Sri Lanka has a population of just over 22 million people,[1] with 81% of its inhabitants living in rural areas[2] and the rest 19% in urban centres.[3] The agricultural sector employs a quarter of the workforce[4] and accounts for 8.3% of the nation's GDP.[5]
Agriculture is highly important for Sri Lanka's economy and roughly 45% of the country's land is used for agricultural production.[6] Yet, agriculture in Sri Lanka is characterised by low levels of mechanization and productivity.[7] Smallholders are responsible for around 70% of the total tea production, the most important export in Sri Lanka, and still they account for half of the poor rural people.[8]
The top commodities produced in Sri Lanka are rice, coconuts, plantains, tea leaves, and sugar cane,[9] while arranged by export quantity the top commodities are fibre crops, tea, wheat, and nuts. [10]
Minimum Wage
The minimum wage in Sri Lanka is 21,000 Sri Lankan Rupees (58 EUR).[11] Regardless of the value, national authorities have not been effective in protecting labour rights or securing basic working conditions. Worker protections are not enforced in the informal sector, nor in all formal sectors.[12]
Living Wage
The Global Living Wage Coalition has developed a living wage benchmark for the tea estate sector in Sri Lanka, and a living wage reference value for urban Sri Lanka.
The living wage benchmark has been estimated at 47,464 Sri Lankan Rupees (132 EUR) per month based on a family of 4.5 with 1.76 full-time workers.[13] Tea is a major commodity in Sri Lanka, both nationally and for export, and is mainly grown on large tea estates in mountainous regions in the middle of the country. Tea estates are defined as plantations with more than 20 acres and a minimum of 10 workers and it is estimated that around 20 million Sri Lankans live on such estates. The wages of tea workers vary according to their role and if they are pluckers, it depends on the amount of their daily collection. Thus, there is a considerable difference between the prevailing wages for most workers on the tea plantations and the estimated living wage for the tea estate sector.[14]
A reference value was also estimated for urban areas of Sri Lanka at 113,987 Sri Lankan Rupees (317 EUR) per worker per month. This comprises a net living wage of 104,868 Sri Lankan Rupees (291 EUR), plus social security contribution of 9,119 Sri Lankan Rupees (25 EUR), and reflects inflation of 35.3% compared to 2022. Without accounting for inflation, the living wage estimated in 2022 would not be sufficient for families to have a basic but decent standard of living because the purchasing power would have considerably decreased.[15]
Living income
The Living Wage Benchmark study for the the Estate Sector in Sri Lanka included a Living Income estimate. The cost of basic but decent living for a family of 4.5 with 1.76 workers to estimated at 76,266 Sri Lankan Rupees (212 EUR) per month 
.
Fairtrade Living Income Reference Price for Coconut from Sri Lanka 
A Fairtrade LIRP indicates the price needed for an average farmer household with a viable farm size and an adequate productivity level to make a living income from the sales of their crop. This study was valid in 2022.
Living Wage Reference Value — Urban Sri Lanka
Living wage reference value for urban Sri Lanka. Global Living Wage Coalition.
Living Wage Benchmark, Sri Lanka's Tea Estate Sector
Living wage estimate for workers in Sri Lanka’s tea sector to be able to afford a basic but decent living standard. Global Living Wage Coalition.
Ethical Tea Partnership
Initiative to improve the livelihoods of tea farmers and their families across the globe. Projects in Sri Lanka seek to empower women and strengthen income.
Sustainability Issues in the Tea Sector
This report by SOMO, explores the economic, social and ecological conditions in the tea industry by comparing six leading producing countries.
Future Work Prospects in the Sri Lankan Tea Sector
This ILO report promotes understanding of the role of smallholder farmers in tea value chains, the state of decent work, and the implications for future work in Sri Lanka's tea sector.
Fair Compensation in Global Supply Chains
This Fair Labor Association report assesses factory wages, mainly from garment workers, in 21 countries to help buyers and suppliers move toward better compensation.