Features

Singe entreprenuer, the difficult years and the Russian trade

Published

3 years ago

2023/09/3

Thilina Walpola

New Dilmah factory built at 111, Negombo Road, Peliyagoda, Colombo

(Excerpted from the Merrill J. Fernando autobiography)

The early 1970s were difficult years for all businessmen in the country. The changes on the political front and the progressive policy of Ceylonisation resulted in forcing the foreign company owner out, but, simultaneously, created doubt in the minds of the potential local investor/entrepreneur. The Marxist doctrine which underpinned State economic policy and attitude did little to encourage the spirit of private entrepreneurship, unless it was for a few individuals who, for various reasons, found favour with the Government.

The exit of expatriate business families such as the Joneses did enable politically-unaffiliated locals such as me, to get a toehold in the tea export business. Given my strongly-held views on the tea export trade, particularly the British domination of the industry, which was highly detrimental to the interests of the producer with its sublimation of the real value potential of the authenticity of Pure Ceylon Tea, I would certainly have eventually set out on my own. The opportunity may not have come so early though, if not for the decidedly ‘foreigner unfriendly’ stance of the first Bandaranaike Government.

In 1974 I launched Merrill J. Fernando Exports Ltd., of which I was the sole owner. I believe this was a turning point in my business career as a tea exporter, for I was able to build on and consolidate on the back of the contacts I had made and the connections that I had established, in most countries of the tea-drinking world. The fact that the company bore my name was later a huge advantage that I did not foresee when I started marketing ‘Dilmah’ as a highly-personalized family brand.

The latter eventually became its unique selling point. Whilst unhesitatingly conceding the element of good fortune divine intervention, in my view that is inherent in every success story, there was always my readiness to grasp opportunities as they presented themselves, in spite of the ever-present risk element.

I became the fourth largest exporter in the country when, in 1974, Merrill J. Fernando Co. Ltd. exported 24 million pounds of tea. It gave me business satisfaction as I was competing with the giants in the country, but exporting bulk tea to blenders and packers abroad never gave me the sense of achievement I was looking for. It was not a challenge as such an enterprise does not require vison or real skill. One had only to be competitive. The entire process was concerned only with generating volume, which had nothing to do with creating real value. But my long involvement in the bulk tea trade gave me knowledge and experience of the trade, and the trading disciplines, which served me well later when I started marketing my own brand.

My contacts in the USSR began playing a very significant role in my business and the subsequent development of the ‘Dilmah’ brand. Before the dissolution of the USSR, I would visit Moscow at least four or five times a year, mainly in connection with the supply of bulk tea. Grigory Pipinov, who became my friend when he was Deputy Russian Trade Commissioner in Sri Lanka, was of great help to me.

During his stint in Sri Lanka, he and his wife Lilian were frequent visitors to my home. He was also a great cook and would spend much time and effort organizing his frequent barbecue parties, for which he bought the beef from a particular butcher in Borella, and marinated for hours in my kitchen! The level of culinary perfection he required, in his view, could be achieved only by himself.

On all my visits to the USSR, I would be met at the airport by two or three officials and conducted to the National Hotel, the only equivalent then to a five-star hotel in Moscow. It had been built in 1903, during Czarist times, and was located close to both the Red Square and the Kremlin. My meetings were mostly with Grigori Pipinov and Bathov, Chairman of Sojuzplodoimport (Sojuz). The latter was also an extremely nice man and I developed very good relationships with the two, and all of the others that I dealt with. I gained their confidence as, in all my dealings with them, I was absolutely straightforward and they soon they realised that my agenda was what was on the table.

The tea trade in Russia was controlled by the State-owned Sojuz, a Moscow-based entity established in 1966 for the import of various food items in to Russia, including coffee and cocoa. It also owned a couple of premium vodka brands, such as Stolichnaya and Moskovskaya. Despite the subsequent breakup of the Soviet Union and the privatization of many previously State-controlled trade arms, control of Sojuz was retained by the State.

Whilst it was operating under State control, Sojuz imports of tea amounted to about USD 1.5 billion in value, annually. India accounted for about 60% of it, in volume. The balance was made up by China, Indonesia, Vietnam, Sri Lanka, and Bangladesh, collectively. Up to about 1988, average annual imports by the bloc amounted to about 135 million kilos. In the years 1989-1991, the volume reached 200 million kilos and in 1992, increased further to 260 million kilos.

Till then, all the tea imported to the CIS bloc (Confederation of Independent States comprising 11 countries initially, increasing to 12 with the addition of Georgia in 1993), was processed in 16 tea packaging factories spread out across the bloc, and distributed to retail shops at fixed prices, under an agreement with the Ministry of Food and Industry and the Ministry of Internal Trade. The entire process, from importation of bulk to the cup of the consumer, was controlled by the State.

