Business

Import ban on inorganic fertilizers and its effects on the tea industry

Published

5 years ago

2021/05/23

by Devaka Dias

1. Vegetatively Propagated Teas are CLONAL HYBRIDS which requires high and correct nitrogen ratios to reach its potential yield of over 3,000 kg per hectare made tea per annum.

2. The required norm is 10 kg nitrogen for every 100 kg of made tea. If soil carbon ratios are good at 7% organic matter in the soil, improving the cation exchange (ability of soils to hold nutrients) capacity, it is possible to reduce the N ratio from 10 N to seven N per 100 kg made tea. However, timing and the method of application is very important to derive absolute benefit.

3. Most soil where tea is grown in Sri Lanka is eroded and the organic matter in the soil is so poor that the tea is fertilizer dependent.

4. A field yielding 3,000 kg of made tea per hectare will require 300 kg N. Less if the soil carbon is good. The N per one ton of compost is believed to be low at 1.5% nitrogen. Based on this, one hectare of tea yielding 3,000 kg per hectare will require 20,000 kg of compost each year. Cost of procurement and application will be prohibitive and not cost effective and practical.

5. The quality of compost supplied to the industry requires to be closely monitored, particularly if imported, as there is the risk of introducing nematodes and other pest and diseases that we did not have hitherto.

6. Where compost is produced locally, proper C:N ratios must be ensured to give a standard of 20:1 or below. Quality control is a must or there will be repercussions as with high ratios the bacteria in the compost will draw nitrogen from the soil.

7. Compost fertilizer will be unable to match nitrogen, phosphate & potassium ratios recommended by the TRI. For example if the potassium levels are too high, it will bring about a magnesium deficiency making the leaf yellow.

8. If nitrogen is reduced, production will take a huge dip and leaf supplied to the factory will not be healthy for producing good tea. Succulent leaf is required for good tea manufacture but with less nitrogen the leaf will be yellowish and leathery. This will result in a brownish tea and high percentage of off grades. Poor quality tea will not fetch good prices at the auctions and the overall average will dip with both the factory and the green leaf supplier severely affected. The tea factories will run into problems of not being able to achieve the desired out-turn from green leaf to made tea which should be 21.50%. Even a loss of 0.50% will mean a loss to the factory in monetary terms which they can ill afford. A tea factory manufacturing 500,000 kg of green leaf based on a green leaf rate of Rs.100/= per kilo, incurring a loss of 0.05% on the out-turn will incur a loss of Rs.250,000/=.

9. The reduction of nitrogen over a long period of time will weaken the tea bush and the casualty rate will be very high after pruning.

10. Dependence on artificial fertilizer can be reduced but not completely stopped. Reducing the current rate of application cannot be done overnight and must be implemented in stages at the grower level. I suggest the following steps:

a. Encourage the grower to establish Gliricidia and Albizzia shade and maintain it correctly. A good cover of both type of shade ensures improving the soil carbon over a period of time. Fifty kg of gliricidia leaves adds 01 kg nitrogen into soil. In land with a high gradient, de-silting of drains is a must.

b. In land with a poor cover of tea due to erosion, most of the soil carbon will be lost and the grower must be encouraged to infill. Bright sunlight falling directly on the soil burns up soil organic matter very fast and also leads to the loss of ammonia in the soil when the soil temperature increases. Therefore establishing shade and infilling vacant tea patches is essential.

c. By changing the method of fertilizing, efficiency can be improved. Currently, the method of fertilizer application is to apply the manure on the surface of the soil by what is popularly known as broadcasting. This, I consider, to be the most inefficient method of application leading to loss of ammonia. I have over a decade adopted a different method of placement of fertilizer.

While this is expensive, it successfully reduces the volume of fertilizer that need be applied. The fertilizer is placed in a 6-inch deep alavangoe hole, one and a half feet away from the bush on the upper side of the slope and the hole covered. The cost of placement works out to three and a half workers per acre as opposed to one when broadcasting. It is a crime at today’s cost to waste fertilizer by broadcasting using more volume than necessary to compensate for volatization. More so as there is a big government fertilizer subsidy.

R & D is required to invent an applicator for fertilizer placement.

In conclusion I must say that with good agricultural practices, dependence on artificial fertilizer can be reduced but we cannot go 100% organic. It is important to educate tea growers, 70% of whom are smallholders using very much more than recommended doses of fertilizer, to mend their ways. They believe that applying more fertilizer means overnight crop increases and make five or six applications when four would suffice if correctly timed. What the smallholder does not understand is that we have to only replace N that has been removed from the soil. This is why we go on a replacement ratio of 10 kg N to 100 kg of made tea which could be reduced to 7% if the soil organic matter is good.

If a study is done on the fertilizer use by the smallholder and N replacement ratio worked out, I am sure the figure will be astronomical. This is where lot of money is wasted and must be corrected. With proper use of fertilizer, imports can be reduced and valuable foreign exchange saved by the country.

