Business

Import ban on inorganic fertilizers and its effects on the tea industry

Published

5 years ago

2021/05/23

by Devaka Dias

1. Vegetatively Propagated Teas are CLONAL HYBRIDS which requires high and correct nitrogen ratios to reach its potential yield of over 3,000 kg per hectare made tea per annum.

2. The required norm is 10 kg nitrogen for every 100 kg of made tea. If soil carbon ratios are good at 7% organic matter in the soil, improving the cation exchange (ability of soils to hold nutrients) capacity, it is possible to reduce the N ratio from 10 N to seven N per 100 kg made tea. However, timing and the method of application is very important to derive absolute benefit.

3. Most soil where tea is grown in Sri Lanka is eroded and the organic matter in the soil is so poor that the tea is fertilizer dependent.

4. A field yielding 3,000 kg of made tea per hectare will require 300 kg N. Less if the soil carbon is good. The N per one ton of compost is believed to be low at 1.5% nitrogen. Based on this, one hectare of tea yielding 3,000 kg per hectare will require 20,000 kg of compost each year. Cost of procurement and application will be prohibitive and not cost effective and practical.

5. The quality of compost supplied to the industry requires to be closely monitored, particularly if imported, as there is the risk of introducing nematodes and other pest and diseases that we did not have hitherto.

6. Where compost is produced locally, proper C:N ratios must be ensured to give a standard of 20:1 or below. Quality control is a must or there will be repercussions as with high ratios the bacteria in the compost will draw nitrogen from the soil.

7. Compost fertilizer will be unable to match nitrogen, phosphate & potassium ratios recommended by the TRI. For example if the potassium levels are too high, it will bring about a magnesium deficiency making the leaf yellow.

8. If nitrogen is reduced, production will take a huge dip and leaf supplied to the factory will not be healthy for producing good tea. Succulent leaf is required for good tea manufacture but with less nitrogen the leaf will be yellowish and leathery. This will result in a brownish tea and high percentage of off grades. Poor quality tea will not fetch good prices at the auctions and the overall average will dip with both the factory and the green leaf supplier severely affected. The tea factories will run into problems of not being able to achieve the desired out-turn from green leaf to made tea which should be 21.50%. Even a loss of 0.50% will mean a loss to the factory in monetary terms which they can ill afford. A tea factory manufacturing 500,000 kg of green leaf based on a green leaf rate of Rs.100/= per kilo, incurring a loss of 0.05% on the out-turn will incur a loss of Rs.250,000/=.

9. The reduction of nitrogen over a long period of time will weaken the tea bush and the casualty rate will be very high after pruning.

10. Dependence on artificial fertilizer can be reduced but not completely stopped. Reducing the current rate of application cannot be done overnight and must be implemented in stages at the grower level. I suggest the following steps:

a. Encourage the grower to establish Gliricidia and Albizzia shade and maintain it correctly. A good cover of both type of shade ensures improving the soil carbon over a period of time. Fifty kg of gliricidia leaves adds 01 kg nitrogen into soil. In land with a high gradient, de-silting of drains is a must.

b. In land with a poor cover of tea due to erosion, most of the soil carbon will be lost and the grower must be encouraged to infill. Bright sunlight falling directly on the soil burns up soil organic matter very fast and also leads to the loss of ammonia in the soil when the soil temperature increases. Therefore establishing shade and infilling vacant tea patches is essential.

c. By changing the method of fertilizing, efficiency can be improved. Currently, the method of fertilizer application is to apply the manure on the surface of the soil by what is popularly known as broadcasting. This, I consider, to be the most inefficient method of application leading to loss of ammonia. I have over a decade adopted a different method of placement of fertilizer.

While this is expensive, it successfully reduces the volume of fertilizer that need be applied. The fertilizer is placed in a 6-inch deep alavangoe hole, one and a half feet away from the bush on the upper side of the slope and the hole covered. The cost of placement works out to three and a half workers per acre as opposed to one when broadcasting. It is a crime at today’s cost to waste fertilizer by broadcasting using more volume than necessary to compensate for volatization. More so as there is a big government fertilizer subsidy.

R & D is required to invent an applicator for fertilizer placement.

In conclusion I must say that with good agricultural practices, dependence on artificial fertilizer can be reduced but we cannot go 100% organic. It is important to educate tea growers, 70% of whom are smallholders using very much more than recommended doses of fertilizer, to mend their ways. They believe that applying more fertilizer means overnight crop increases and make five or six applications when four would suffice if correctly timed. What the smallholder does not understand is that we have to only replace N that has been removed from the soil. This is why we go on a replacement ratio of 10 kg N to 100 kg of made tea which could be reduced to 7% if the soil organic matter is good.