Tea and Perestroika

In 1988, when the Soviet Union collapsed, Russia wanted to import 20,000 MT per month. I agreed to give my buyers 500 MT and then gradually increase it to 1,000 MT. For me, it was a golden opportunity. Pipinov indicated to me that they were considering purchasing Dilmah tea exclusively, in 250 gm and 500 gm packs. I was invited by him to travel to Russia, to meet his Chairman, Bathov, and within a week I was in Moscow.

They accepted whatever price I quoted to them and, in order to maintain the trust in the relationship, I always ensured that my prices stayed reasonable in the context of the prevailing market. I believe that they were fully aware of this. Between 1988 and 2002, I used to ship an average of 100 x 40 ft. containers per month of bulk tea to Russia. Initially, whilst the dealings were directly with the Russian Government, trading conditions and commercial interactions were stable and reliable.

I shipped tea to various ports in the USSR. However, with the dissolution of the Soviet Republic and the consequent muscling in of the Russian Mafia in to the trade, the business became fraught with difficulties and physically dangerous to other participants.

When I first started supplying large volumes against the Sojuz orders, as a result of my heavy buying, the Colombo Auction prices shot up by about Rs. 15 per kilo and I had to absorb substantial losses on my first order. I had indicated to Bathov and Pipinov that I would be quoting a very moderate price on the first order, but that I would have to adjust it thereafter, as I knew for a certainty that the auction price would increase sharply. That is exactly what happened.

On my next trip to Moscow, when Bathov asked me about my losses resulting from the tea market upturn, I told him that irrespective of the bottom line, I would maintain the agreed quality of service. He asked me for my new price for the second order adjusted by me to cover my previous loss and actually insisted that I increase it. I made a further small adjustment, but still kept it at a reasonable level. The fact that I did not try to exploit their urgent need for tea to my advantage established trust between us.

The new contracts enabled me to recover the losses I made on the earlier orders and start on the road to profit. I made certain that, irrespective of Colombo Tea Auction price fluctuations, I delivered consistent quality and freshness. This was the business which, for a considerable period of time, made ‘Dilmah’ a household name in Russia and also paved the way for its subsequent successes in other countries.

This importance of establishing one’s credentials with the buyer with the very first order is an invaluable first principle, which I learned for myself when, during my time as a trainee tea taster, I did a little extra business by supplying shops in Negombo with tea. I used to impress on my people in the company, from the very inception, that the tea export trade is a business of frequently-fluctuating fortunes. The latter is directly tied to auction price movement and the first principle is, irrespective of the auction price, to maintain consistent quality. If you supply lower quality to maintain profit, the loss of the buyer is a guaranteed consequence. If you stay the course with integrity, you will eventually prosper.

I entered the Russian trade when the socialist bloc was one nation and, over the years, watched its fragmentation even as I continued to ply my trade with them. One immediate result of the break-up was the sudden increase in tea import volumes, surging from around 135 million kg in 1988 to 260 million kg by 1992. At the time of the dissolution, only the Republic of Russia had the infrastructure for the import and export trade. Therefore, the release of tight state controls and the sudden exposure to a free market environment, presented opportunities to aspiring private sector entrepreneurs to move into an area which, previously, had no direct dealings with local traders.

Our marketing blunders and a lost opportunity

Our traders foolishly misinterpreted Russian market preferences, assuming that it would be an ideal destination for cheap tea, which could be sold with large margins. In fact, this misjudgment of the CIS market as it later came to be called even led to requests by our traders for a revision of minimum product standards in exports to Russia. What the newcomers to the Russian trade failed to realize was that even under the previous State monopoly, Russia had been purchasing largely quality tea and that despite the liberalization, the market’s expectations of Ceylon Tea did not change. As a result, eventually, the fly-by-night operators were forced to drop out, whilst the reputed, established brands stayed the course.

The Russian market could be roughly segmented in to four. At the bottom there was space for cheap blends. Then there were the slightly superior blends which came largely from the UK and, above that, Dilmah, noted for its consistent quality. At the top level were a few specialty products from well-known UK brands. A matter of interest was that a few of the multinational and European brands of tea, whilst being expensive, were also of consistent good quality. Those brands were a serious threat to Ceylon Tea, on account of their quicker delivery capability from destinations close to Russian ports, and, also because of their reliable quality.

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Features

New US sanctions on ICC, a fillip to worldwide political repression

Published

10 hours ago

2026/10/15

Thilina Walpola

The International Criminal Court in session. UN Photo/Eskinder Debebe

US Secretary of State Marco Rubio’s warning to the International Criminal Court (ICC) was stark: ‘Either the ICC will end its threats, or we will end the ICC.’ It followed US central administration accusations that the court was unfairly targeting Americans on the basis of trumped-up war crimes charges.