The authorities must also develop a method of issuing fertilizer to smallholders based on their production. This should not be a problem as the factories have the required information. In my opinion four application of fertilizer is more than enough with application during and after the two monsoons when the assimilation is best.

Reducing rate of N application with artificial fertilizer, in my view, does not require addition of compost if proper agricultural practices are followed. In an estate I work on, the soil is very rich in organic matter on account of a good cover of Albizzia and Gliricidia. No soil is exposed to direct sunlight as a lot of Albizzzia leaf litter and twigs and gliricidia loppings lie on the soil. They slowly disintegrate into colloids that will attract a negative iron to bind the ammonia and other elements such as Pottasium, Calcium etc.

I appeal to the authorities to rethink the ban on inorganic fertilizer imports. Immediate change will cause a lot of hardships to the grower, particularly the smallholder who contributes 70% to the national production and depend on this income for a living. The grower requires to be educated on the importance of soil organic matter to get them to adopt correct agricultural practices and reduce dependence on artificial fertilizer.

Halting inorganic fertilizer and moving totally to organic will cause irreversible damage to the industry in many ways. What is required is to improve the soil organic matter and reduce the dependence on fertilizer. One has to keep in mind that the tea industry is an interconnected web and the ban will not only affect the grower and the factories but also many others indirectly employed in the tea industry.

(The writer is a senior planter from a planting family with 48 years experience in the industry.)

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Business

How middle powers cooperate to achieve shared goals

Published

13 hours ago

2026/02/17

Sahan Weerasooriya

Australian H.C. to Sri Lanka Matthew Duckworth (Left) addressing the round table. Pathfinder Foundation Chairman Ambassador (Rtd.) Dr. Bernard Goonathilake is next to him.

‘Australia’s engagement with institutions, such as the Indian Ocean Rim Association (IORA) and “minilateral” platforms, including the Quad and the Combined Maritime Force, are practical examples of middle powers working together to address shared challenges ranging from ocean piracy to humanitarian assistance, Australia High Commissioner to Sri Lanka Matthew Duckworth said at a recent round table forum featuring the media and other important sections, held at the Colombo Club of the Taj Samudra Hotel on the topic ‘Middle Power Diplomacy.’

The forum was organized and conducted by the Pathfinder Foundation of Sri Lanka under the moderation of the latter’s Chairman, Ambassador (Rtd.) Dr. Bernard Goonathilake.

High Commissioner Duckworth underscored that such cooperation is not directed against any particular country but aims to preserve an open, inclusive, and rules-based regional order.

H.C. Duckworth acknowledged the reality of major power competition while stressing that Australia seeks stable and respectful relations with all countries, including Sri Lanka, cooperating where possible and disagreeing where necessary, without compromising core national interests.

Further, the H.C. focused on India’s evolving role in the Indian Ocean, the trajectory of China’s rise, the durability of the current global order, alliance dynamics, and Sri Lanka’s positioning in the Indian Ocean.

Responding to a question about India, the High Commissioner affirmed that Australia expects all major powers—India, China, and the United States—to act transparently and to respect the sovereignty of smaller states. On whether the current emphasis on middle-power diplomacy is a temporary shift or a long-term trend, the High Commissioner stated that middle powers must now play a more visible and proactive role in sustaining international norms and institutions.

H.C. Duckworth added that Australia invests in Sri Lanka in sectors, such as, minerals, renewable energy, textiles and education services. The High Commissioner reiterated Australia’s support for open trade and deeper regional economic integration, emphasizing the importance of economic resilience in a contested global environment.

The Pathfinder Foundation is a Colombo-based think tank dedicated to fostering informed dialogue on foreign policy, economic development and strategic affairs.

By Hiran H Senewiratne

Business

Green Minds: A new platform to rethink environmental governance in Sri Lanka

Published

13 hours ago

2026/02/17

Sahan Weerasooriya

The Ministry of Environment yesterday launched a new knowledge-sharing platform titled Green Minds, aimed at strengthening environmental thinking and institutional capacity among public sector officials, at a time when Sri Lanka is facing mounting ecological stress and climate-related challenges.

The inaugural session of the monthly programme was held on February 12, 2026, at the Ministry auditorium under the patronage of Secretary to the Ministry of Environment, K. R. Uduwawala, with the participation of senior officials from the Ministry and its affiliated institutions.

Addressing the gathering, Secretary Uduwawala said that Green Minds was designed not merely as another training initiative, but as a thinking space for public officials to critically engage with emerging environmental concepts and global best practices.

“Environmental governance today is no longer limited to regulations and enforcement. It requires new ways of thinking, interdisciplinary approaches and continuous learning. Green Minds is intended to become a platform where officials can reflect, debate and update themselves on these evolving realities,” Uduwawala said.

He stressed that Sri Lanka’s environmental institutions must move beyond routine administrative practices and embrace knowledge-driven policy making, particularly in areas such as climate adaptation, biodiversity conservation, sustainable resource management and environmental justice.

