COLOMBO, Sri Lanka – August 31, 2026 – Agarapatana Plantations PLC (APL), a prominent name in Sri Lanka’s high-grown tea sector, has officially released its Annual Report for the financial year ended March 31, 2026. The report, made public on August 28, 2026, details a year of strategic adaptation and resilient performance, driven by the company’s unwavering commitment to its “Precision-led, Sustainability-led” operational philosophy.
Despite significant external challenges, including climate anomalies like Cyclone Ditwah and substantial wage pressures, APL demonstrated its steadfastness, making strategic investments to fortify its long-term growth and operational efficiency.
Financial Performance Navigates Headwinds
For the financial year 2025/26, Agarapatana Plantations PLC reported a modest 2% increase in total revenue, reaching Rs. 7,356 million (Group revenue: Rs. 7,437 million). This growth was achieved despite a challenging market environment marked by a 4% decline in high-grown tea auction prices and two significant wage increases within two financial years, including a 15% hike effective January 2026.
The cumulative impact of these external factors, coupled with higher operating costs, led to a 61% decline in Profit After Tax for the company, settling at Rs. 305 million (Group Profit After Tax: Rs. 312 million). Nevertheless, APL remained profitable for the sixth consecutive year, underscoring the strength of its underlying business model and cost containment initiatives. The company declared a dividend of Rs. 0.50 per share, totalling Rs. 250 million, reflecting confidence in its future financial stability.
“Precision-led, Sustainability-led”: A Core Philosophy
The Annual Report prominently features APL’s guiding principles: “Precision-led” and “Sustainability-led.” These twin pillars define the company’s approach to excellence, ensuring accuracy in practices and responsibility in operations. Through advanced technology and conscious resource management, APL continues to build productive and resilient operations, striving for progress without compromise.
The future of agriculture, as articulated in the report, demands both clarity and responsibility, a mandate APL is actively pursuing to transform into an entity “made to last, and made to flourish.”
Operational Resilience and Strategic Diversification
APL’s operational review highlights its proactive measures to mitigate risks and capitalize on opportunities. The company remained the largest high-grown tea producer among Regional Plantation Companies (RPCs). Key operational achievements and strategies include:
- Disaster Response: Existing disaster response mechanisms and investments in climate adaptation, such as desilting drainage systems and strategic shade tree planting, significantly mitigated the impact of Cyclone Ditwah in November 2025, protecting both assets and estate communities.
- Technological Integration: The rollout of a new cloud-based ERP system is set to enhance real-time data collection and analysis, improving operational efficiencies, resource monitoring, and decision-making across all estates.
- Mechanization: To counter persistent labour shortages, APL is selectively integrating technology, expanding the use of harvesting machines, pruning equipment, and land augers. Drones are also being deployed for spraying, freeing up labour for higher-value tasks like green leaf harvesting.
- Renewable Energy Expansion: The transition to renewable energy continues, with 10 of APL’s 17 tea factories now equipped with solar power. Five factories achieved carbon-neutral certification in FY 2025/26, reflecting the company’s commitment to reducing its carbon footprint. Two mini-hydro power plants are operational, with a third planned.
- Value-Added Products: APL finalized its premium value-added tea range and is set to enter the market in 2026. Udaveriya Estate achieved Japanese Agricultural Standards (JAS) organic certification, opening new market opportunities.
- Tourism Diversification: APL expanded its tea tourism footprint by opening its sixth tea centre at Bandarawela Railway Station, complementing existing attractions like Lipton Seat and the Pekoe Trail.
- Timber Value Addition: Despite regulatory changes affecting timber harvesting, APL is investing in value addition to timber, targeting the construction industry to enhance returns and ensure sustainable replanting.
Robust Governance and ESG Commitment
Agarapatana Plantations PLC remains committed to embedding Environmental, Social, and Governance (ESG) principles throughout its strategy and operations. The company adopted the SLFRS Sustainability Disclosure Standards – SLFRS S1 & S2, establishing an ESG Management Committee to oversee compliance and drive climate-related initiatives.
Significant progress was made in emission monitoring, with a clear roadmap towards Net Zero. The company maintains full compliance with applicable labour laws, anti-child labour, and forced labour regulations. Social capital initiatives include enhanced employee welfare, housing programmes in collaboration with the PHDT, and educational support for estate children.
Outlook and Future Path
While global geopolitical uncertainties and market volatility may persist, APL is cautiously optimistic, aligning with the projected 10-12% growth for Sri Lanka’s tea industry in 2026. The company’s future plans focus on continuous capital investment in infrastructure, technology, and human resource development. Securing Occupational Health and Safety (OHS) certification for all factories and expanding its organic and premium tea market presence are key priorities. APL will also continue to expand its tourism infrastructure and explore Agentic Artificial Intelligence for production and governance.
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