COLOMBO, SRI LANKA, JUNE 17, 2024 – The Global Green Growth Institute (GGGI) and Dilmah Ceylon Tea Company announced the launch of an innovative agroforestry initiative titled “Accelerating Agroforestry Adoption in Sri Lanka’s Plantation Sector.” This initiative aims to transform Sri Lanka’s tea industry by mainstreaming agroforestry practices that improve soil health, increase crop resilience, and enhance productivity. 

Starting in June, the project will implement integrated agroforestry and multi-cropping systems within Dilmah’s tea plantations. It seeks to bolster Sri Lanka’s competitive advantage in the global tea market through environmentally sustainable practices, focusing on enhancing soil multifunctionality and developing robust, climate-adaptive agricultural systems that will support the economic and environmental well-being of local communities.  

The tea industry, a cornerstone of Sri Lanka’s economy, faces numerous challenges, including declining productivity, inadequate replanting rates, and soil degradation. Representing one of the oldest and most vital crops, the tea sector significantly contributes to the national economy, with smallholdings and private estates producing 56% and 70% of the country’s total tea production and export earnings, respectively. However, the sector’s sustainability is threatened by outdated practices, soil erosion, high production costs, and labor shortages. This project aims to address these critical issues by implementing a pilot agroforestry model at the Rilhena Estate, owned and managed by Kahawatte Plantations – a subsidiary of Dilmah. The primary goal of the project is to develop a sustainable intercropping agroforestry model on a 10-hectare pilot plot within the Rilhena Estate. This model will integrate multiple crop species with tea plants to create a climate-resilient and economically beneficial system that can be scaled across other tea plantations in Sri Lanka.  

 Dr. Sonali Senaratna Sellamuttu, GGGI Country Representative, Sri Lanka added that “We at GGGI are thrilled to partner with Dilmah on this innovative joint initiative, which links to our sustainable landscapes thematic work.  Our pilot project plans to create a robust and economically beneficial model that can be scaled up to contribute to the long-term sustainability of the tea sector”.

“Our family tea business has an enduring connection with Nature,”  Dilhan C. Fernando, CEO/Chairman, Dilmah Ceylon Tea Company PLC emphasised. “This collaboration amongst Kahawatte Plantations, GGGI and Dilmah Tea is critical in defining the coexistence of people and nature, without compromising biodiversity, livelihoods, ecosystem services or food security. We hope that together we will be able to offer our colleagues in the tea industry in Sri Lanka and other producing countries, the practical and sustainable model that is a desperate need,” Dilmah Ceylon Tea Company PLC added. 

The benefits of this agroforestry model span environmental, social, and economic spheres. Improved soil health through nitrogen fixation and organic matter decomposition will enhance tea quality and yield, boosting Sri Lanka’s competitiveness in both domestic and international markets. Additionally, increased crop diversity will provide more consistent work for plantation workers, enhancing their livelihoods and financial security. 

About Dilmah Ceylon Tea. Dilmah has long been a pioneer in sustainable tea production, with initiatives such as the Endane Biodiversity Corridor and Sri Lanka’s first Climate Change Research Station. This new project further underscores Dilmah’s commitment to the UN 2030 Sustainable Development Agenda and their goal to be carbon negative by 2030. Founded in 1985, Dilmah Ceylon Tea Company is renowned globally for its high-quality, ethically sourced tea. As the first producer-owned tea brand, Dilmah manages its value chain, from tea gardens to packaging facilities. The company is dedicated to sustainable practices and champions biodiversity and ecosystem restoration through various projects and partnerships.