivation in Sri Lanka as a Legacy of the British Colonization: Impacts and
Trends

Article  in  Journal of Social Sciences and Humanities Review · March 2018

DOI: 10.4038/jsshr.v3i1.7

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 Journal of Social Sciences and Humanities Review (JSSHR)
Vol. 3, Issue. 1 (65-70)
© Author(s) March 2018
ISSN: 2279-3933
Original Article

TEA CULTIVATION IN SRI LANKA AS A LEGACY OF THE BRITISH

COLONIZATION: IMPACTS AND TRENDS
AL Sandika1

Abstract
The structure of Sri Lanka’s agricultural sector had changed under 1
Department of Agric.
colonization especially during the British era with the introduction of Economics, Faculty of
plantation crops. Coffee, Tea, and Rubber were recognized as prominent Agriculture, University
plantation crops introduced by the British. Tea as a plantation crop at of Ruhuna
present plays a significant role not only in the economy but also as a
socio-cultural and political legacy. This paper, therefore, attempts to alsandika@gmail.com
examine the tea sub-sector development with the time and to evaluate its
performance as a lifestyle determiner, using secondary data under
qualitative and quantitative methods that are applied to illustrate the
results. With regard to the first objective, the year 1824 British brought a
tea plant (Camellia sinensis)) from China and planted in the Royal
Botanical Gardens, Peradeniya. Experimental tea plants from Assam and
Calcutta (India) were brought the year 1839. Regarding performance of
tea sector, the contribution of tea for GNP has been increased significantly
from Rs million 10,332 (1996) to Rs million 74,065 (2012) respectively.
Area cultivation has also increased by 17% from 1996 (189,354 ha) to
2012 (222,000 ha) while production has increased by 25.5% from 1996
(258.4 million kg) to 2012 (328.4 Million Kgs). After 2007, Sri Lanka
became the fourth largest tea producer. Further, export income has also
been increased significantly from Rs million 32,537 to Rs million 180,429
by 454.5% in the respective time period. A number of Tea Small Holders
in the year 2012 was recorded as 390,346. In this context, tea as a crop
contributes to providing more than 1.5 million job opportunities directly
and indirectly. Therefore, tea has been the identical and most famous
export; for generations, it has been contributing to the Sri Lankan
economy and plays a major part, even today, in the country’s fortunes.
Keywords: Economic, Export, Legacy, Tea

65
 Journal of Social Sciences and Humanities Review (JSSHR)
Vol. 3, Issue. 1 (65-70)
© Author(s) March 2018
ISSN: 2279-3933

INTRODUCTION METHODOLOGY
Sri Lankan agriculture was considered as Secondary data were used for this study.
self-sufficient subsistence-based agriculture Central bank annual reports, Economics and
with paddy as the major crops and other social statistics of Sri Lanka published by
crops viz vegetables, fruits, yams, pulses Central bank, Reports published by Tea
and spices crops until western colonial Research Institute, Tea Board, Tea Small
powered on Sri Lanka about five hundred Holdings Development Authority,
years ago. The structure of the Sri Lankan Department of Census and Statistics of Sri
subsistence agricultural sector has, however, Lanka and research papers were used as
been changed during the period of secondary sources of data. Qualitative and
colonization (1510 – 1948) especially in quantitative methods were applied to
British era with the introduction of analyze the data and illustrate the results.
plantation crops. Coffee, Tea, and Rubber Objective one of the study was achieved by
were recognized as prominent plantation using qualitative information while the
crops introduced by British. It was second objective was done by using
empirically proved that several socio- quantitative data. Year wise land extent (ha),
economic and physical changes were too production (Kg million), export value (Rs
taken place with the introduction of tea million) were collected. According to
plantations relatively faster that contribute Madridakis et al., (1983) Time Series (TS)
much to the overall production, plots were used to identify the behaviour
employment, and trade etc. in the country. patterns of different variables against the
The tea grown in Sri Lanka is classified in to time factor. Linear regression was applied to
three different elevation zones such as high estimate the increment of the selected
grown (upcountry teas) which teas are variables. The goodness of fit of the model
grown in the Badulla and Nuwara Eliya was also tested by using coefficients of
districts generally fall above 1200 m determination (r2), (Majumdar, 2002).
elevation, low grown (Low country teas) are
generally cultivated below 600 m elevation
and found mainly in Galle, Matara, RESULT AND DISCUSSION
Ratnapura, Kegalle and Kalutara districts. With regard to the development of tea sub-
Kandy and Matale districts fall into the sector, the year 1824 British brought a tea
middle-elevation zone (600 and 1200 m) and plant (Camellia sinensis)) from China and
teas that are grown are known as Mid grown planted in the Royal Botanical Gardens,
or Mid country tea. Tea as a plantation crop Peradeniya as non-commercial tea plant.
at present to contributes significant role not Experimental tea plants from Assam and
only for the economy of the country but also Calcutta India were brought to Sri Lanka in
socio-cultural and political scenario. On this the year 1839. At the same year, the Ceylon
background, this paper attempted to examine Chamber of Commerce was established.
the tea sub-sector development with the time Nearly after two decades, the year 1867
and to evaluate the performance of tea sub- James Taylor planted 19 acres of tea in the
sector in the country. city of Kandy in Ceylon, at the Loolecondra
Estate as the first commercial tea plantation.
First tea consignment of Loolecondra Estate
from Sri Lanka to London was done in
1873. This pioneering plantation was

