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The Fragrance of Cinnamon at Dilmah Tea

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A guest at the launch examining a pack of Dilmah, finest Ceylon cinnamon

Dilhan C. Fernando
Chairman, Dilmah Ceylon Tea Company PLC

There’s always a lingering fragrance around the Dilmah complex in Colombo. It is generally woody, sometimes tinged with citrus, occasionally fruity, and always pleasant. That’s the aroma of tea, varying only as the seasons influence the teas. We taste over 10,000 teas each week in selecting only the finest teas for Ceylon’s Finest so that lively aroma has always surrounded us, spurring us on in our mission to make the world a better tea since the time my father first started his journey in tea in the 1950s.

 There’s been a difference recently, the woody fragrance complemented by subtle sweetness, an added warmth and majestic piquancy. That change marks the first time Dilmah has ventured beyond tea, with the Cinnamon produced on its Kahawatte Plantations now offered in elegant cinnamon coloured packages, emblazoned with a golden logo declaring the contents, ‘Dilmah Finest Ceylon Cinnamon.’

 There are natural parallels in the two iconic Sri Lankan products. Ceylon Tea and Ceylon Cinnamon are universally acclaimed the finest tea and cinnamon in the world, accolades that are linked to the richness of the island’s biodiversity, its monsoonal climate, the diverse ecosystems, soils and the sophistication of the island’s tradition of sustainable agriculture. Since 3 BC, Sri Lanka was ruled by Kings who understood and embraced the natural synergy that should define interaction between people and nature. Colonialism interrupted that relationship although respect for nature and sustainability persists amongst many tea and cinnamon growers, adding to the allure of both.

 Dilmah Tea was born in September 1985 with the assurance that, ‘In Ceylon a country famous for its tea, there is a tea famous for its taste,’ evolving to my father’s invitation in 1994 to tea drinkers to ‘do try it!’. My father, Merrill J. Fernando, passed away in July last year yet the values he espoused through his lifetime of devotion to tea & kindness form the foundation of the legacy he leaves behind. A part of that legacy is a discussion we had on Ceylon Cinnamon and its potential to parallel the story of taste, goodness and ethical purpose in tea that my father devoted his life to. That discussion ended in a momentous decision to offer our Cinnamon, branded ‘Dilmah, Finest Ceylon Cinnamon.’

 Next year, Dilmah Tea celebrates 40 years since its debut in 1985. My father devoted his life to tea, and since the early days of Dilmah when he and 18 others laboured to make his dream of the first producer owned tea brand, a reality, our vision and mission have focused on making the world a better tea. Our decision to offer Dilmah Ceylon Cinnamon was not taken lightly therefore; it was rooted in the knowledge that the heritage, flavour, goodness and ethical purpose in genuine Ceylon Cinnamon is one of the world’s greatest untold stories.

 Ceylon Cinnamon is scientifically proven to be unique. Cinnamomum zeylanicum grown in other countries is not quite the same, as scientists have confirmed. That truth is indisputable but there is more to Ceylon Cinnamon. In 1000BC King Solomon sent ambassadors to Sri Lanka, visiting the present day city of Galle which he called Tarshish, to purchase Ceylon Cinnamon, amongst other treasures which included precious gemstones. The heritage of Ceylon Cinnamon is perfectly expressed in the value ascribed to the spice by Kings, Queens, Emperors, Physicians and Chefs over millennia.

 Our reason for embracing Ceylon Cinnamon goes beyond taste and heritage. Dilmah is a family business, formed on a foundation of family values, chief among which is kindness. Sri Lanka’s magnificent Cinnamon has been exploited for centuries with little or no benefit to the community engaged in its production or the future of the ancient Cinnamon industry in Sri Lanka. The existence of a cheaper, inferior counterfeit that unfairly acquired the allure of Cinnamon forced Ceylon Cinnamon into a defensive mindset, compromising the heritage, tradition, taste and goodness in the spice. The reality that cassia, the imitator contains the toxic substance coumarin, adds urgency to our mission.

