Horana Plantations said its managing agent, Ceytea Plantation Management, charged a fee of 5 percent of profits before interest depreciation tax and amortization.
But for the three years from April 01 2008, the fee will be capped at 15 million rupees a year.
The 'management fees' are a legacy of Sri Lanka's plantation privatization process where the firms were first given for third party management with the government remaining as the owner.