If a study is done on the fertilizer use by the smallholder and N replacement ratio worked out, I am sure the figure will be astronomical. This is where lot of money is wasted and must be corrected. With proper use of fertilizer, imports can be reduced and valuable foreign exchange saved by the country.

The authorities must also develop a method of issuing fertilizer to smallholders based on their production. This should not be a problem as the factories have the required information. In my opinion four application of fertilizer is more than enough with application during and after the two monsoons when the assimilation is best.

Reducing rate of N application with artificial fertilizer, in my view, does not require addition of compost if proper agricultural practices are followed. In an estate I work on, the soil is very rich in organic matter on account of a good cover of Albizzia and Gliricidia. No soil is exposed to direct sunlight as a lot of Albizzzia leaf litter and twigs and gliricidia loppings lie on the soil. They slowly disintegrate into colloids that will attract a negative iron to bind the ammonia and other elements such as Pottasium, Calcium etc.

I appeal to the authorities to rethink the ban on inorganic fertilizer imports. Immediate change will cause a lot of hardships to the grower, particularly the smallholder who contributes 70% to the national production and depend on this income for a living. The grower requires to be educated on the importance of soil organic matter to get them to adopt correct agricultural practices and reduce dependence on artificial fertilizer.

Halting inorganic fertilizer and moving totally to organic will cause irreversible damage to the industry in many ways. What is required is to improve the soil organic matter and reduce the dependence on fertilizer. One has to keep in mind that the tea industry is an interconnected web and the ban will not only affect the grower and the factories but also many others indirectly employed in the tea industry.

(The writer is a senior planter from a planting family with 48 years experience in the industry.)

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Business

Sri Lanka educates women but keeps many out of work, ADB warns

Published

22 hours ago

2026/06/5

Thilina Walpola

Shannon Cowlin - ADB Country Director for Sri Lanka

Sri Lanka has one of the most educated female populations in South Asia, yet only about one in three women participates in the labour force, making female workforce participation among the lowest in the region and leaving a significant source of economic growth untapped.

That paradox took centre stage at a knowledge forum organised by the Asian Development Bank (ADB) in Colombo on June 3, where government officials, labour authorities, academics and private-sector leaders examined the deep-rooted barriers preventing women from fully participating in the economy and explored reforms needed to unlock their economic potential.

Opening the event, ADB Country Director for Sri Lanka Shannon Cowlin said the issue extends beyond gender equality and has become a critical economic challenge for a country seeking sustained growth and inclusive development.

“Empowering women to participate fully in the labour force is not only a matter of equality; it is essential for inclusive economic growth and poverty reduction in Sri Lanka,” she said.

The forum, held under ADB’s Serendipity Knowledge Programme (SKOP), focused on findings from a recent ADB-supported study exploring the factors behind Sri Lanka’s persistently low female labour force participation.

Cowlin noted that despite notable progress in education and human development, Sri Lanka continues to lag behind on measures of gender equality and women’s economic participation. She said multiple studies have shown that the factors shaping women’s labour force participation are layered, interconnected and multidimensional.

According to the study, many women remain concentrated in informal, low-paid and insecure employment with limited access to social protection and few opportunities for career advancement. Social and cultural expectations continue to place primary caregiving responsibilities on women, often restricting their ability to pursue careers or remain in full-time employment.

The lack of affordable childcare services, unequal access to digital skills and technology, concerns over workplace safety, sexual harassment and inadequate transport options were identified as major obstacles preventing women from entering or remaining in the workforce.

“These are complex challenges that require action from all stakeholders – government, development partners, the private sector, civil society and academia,” Cowlin said.

She stressed that improving women’s labour force participation would require more than isolated policy interventions, calling instead for structural transformation, stronger infrastructure and care services, progressive workplace practices and broader societal changes that improve women’s mobility, safety and economic agency.

The event featured a presentation by Professor Dileni Gunawardena of the University of Peradeniya, who shared findings from ADB’s study on female labour force participation, followed by a panel discussion involving representatives from the International Labour Organisation, the Department of Labour, MAS Holdings and John Keells Holdings.

Panelists discussed measures to improve the enabling environment for women, including greater investment in the care economy, expanded childcare facilities, enhanced skills development, creating safe, supportive workplaces and career pathways for upward mobility.

Participants agreed that increasing women’s participation in the workforce is not merely ‘a nice to have’ but an economic necessity, particularly as Sri Lanka seeks to accelerate recovery, boost productivity and achieve more inclusive growth.

The ADB said Sri Lanka’s economic recovery presents a unique opportunity to address long-standing structural barriers facing women and to build a more inclusive labour market that fully utilises the country’s human capital.

