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Lanka’s crisis powers 22% spike in Indian tea exports

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Orthodox tea exports from India have increased by more than 22 percent during the first six months of the calendar year as its largest supplier, Sri Lanka, grapples with an economic crisis, Indian media reports say.

A report published by the Business Standard has said: “According to the latest data available on the Tea Board India website, tea exports from India, during January-June 2022, stood at 96.89 million kg, up by 10.43 million kg (mkg) over the same period last year. Much of the increase was from the orthodox segment, whose exports rose by 8.92 mkg to stand at 48.62 mkg. The increase in exports of CTC tea, on the other hand, was just about 0.80 mkg.The increase in orthodox exports is significant and it’s on the back of the deficit in Sri Lanka, said Kaushik Das, vice president, Icra.

“On an annual basis, Sri Lanka has seen a drop of about 19 percent in production. If this deficit remains, then we are looking at 60 mkg of lower production for the full year. And that is the total orthodox production in North India,” he pointed out.

Orthodox tea refers to loose-leaf tea, produced using traditional or orthodox methods such as plucking, withering, rolling, oxidation and drying. CTC tea is processed using the crush, tear and curl method.

Sri Lanka accounts for about 50 percent of global trade in orthodox teas. According to sources in the Tea Board, exports from India are expected to pick up further in the second and third quarters which will help meet the target of 240 mkg by the end of the year. In 2021, total tea exports from India stood at 196.54 mkg.

“The markets that have been vacated by Sri Lanka is where our teas are going at the moment. Going by the current trend, orthodox will see heightened demand,” the sources added.

The Tea Board, in fact, is planning to encourage more orthodox production by trying to incentivise it in its upcoming plans. Out of a total tea production of 1,344.40 mkg in 2021-22, orthodox production was 113.07 mkg.Data available on Tea Exporters Association Sri Lanka showed that January-July 2022, cumulative production totaled 153.03 mkg, recording a significant decrease of 35.07 mkg vis-à-vis 188.10 mkg during January-July 2021. It mentioned that the production is the lowest for the period since 1996.

India is reaping the benefits from the shortfall. Sri Lanka’s top five markets are: Iraq, UAE, Russia, Turkey and Iran. The major gains for India during January-June have come from UAE at about 9.1 mkg.

“UAE is mainly a re-exporting hub and much of the teas goes to Iran and CIS,” said Azam Monem, director, McLeod Russel India. “We will end the year with 10-15 per cent higher exports. We always exported to the UAE, which we will continue doing. Other major destinations for us will be the UK, US, Canada, and Germany,” he added.

Himanshu Shah, chairman M K Shah Exports, said that Iran had been very active this year resulting in almost 45-50 per cent higher prices of orthodox teas compared to last year.

“The January-June figures, however, don’t fully reflect the extent of buying as Iran mostly buys quality tea of second flush,” he said. The second flush comes to the auction towards the end of June.

“Exports to Russia will pick up in the third and fourth quarter,” Shah added.

The increase in exports to Iran during January-June was 1.39 mkg. “The demand for orthodox is booming. India has made inroads into Sri Lanka’s markets, the challenge is to retain the hold once the island nation returns to normal crop production,” said Anshuman Kanoria, chairman, Indian Tea Exporters Association.

In the last 2-3 weeks, however, orthodox prices have come off from its peak levels. “There is increased supply in the market and tea prices have gone up which is resulting in cash flow problems for exporters. Everyone has limited finance and that is a slight roadblock to increasing exports further,” Kanoria explained.The top two markets for Indian tea are Russia and Iran. Exports to Russia during January-June stood at 14.76 mkg as against 15.88 mkg in the same period of 2021.

Dipak Shah, chairman, South India Tea Exporters Association, said, in the last one month, buyers from Russia have been very active. “With the regular buyers, there is not much issue with payments though arrivals in Russia are still erratic. As of now, things are moving in the right direction.”



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Foreign warships commended for their assistance during weather disaster in Sri Lanka

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Highlighting the spirit of global and regional cooperation, the Sri Lanka Navy acknowledged the invaluable support by foreign warships, which had arrived to take part in the International Fleet Review (IFR) 2025, extending much-needed Humanitarian Assistance and Disaster Relief (HADR) operations, during the recent weather disaster in Sri Lanka.

The IFR 2025 was held off the Galle Face seas, marking the milestone 75th anniversary celebrations of the Sri Lanka Navy.

Representing the Government of Sri Lanka, Prime Minister Dr. Harini Amarasuriya graced the event and received the traditional naval salute from onboard SLNS Gajabahu, as the participating foreign warships paid their honours.

Eight (08) foreign naval warships arrived in Sri Lanka by 27 November to take part in the IFR under the theme “Sailing Strong – Together”. The participating warships included the Bangladesh Navy’s BNS PROTTOY, the Indian Navy’s aircraft carrier INS VIKRANT and INS UDAYGIRI, Iran Navy’s IRIS NAGHDI, the Maldivian Coast Guard’s CGS HURAVEE, the Royal Malaysian Navy’s KD TERENGGANU, Pakistan Navy’s PNS SAIF and Russian Navy’s GREMYASCHCHY.

Due to the disaster-situation triggered by severe weather conditions across the island, foreign warships that arrived for the event were promptly redirected to support humanitarian efforts. Particularly, helicopters deployed from the Indian Navy’s aircraft carrier INS VIKRANT and Pakistan Navy’s PNS SAIF played a praiseworthy role in search and rescue missions for affected communities.

Accordingly, the warships representing each nation joined the IFR, honouring proud maritime traditions and in acknowledgement of Sri Lanka and its Navy. Their participation also reinforced collective cooperation and partnership needed to address non-traditional maritime threats in the region, as well as natural disasters driven by climate change.

