Business

Ceylon Tea Brokers say it’s growing stronger, “much like tea in hot water”

Published

5 years ago

2021/08/15

Chrisantha Perera warns of dangers in hasty implementation of chemical fertilizer ban

Ceylon Tea Brokers PLC. (CTBP), a company accounting for 14.77% of tea marketed by the country in volume terms and 15.28 percent in value terms has titled its annual report for 2020/2021 “Defying challenges, achieving growth.”

It says: “Our hard work has borne fruit, as we record a year of growth, inching up the numbers amid challenges, and much like tea in hot water, we will continue to grow stronger with time.”

In his chairman’s review for the year, Mr. Chrisantha Perera who has over 50 year experience in the tea industry, retiring as Chairman/CEO of Forbes and Walker after 44 years with that company, has said CTBP had done ‘exceptionally well’ in the year under review compared to the previous year amid the many challenges the country as a whole had to face.

He noted that the company achieving a much higher bottom line than in the previous year and growing its market share were special highlights for the period under review. Its after-tax profit was up to Rs. 107.53 million from Rs. 21.54 million a year earlier and it paid shareholders a dividend of 35 cents a share against eight cents the previous year.

Perera reported that tea production continued to be disappointing with a 21.6 million kilo (7.2%) decline from the previous year to 278.48 million kilos – the worst since 1997 – with low grown teas accounting for the largest deficit of 20 million kilos.

“Last year’s output was the lowest since 276.86 million kilos (produced) in in 1997,” he said. “The absence of fertilizer application for the greater part of 2019, the extremely hot weather during the first quarter of 2020 and more importantly, the disruption caused by the Covid 19 pandemic brought about the significantly low production in 2020,” he said.

Perera noted that over the last seven years, Sri Lanka’s tea production has been steadily declining and with total production almost 60 million kilos behind 2014. The low grown segment was the biggest loser with a 40 million kilo loss in this period.

The smallholder dominated low grown teas – accounting for nearly 75% of the green leaf harvest – is the most productive elevationally, strongly outpacing both high and mid-grown teas. With the country’s share of the global tea market now below five percent, Perera warned that this declining trend, if not arrested, will seriously affect the sustainability of producers, particularly smallholders.

“Adding to this, the continuously declining availability of ‘Ceylon Tea’ will negatively impact the marketing front, particularly in Middle Eastern countries and Russia, who between them account for over 60% of Sri Lanka’s exports, being compelled to look for alternate suppliers,” he said.

“However, at the time of compiling this report, a welcome recovery is evident with crop figures released for January to May 2021 recording a 134.7 million kilo gain, up 31.6 million kilos (30.66%) over the corresponding period last year. This includes a 34% improvement for the low grown segment, with the high and medium growns increasing 25% in each category.”

But Perera went on to say: “Be that as it may, the government’s recent proposal to switch from the use of chemical fertilizer to organic for all agriculture including tea with immediate effect will hamper plans to increase production.”

He warned that the proposed initiative could result in a short to medium term drop in quality of green leaf harvested and consequently the quality of manufactured tea.

Describing the proposed initiative as “laudable,” in the context of increasing global awareness towards a sustainable economy based on a triple bottom line of “People, Planet and Profits,’ a well thought out implementation plan over a 5-10 year period against an overnight change would have been prudent, he said.

Saying such a step can result in irreparable damage to the tea industry, and consequently the economy, Perera strongly recommended a scientific approach devised by experts in the subject and all associated stakeholder organizations in the plantation industry tasked to formulate the correct strategy.

He also said there appeared to be a mistaken notion relating to the increased Maximum Residue Levels (MRLs) occurring through use of chemical fertilizer. Their understanding was that increased MRLs in the final product occur predominantly from incorrect use of pesticides and weedicides.

The top shareholder of CTBP is Ashthi Holdings (Private) Ltd., a company related to Mr. WAT Fernando (30.4%) followed by Mr. WAT Fernando (26.8%), Jetwing Travels (Pvt) Ltd. (18.7%). Ms. NTMS Cooray (6%) Chrisantha Perera and his wife (1.9%) and related companies are among the largest shareholders.

