Kahawatte Plantations Redefines the Future of Sri Lanka’s Plantation Industry Through Sustainable Innovation, Community Empowerment and Profitability

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In an era of transformation for Sri Lanka’s plantation sector, Kahawatte Plantations PLC (KWPL) has emerged as a formidable force, redefining the parameters of agricultural excellence, sustainability and inclusive growth. As a Regional Plantation Company operating across the landscapes of Nawalapitiya and Sabaragamuwa, KWPL manages 16 estates spread across 12,356 hectares. The company’s diverse crop mix includes tea, rubber, cinnamon, coffee, coconut, pepper, durian, macadamia and commercial forestry which highlights its commitment to diversification and resilience.

Operating under the stewardship of the MJF Group of Companies, globally recognized for the Dilmah Tea brand, KWPL is nurturing innovation, integrity, and long-term impact. Since its acquisition by the MJF Group in 2002, KWPL has undergone a strategic transformation. Moving away from traditional plantation practices, the company has adopted cutting-edge agri-innovation and sustainable business models. With an ambitious focus on reversing profit erosion and boosting margins, KWPL has implemented lean cost structures, rigorous KPI monitoring, mechanization, and high-efficiency operations across its estates. These strategies have delivered tangible results. The company’s investment in solar and hydro energy systems now saves over Rs. 4 million each month, while the Rs. 120 million solar project at Imboolpittia Estate is expected to generate consistent income for the next two decades. Notably, 70% of this project is funded through grants from the MJF Charitable Foundation.

Quality, Certification and Market Leadership of Kahawatte

KWPL’s transformation also includes a bold push towards product excellence and diversification. With over 336 hectares under cinnamon cultivation, it became Sri Lanka’s first plantation company to achieve Global GAP certification for cinnamon. The company is also officially registered under the Ceylon Cinnamon Geographical Indication, marking a significant milestone in elevating the credibility of Sri Lankan produce on the global stage. This focus on quality and innovation has paid off handsomely. In 2023 and 2024 alone, KWPL secured over 550 top prices at weekly tea auctions, with estates like Craighead, Queensberry and Kataboola regularly leading in the mid-grown category. Specialty teas such as “Rilagala Curls (Westhall)” and “Silver Green Needles” set records at charity auctions, fetching prices of up to Rs. 1.6 million per lot. KWPL is also breaking new ground through its partnership with the Industrial Technology Institute to commercialize Pentadesma Butter (Kpangnan Butter), derived from a previously underutilized fruit. This venture positions the company at the cutting edge of natural product innovation in the plantation industry.

Environmental Leadership Beyond Compliance

Environmental stewardship is embedded into KWPL’s operations which certainly is not treated as a peripheral responsibility. The company has developed a tea-based agroforestry model in collaboration with the Global Green Growth Institute, Rajarata University and the University of Peradeniya, which integrates biodiversity conservation with productive land use. KWPL’s commitment to sustainability is further evidenced by its management of over 2,000 hectares of timber plantations and 1,600 hectares of conservation forest. One of its standout environmental achievements is the creation of a 3-kilometre biodiversity corridor near the Sinharaja rainforest, developed in partnership with Dilmah Conservation. This project was recognized with the Best Sustainability Project Award at the 2023 Best Corporate Citizen Awards. Adding to its environmental credentials, KWPL also established the One Earth Climate Research Centre at Queensberry Estate which is the first private-sector climate adaptation research station in Sri Lanka, highlighting the company’s leadership in environmental science and policy engagement.

People-Centered Progress

At the heart of KWPL’s mission is its unwavering commitment to community empowerment. Reflecting the values of the MJF Group, the company’s comprehensive CSR programme supports more than 6,000 plantation workers and their families. Its initiatives encompass early childhood education, elder care, women’s health and scholarships, building a cohesive framework for social upliftment. KWPL has distributed over 2,000 ergonomically designed tea plucking baskets to improve worker wellbeing and safety. It provides scholarships for over 130 students each year, demonstrating a long-standing belief that prosperity must be shared. During the economic hardships brought on by the COVID-19 pandemic, KWPL responded with compassion, distributing Rs. 25 million worth of dry rations to help workers and their families weather the crisis. The company also runs innovative community programmes such as the “Ray of Hope” initiative for children and promotes livelihood diversification through beekeeping enterprises. Further, the “Savings Passbook Programme” for newborns encourages financial literacy from birth, offering families a tangible stake in their children’s future.

Visioning the Future of Plantations

Kahawatte Plantations is investing in a transformative roadmap that seeks to redefine what a modern, responsible plantation company can be. Plans are underway for end-to-end digitization through the implementation of a new ERP system, yield forecasting via drone and multispectral imaging, and the production of biochar from tea waste as a sustainable alternative to inorganic fertilizers. The company also envisions turning its estates into tourism gateways, with initiatives already in motion at Denawaka and Imboolpittia. Expanding its renewable energy footprint and exploring direct-to-consumer channels are further steps in a future oriented strategy that aligns with Environmental, Social and Governance (ESG) principles, carbon neutrality goals and consumer-centric innovation.

As one of the largest landholders in Sri Lanka’s plantation sector, Kahawatte Plantations PLC is leading the industry into a new era. At a time when the sector faces scrutiny around sustainability, profitability and ethical practices, KWPL offers a compelling and transparent model rooted in innovation, inclusivity, and long-term vision.


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