News
Lanka crisis is personal for Origin Tea brothers
Social and economic crisis engulfing Sri Lanka is half a world away but feels very close to home for brothers Chris and Lawrence Seaton in Brisbane, says a report by Brisbane Financial Review.
Their burgeoning Brisbane-based business, Origin Tea, is about to go mainstream with the supermarket launch of products previously only available in cafés.
“We want to keep money flowing into the economy and into the pockets of locals,” Chris said.
The challenge is that the tea comes from Sri Lanka, where a financial crisis is causing severe shortages of essential goods such as fuel, medicine and food.
About 200 people work at Origin Tea’s factory in Sri Lanka, which is experiencing daily power cuts that last up to eight hours. This means switching to diesel generators, which increases production costs by 10 per cent to 20 per cent.
Chris Seaton was in Sri Lanka last month and was shaken by what he saw.
“Sri Lankan families don’t even have gas cyllinders so they can cook and put food on the table,” he said.
“Inflation there is heading towards 30 per cent, which puts all of the cost of living and interest rate talk here in perspective.
Sri Lanka is on the brink of bankruptcy and people have taken to the streets demanding the resignation of the president, who they hold responsible for the economic crisis.
A drop in tourism means the South Asian country is running desperately low on foreign currency reserves and is struggling to import fuel, medical supplies and raw materials.
Along with additional costs for diesel at the factory, pandemic-related supply chain problems mean Origin Tea must pay $6000 for every shipping container it brings to Australia, a six-fold increase on the $1000 it paid before COVID-19.
But the Seaton brothers are refusing to give up on their Sri Lankan operation.
Chris made an urgent trip to Colombo last month to establish new suppliers because local manufacturers could no longer import what they needed, including packaging.
Many Sri Lankans spend their days vying for the limited fuel stocks, so Origin Tea had to organise a shuttle bus, so employees could get to work.
“My role has changed to focusing on how to get dollars into the country because the people who manufacture our cardboard and tea bags can’t pay their suppliers,” Seaton said.
“We want to keep money flowing into the economy and into the pockets of locals.”
Origin Tea was established in 2012 when Chris and Lawrence were fresh out of university and in their early 20s.
Their vision was to “make tea cool”.
“We saw a gap in the market for single origin tea, as single origin coffee became the latest buzzword,” Chris said. “Origin Tea is one of the few offering traceability of high-grade Ceylon tea from a single origin in Sri Lanka.”
Unlike blends, single origin products guarantee provenance.
Until the pandemic, Origin Tea was largely a wholesale business, with products stocked in 1000 cafés nationally.
COVID-19 made the Seaton brothers realise they needed to sell directly to consumers, and their Origin Sticky Chai will be available in supermarkets from next month.
Agribusiness is in their blood. Their grandfather, Donald Seaton, was the founder of oilseed crushing business Gardner Smith, which was run by dad Gary until it was sold to GrainCorp in 2011.
“We have always been about making tea fun and cool but with the situation in Sri Lanka becoming more serious by the day, making and exporting our tea has become vital to helping locals feed their families,” Chris said.
Australian National University economist Sriram Shankar said Sri Lanka’s crisis was caused by many factors, including a heavy dependence on China for domestic investment, external debt and Russia’s invasion of Ukraine.
Tourism had also come to a standstill as the government was accused of political corruption.
“President Gotabaya Rajapaksa made large tax cuts that affected government revenue and fiscal policies, causing budget deficits to soar,” Dr Shankar said.
“I think Sri Lanka is on the verge of bankruptcy, as it has recently announced suspension of its foreign debt payments.
“For recovery, in the short term it needs to be bailed out by the IMF. It is currently negotiating a deal with the IMF. However, in the medium term it needs to initiate serious economic reforms to overcome the crisis.”
News
US-assisted ‘Ice’ detection: NPC to examine IGP’s move to transfer drug-busting team
Senior DIG among those slated for transfer
By Shamindra Ferdinando
The National Police Commission (NPC) is expected to take up Police Headquarters recommendation to transfer a group of police officers responsible for a major ‘Ice’ bust at the Colombo port recently.
NPC sources told The Island that recommendation in respect of transfers was received last week. Sources said that though the NPC was scheduled to meet today (01), whether IGP Priyantha Weerasooriya’s recommendation would be discussed and decided today was not known.
Members of the NPC are retired High Court Judge Lalith Ekanayake (Chairman), K. Karunaharan, Dilshan Kapila Jayasuriya, A.A.M. Illiyas and Jayantha Jayasinghe
The IGP directed the Special Investigation Unit (SIU) to probe those who carried out the 31 August, 2026 raid that resulted in the detection of 463 kgs of ‘Ice’ concealed in a container that arrived from Pakistan.
The US Embassy declined to comment on the probe though it declared that the largest ever narcotics detection was made on intelligence made available by the US Drug Enforcement Administration (DEA).
The officers investigated for what an authoritative Headquarters source called shortcomings and lapses on the part of the raiding party, belonged to the Central Crime Investigation Bureau (CCIB). Senior DIG Ranmal Kodituwakku who, on behalf of the CCIB, received information directly from the DEA, is among those Police Headquarters wanted to transfer.
