Transforming Sri Lanka’s Tea Industry via Multi-Tiered Approach to Strengthen Climate Resilience and Sustainable Practices
Location
Period
Jan 2024 - Jan 2025
Funding (USD)
166,231
Project Code
ROA26 & LK018
Theme
04. Sustainable Landscapes
Status
Completed
Project Summary
The project aims to transform Sri Lanka’s tea industry by addressing climate vulnerabilities through innovative approaches, including a 10-hectare agroforestry pilot at Kahawattha Plantations in partnership with one of the world largest tea companies, Dilmah Ceylon Tea Company. By implementing inter-cropping practices, developing AI-driven yield forecasting models with Sabaragamuwa University, and conducting a comprehensive Sustainability Needs Assessment, the project also aims to enhance soil conservation, improve productivity, diversify incomes, and create a climate-resilient model that can be scaled across the tea sector, ultimately securing the long-term sustainability of Sri Lanka’s critical tea industry.
1st project (ROA26): GGGI, in collaboration with the Centre for Poverty Analysis, produced a Sustainability Needs Assessment (SNA) that identifies investment opportunities, strategies for enhancing resilience, and recommendations for improving agrobiodiversity in the tea sector value chain.
2nd project (LK018): GGGI and Dilmah are implementing a 10-hectare agroforestry pilot at Kahawattha Plantations to create a scalable, climate-resilient model that demonstrates the economic, ecological, and social benefits of innovative agricultural practices for the Sri Lankan tea industry, including potential replication across Regional Plantation Corporations.
3rd project (AI Project): Complementary to the above initiatives, GGGI and Sabaragamuwa University also develop an Artificial Neural Network (ANN) model to forecast tea and intercrop yields, revenue, and financial metrics within the agroforestry system at Kahawattha Plantations. This AI-driven approach aims to provide data-driven insights that can validate the economic potential of agroforestry and inform decisions about scaling sustainable farming techniques.
Project Objective
The project aims to foster Sri Lanka’s tea industry by building climate resilience and promoting sustainability through increased productivity, enhanced livelihood diversification of tea plantations and the integration of agrobiodiversity. Through innovative agroforestry practices with a 10-hectare pilot and AI yield forecast model, the project seeks to increase incomes for local communities, improve tea quality, and ensure the long-term competitiveness of Sri Lankan tea in global markets.
Context & Background
Sri Lanka’s tea industry, a critical economic driver known for high-quality exports, is predominantly composed of smallholdings and private estates. However, the sector faces significant challenges including declining productivity, soil degradation, rising production costs, labor shortages, and increasing climate change impacts. These challenges threaten the industry’s sustainability and the livelihoods of millions who depend on it.
Traditional farming practices and limited diversification have intensified environmental and economic vulnerabilities, while climate stresses like erratic rainfall and soil erosion further undermine productivity. In response, GGGI and Dilmah Ceylon Tea Company are implementing a comprehensive initiative integrating agroforestry, AI-driven yield forecasting, and a Sustainability Needs Assessment to enhance climate resilience, improve productivity, and diversify livelihoods. The project aims to create a sustainable, competitive future for Sri Lanka’s tea industry by developing replicable models that offer economic and environmental benefits.
Project Outcomes & Results
The project is piloting a 10-hectare agroforestry model at Kahawattha Plantations, demonstrating the economic, ecological, and social benefits of integrating climate-smart practices into tea cultivation. This initiative is expected to improve soil health, enhance biodiversity, and boost tea yield and quality, directly benefiting local communities through higher incomes and diversified livelihoods. This involves developing a comprehensive plan for mobilizing resources, securing funding, and expanding the intercropping practices across 2,000 to 10,000 hectares of Dilmah plantations and other Regional Plantation Companies (RPCs). By leveraging AI-driven yield forecasting, the project provides data to validate the economic viability of agroforestry practices. The results will create a scalable model that can be replicated across Sri Lanka’s tea industry, fostering long-term sustainability and resilience against climate change.