Business

Lankan tea exports earned $ 1.3 Bn in 2021

Published

5 years ago

2022/01/9

Sri Lanka’s tea industry performed well in 2021 earning 1.3 billion U.S. dollars despite lower yields and higher costs of production.

Chairman of the Sri Lanka Tea Board Jayampathy Molligoda says that Sri Lanka earned approximately 1.3 billion U.S. dollars from the export of 288 million kilos of tea in 2021.

In a press release, Molligoda said the cost of production of Sri Lankan tea is among the highest in the global market and tea production peaked in 2013 and has declined since then. He said auction prices in Kenya and India are cheaper than in Colombo.

He said Sri Lanka needs to “focus more on the front end of the value chain” by marketing the clean, sustainable and wellness aspects of Ceylon Tea.

It said: The total export quantity is 288 million kilos. During the year 2020, the export revenue was Rs 230 billion (US $ 1,213 million) and the export quantity was 266 Mn kilos. It is significant to mention the average fob price at customs, which was Rs 867/= per kilo in 2020 has further increased to Rs 915.97 per kilo, whereas in 2019 it was only Rs 823/ per kilo of tea exported. The sales and tea production statistics for the month of December are yet to be finalised, however some 296 million kilos have been sold and closer to 300 million kilos tea production have been achieved for the full year. Last year tea production was only 279 million kilos.

The negative side is that our tea estate productivity has been declining over a period of time; the year 2000 the tea production was 305 million kilos and has increased to 328 million in 2010. The peaked production of 338 million kilos in 2013- since then there has been a gradual decline of tea production, which is 2.6 % decline based on CAGR. The cost of production of tea producers has been increasing due to many factors which includes low productivity, both land and labour, high overheads and adverse impact of climate change and Covid-19.

It is relevant to mention here that the Kenyan tea production (main competitor for Sri Lankan teas) has been increasing rapidly and Sri Lankan tea production has been declining during the last 10-15 years. This is due to lack of tea replanting & infilling undertaken and the producers’ inability to address climate change effects and other factors, as there has been a gradual erosion of soil and land degradation, despite application of fertilizer.

Kenyan tea auction price in US $ is lower compared to Sri Lanka and, their growers are getting lower tea prices, whereas in Sri Lanka, small holders are getting a reasonable price and it is being regulated under Tea Control Act No 51 of 1957.

As can be seen, Ceylon Tea is the most expensive teas in the global market- gram to gram and as a result, there is a tipping point in the tea pricing structure for our tea exporters and marketers to be competitive in the global market place. In view of the above, an ‘integrated productivity and quality strategy’ is one of the key focus areas for the producers to reduce costs per kilo of made tea to enable the exporters and marketing teams to capitalize on Ceylon Tea ‘brand equity’. In the circumstances, it is important that the producers adopt an integrated balanced nutrient management system with more and more mineral and organic inputs to be applied in order to improve the soil quality to achieve Environmental and economic sustainability and focus on social well-being of the workers and small holders/growers rather than looking for short term gains.

The overall performance is satisfactory, however, achieving any further increases of higher prices for Ceylon Tea has become a challenge, because Kenyan and Indian auction prices are much lower than Colombo auction prices. Nevertheless, we need to focus more on the front end of the value chain by implementing the already approved promotional activities under

‘Ceylon Tea global campaign coupled with aggressive marketing strategy formulated with the support of all the industry stakeholders’ participation. Therefore, the brand story that the cleanest tea in the world has to be reinforced through maintaining minimal level of chemical residues and demonstrating sustainable credentials including purity and wellness factor of Ceylon Tea. We, at Sri Lanka Tea Board wish to extend our gratitude to all the stakeholders for their dedication, commitment and the relative performance. It’s a great achievement under difficult and challenging environment.

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Business

USA–Sri Lanka Chamber of Commerce plans New York campaign to promote Tourism and Business

Published

6 hours ago

2026/10/19

Thilina Walpola

The initiative will provide Sri Lankan businesses with a vital platform to introduce their products and services to the American market

Timing aligns with national policy discussions

By Sanath Nanayakkare

The USA–Sri Lanka Chamber of Commerce is exploring an innovative promotional initiative to showcase Sri Lanka’s tourism, cultural heritage, and commercial opportunities in the heart of New York City during the upcoming Christmas and holiday season.

The proposed campaign aims to bring Sri Lanka’s unique identity to one of the world’s most internationally recognized cities through a mobile digital billboard featuring high-quality photographs and videos highlighting the island’s natural beauty, rich heritage, and diverse commercial offerings. Designed to capitalize on New York City’s significant holiday-season foot traffic, the initiative will reach American consumers, international tourists, and potential business partners.

The digital showcase will feature pristine beaches, scenic mountains, waterfalls, tea plantations, wildlife, ancient cities, Buddhist heritage, traditional arts, authentic cuisine, and modern attractions, positioning the country as a premier international travel destination. An interactive QR code linking to comprehensive tourism information will also be incorporated, allowing viewers to directly explore travel opportunities.

