DILMAH

Dilmah Strengthens Sri Lanka’s Water & Ocean Stewardship

Dilmah invited to be Patron of UN Global Compact Network Sri Lanka’s Water & Ocean Stewardship Working Group

For Sri Lankans, Dilmah is more than a tea brand – it is heritage distilled in a cup, a name synonymous with authenticity, integrity, and the familiar aroma of home. Yet behind its global reputation lies something far more profound: a philosophy rooted in purpose, compassion, and stewardship. This ethos is anchored in the words of Dilmah Founder Merrill J. Fernando, who believed that “business is a matter of human service.” It is this guiding principle that continues to shape how Dilmah grows, innovates, and contributes to society – placing purpose above profit.

In recognition of this enduring commitment, Dilmah Ceylon Tea Company PLC has been invited to be Patron of the Water & Ocean Stewardship Working Group of the UN Global Compact Network Sri Lanka (Network Sri Lanka). This invitation is both an honor and a responsibility: an opportunity to amplify decades of leadership in conservation and inspire others to take action in Sri Lanka’s collective sustainability journey.

“Being named Patron amplifies the work that we are already doing,” said Rishan Sampath, Head of Sustainability and Conservation at Dilmah. “But more importantly, it gives us a platform to bring others with us – to build a national conversation, to share tools, and to invite new thinking.”

A Legacy in Water Stewardship

Water has always been at the heart of Dilmah’s philosophy. Reliable access to water sustains the tea industry, just as thriving ecosystems sustain communities. Recognizing this, Dilmah Conservation – the company’s environmental arm – has, since 2007, spearheaded over fifty initiatives to conserve, restore, and manage water resources. These include rainwater harvesting systems, community access to safe drinking water, wastewater recycling, and campaigns to reduce plastic pollution that threatens waterways.

In 2024/25, Dilmah took a significant step forward by conducting its first-ever water footprint assessment, aligned with ISO 14046:2014 and validated by a third party. The assessment, based on the methodology of the Water Footprint Network, represents a milestone in the company’s sustainability journey. By adopting internationally recognized standards, Dilmah has enhanced the credibility of its water data and reinforced its commitment to transparent, science-based environmental management.

The results of the assessment provided detailed insights into Dilmah’s water use. At Dilmah Ceylon Tea Company (DCTC), the total direct water footprint was recorded at 19,498 cubic metres per year, while its subsidiary MJF Beverages (MJFB) reported a total of 880 cubic metres per year. The breakdown highlighted direct blue water footprints of 11,851 cubic metres per year at DCTC and 527 cubic metres per year at MJFB, while the direct grey water footprint was 7,647 cubic metres per year and 353 cubic metres per year respectively. These figures provide a critical baseline to guide future water efficiency and conservation strategies.

Importantly, the assessment revealed a clear trend of improvement. In 2024/25, the volume of municipal water withdrawn and consumed fell by 8 percent year-on-year, decreasing from 39.15 million litres in 2023/24 to 35.93 million litres. Similarly, the volume of water discharged to wastewater treatment plants declined by 44 percent, falling from 41.11 million litres to 23.01 million litres. These reductions demonstrate Dilmah’s progress in reducing its water footprint and enhancing efficiency across operations.

From Waste to Resource: Water Conservation in Practice

Water conservation at Dilmah extends beyond monitoring and reporting. The company has integrated circular practices into its operations, ensuring that water is reused wherever possible. All effluents are routed to on-site wastewater treatment plants (WWTPs), which are designed to meet stringent environmental parameters, including pH levels, Chemical Oxygen Demand (COD), Biological Oxygen Demand (BOD), Total Suspended Solids (TSS), oil and grease, and heavy metals. Once treated, wastewater is repurposed for landscaping and gardening, reducing dependence on fresh water and minimizing waste.

Rainwater harvesting is another critical aspect of Dilmah’s conservation model. Systems installed at the company’s Headquarters in Colombo, the One Earth Centre in Moratuwa, and selected estates under Kahawatte Plantations PLC collectively offer a harvesting capacity of 129,799 cubic metres. By capturing and storing rainwater, Dilmah reduces reliance on municipal water supplies and ensures water security for operations and communities.

