Planning to make best use of the land is not a new idea. Planters have made plans to decide on new planting, replanting, infilling, diversification, etc. according to the needs, knowledge, labour and capital available from the time plantations were opened in Sri Lanka. Today, land use has to change to meet new demands. The ultimate objective is to establish a system of land use for our plantations that is sustainable. The productivity of the land and water resource should not decline, nor should any of the activities damage the environment. Land Use Planning (LUP) focuses on the evaluation of land and the options for land use. The LUP can identify the most desirable pattern of land use and ways of achieving it from both the plantation and national point of view. The following criteria have to be adhered to: a) assess the present and future needs of the estates and evaluate the land ability to supply them; b) identify sustainable alternatives of land use and choose those that best meet the needs; c) plan to bring about the needed change; d) learn from past mistakes in land use. The tea industry has been undergoing a long period of declining yields resulting in reduced economic viability. Following privatization of estate management, there is an increased interest to make the estates more profitable. The main factors affecting the viability of tea is yield, daily wage and the plucking intake. It is imperative for planning purposes to have an accurate forecast of break even yields, nett sales average (NSA), etc. The problems faced by tea estates are such that something has to be done in order to ensure long term economic viability. Some of the factors estate managers have to take into account when planning the use of estate land are: soil conservation, environmental protection, maximize profits, maximize production, maximize labour use, diversify production and social considerations. Effective evaluation of the land use options must start with a clear understanding of the objectives of the Plantation Management Company. They should take into consideration the various commitments and requirements of the plantations as well as the goals and perceptions of the decision makers of the company. Land use planning workshops should be organized to identify investment options with the participation of middle and senior management staff. The workshop should be tailored for participants by an organization who has to co-operate mutually in the planning, coordination, monitoring, controlling and implementing of development plans.