Sri Lanka’s Regional Plantation Companies (RPCs) are increasingly diversifying into coffee cultivation, with Kahawatte Plantations, part of the Dilmah Group, taking a significant step through its partnership with the Australian Government-funded Market Development Facility (MDF).
Kahawatte Plantations aims to enhance its coffee cultivation and processing capacity, addressing the high domestic demand for Sri Lankan coffee while positioning itself in the lucrative specialty coffee export market.
The partnership will establish a coffee farmer outgrower model in Nawalapitiya, supported by a centralized coffee processing facility, enabling Kahawatte to source quality coffee from smallholder farmers and develop a specialty coffee product line for international markets.
Farmers involved in the initiative will benefit from stable, market-based prices, access to new markets, and support in adopting sustainable farming practices, creating economic opportunities for local communities.
Dilhan C. Fernando, Chairman of Dilmah Tea and Kahawatte Plantations, expressed his vision for branding Sri Lankan coffee globally, leveraging Dilmah’s strong international presence to promote Ceylon Coffee in prominent markets like Australia.
Australian Deputy High Commissioner Lalita Kapur highlighted the potential for this partnership to expand Sri Lanka’s coffee industry, building on years of Australian support for the sector and fostering economic growth through catalytic investments.
MDF Country Director Maryam Piracha emphasized the critical role of large plantation companies, like Kahawatte, in driving Sri Lanka’s specialty coffee industry forward, capitalizing on emerging opportunities locally and internationally.
This collaboration is expected to significantly increase Sri Lanka’s coffee production, solidify its place in the specialty coffee sector, and contribute to sustainable economic development.
