One of the burning issues was the high costs of production vis a vis the low levels of productivity compared to competitors.
The growing importance of smallholders in the production of green leaf, especially in the low country, reflects the different cost structures that they face relative to the Regional Plantation Companies (RPCs).
The RPCs are challenged to be more competitive and Sri Lanka’s share of the global market in commodities has been steadily declining, has also been a bone of contention.
Profitability
According to the study done by Dr Gunatilleke, only low grown tea and rubber have been enjoying profits in the recent past. The high grown, mid grown and Uva tea sectors have been posting losses, but the losses have been stable rather than increasing over the years.
Impact of exchange rate movements on profitability was an important issue which merits careful analysis which is beyond the scope of the present paper
http://www.dailynews.lk/2011/07/18/bus26.asp