Beyond destination promotion, the initiative provides Sri Lankan businesses with a vital platform to introduce their products and services to the American market. Enterprises representing Ceylon tea, spices, food products, gems and jewellery, apparel, handicrafts, wellness, hospitality, and tourism will have the opportunity to showcase their brands alongside the broader national campaign.

The Chamber notes that this effort will be particularly beneficial for small and medium-sized enterprises (SMEs) seeking greater international exposure, brand recognition, and commercial partnerships in the United States. By integrating tourism promotion with commercial visibility, the project aims to strengthen Sri Lanka’s international image while supporting trade, investment, and business development.

Operating under the central message of “Discover Sri Lanka. Experience Sri Lanka. Visit Sri Lanka,” the campaign presents the island as a destination defined by natural beauty, cultural richness, distinctive products, and entrepreneurial potential. More information on the initiative is accessible at www.usaslcc.org.

Tourism sector stakeholders have welcomed the move, noting that private-sector-led initiatives of this nature bypass cumbersome bureaucratic procurement procedures and complex tender processes typically associated with state-run promotional campaigns abroad.

The timing aligns with recent national policy discussions regarding tourism promotion. Participating in a Fireside Chat at the inauguration of the Sri Lanka Economic and Investment Summit 2026, organized by the Ceylon Chamber of Commerce, President Anura Kumara Dissanayake emphasized that a proper procurement mechanism needs to be established before acquiring tourism promotional concepts, recommending a performance-based system where agencies are compensated according to verified growth in tourist arrivals.

Business

Seylan Bank partners Colombo Motor Show 2026 as official banking and leasing partner

Published

6 hours ago

2026/10/19

Thilina Walpola

For 10th consecutive year

Seylan Bank PLC, the Bank with a Heart, has reaffirmed its commitment to supporting Sri Lanka’s automotive industry by partnering with the 20th edition of the Colombo Motor Show 2026 as the Official Banking & Leasing Partner for the 10th consecutive year. This makes Seylan Bank the longest-standing partner of the Colombo Motor Show, further reflecting its longstanding association with one of Sri Lanka’s most prominent automotive exhibitions. The four-day exhibition is scheduled to take place from 20th to 23rd November 2026 at the Bandaranaike Memorial International Conference Hall (BMICH), marking the first time the Colombo Motor Show will be held as a four-day event.

As one of Sri Lanka’s leading international motor and motor accessories exhibitions, the Colombo Motor Show will bring together vehicle enthusiasts, prospective buyers, industry professionals and automotive service providers. The 2026 edition is expected to feature over 200 trade stalls covering motor vehicles, accessories, spare parts, lubricants, tyres, batteries, leasing facilities and other motor-related services.

Through its continued partnership, Seylan Bank will showcase a comprehensive range of financial solutions designed to support customers in meeting their personal and business needs, with a particular focus on Seylan Leasing facilities. Visitors to the exhibition will have the opportunity to receive on-the-spot leasing evaluations and expert guidance from Seylan Leasing Specialists, helping them explore vehicle financing options conveniently during the event.

Business

WCIC sharpens focus on scaling women-owned businesses

Published

6 hours ago

2026/10/19

Thilina Walpola

WCIC Office Bearers

The Women’s Chamber of Industry and Commerce (WCIC) is sharpening its focus on helping women entrepreneurs move beyond business creation towards sustainable growth, as it expands its membership, partnerships and advocacy footprint.

WCIC Chairperson Gayani de Alwis, concluding her second tenure, highlighted the Chamber’s efforts had increasingly centered on creating pathways for women to translate entrepreneurial ambition into viable enterprises and, importantly, build those businesses for the longer term.

“Ultimately, our impact is not measured by the number of programmes we conducted, but by the women whose businesses grew, whose voices became stronger, whose horizons expanded and whose contribution to the economy became greater,” she said addressing the WCIC 41st Annual General Meeting (AGM) held on 22 September for which the Chief Guest was Canadian High Commissioner to Sri Lanka and the Maldives Isabelle Martin.

The focus has included a special initiative for female university students with an entrepreneurial mindset, regional chapter initiatives in the Northern Province, capacity-building programmes and the inaugural ‘Beyond Ramp Up’ workshop.

The Chairperson said these initiatives were designed to move women “from aspiration to enterprise, and from enterprise to sustainable growth”, signaling a broader focus on strengthening the progression of women entrepreneurs beyond the initial stages of business formation.

WCIC recorded a 20 percent increase in membership during the period with membership crossing 460 and expanded its ecosystem through a series of strategic partnerships.

Internally, WCIC moved to strengthen its governance framework, revising its Articles of Association to ensure regulatory compliance and introducing a Code of Conduct and Board self-assessment. Clearer organisational roles, job descriptions and performance targets were also introduced as part of efforts to strengthen accountability and professionalise its operations.

Reflecting on her tenure, the Chairperson said the period had been about building a stronger, more connected and professionally governed organisation, while converting its wider ambitions into tangible opportunities for women in business.