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 Journal of Social Sciences and Humanities Review (JSSHR)
Vol. 3, Issue. 1 (65-70)
© Author(s) March 2018
ISSN: 2279-3933

practice by trial and error and improved over started in 1982. Many of Government own
the years around 145 years via the tea plantations were privatized in 1992. In
introduction and improvement of tea the same year, Tea Export Duty and Ad
plantation, processing machines, and Valorem Taxes were abolished. Tea
methods, by different individuals and Research Board was also the establishment
companies. Ceylon association of planters in 1992. Tea production was exceeded over
was foundered in the year 1854. The year 300,000 metric tons in the year 2000 while
1872, fully equipped tea factory was total tea production was reached to 310 800
established. metric tons in 2006.
The first broking firm John Brothers & Co. Regarding performance of tea sector, the
was established in 1876 and the first public contribution of tea for GNP has increased
Colombo auction took place in 1883 under significantly from Rs million 10,332 (1996)
the guidance of the Ceylon Chamber of to Rs million 74,065 (2012). Finger 1 clearly
Commerce. Tea plantation became greater illustrates that contribution of tea for the
than the coffee plantations while Colombo GNP has significantly increased after the
Tea Traders' Association was formed in year 2005. With regard to the area,
1894 and Colombo Brokers’ Association cultivation has increased by 17% from 1996
was formed in 1896. One million tea packets (189,354 ha) to 2012 (222,000 ha). After
sold at Chicago World's Fair (1893). In 192, 2006, area cultivation of tea in Sri Lanka has
the Tea Research Institute was established reached up to maximum level (Finger 2).
and it helped boost the production and While considering the tea production,
export of Ceylon Teas. The year 1932 highest production of the country (331.4 Kg
Ceylon tea propaganda board was million) was the recorded the year 2010 and
established and export of poor quality teas production have increased by 25.5% from
was prohibited. State plantation cooperation 1996 (258.4 Million Kg) to 2012 (328.4
was established in the year 1954 while 1963 Million Kg). According to regression
instant tea was introduced. The year 1965, analyze, the increment of tea production
Sri Lanka became a world's largest tea (regression coefficient) was reported as
exporter for the first time. First international 3.32annually (r2 = 70.2%). Further, export
tea convention was held in Sri Lanka in income has also increased significantly from
1966. Further, British own tea stats were Rs million 32,537 to Rs million 180,429 by
nationalized by the Government of Sri 454.5% in the respective time period. Export
Lanka in 1971. Sri Lanka Tea Board was the income of tea has increased (regression
establishment in 1976. Export of Tea Bags coefficient) by 9305.3 annually (r2 = 92%).
was stated at in 1976. Addition to that, Tea Further, a number of Tea Small Holders in the
Small Holdings Development Authority year 2012 was recorded as 390346. In this
(TSHDA) was established on 1st February context, tea as a crop contributes to
1977 for effective coordination of support providing more than 2 million job
services, development of individual opportunities directly and indirectly.
entrepreneurship of tea smallholders and Rodrigo (2013) Research Economist of
inclusion of smallholder community into Institute for Policy Studies of Sri Lanka
business inclined farmer organizations. The pointed out that several challenges to the tea
year 1980 Sri Lanka became the official industry and opportunities
supplier of the tea for the Moscow Summer
Olympic Game. Export of Green Tea was

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 Journal of Social Sciences and Humanities Review (JSSHR)
Vol. 3, Issue. 1 (65-70)
© Author(s) March 2018
ISSN: 2279-3933