The keynote lecture at the inaugural session was delivered by Senior Professor Siri Hettige, who spoke on the role of social sciences in achieving sustainable development in Sri Lanka. He highlighted the often overlooked social dimensions of environmental problems.

“Environmental issues are not purely scientific or technical. They are deeply social. Human behaviour, consumption patterns, inequality and governance structures all shape environmental outcomes,” Prof. Hettige said.

“If we want sustainability, we must understand society as much as we understand nature.”

He pointed out that many environmental policies fail because they do not adequately consider community realities, livelihoods and social power relations.

“You cannot conserve forests without understanding people. You cannot manage waste without understanding urban lifestyles. Sustainability is fundamentally a social project,” he added.

Following the keynote, a high-level panel discussion on strengthening environmental awareness brought together Prof. Hettige, Dr. Herath Vidyaratne, environmental policy analyst, Ravindra Kariyawasam, Adviser to the Minister of Environment, and S. C. Palamakumbura, Conservator General of Forests.

Kariyawasam said Sri Lanka was at a critical juncture where environmental decision making must be aligned with national development priorities.

“We can no longer treat the environment as a separate sector. It has to be integrated into economic planning, infrastructure development and social policy. Green Minds offers a space for officials to think beyond institutional silos,” he said.

Dr. Vidyaratne stressed that environmental literacy among state officials was essential in responding to complex challenges such as climate change, water scarcity and ecosystem degradation.

“The problems we face today are interconnected. Climate change is linked to food security, public health and migration. Officers need systems thinking, not just subject knowledge,” he said.

Meanwhile, Palamakumbura highlighted the importance of translating environmental awareness into institutional action.

“We have knowledge, laws and policies. What we need is consistent implementation and a shared environmental ethic across all institutions. Platforms like Green Minds can help build that collective responsibility,” he said.

He noted that forest conservation, wildlife protection and ecosystem restoration could not succeed without inter-agency cooperation and informed decision makers.

By Ifham Nizam

Business

Third quarter financials highlight 30% PBT growth for Aitken Spence in FY 2025/26

Published

13 hours ago

2026/02/17

Sahan Weerasooriya

Ms. Stasshani Jayawardena Chairman / Chairperson Aitken Spence PLC / Dr. Parakrama Dissanayake Deputy Chairman and Managing Director Aitken Spence PLC

Spanning tourism, maritime and freight logistics, strategic investments and services, with operations across the region, Aitken Spence PLC, with a legacy of over 157 years, continues to pursue excellence. The Group recorded revenue of Rs. 67 billion for the nine months ending 31st December 2025, underscoring a robust performance across its portfolio of industries. The Tourism sector accounted for 68% of Group revenue, while the Maritime & Freight Logistics sector and Strategic Investments sector contributed 18% and 12% respectively. Furthermore, the Group’s revenue for the third quarter improved by 3.8%, reflecting steady performance across key sectors.

The Group’s total Profit Before Tax (PBT) stood at Rs. 5.6 billion for the nine months ending 31st December 2025, compared to Rs. 4.3 billion in the corresponding period of the previous year, reflecting a growth of 30%. Correspondingly, the Group’s Profit After Tax improved by 42% to reach Rs. 3.4 billion.

Sectoral Performance

The Tourism sector recorded the most notable improvement during the period under review, reporting a Profit Before Tax (PBT) of Rs. 2.0 billion for the nine months ended December 2025. This performance was primarily attributable to the sustained recovery and growth of the tourism industry in Sri Lanka. In addition, the sector benefited from significant improvements in profitability at the Group’s Maldivian resorts, as well as enhanced operating performance across hotel operations in India and Oman.

The Group’s Maritime & Freight Logistics sector was the largest contributor to Profit Before Tax for the period under review, reporting a Profit Before Tax of Rs. 3.3 billion. Sector performance, however, was moderated by lower volumes and margin pressures, particularly impacting overseas freight and airline operations. This was reflected in the reduced contribution from the sector’s equity-accounted investee for the period.

In the Strategic Investments sector, the key contributing segments of printing and plantations both recorded stellar performance for the period under review despite the challenging market conditions of these industries, while the power generation segment witnessed a steady performance with notable contributions from the Waste-to-Energy and renewable power generation operations. However, the significant losses incurred in the apparel manufacturing segment impacted the overall performance of the sector, resulting in a loss of Rs. 652 million at PBT level.

The Services sector recorded strong growth during the period under review, driven primarily by the expansion of operations at Port City BPO, the Group’s most recent investment. This performance was further supported by improvements in performance by the Group’s elevators segment. As a result, the Services sector reported a Profit Before Tax of Rs. 843 million, compared to Rs. 114 million in the corresponding period of the previous year.

The period was marked by notable achievements:

Aitken Spence PLC became the first and only diversified holdings company in Sri Lanka to have its climate targets validated by the Science Based Targets Initiative (SBTi).