In 1975, all company-owned plantation lands were vested in the state. With this nationalization of the plantations, the management of estates was somewhat broad-based, as the lands vested were given over to “Sri Lanka State Plantations Corporation” (SLSPC) and “Janatha Estates Development Board” (JEDB), which was created in 1976 under the State Agricultural Corporations Act No. 11 of 1972. In addition to these two organizations, new forms of organizations were created to manage some of the nationalized plantations. These included USAWASAMA (Up Country Co-operative Estates Development Board), JANAWASA, and electoral co-operatives.
It has been argued that the allocation of land among several management organizations resulted in a severe dislocation of management in the tea crop sector, while also resulting in several disadvantages such as a drop in output, waste, and inefficiency. The immediate impact of land reform was therefore not favorable to the tea industry.
In view of this situation, the government that came to power in 1977 took several steps to unify the management structures and practices in the interest of the tea industry. This included the abolition of USAWASAMA, JANAWASA, and Electoral Co-operatives and the handing over of all the properties managed by these organizations to the JEDB and SLSPC.
These two principal managing organizations have been brought under two separate ministries since 1980, and their management structures were also decentralized through a system of regional boards, thus granting freedom and decision-making powers to the regions with a view to improving productivity.