By Sanath Nanayakkare

Business

ComBank offers exclusive financial solutions to the ‘Guardians of the Skies’

Published

22 hours ago

2026/06/5

Thilina Walpola

Hasrath Munasinghe, Chief Operating Officer of Commercial Bank and Air Vice Marshal Rajinth Jayawardena, Director General Welfare of the SLAF exchange the agreement in the presence of representatives of the two organisations.

Reinforcing its commitment to those who serve the nation, the Commercial Bank of Ceylon has entered into a Memorandum of Understanding with the Sri Lanka Air Force (SLAF) to introduce a comprehensive suite of concessionary financial facilities for its officers and other ranks.

The partnership, unveiled in a year that marks the 75th anniversary of the Air Force, which was founded in March 1951 as the Royal Ceylon Air Force, reflects a shared recognition of the critical role played by the SLAF as the steadfast ‘Guardians of the skies,’ entrusted with safeguarding the country’s security and sovereignty.

Under the terms of the agreement, Commercial Bank will extend a range of specially tailored financial products to SLAF personnel, including personal loans, leasing facilities, housing loans and credit cards. These facilities will be offered at concessionary interest rates, alongside concessions on documentation charges, enabling Air Force personnel to access financial support on more favourable terms.

The Bank said the initiative is part of its continuing efforts to deliver best-in-class lending solutions that are both accessible and responsive to the diverse needs of its customers. By offering attractive and affordable repayment structures, the scheme is designed to empower SLAF officers and other ranks to meet their personal financial requirements with greater ease and flexibility.

A key feature of the programme is the ability for beneficiaries to align repayments with their income patterns, ensuring that the facilities remain practical and sustainable over the long term. This flexibility, combined with preferential pricing, is expected to make a meaningful difference to the financial wellbeing of Air Force personnel and their families.

Business

Treasury Bill rate hike compounds stock market volatility

Published

22 hours ago

2026/06/5

Thilina Walpola

The CSE was extremely volatile yesterday mainly due to external and internal negative factors.

‘The escalation of the war situation in West Asia and the proposed tariff hike on Sri Lanka’s exports to the US by the Trump administration are worsening Sri Lanka’s economic woes. Further, the government’s decision to increase the Treasury Bill rate has also created some uncertainty in the market, stock analysts said.

The All Share Price Index was up by 249.83 points, while the S and P SL20 rose by 67.61 points. Turnover stood at Rs 2.79 billion with 11 crossings.

Companies that mainly contributed to the turnover by way of crossings were: Chevron Lubricants 1.5 million shares crossed to the tune of Rs 294 million and its shares traded at Rs 196, TJ Lanka 2.9 million shares crossed for Rs 90.8 million; its shares traded at Rs 31, Citizens Development Business Finance 2.5 million shares crossed to the tune of Rs 80.2 million; its shares traded at Rs 32.50.

ACL Cables 634,248 shares crossed for Rs 60.9 million; its shares traded at Rs 96, CCS 438,000 shares crossed to the tune of Rs 57.4 million; its shares traded at Rs 131, Overseas Realties 991,500 shares crossed for Rs 49.6 million; its shares traded at Rs 50 and Access Engineering 653,000 shares crossed to the tune of Rs 49.3 million; its shares sold at Rs 75.50.

In the retail market companies that mainly contributed to the turnover were; Dialog Rs 133 million (3.2 million shares traded), Seylan Bank (Non-Voting) Rs 110 million (1.7 million shares traded), Colombo Dockyard Rs 96.8 million (751,548 shares traded), Ceylinco Holdings (Non-Voting) Rs 77.5 million (516,000 shares traded), Sampath Bank Rs 74.2 million (530,000 shares traded), JKH Rs 74 million (3.7 million shares traded) and LMF Rs 65 million (781,000 shares traded). During the day 123 million share volumes changed hands in 26272 transactions.

It is said that the manufacturing sector, especially Chevron Lubricants and several other firms performed well, while the banking and financial sector performed too.

Yesterday the rupee was quoted flat at Rs 334.50/335.50 to the US dollar in the spot market on, unchanged from the previous day’s close, dealers said, while bond yields were broadly steady.

The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was Rs 330.50 buying, Rs 339.50 selling; euro was Rs 381.1884 selling, Rs 395.1054 buying; and the pound Rs 442.6620 buying Rs 456.7076 selling.

A bond maturing on 01.08.2030 was quoted at 12.12/20 percent, down from 12.15.25 percent.

A bond maturing on 15.06.2034 was quoted at 13.12/20 percent, down from 13.15/25 percent.

A bond maturing on 15.03.2035 was quoted flat at 13.15/25 percent.

By Hiran H Senewiratne