Largest Ceylon black tea producer embraces mechanisation, drone technology and AI amidst labour shortage

By Nishel Fernando

Sri Lanka’s largest black tea producer, Hatton Plantations PLC (HPL), is embracing mechanisation, drone technology and artificial intelligence (AI) to navigate the challenges of a manual labour shortage and rising production costs, according to its 2024/2025 annual report. 

The company is also doubling down on sustainability initiatives and diversifying its portfolio to ensure future growth and resilience.

In a significant move to counter the scarcity of manual labour, HPL Chairman G.D. Seaton noted that the company has expanded its machine plucking initiative and introduced drone technology for fertiliser and pesticide application as well as for supervision of agricultural practices. 

The company is also exploring opportunities in AI to enhance efficiency and quality in Ceylon Tea production. This technological push is part of a broader strategy to create a “future-ready” and “sustainability-driven” enterprise.

HPL has a strong focus on environmental, social and governance (ESG) principles, with several initiatives underway to minimise its environmental footprint and support its communities. Key sustainability activities include rainwater harvesting, crop diversification, renewable energy and biodiversity diversification.

The company actively implements rainwater harvesting to mitigate the impacts of climate change and ensure the resilience of its tea plantations. HPL has diversified into coffee cultivation, with a 500-hectare coffee plantation and a recorded first harvest of 2,116 kilogrammes. The company also has plans to expand its timber plantations.

Recognising energy as an essential resource, HPL is seeking opportunities in the renewable energy sector as a second vertical in its diversification strategy. The company has already achieved the ISO 50001 certification for its energy management system and has successfully reduced its electricity consumption by 18 percent.

In partnership with WMPL PLANTS, HPL is working to conserve biodiversity within and around its estates by mapping and protecting flora, fauna and waterways.

Looking ahead, HPL is focused on a “future-ready” strategy that includes continued investment in technology, crop diversification and renewable energy. The company is also committed to strengthening its brand, having recently rebranded with the tagline ‘HATTON TEA CO. Since 1882’, to emphasise its long heritage. In 2019, a majority controlling stake in HPL was sold to Lotus Renewable Energy (Private) Limited and its ultimate parent Renewables (Singapore) Pte Ltd. The company’s board of directors includes experienced professionals from various sectors, reflecting a strong governance structure

Despite challenges such as adverse weather conditions and increased production costs, HPL remains a top producer of Ceylon Tea, recording the highest tea production volumes at the Colombo Tea Auction for the fifth consecutive year.