Business
Sri Lanka tea sees encouraging demand and price stability amid global interest
Increased buyer activity from Asia and Africa bolsters market sentiment
The Colombo Tea Auction, a cornerstone of Sri Lanka’s economy, showcased resilience and promising trends in its May 7, 2025, trading session, as reported by Forbes & Walker Tea Brokers. Despite challenges posed by fluctuating tea quality, the market recorded stable pricing, renewed demand from key international buyers, and notable appreciation in select categories, signaling cautious optimism for stakeholders.
A surge in activity from shippers to Japan, China, and South Africa injected vitality into the auction, reflecting diversified demand for Ceylon Tea. Traditional markets like the UK remained selective, while buyers from the CIS and Middle East regions engaged actively at competitive price points. This broadening geographic interest underscores Colombo’s enduring appeal as a global tea hub.
The High and Medium Grown liquoring teas (BOP/BOPF), critical to Sri Lanka’s export portfolio, witnessed price stabilization after weeks of volatility. Notably, lower-end BOP varieties rebounded after prolonged weakness, while corresponding BOPF grades held firm despite increased volumes which was a testament to resilient demand.
In the CTC segment, High Grown BP1 teas maintained strong demand, while Low Grown PF1s trended firmer, offsetting sluggishness in BP1s. Meanwhile, Leafy and Semi-Leafy catalogues saw mixed trends, with premiums like Select Best OPAs and high-priced PEK1s appreciating, highlighting buyer discernment for quality.
The Tippy catalogue emerged as a bright spot, with well-made FBOP/FBOPF1 teas fetching firm to higher prices, driven by quality-conscious buyers. Premium Very Tippy teas also held steady, while leafier varieties saw special inquiry-led gains, underscoring niche opportunities in a competitive landscape.
Despite a reported decline in the quality of higher-grade teas, the auction achieved “reasonably satisfactory” price realisations for the season. Forbes & Walker noted that the stability in lower-end segments and sustained export interest provided a buffer against broader quality concerns.
With 6.4 million kilograms auctioned this week, matching prior volumes, industry observers remain cautiously optimistic. The interplay of global demand, strategic buyer activity, and Colombo’s ability to cater to diverse preferences continues to anchor Ceylon Tea’s reputation. As one broker remarked, “The market’s ability to stabilize and adapt, even amid quality variances, speaks to its enduring strength.”
The latest auction results reinforce Colombo’s pivotal role in the global tea trade, blending tradition with evolving market dynamics. For Sri Lanka, sustaining quality and leveraging emerging buyer interest will be key to capitalizing on these encouraging trends in the months ahead.Data Courtesy: Forbes & Walker Tea Brokers
Business
ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka
The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.
The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.
“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”
Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.
Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.
Business
USD 40.84m pipeline to secure aviation fuel supplies to BIA
By Ifham Nizam
The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.
Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.
‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.
The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.
The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.
Business
CSE activity up, turnover weak at Rs. 1.4 billion
By Hiran H Senewiratne
Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.
Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.
In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.
The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.
Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.
Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.
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