Business

A Dutch envoy’s candid message to Sri Lanka: Tea, trade, and the partnership that awaits

Published

5 days ago

2026/06/1

On a quiet evening at the Ambassador’s residence in Colombo, following the launch of the Tea Small Holdings Development Authority’s Regenagri Digital Resource Centre Network, His Excellency Iwan Rutjens, Acting Ambassador of the Embassy of the Kingdom of the Netherlands, in Sri Lanka , sat down for a conversation. What emerged was not the usual diplomatic repertoire of cautious optimism and scripted courtesy. Instead, the Dutch envoy offered something rarer: clear-eyed honesty about Sri Lanka’s potential, its obstacles, and the kind of partnership that truly matters – one built on trade, not charity. And he started not with ships or ports, but with a cup of tea.

The Dutch footprint in Sri Lanka’s tea industry

For centuries, the Netherlands has been intertwined with Sri Lanka’s trade history. But today, that relationship is less about colonial legacy and more about shared futures – especially in tea. “Dutch companies are standing ready to share their knowledge and expertise,” says Rutjens. “But in order to create fruitful cooperation, there needs to be easy market access, ease of doing business, and less red tape.”

He pauses, then adds with quiet emphasis: “We trust the Sri Lankan government is working hard on these issues to create a more favourable investment climate for foreign direct investment.”

The message is unmistakable. The Netherlands – one of Europe’s most open, trade-savvy economies – is not here to write cheques alone. It is here to partner. But partnership requires two willing hands. And right now, Sri Lanka’s bureaucracy remains a stubborn third party at the table.

Yet Rutjens is no pessimist. In fact, he sees something many others miss, starting with the very sector that launched the evening’s conversation.

400,000 small tea holders at the heart of the story

The occasion for this conversation was the launch of the Regenagri Digital Resource Centre Network in Kandy, supported by Solidaridad, the Netherlands Embassy, and other stakeholders. The initiative, led by the Tea Small Holdings Development Authority, represents approximately 400,000 small tea holders – many of them women, young people, and families in some of Sri Lanka’s most vulnerable areas.

“The small holders in particular are facing significant challenges,” Rutjens explains – volatile prices, limited access to finance, insufficient technology, and climate-related risks. “Compared to the larger estates, they lack the ability to innovate, invest and operate on the same competitive level. By this initiative, we can bring new technologies and reduce inequalities across the tea value chain.”

The €500,000 Dutch Good Growth Fund (DGGF) grant funded by the Netherlands Ministry of Foreign Affairs enables these 400,000 small tea holders to access data, training, and content that were out of reach before. “The impact will contribute not only to their competitiveness, but also ensures long-term agricultural stability and the well-being of the people who contribute, from cultivation to every cup of tea.”

Sustainability as Sri Lanka’s competitive edge

Rutjens is careful to frame sustainability not as a burden, but as an opportunity. Many small tea holders already use traditional methods that avoid synthetic chemicals – preserving soil, biodiversity, and long-term agricultural viability. “European consumers are becoming more aware and critical about the sustainability and production practices of their food and beverages,” he notes. “Sri Lanka’s small tea holders are well situated to benefit from this trend. Globally, already many ethical tea brands partner with small-scale farmers.”

On the question of certifications like Regenagri, he is unequivocal. “The European Union as a single market is the largest export destination for Sri Lankan goods. Access to this market is of paramount importance. With new due diligence regulations, supply chain certification is extremely important – not to be regarded as a non-tariff barrier, but as an opportunity the Sri Lankan agricultural sector is well poised to meet.”

He adds: “Sustainability is the way forward. A race to the bottom in terms of environmental standards and labour practices will not only have a negative impact on the environment and the sector as a whole, but also on the small tea holders and their livelihoods. All goes hand in hand: people, planet and profit. This is what European consumers are demanding.”

From tea plantations to global maritime trade

Yet Rutjens sees the tea sector not in isolation, but as part of a larger story. If smallholders can be integrated into sustainable, certified supply chains, then Sri Lanka can do the same on a national scale with maritime trade and logistics.

“Sri Lanka has the potential to grow further in importance in maritime trade, logistics and supply chains,” he says, leaning forward. “Domestic agricultural production – including tea – can be integrated more in these supply chains. There are strong Dutch and other European partners in maritime logistics eager to assist Sri Lanka in expanding its position as a leading global maritime trade hub.”

This is not abstract strategy. The majority of Sri Lankan exports already go to Europe. A stronger maritime logistics position means faster, cheaper, more reliable delivery of Ceylon tea to Dutch warehouses, German retailers, and French consumers. “A strong partnership between Sri Lanka and Europe,” he argues, “will benefit all parties and strengthen Sri Lanka’s strategic independence from other global players.”

Those words hang in the air. In an era of great power rivalry, a mid-sized democracy like Sri Lanka does not have to choose sides. It can build its own lane with partners like the Netherlands – starting with its small tea holders.

A partnership built on resilience, not charity

In a world where geopolitical tensions and conflicts are disrupting global energy and food security, Rutjens sees international collaboration between mid-sized democracies as more critical than ever.

“Both the Netherlands and Sri Lanka, as mid-sized democracies with open economies, are very much vulnerable to shocks in markets and supply chains,” he says. “Both our countries depend on a well-functioning international rule-based order to create resilient economies and sustainable supply chains. International cooperation such as the GSP+ trade agreement between the European Union and Sri Lanka are very important to build resilience.”

He returns to tea one last time: “What we are doing with Regenagri and the 400,000 small holders is not charity. It is an investment in a shared, sustainable future. If smallholders can compete, if they can certify their sustainability, if they can access European markets on fair terms – then Sri Lanka as a whole can do the same with its maritime destiny.”

As the evening light faded over the Ambassador’s residence, one could not escape the feeling that Rutjens had offered something more than an interview. He had offered a framework for Sri Lanka to see itself not as a struggling island, but as a strategic hub; not as a recipient of aid, but as a partner in trade. And it begins, appropriately, with the people who grow the tea in your cup.

By Sanath Nanayakkare

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Related Topics:Acting Ambassador of the Embassy of the Kingdom of the Netherlands in Sri Lanka Iwan Rutjens

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Business

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

Published

23 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

23 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

23 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