However, a new plethora of sanctions has been clamped on the ICC by the US, which in turn has spurred accusations by sections of the world that the latter has unleashed an ‘assault’ on the international legal order.

What some of the sanctions would mean for the ICC was outlined by Rubio: ‘We will ban transactions with this rogue court, cutting off their resources and crippling their ability to operate against us.’

The ICC has shown consistency of purpose over the years. Despite some operational constraints it has indicted a large number of political strongmen from around the world, accused of war crimes and other governance excesses that come under its purview. Two such recent figures are: Russian President Vladimir Putin and Israeli Prime Minister Benjamin Netanyahu.

Rather than enjoy a mere nominal presence in the world community, the ICC has proved its effectiveness by detaining and bringing to justice scores of VIP politicians and others of their ilk who have been found guilty of human rights abuses and kindred excesses that come within the terms of reference of the ICC.

Accordingly, the international justice system would be stymied considerably as a result of the ICC being dis-empowered, particularly financially. Needless to say, potential and real perpetrators of the species of crime coming under the jurisdiction of the ICC would stand to gain most from such anarchic tendencies. That is, political repression globally would be enabled to enjoy a new lease of life.

A detailing of the types of crime coming under the purview of the ICC provides an idea of what it would cost the international community if the ICC’s operations are gravely hampered. They are mainly: genocide, war crimes, crimes against humanity and the crime of aggression.

That is, the part of the world to be worst affected would be the global South, since the latter is awash with the mentioned crimes. Needless to say, a chronically-disaffected South will sooner rather than later undermine the well being of the world dangerously. The world is already being put through these paces.

At the time of writing, ‘illegal migrants’ from the South, for example, are aggravating many a Western economy’s woes, besides creating for them acute law and order issues. The fact that these migrants’ presence goes on to become a virtual test of the migrant receiving states’ ability to forge domestic social inclusion in the face of jingoistic protests by mainly white supremacist groups is evidence of the latter. As is known, the US, to take just one example, has been up against this crisis for quite a while.

Accordingly, it will be in the best interests of the West if ‘illegal’ migrant arrivals on their shores are stemmed. If the socio-political and economic problems assailing the South are effectively managed through North-South collaborative, ‘trouble-shooting’ efforts the causes leading to ‘illegal’ migration and connected issues could be resolved at source as it were. For, it is the aggravation of the South’s material questions that lays the basis for the emergence of repressive and anti-democratic regimes in the hemisphere.

Until such time that the aforementioned issues in North-South relations are visited afresh and addressed urgently, a vibrantly functioning ICC would be needed. For, the latter would prove a deterrent to Southern political and military strongmen, highly prone to power abuse and like excesses, from coming into being in the wake of the South’s chronic material woes and the wars and conflicts that result from them.

It stands to reason then that the US would be acting in its own interests by enabling the ICC to perpetuate its mandate without hindrance. For a crop of issues that impinges negatively on internal law and order would be defused.

Meanwhile, there needs to be a meeting of minds among the rest of the West to put back in place a North-South dialogue process aimed at reducing some of the economic pressures that are weighing on the South.

Since economics usually drives politics it will be in the interests of the world community to scrutinizingly re-visit North-South issues of the past and put in place economic relief packages for Southern publics that would enable them to tide over their material hardships rather than permit the latter to aggravate into social disaffection and eventually armed militancy. It is the latter juncture that paves the way for the emergence of authoritarian rulers in the South who then go on to be a blight on their publics.

Accordingly, the Southern-based global development thinking of the past that envisaged a more equitable world economic order needs to be seen as an urgent need. That is, NAM’s international development paradigms need to be resuscitated to the extent possible.

It is unlikely that rightist governments of the West, such as the current Republican administration in the US, would find these projects feasible, but democratic states of Europe, led by perhaps the UK, are likely to think otherwise. For it would not be beneficial for the democratic world to be having on their hands repressive governments in the South who would be gravitating towards the major military and economic actors of the South, such as Iran and North Korea, who tend to be in constant power struggles with the West.

However, until such time that the mentioned, pro-people initiatives are given serious thought the ICC would need to be enabled by the international community to be in place comfortably and carry on with its mandate of bringing repressive rulers to book. Besides the ICC should pave the way for the peoples of the developing world to enjoy some substantial respite from the political repression and even terror which tend to be their lot.

Meanwhile, the wars of West Asia are relentlessly aggravating the economic hardships of people everywhere, driving the point home to enlightened sections that there is no alternative to peacemaking. A challenge is to convert the US under President Trump to this line of thinking.

Features

Clear, soft and shine-free skin

Published

10 hours ago

2026/10/15

Thilina Walpola

This week, I give you five simple, time-tested homemade remedies that help reduce the appearance of blemishes, control excess shine and leave your skin feeling softer and smoother.