The directors of the company are: Messrs. CPR Perera (chairman), RJN De Mel (deputy chairman), WAT Fernando (MD), DGW De Silva (Director/CEO), KHS Devapriya (former Director/COO), KAD Fernando (Director/COO), Ms. NTMS Cooray, Ms. HMS Perera, BRL Fernando, DH Madawala, HTD Nonis and Z. Mohamed.

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Business

Focus on developing the Coconut and Food & Beverage export industries into a USD 3 billion economy within the next two years

Published

3 hours ago

2026/06/27

Priyan

A discussion was held on Friday (26) afternoon at the Presidential Secretariat between President Anura Kumara Dissanayake and industrialists in the coconut and food and beverage manufacturing sectors on developing the coconut and food and beverage export industries into a USD 3 billion economy within the next two years.

Accordingly, the objective is to expand the coconut-based export industry into a USD 2 billion sector and the food and beverage export industry into a USD 1 billion sector, and extensive discussions were held on the plans required to achieve these targets.

The President stated that the Government is prepared to provide every possible form of incentive necessary to promote export diversification and encourage value-added products.

Proposals and suggestions aimed at developing these industries were also presented during the meeting, and the President further noted that future plans would be formulated after taking all such proposals and recommendations into consideration.

The President also expressed agreement to provide incentives for establishing industries in the Northern Province and assured that the Government would extend its fullest support for setting up coconut-based manufacturing industries in the region.

Attention was also focused on plans to streamline the importation of raw materials required for export production while safeguarding domestic producers. President Anura Kumara Dissanayake further stated that his Government’s objective is to build the country’s economy into an export-oriented production economy by strengthening domestic supply chains.

Minister of Labour and Deputy Minister of Finance and Planning Anil Jayantha Fernando; Secretary to the Ministry of Finance, Planning and Economic Development, Dr Harshana Suriyapperuma; Secretary to the Ministry of Industry and Entrepreneurship Development, Thilaka Jayasundara; and Chairman of the Export Development Board, Mangala Wijesinghe, were among those present.

The President of the Sri Lanka Food Processors Association, Aruna Senanayake; Vice President Rasika Seneviratne; Managing Director of CBL Group, Shyamali Wickramasinghe; Chief Executive Officer of SriLankan Catering Ltd, Mangala Wijesekera; Managing Director of Ma’s Tropical Food Processing (Pvt) Ltd, Mario D. Alwis; Chairman of the Consumer Foods Sector of John Keells Food Holdings PLC, Daminda Gamlath; together with a number of leading business leaders from the food production sector were also present.

President’s Media Division (PMD)

Business

Sri Lanka Retailers’ Association unveils strategic roadmap for the future at 9th AGM

Published

12 hours ago

2026/06/27

Thilina Walpola

The newly elected Office Bearers and Executive Council of the Sri Lanka Retailers’ Association for 2026–2027.

The Sri Lanka Retailers’ Association (SLRA) successfully held its 9th Annual General Meeting (AGM) on 23 June 2026 at Hilton Colombo Residencies, bringing together members of the country’s organized retail sector to review the Association’s achievements over the past year and outline its strategic priorities for the future.

The AGM formally adopted the Annual Report and Audited Accounts for the financial year 2025/26 and elected the Office Bearers and Executive Council for the year 2026–2027.

Infiyaz M. Ali, Director of Healthguard Pharmacy Ltd, was announced as President of the Sri Lanka Retailers’ Association for 2026–2027. He will be supported by Mahesh Wijewardena, Executive Director and Group Chief Executive Officer of Singer (Sri Lanka) PLC, as Senior Vice President, and Kumar De Silva, CEO of SPAR SL Private Ltd, as Vice President.

The newly appointed Executive Council comprises senior representatives from leading retail organizations across Sri Lanka, reflecting the Association’s continued commitment to representing the diverse interests of the retail sector.

Addressing the gathering, President Infiyaz M. Ali emphasized the importance of collaboration, innovation, and industry advocacy in driving the next phase of growth for Sri Lanka’s retail sector.

