The Commercial Bank of Ceylon has introduced a dedicated loan scheme to help Sri Lanka’s tea smallholders renew ageing fields, improve cultivation practices and strengthen productivity in a vital export industry.

Developed with the Sri Lanka Tea Factory Owners Association (SLTFOA) and participating tea factories, the ‘Revitalising the Sri Lankan Tea Sector’ Loan Scheme addresses limited access to financing for essential agricultural investments.

Tea smallholders contribute more than 70% of national tea production. However, ageing bushes, inadequate replanting, soil degradation and financial constraints continue to undermine productivity and farmer incomes.

Under the scheme, eligible smallholders can borrow up to Rs. 1 million per acre for replanting and infilling, rising to Rs. 1.5 million per acre when an irrigation system is included.

Financing also supports soil rehabilitation, land preparation, certified planting material, agricultural inputs, nursery establishment, mechanisation and modern cultivation practices.

Repayments will be collected through deductions linked to green-leaf deliveries to participating factories, while a corporate guarantee from the relevant tea factory will serve as security.

Applicants must be registered tea smallholders supplying recognised factories belonging to the SLTFOA and satisfy the bank’s lending and repayment-capacity requirements.

Priority will be given to farmers managing ageing bushes and low-productivity holdings, alongside those undertaking replanting or rehabilitation. Female participation will also be encouraged.

By connecting banking expertise with industry networks, the initiative seeks to strengthen rural livelihoods and support the long-term competitiveness of Ceylon Tea.

The collaborative model offers a practical route towards renewing the country’s tea-growing base and building a more sustainable sector.