Business
Sri Lanka’s value-added tea now makes up 58% of all shipments
Sri Lanka’s tea export sector demonstrated robust growth in the first seven months of 2025, with a pivotal shift towards value-added products, which now constitute 58% of all shipments, according to the latest report from Forbes & Walker.
This marks a significant jump from the 52% share recorded in the same period in 2024, indicating a successful industry pivot towards exporting higher-margin products like tea bags and instant tea instead of bulk tea. This strategic move was a key driver behind a substantial 10.38 million kilogram (M/Kgs) increase in cumulative exports. Total shipments for the January-July period reached 150.85 M/Kgs, up from 140.47 M/Kgs in 2024.
However, the financial picture is nuanced due to currency fluctuations. When measured in Sri Lankan Rupees (LKR), the average Free On Board (FOB) value per kilogram saw a decline to Rs. 1,748.51, down by Rs. 22.94 from the previous year. Nevertheless, in more stable US Dollar (USD) terms, the story is positive. The average FOB value per kg increased by USD 0.08 to USD 5.86, resulting in an overall improvement in crucial foreign exchange earnings for the country.
The positive momentum was particularly evident in July 2025 alone, with monthly exports totalling 24.04 M/Kgs, an increase of 2.68 M/Kgs compared to July 2024.
Iraq solidified its position as the leading importer of Ceylon Tea, purchasing 22.61 M/Kgs; a striking 27% increase year-on-year. Libya moved into second place with a massive 245% surge to 13.02 M/Kgs, narrowly edging out Russia, which fell to third place after a 13% decline in imports to 13.00 M/Kgs. The United Arab Emirates (UAE) and Türkiye rounded out the top five importers.
Instant Tea and Tea Bags were the standout value-added categories, recording significant gains in both volume and USD value per kg.
Tea Packets saw the largest volumetric growth, increasing by over 12.7 M/Kgs.In a clear sign of the sector’s transformation, Bulk Tea exports were the only segment to see a decrease in volume shipped, down by 3.48 M/Kgs, Forbes & Walker data showed.
By Sanath Nanayakkare ✍️
Business
ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka
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.
Business
USD 40.84m pipeline to secure aviation fuel supplies to BIA
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.
Business
CSE activity up, turnover weak at Rs. 1.4 billion
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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