The  Prime Minister expressed gratitude to a group of diplomatic officials, present on this occasion, for their support in the disaster relief operations. The officials, who were present on the occasion, represented the High Commissions and Embassies of Bangladesh, India, Iran, Maldives, Malaysia, Pakistan, and Russia in Sri Lanka.

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I invite you to step into 2026 with renewed energy, hope, and determination – PM

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Prime Minister Dr Harini Amarasuriya in her New Year message invited all Sri Lankans to step into 2026 with renewed energy, hope, and determination.

The PM’s New Year message:

“As we move forward to the New Year of 2026, it is timely to reflect on the year 2025 that has passed. The year 2025 can be granted as a year having made a number of decisive and progressive steps with a people oriented government.

I am confident that, within a new political culture, we were able to strengthen transparency in state governance and lay the foundation for an efficient and corruption free public service.

We can be satisfied with the progress achieved in several key areas during 2025, including economic stability, the increasingly positive and optimistic international perception towards our country, the establishment of transparent systems of governance, and the strengthening of the sovereignty of the legislation system.

However, the unfortunate disastrous situation we experienced towards the end of 2025 was a challenging period for our nation. While it deeply moved us all, the spirit of solidarity, compassion, and collectivity shown by Sri Lankans during that difficult situation received admiration across the world.

As we step into the New Year 2026, we hold commitment to overcoming those challenges, healing from the disaster, and restoring the lives and livelihoods that were affected.

Moving forward with the goals such as initiating qualitative and sustainable transformation in the education sector, digitalizing all sectors of the public service, creating an enabling environment for entrepreneurs, artists, and creators with innovative ideas to rise on the global stage, and building a compassionate, environmentally friendly society free from drugs and harmful substances I would like to remind, at this moment, that the responsibility of rebuilding this nation rests upon the entire nation, together with the government, transcending differences of ethnicity, religion, or political affiliation, and united by a strong Sri Lankan identity.

Transforming all the challenges we experienced in the past year into sources of strength, I invite you to step into 2026 with renewed energy, hope, and determination.

I extend wishes for a victorious New Year filled with peace, happiness, and prosperity.”

 

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National Audit Office reveals NHSL lapses

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Reagent scandal:

Deputy Director of the National Hospital, Dr. Rukshan Bellana, has been interdicted by Health Service Committee (HSC) of the Public Service Commission (PSC) following a preliminary inquiry into several complaints received against him, government sources said.

They said certain matters referred by the Secretary to the Prime Minister Dr. Harini Amarasuriya and Inspector General of Police (IGP) Priyantha Weerasooriya, too, had been taken into consideration.

A Health Ministry official said there was no truth in Dr. Bellana’s claim, as reported in the 30th December edition of The Island, that the Health Ministry had sacked him on the approval of the HSC of the PSC over him taking up the massive Rs 900 mn fraud involving the supply of chemical reagents to the laboratory of the National Hospital of Sri Lanka (NHSL) in Colombo, which is the premier hospital in the country.

Sources said that there was absolutely no basis for this allegation. The official said that Dr. Bellana had been interdicted for issuing statements that caused controversy and turmoil among the public. That’s the most serious offence that had been taken into consideration when the decision to interdict him was taken, sources said. “There will be a spate of charges in the charge sheet to be issued soon.”

The interdiction of medical officers could not be carried out by the Ministry of Health and Mass Media, as the Ministry was not vested with disciplinary authority, sources added.

Dr. Bellana said he stood by what he revealed and had evidence to support his claim.

Health Ministry sources acknowledged that the National Audit Office (NAO) on June 6, 2025, had called for information in respect of chemical reagents procured by the National Hospital Colombo NHSL laboratory from 2022 to 2024.

Responding to another query, sources said that a separate investigation by the Internal Audit of the Ministry of Health was on into issues raised by the Audit query pertaining to the lab of the NHSL.

Having pointed out that the government paid Rs. 894,186,168 (2022), Rs. 713,652,615 (2023) and Rs. 936,152,767, totalling Rs 2,543,991,550 for chemical reagents during that period, NAO sought an explanation from the Health Ministry as to how Rs 12,894,697 worth of chemical reagents past expiry dates were found in six laboratories at NHSL during examination carried out on April 7,8,10,21 and 22 in 2025.

The NAO also raised the failure on the part of the relevant authorities to secure the approval of the Medical Supplies Division (MSD) before placing orders with local suppliers for chemical reagents.

The Health Ministry was questioned over the absence of proper stock keeping regarding Rs 2544 mn worth chemical reagents issued to NHSL laboratories. The NAO ascertained that Financial Regulations 751 had been violated. As a result of the absence of credible stock keeping, the NAO hadn’t been able to ascertain whether shelf-life expired chemical reagents were misused, the government authority stated.

The NAO asked for an explanation regarding the payment of Rs 912,838 over the required amount to a local private supplier (NAO named the supplier) for chemical reagents obtained.

In one of the most serious observations, NAO pointed out that shelf-life expired chemical reagents had been used for tests. The NAO raised this while pointing out the Health Ministry violated a key prerequisite in the procurement of chemical reagents that their shelf life should be at least 85% at the time of receiving consignments. Instead, all stocks procured had less than six months shelf life, NAO stated.

NAO declared that some suppliers refrained from mentioning the date of manufacture and the time of expiry.

The above mentioned were some of the issues that had been raised by Audit Superintendent Y.M. Sugathadasa on behalf of the Auditor General who is the head of the NAO. The post of AG remains vacant since December 8, 2025. Earlier incumbent W.P.C. Wickremeratne retired on April 8, 2025 after having served as AG for several years. President Anura Kumara Dissanayake and the Constitutional Council haven’t been able to reach consensus on a permanent appointment yet.

By Shamindra Ferdinando ✍️

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