Followings are the different challenges  Increased protectionism, tariff and

Non-tariff barriers by importer
 Restricted export competitiveness
country
and market penetration
 High competition (more than 40
countries are now producing tea)

Figure 1: Contribution of tea for country GNP from 1996 to 2012

Figure 2: Increment of Area cultivation, Production, and Export Value of tea from 1996 to
2012

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 Journal of Social Sciences and Humanities Review (JSSHR)
Vol. 3, Issue. 1 (65-70)
© Author(s) March 2018
ISSN: 2279-3933

 Limited involvement in regional and  Different types of value-added

bilateral agreement, especially in products such as organic tea, tea
comparison with other Asian bags flavored tea etc.
countries  Use of renewable energy to address
 Highly overvalued currency higher energy costs
continues to adversely impact the  Financial assistance to upgrade
competitiveness factories to become more energy
 High electricity, fuel costs for efficient, replace old machinery.
industry and stringent labour  Testing facilities for external
regulations pose significant barriers compliance
on firms’ ability to compete in the  Government support: subsidies the
global market. cost of replanting
 Increased transportation costs,  High possible to have carbon credits
fertilizer costs  The government, the regional
 Low productivity of old lands, but plantation companies, trade unions
can new lands be viable (longer and workers have to play a collective
gestation period of new lands) role
 Higher food safety standards to be  Provide support for exchange rate
fulfilled by the producers to export fluctuations, tariff, and non ‐ tariff
food items such as tea barriers
 Increased cost of production: Low  Reduce tax from importer by trade
labour productivity including agreements
absenteeism, shortage of workers  Sri Lanka has about 500,000 tea
coupled with low levels of social smallholders who support close to
recognition For plantation workers two million people. This as well as
 Low yielding varieties the second generation needs to be
 Lack of financial support for small protected.
tea holders  A majority of Sri Lanka’s tea
 Poor technology transfers smallholdings (approximately 80%)
 Climate Change are below one acre. Land expansion
 Further, followings are the might be an issue so we need to
opportunities and way forward to the improve land productivity
development of tea industry in Sri  It is important to increase the
Lanka productivity of the factories as well,
 Tea is the largest agrarian industry in energy savings, carbon and water
Sri Lanka and provides direct and footprints are good options
indirect employment more than two  For the development of the sector,
million people or nearly 10% of the three things are needed which are
population. leadership, innovation, and face to
 Research in developing new varieties competitiveness different level viz.,
that can withstand impacts of climate local, regional and global context.
change through Tea Research
Institute

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 Journal of Social Sciences and Humanities Review (JSSHR)
Vol. 3, Issue. 1 (65-70)
© Author(s) March 2018
ISSN: 2279-3933

CONCLUSION principal and most famous export; for

generations, it shouldered the Sri Lankan
James Taylor planted 19 acres of tea in the economy, and plays a major part, even
city of Kandy, at the Loolecondra Estate as today, in the country’s fortunes. On this
the first commercial tea plantation in the background, tea cultivation in Sri Lanka,
year 1867. After that cultivation of tea was therefore, can be considered as a dowry of
increased gradually and tea has been the the Western Colonization.

REFERENCES
Central Bank, (2013) Annual Report, Tea Small Holdings Development
Central Bank of Sri Lanka, Authority, (2012).Annual Report,
Colombo, No: 70, Parliament Road, Pelawatta,
Central Bank, , (2006) Economic and social Battaramulla
statistics of Sri Lanka, Central Bank
of Sri Lanka, Colombo
Central Bank, (2010) Economic and social
statistics of Sri Lanka, Central Bank
of Sri Lanka, Colombo,
Central Bank, (2013) Economic and social
statistics of Sri Lanka, Central Bank
of Sri Lanka, Colombo,
Hasitha De Alwis, (2010)Sri Lanka Tea
Industry, Sri Lanka Tea Board
Majumdar P. K., (2002). Statistics A tool for
Social Sciences. Rawat Publications,
Satyam Apts., Sector 3, Jain Temple
Road, JawaharNapur, Jaipur, India
Madridakis, S., Wheelwright, S. C. and
McGee, V. E., (1983).Forecasting
Methods, and Application. Willey,
New York
Rodrigo C., (2013) Current Status of the
Economy, Challenges, and
Opportunities for Regional Business:
Tea Industry, Research Economist at
Institute for Policy Studies
Tea Small Holdings Development
Authority, (2009).Annual Report,
No: 70, Parliament Road, Pelawatta,
Battaramulla

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