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Tea exports between January-May 2021 amount to over Rs. 103bn

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Exceeds periodic performance by Rs. 18. 36bn

By Steve A. Morrell

Tea Brokers weekly Tea Market Reports, particularly, John Keels Holdings, (JKH,) market Review, Forbes and Walker ( F & W) Tea market report, and Asia Siyaka(AS) Brokers weekly tea update, reported tea exports from January to May 2021 exceeded Rs. 103. 07 billion. This exports result exceeded 2020 performance by Rs. 18. 36 Billion. From January to May 2020 exports were Rs 84.7 Billion. It is a clear indication that Ceylon Tea registered increased demand over the same period comparing both seasons.

One of the reasons attributed for the increase in Ceylon Tea exports was the lower production to some extent in the Indian Tea industry because of bad weather as well as the coronavirus pandemic that swept through India disrupting many commercial activities. The factual position was that the pandemic situation exacerbated dearth in production pushing supply and demand position to critical levels, Thus results of the pandemic in India generated increased demand for Ceylon Tea.

Cumulative exports recorded production levels at 134.72 million kilos to date, as reported by AS Brokers; comparatively 2020 the quantity recorded was 109. 5 million kilos.

It should also be of interest that 75 percent of the production was output by the tea smallholders. Sources from this sector said such results were also of importance as uncertainty in the fertiliser supply chain served as an impediment to production. Regional Plantation Companies were not exempt from the catastrophe facing the industry, as confirmed by sources who declined to be quoted.

Reports said Turkey was the leading buyer last week at Colombo tea auction. Turkey was followed by Iraq, Russia, and the UAE. Iran moved down to 8th position from 4th. Other notable importers of Ceylon tea were China, Azerbaijan, Libya, and Syria. Meanwhile Chile, and Saudi Arabia imports declined. However, exports to China increased substantially, contributing some 52 percent YoY.

Low growns production during the week was recorded at 3.1 million kilos.

Flowery grades were sold at prices ranging from Rs. 2,200 to Rs, 2,400 per kilo. Prices from the western hills, particularly BOPF grade, appreciated as the sale progressed. High and mid grown CTCs were Rs. 20 to 30 per kilo – less than expected.

According to the Tea Report, production in 2017 was 307.71 million kilos. In 2020, the production was 278.4 million kilos. Reports at hand did not indicate reasons for drop since that year.



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ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

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The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

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USD 40.84m pipeline to secure aviation fuel supplies to BIA

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By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

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CSE activity up, turnover weak at Rs. 1.4 billion

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By Hiran H Senewiratne 

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well.  In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.

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