 Our Ceylon Cinnamon was first presented to guests at an evening of gastronomy inspired by the fragrance and flavour of Ceylon Cinnamon in Dubai on 17th February, 2023. At the event guests were presented with an exceptional and different experience of the Spice of Kings. In combination, our passion for Ceylon’s Cinnamon, its unique taste, our life enhancing purpose in Cinnamon and the culinary art of Pullman Dubai Chefs Roziro Mathias and Dammika Herath, delivered insight into the taste, goodness and purpose of Dilmah Finest Ceylon Cinnamon.

 An amuse bouche of Langouste tortellini with vegetable consomme infused with Ceylon Cinnamon and white truffle, fig chutney and caramelised pears paired with Ceylon Cinnamon Infused Dilmah prince of Kandy Tea. Our entrée was Risotto Alberto with Ceylon Cinnamon infused Wild Asparagus veloute, brie cheese curd and a garnish of gold leaf. Thereafter butter-poached Ceylon Cinnamon dusted wild cod, royal Beluga caviar, caramelised endive, edemame puree and a blood orange glaze. Following a palate cleanser of Ceylon Cinnamon essence in spring water combined with Granny Smith Granita, came a slow roasted veal loin with Ceylon Cinnamon infused herb jus, chive polenta stuffed morel. Finally a trio of dessert, with Ceylon Cinnamon infused chocolate ganache, Ceylon Cinnamon Jelly dome, Warm Lemon cake with vanilla cream, mango mousse and hazelnuts caramelised in Ceylon Cinnamon and Ceylon Cinnamon infused chai.

 Entitled ‘Finest Ceylon Cinnamon Experience’ the event heralded the first serving of Dilmah Ceylon Cinnamon and the trade launch of our Cinnamon at Gulfood 2024.

 Too many great agricultural industries are built on a foundation of poverty. The transition from colonial to free market economy failed – in most cases – to free growers of coffee, cocoa, tea and many other crops. The extractive and exploitative colonial economic system is too often superseded by traders whose insistence on price, driven by a ruthless discount culture, drive down the incomes of growers, crushing innovation, education and motivation, eventually destroying livelihoods and industries. For genuinely fair trade, fair by customers and fair by producers, quality, integrity, sustainability, innovation and a genuine commitment to ethics are all important.

 In the case of Cinnamon, an entire industry was compromised by a misconception perpetrated by traders of cassia, who forced artisanal Cinnamon growers to compete with the much cheaper and inferior spice. That has compromised the benefit that the goodness in Ceylon Cinnamon offers a world suffering from the chronic diseases that it has potent therapeutic effects against. That unfair competition has also marginalized generations of Cinnamon growers and peelers who have not benefited from the true value of their produce.

 As a family with a commitment to the finest Ceylon Tea and the finest Ceylon Cinnamon, we will continue therefore to fulfill my father’s vision, to serve humanity through our business. We will do that through our mission to offering great Taste, natural Goodness and ethical Purpose in our teas and cinnamon.

 Follow us on Instagram for more updates: https://www.instagram.com/dilmahceyloncinnamon/



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Business

Sampath Bank’s strong results boost investor confidence

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The latest earnings report for Sampath Bank PLC (SAMP), analysed by First Capital Research (FCR), firmly supports a positive outlook among investors. The research firm has stuck with its “MAINTAIN BUY” recommendation , setting optimistic targets: a Fair Value of LKR 165.00 for 2025 and LKR 175.00 for 2026. This signals strong belief that the bank is managing the economy’s recovery successfully.

The key reason for this optimism is the bank’s shift towards aggressive, yet smart, growth. Even as interest rates dropped across the market, which usually makes loan income (Net Interest Income) harder to earn, Sampath Bank saw its total loans jump by a huge 30.2% compared to last year. This means the bank lent out a lot more money, increasing its loan book to LKR 1.1 Trillion. This strong lending, which covers trade finance, leasing, and regular term loans, shows the bank is actively helping businesses and people spend and invest as the economy recovers.

In addition to loans, the bank has found a major new source of income from fees and commissions, which surged by 42.6% year-over-year. This money comes from services like card usage, trade activities, and digital banking transactions. This shift makes the bank less reliant on just interest rates, giving it a more stable and higher-profit way to earn money.