“Retail continues to be one of the most dynamic sectors of the Sri Lankan economy. As consumer expectations evolve and technology reshapes the industry, the role of SLRA is to create opportunities for knowledge sharing, collaboration, and collective action. We remain committed to supporting our members and contributing to the sustainable growth of the retail ecosystem,” he stated.

The AGM was honoured by the presence of Wasantha Samarasinghe, Minister of Trade, Commerce, Food Security and Cooperative Development, who attended as Chief Guest. In his address, the Minister highlighted the importance of the retail sector as a key contributor to economic development, employment generation, and consumer welfare, while emphasizing the need for stronger public-private collaboration to strengthen the industry’s competitiveness.

Members also had the opportunity to gain insights from the Guest Speaker, Chayu Damsinghe, Head of Macroeconomic Advisory at Frontier Research, who shared perspectives on Sri Lanka’s economic outlook, emerging business trends, and the opportunities and challenges facing the private sector in the years ahead.

A key highlight of the evening was the presentation on the upcoming Sri Lanka Retail Forum 2026, SLRA’s flagship industry event, which will be held under the theme “Retail Without Boundaries – Building the Next Growth Engine.” The forum is expected to bring together more than 500 industry leaders, retailers, entrepreneurs, policymakers, technology providers, and investors to discuss the trends shaping the future of retail.

The Association reaffirmed its commitment to supporting retailers through industry advocacy, professional development initiatives, policy engagement, and knowledge-sharing platforms that foster innovation and business growth.

Since its establishment in 2015, SLRA has played a pivotal role in bringing together retailers from diverse sectors including FMCG, fashion, healthcare, consumer electronics, and digital commerce, creating a unified voice for the industry.

With a renewed leadership team and an ambitious programme of activities planned for the year ahead, SLRA looks forward to working closely with its members and stakeholders to strengthen Sri Lanka’s retail sector and contribute to the country’s economic development.

Business

Month-end profit-takings drive stock trading; indices up

Published

12 hours ago

2026/06/27

Thilina Walpola

CSE trading was yesterday driven by month- end profit-takings, market analysts said.Amid those developments both indices moved upwards. The All Share Price Index went up by 2.77 points, while the S and P SL20 rose by 10.91 points.

Turnover stood at Rs 1.91 billion with two crossings. Those crossings were; ACL Cables 2.1 million shares crossed to the tune of 209 million; its shares traded at Rs 100 and Hayleys 100,000 shares crossed for Rs 24.1 million; its shares traded at Rs 240.

In the retail market companies that mainly contributed to the turnover were: Hayleys Rs 141 million (587,000 shares traded), Lanka Realty Rs 105 million (1.8 million shares traded), CIC (Non Voting) Rs 81 million (3.1 million shares traded), HNB Finance Rs 79 million (8.3 million shares traded), Dialog Axiata Rs 56.7 million (1.2 million shares traded), Colombo Dockyard Rs 48.6 million (371,000 shares traded) and Singer SriLanka Rs 46.6 million (586,000 shares crossed).

During the day 63.9 million share volumes changed hands in 18300 transactions.

It is said that manufacturing sector counters, especially Hayleys, performed well while construction related companies, especially ACL Cables, also performed well. Banking sector counters, especially HNB, were also notable on the floor.

Meanwhile, Lee Hedges concluded negotiations with Amana Bank to sell and transfer its land and premises in Kollupitiya for a total consideration of Rs 2.7 billion, with the transaction completed on June 25, 2026.

Lee Hedges shares were trading up 2.52 percent, at Rs.325.75, while Amana Bank was up 1.13 percent at Rs.26.80.

Yesterday the rupee was quoted at Rs 336.90/337.00 to the US dollar in the spot market, from Rs 337.25/35 the previous day, while bond yields were quoted slightly higher, dealers said.

The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was 332.3416 buying, 342.0372 selling; the euro was 376.2315 selling, 389.9580 buying; and the pound was 436.5994 buying, 451.8110 selling.

By Hiran H Senewiratne