The Honey and Lemon Brightening Dab:

For stubborn blemish marks, this is a classic. Mix one teaspoon of pure bee honey with three to four drops of fresh lemon juice. Apply gently, only on the affected spots, and leave for 10 minutes before rinsing with lukewarm water. While honey soothes and softens, lemon helps to brighten naturally. Use twice a week in the evening.

Besan and Rose Water Oil-Control Pack:

An ideal remedy to combat shine, especially on the T-zone. Take two teaspoons of besan (gram flour) and mix with sufficient rose water to form a smooth paste. Add a pinch of turmeric for its antiseptic goodness. Apply evenly, keep for 15 minutes and wash off. It absorbs excess oil without over-drying, leaving a beautiful matte finish.

Aloe Vera and Cucumber Ice Soother:

Blend fresh aloe vera gel with the juice of a grated cucumber and freeze the mixture in an ice tray. Each morning, wrap one cube in a soft muslin cloth and gently rub over a cleansed face for 30 seconds. It calms, tightens pores and imparts a baby-soft smoothness.

Oatmeal and Curd Gentle Polish:

Roughness and old blemish marks need gentle exfoliation. Combine one tablespoon of finely powdered oatmeal with one tablespoon of fresh curd (yoghurt). Massage very gently, in circular motions, for one minute, leave for five minutes and rinse. It removes dead cells and unveils softer, clearer skin.

Multani Mitti and Green Tea Magic Mask:

Brew some green tea and allow it to cool completely. Mix one and a half teaspoons of Multani Mitti (Fuller’s Earth) with the tea water to make a fine paste. Apply for 10 to 12 minutes – do not let it dry and crack completely – and wash off. It draws out impurities, fades blemishes and bestows a fresh, shine-free glow.

A Gentle Reminder:

As with any natural remedy, always do a patch test on your inner arm first. For those with oily or combination skin, avoid heavy coconut oil application and harsh scrubbing, as they tend to aggravate shine and blemishes.

Features

Compete, shine and be discovered at WCOPA 2027

Published

10 hours ago

2026/10/15

Thilina Walpola

Dream of performing on a world stage? Well, here is your unique, golden opportunity!

The World Championships of Performing Arts (WCOPA) — the one and only official “Talent Olympics” — is the world’s premier global platform for aspiring singers, dancers, actors, models, instrumentalists, etc., to compete, shine and be discovered!

And, yes, this world stage is open to YOU, Sri Lankans living in Sri Lanka and overseas!

Held annually in glittering Las Vegas, WCOPA brings together over 70 countries, all competing for Gold, Silver and Bronze Medals, just like the traditional Olympics.

Lakisha Bernard: Will represent Team Sri Lanka at WCOPA 2027

Outstanding performers vie for the coveted titles of Junior and Senior Grand Champion Performer of the World, with winners and standout participants awarded over $500,000 in scholarships, cash awards and prizes to catapult their education and careers!

Sri Lanka is already making waves! At WCOPA 2026, Natharie Wickramasinghe, representing Team Sri Lanka, made the nation proud by winning a Bronze Medal in the Ethnic/Folklore Dance category!

Lakisha: Accomplished freelance Model and Fashion Design graduate

Recruitment for this prestigious competition is handled through a system of scouts and licensed National Directors — and this is where our very own Chris Rajendra, now based in Las Vegas, and National Director for Team Sri Lanka, comes into the scene.

If you are a singer, dancer, actor, model, instrumentalist — if you have talent burning inside you — contact Chris Rajendra today for registration and, who knows, you may find yourself in Las Vegas, and proudly draped in the Sri Lankan flag, at WCOPA 2027!

The contact address is: Chris Rajendra, wcopa.nationaldirector.sl@gmail.com

or chris.rajendra@gmail.com

Meanwhile, a star is born for 2027, in the form of Lakisha Bernard who is all set to represent Team Sri Lanka at WCOPA 2027.

Originally hailing from the sun-drenched coastal city of Colombo and now carving out her creative career in Canada, 22-year-old Lakisha is stepping into the international spotlight.

This accomplished freelance Model and Fashion Design graduate has officially been appointed as the Team Sri Lanka Promoter for Canada as she prepares to represent Team Sri Lanka at WCOPA in Las Vegas.

Lakisha brings a unique blend of high-fashion sensibility, captivating camera presence and expert garment design to the Team.

Having built her career, from local college shoots to high-glamour concepts, Lakisha’s inspiring journey embodies the true spirit of cultural bridge-building and creative resilience, bringing immense pride and recognition to Sri Lanka on the global stage.

WCOPA 2027 will be held at the legendary Westgate Hotel & Casino, Las Vegas, from 12th to 20th July – the very same iconic arena where the late, great Elvis Presley himself performed!

Your moment is now. Your stage is Las Vegas, so hurry and contact Chris Rajendra.