Importantly, this growth hasn’t weakened the bank’s foundations. Sampath Bank is managing its funding costs better, partly by improving its low-cost current and savings account (CASA) ratio to 34.5%. Moreover, the quality of its loans is getting better, with bad loans (Stage 3) dropping to 3.77% and the money set aside to cover potential losses rising to a careful 60.25%.

Even with the new, higher capital requirements for systemically important banks, the bank remains very strong, keeping its capital and cash buffers robust and well above the minimum standards.

In short, while the estimated profit for 2025 was adjusted slightly, the bank’s excellent performance and strong strategy overshadow this minor change. Sampath Bank is viewed as a sound stock with high growth potential , offering investors attractive total returns over the next two years.

By Sanath Nanayakkare

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ADB approves $200 million to improve water and food security in North Central Sri Lanka

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ADB Country Director for Sri Lanka Takafumi Kadono

The Asian Development Bank (ADB) has approved a $200 million loan to support the ongoing Mahaweli Development Program, Sri Lanka’s largest multiuse water resources development initiative.

The program aims to transfer excess water from the Mahaweli River to the drier northern and northwestern parts of Sri Lanka. The Mahaweli Water Security Investment Program Stage 2 Project will directly benefit more than 35,600 farming households in the North Central Province by strengthening agriculture sector resilience and enhancing food security.

ADB leads the joint cofinancing effort for the project, which is expected to mobilize $60 million from the OPEC Fund for International Development and $42 million from the International Fund for Agricultural Development, in addition to the ADB financing.

“While Sri Lanka has reduced food insecurity, it remains a development challenge for the country,” said ADB Country Director for Sri Lanka Takafumi Kadono. “Higher agricultural productivity and crop diversification are necessary to achieve food security, and adequate water resources and disaster-resilient irrigation systems are key.”

The project will complete the government’s North Central Province Canal (NCPC) irrigation infrastructure, which is expected to irrigate about 14,912 hectares (ha) of paddy fields and provide reliable irrigated water for commercial agriculture development (CAD). It will help complete the construction of tunnels and open and covered canals. The project will also establish a supervisory control and data acquisition system to improve NCPC operations. Once completed, the NCPC will connect the Moragahakanda Reservoir to the reservoirs of Huruluwewa, Manankattiya, Eruwewa, and Mahakanadarawa.

Sri Lanka was hit by Cyclone Ditwah in late November, resulting in the country’s worst flood in two decades and the deadliest natural hazard since the 2004 tsunami. The disaster damaged over 160,000 ha of paddy fields along with nearly 96,000 ha of other crops and 13,500 ha of vegetables.

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ComBank to further empower women-led enterprises with NCGIL

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Mithila Shyamini, Assistant General Manager – Personal Banking at Commercial Bank and Jude Fernando, Chief Executive Officer of the National Credit Guarantee Institution exchange the agreement in the presence of representatives of the two organisations

The Commercial Bank of Ceylon has reaffirmed its long-standing commitment to advancing women’s empowerment and financial inclusion, by partnering with the National Credit Guarantee Institution Limited (NCGIL) as a Participating Shareholder Institution (PSI) in the newly introduced ‘Liya Shakthi’ credit guarantee scheme, designed to support women-led enterprises across Sri Lanka.

The operational launch of the scheme was marked by the handover of the first loan registration at Commercial Bank’s Head Office recently, symbolising a key step in broadening access to finance for women entrepreneurs.

Representing Commercial Bank at the event were Mithila Shyamini, Assistant General Manager – Personal Banking, Malika De Silva, Senior Manager – Development Credit Department, and Chathura Dilshan, Executive Officer of the Department. The National Credit Guarantee Institution was represented by Jude Fernando, Chief Executive Officer, and Eranjana Chandradasa, Manager-Guarantee Administration.

‘Liya Shakthi’ is a credit guarantee product introduced by the NCGIL to facilitate greater access to financing for women-led Micro, Small, and Medium Enterprises (MSMEs) that possess viable business models and sound repayment capacity but lack adequate collateral to secure traditional bank loans.

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