CEO at Sunshine Tea confident ‘common sense’ will prevail in the end

By Sanath Nanayakkare

If the Sri Lankan economy is to be truly powered by a vibrant export sector, politics is immaterial and irrelevant, but a credible and supportive set of policies need to be in place on a constant basis, Sanjeeva Saranapala, Chief Executive Officer (CEO) at Sunshine Tea (Private) Limited told the media recently.

“Sunshine Tea (Private) Limited which is a subsidiary of the diversified conglomerate, Sunshine Holdings PLC., steers its strategy in line with policy, and we hope we will continue to see pro-business policy in the country,” he said.

Sanjeeva who is shouldering the responsibility of maximizing the value of Sunshine Tea as a private label manufacturer and exporter of both bulk tea and value-added tea products for some of the world’s leading tea brands, emphasized that it would be difficult for them to have forward-looking operational plans in the absence of stability.

Responding to questions posed at him by the media at the state-of-the-art Sunshine Tea Factory in Kelaniya which produces over 11 million kilos of tea per year, recording an annual turnover of more than USD 25 million, he said, “It is very important to eliminate any uncertainty of the future in our forward journey. When we operate in an environment of constant, predictable policies, we can expand our production, attract new business, create more jobs, drive profitability and increase our contribution to the overall economy. The global economy is undergoing enough disruption due to the volatile situation in the Middle East, Ukraine and the economic slowdown in China and European countries, therefore, domestic economic policy should not add insult to injury. I am confident that common sense will prevail in the end,” he said.

When asked about the scheduled withdrawal of the Simplified Value Added Tax (SVAT) system, scheduled for April 2025, Sanjeeva said,” At the moment there is no tax for the export sector. It’s supposed to be introduced next year. So, it depends on the outcome of elections and whether it will remain the same or be subject to change is yet to be known.”

Zesta production Line at Kelaniya Factory

Referring to the cost of electricity in manufacturing for the export market, he said, “Energy prices had a significant impact on our production cost earlier, but as the rates have come down now, we can stay somewhat competitive in our price points. If the rates can be eased further, we can optimize our cost structure and be more cost-efficient. In today’s fiercely competitive global tea market, the importance of cost reduction in manufacturing cannot be overstated as Sunshine Tea is a major generator of valuable foreign exchange for the country.”

The company started its operations in 1987 as SKS Exports and later changed to Sunshine Tea [Pvt] Ltd. in 1998. Today the company employs over 300 personnel, many of whom have been with the company for more than 10-15 years as it creates a thriving work-culture. The company’s ranking among the top 15 Best Workplaces in the Manufacturing and Production Industry for 2024 is a testament to its ability to retain its skilled workforce.

Sunshine Tea’s global market outreach spreads over 40 countries including the US, the Far East, Europe, and the Middle East.

Zesta, Watawala, Gordon Frazer, Avan Tea and Teazup are its flagship brands among over 200 types of Ceylon tea it offers to the world. The company specializes in private-label solutions with custom tea blends which is its strongest source of foreign exchange earnings.

When asked why Shyam Sathasivam Group CEO Sunshine Holdings and Vish Govindasamy, Deputy Chairman at Sunshine Holdings are rarely seen in the frontline of the robust family business, which is today a PLC, Sanjeewa said; “They are so dynamic and are setting the Group’s direction, engaging the board and connecting with all stakeholders in a meaningful way.”