Looking ahead, Dilmah is scaling up its rainwater harvesting efforts even further. In December 2024, preliminary feasibility studies were conducted in collaboration with the Lanka Rainwater Harvesting Forum (LRWHF) at the Endane and Houpe estates. These studies lay the foundation for an expanded rainwater harvesting infrastructure across the Kahawatte Plantations footprint, demonstrating Dilmah’s proactive approach to long-term water stewardship.

“Without reliable sources, there is no tea. Without healthy ecosystems, there are no resilient communities. Water is everything,” Rishan emphasized.

Strengthening Through Network Sri Lanka

Dilmah’s progress has also been accelerated by its collaboration with Network Sri Lanka. Through the Network, Dilmah has been able to align its water stewardship practices with global frameworks, access international expertise, and share its learnings with peers across industries. The Working Group has provided a platform not only to showcase Dilmah’s pioneering efforts in water footprint assessment and conservation, but also to engage other businesses in advancing shared solutions. By convening companies from diverse sectors, Network Sri Lanka ensures that individual initiatives like Dilmah’s contribute to system-wide change and strengthen Sri Lanka’s collective response to water and ocean challenges.

“Our collaboration with the Network Sri Lanka has helped us go forward, faster,” added Rishan. “Through the Network, we have been able to benchmark our progress against international best practices, access expertise on emerging issues, and, most importantly, work alongside other Sri Lankan businesses who share our commitment to water and ocean stewardship. That collective approach makes our efforts stronger and more impactful.”

Expanding to Ocean Conservation

While water has always been part of Dilmah’s DNA, the company has more recently extended its stewardship to Sri Lanka’s oceans and coastal ecosystems. On World Oceans Day, 8 June 2024, Dilmah partnered with the University of Colombo and Uva Wellassa University to launch Phase I of a coral conservation project at Colombo Port City. This initiative builds on Dilmah’s earlier efforts to protect the Kayankerni Marine Reef and focuses on studying coral diversity in an urban setting. Using baseline surveys, mapping, data collection, and impact assessments supported by innovative technologies, the project aims to generate critical insights into the resilience of corals in rapidly developing coastal environments.

At the same time, Dilmah Conservation has embarked on one of Sri Lanka’s most ambitious mangrove restoration programmes. In Kalpitiya’s Kappal Adi Lagoon, Dilmah is restoring twenty-five acres of degraded mangrove forest. This project is underpinned by a dedicated mangrove nursery cultivating seven species of saplings. Since its launch in October 2022, the initiative has reported an above-average planting success rate, owing to the use of science-based planting techniques. A comprehensive baseline survey of the site documented 144 wildlife species and 62 native plant species, creating a robust scientific foundation to guide ongoing restoration work.

Collaboration remains a cornerstone of Dilmah’s approach. Through Biodiversity Sri Lanka (BSL), the company is jointly restoring mangrove patches in the Anawilundawa Wetland Sanctuary, a Ramsar-recognized site of international importance. These projects complement ongoing coral reef conservation under the initiative Life to our Coral Reefs.

“Our responsibility extends from the cloud forests of our estates to the coral reefs on our coasts,” Rishan noted, highlighting the interconnectedness of land and marine ecosystems.

The Road Ahead

As Dilmah looks to the future, its ambitions in water and ocean stewardship are growing. Plans are underway for the accurate mapping of Sri Lanka’s fringing coral reefs using high-resolution drone imagery and for the evaluation of ecological and benthic characteristics to guide national policy. The company is also exploring the potential of blue carbon ecosystems – mangroves, seagrasses, and salt marshes – to act as carbon sinks while supporting eco-tourism and enhancing climate resilience. At the same time, expanding rainwater harvesting infrastructure across its plantation footprint remains a priority to safeguard freshwater resources in the face of climate variability.

By marrying decades of water stewardship with bold new commitments to marine conservation, and through Dilmah’s longstanding participation with Network Sri Lanka to translate global principles into local impact, the company is helping build a future where people, ecosystems, and businesses can thrive together. In doing so, Dilmah continues to advance the Ten Principles of the UN Global Compact – safeguarding human and environmental well-being, promoting responsible labour and ethical business conduct, and contributing to a resilient, sustainable Sri Lanka.