Sri Lanka, March 3 -- Sri Lanka's rubber industry entered 2025 under mounting pressure from weakening global demand and policy uncertainty to persistent disease outbreaks, labour shortages and rising production costs.

By 2026, a further 15 percent wage increase intensified existing cost pressures, raising concerns about the long-term viability of rubber plantations.

While the sector has long played a strategic role in export earnings and domestic manufacturing, industry leaders now warn that without timely intervention, rubber risks becoming economically unviable across large parts of the country.

Export performance in 2025 reflected these strains. Rubber-based export earnings declined to around US$ 945 million, down from approximatel...