An Analysis on Present Scenario of Small Scale Tea Production in Sri Lanka: With Special Reference to Matara District

Abstract

Tea is a major cash crop that is grown in Sri Lanka. It taken significant place in the plantation economy. Sri Lanka's tea production occupies a prominent place in the local economy and in the world market. Moreover, the tea-production sector offers employment opportunities for households, particularly in rural and mountainous regions. Sri Lanka has become the fourth largest producer and third largest tea exporter in the world by 2016 (Sri Lanka Tea Boards 2016). Tea has been biggest provider of exporting earning, employment and government revenue. The total contribution of the agriculture sector to Sri Lanka's GDP is about 6.9 percent, with tea contributing 0.7 percent. As a large and small scale production are in the country. Tea lands lesser than ten acres as per the tea control act are considered as tea smallholdings. The smallholders are the largest contributors to Sri Lanka’s tea production. Given the importance of tea plantation, the recent trend is to increase the contribution of smallholder tea estate successes year on year, exceeding the importance of large tea estates. The Tea Small Holding Division had made the highest contribution to the overall tea output of Sri Lanka.