CCIB carried out the raid after having obtained a search order from the Aluthgama Magistrate court. Among the suspects taken in this connection are three Pakistani nationals.
News
2027 Budget to be held from 12 Nov. to 14 Dec.
* First Reading of the Budget on 7 October
The Committee on Parliamentary Business has decided that the Second Reading of the Appropriation Bill for the year 2027 (Budget Speech/presentation of Budget proposals) will take place on 12 November, followed by the Second Reading debate from 13 November to 14 December.
Secretary General of Parliament Kushani Rohanadeera said this had been decided at a meeting of the Committee on Parliamentary Business held recently under the chairmanship of Speaker Dr. Jagath Wickramaratne.
Accordingly, the Appropriation Bill was scheduled to be presented to Parliament for its First Reading on 7 October, the Secretary General said.
It was also decided that the Second Reading of the Appropriation Bill (Budget Speech) would be delivered by President Anura Kumara Dissanayake, in his capacity as the Minister in charge of Finance, on Thursday, 12 November, 2026.
Thereafter, the Second Reading debate will be held for seven days, from 13 November to 20 November. Accordingly, the vote on the Second Reading will be held at 6.00 pm on 20 November.
Thereafter, the Committee Stage debate will be held for 19 days, from 21 November to 14 December , with the vote on the Third Reading of the Budget scheduled for 6.00 pm on 14 December.
During this period, the Budget debate will be held every day, including Saturdays, except on public holidays and Sundays. Parliament is scheduled to meet at 9.30 am on each of these days.
From 9.30 am to 10.00 am each day, time will be allocated for the Parliamentary business specified under Standing Order 22(1) to (6). Thereafter, five Questions for Oral Answers will be taken up from 10.00 am to 10.30 am, followed by one question under Standing Order 27(2) from 10.30 am to 11.00 am.
Accordingly, the debate is scheduled to be held from 11.00 am to 6.00 pm on all days, except the two days on which votes are scheduled to be taken, Motions at the Adjournment Time will be taken up for debate from 6.00 pm to 6.30 pm, based on a 50:50 time allocation between the Government and the Opposition, the Secretary General stated.
It was also approved that during the Second Reading debate, 60% of the debate time will be allocated to the Government and 40% to the Opposition, while during the Committee Stage debate, 40% will be allocated to the Government and 60% to the Opposition.
Furthermore, if a division is called for on an Expenditure Head, relating to a Ministry, the relevant vote will be held at 6.00 pm at the conclusion of the proceedings on the respective day.
News
CB Governor confident over timely disbursement of next IMF tranche; hands post-2027 programme decisions to govt.
By Sanath Nanayakkare
Central Bank Governor Dr. Nandalal Weerasinghe addressed queries on the nation’s IMF bailout programme yesterday and indicated that Sri Lanka expects to reach a Staff-Level Agreement with the Fund shortly, clearing the path for the next tranche of funding under the $3 billion EFF arrangement before the end of the year.
Answering questions on Sri Lanka’s economic path, after the current programme expires in March 2027, Dr. Weerasinghe clarified that seeking a follow-up IMF arrangement was entirely a policy decision for the government rather than the Central Bank, maintaining the institutional boundary between Central Bank operations and political decision-making.
The Governor remained firm in his projection that the national economy would expand by around 4 percent throughout 2026, demonstrating economic resilience, even amid external volatilities, such as high oil prices.
Dr. Weerasinghe expressed confidence in the domestic economy’s underlying momentum. While international financial institutions and multilateral agencies had pegged Sri Lanka’s growth prospects at more conservative levels, typically around 3.0 to 3.5 percent, he emphasised that CBSL’s projections are grounded in continuous analysis of real-time indicators.
“When you compare with several other agencies, their growth projections hover around 3 to 3.5 percent. However, the economy is already growing at around 4 percent. In our projections, the economy will maintain this growth rate of around 4 percent throughout the year,” Governor Weerasinghe said.
He noted that despite mid-year quarter adjustments due to volatile oil prices, real economic indicators, including steady credit expansion across the commercial banking sector and sustained industrial and service activity, indicate that the growth trajectory remains firmly on track above the 4 percent benchmark.
Reiterating the Central Bank’s primary mandate, Dr. Weerasinghe noted that monetary policy actions remained focused on anchoring inflation and curtailing excess demand to prevent runaway price spikes.
On inflation targeting, the Governor mentioned that CBSL had submitted a technical recommendation to the Ministry of Finance to maintain an inflation target of 5 percent (+ or – 2 percent band) over the next three-year horizon.
Responding to inquiries on differing target forecasts announced by external agencies such as the IMF, Dr. Weerasinghe underscored that the Central Bank’s recommendations stem strictly from domestic technical and empirical evaluations.
“Our recommendation is based on pure technical and empirical analysis considering the country’s specific situation. We have recommended maintaining a 5 percent target for the next three years, and the government has accepted this recommendation,” he added.
Regarding foreign exchange management, the Governor noted that the Central Bank continues its active market intervention strategy aimed at smoothing out undue exchange rate volatility rather than resisting natural market trends.
Dr. Weerasinghe concluded that while the short-to-medium-term outlook remained assured, the combination of a steady 4 percent growth target and proactive fiscal measures would firmly anchor macroeconomic stability through 2026 and beyond.
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