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Tea market grappling with headwinds as 2025 comes to an end

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The High and Medium Grown offerings, particularly from the Ex- Estate sector, set a cautious tone. With overall quality described as barely maintained, prices faced downward pressure

As the curtain prepares to fall on Sri Lanka’s tea trading year, the penultimate auction of 2025 has painted a picture of a market grappling with headwinds. The sale, catalogued in the aftermath of the disruptive Cyclone Ditwah, presented 6.0 million kilograms to the trade, but was met with a predominantly bearish sentiment, casting a reflective shadow over the year’s closing.

The High and Medium Grown offerings, particularly from the Ex-Estate sector, set a cautious tone. With overall quality described as barely maintained, prices faced downward pressure. The better liquoring Western BOP/BOPF varieties, often a market bellwether, declined by up to Rs. 50 per kg. This easing trend rippled through the Below Best and Plainer categories, which were often cheaper by Rs. 20-40 per kg. Regional nuances were evident: Nuwara Eliya teas remained sluggish, Uda Pussellawa listings weakened, and Uva varieties were mostly steady only where quality was exceptionally upheld, with others declining. The CTC segment mirrored this fragility, with PF1s generally easier by Rs. 20 per kg, while the very bottom end of the market faced severe challenges, becoming at times unsellable.

This internal market dynamic was compounded by a notable sluggishness in global demand. The report notes a concerning inactivity from traditional buyers in the UK and the European continent. While shippers to Japan, China, the CIS, and the Middle East continued to operate, they did so at lower levels of engagement. Activity from South Africa was described as virtually absent, underscoring a broader pattern of restrained international participation.

In stark contrast to this overarching bearishness, the Low Growns sector emerged as a relative bastion of stability. With approximately 2.45 million kilograms on offer, this category witnessed fair demand across the board. In the Leafy and Semi-Leafy catalogues, Select Best and Best BOP1s held firm, with others even appreciating. Well-made OP1s also generally maintained their ground, though poorer teas at the bottom saw substantial declines. The Tippy and Premium catalogues told a similar story of selectivity, where well-made FBOPs, Very Tippy teas, and the best varieties either held firm or appreciated, while poorer descriptions faced irregular and easier conditions.

The tale of this penultimate sale, therefore, is one of a stark dichotomy. The market narrative bifurcates into a struggling, quality-sensitive mainstream estate sector weighed down by climatic after-effects and muted Western demand, and a more resilient Low Growns market where quality continues to find its price. This divergence highlights the increasingly selective nature of the global tea trade.

As the industry looks toward the final sale and the year’s reckoning, the events of this penultimate auction offer sobering reflection. The impact of Cyclone Ditwah, both real and psychological, coupled with the cautious stance of key international buyers, has applied palpable pressure. Yet, the enduring firmness for the best Low Grown teas provides a counter-note of confidence, suggesting that in an uncertain global environment, uncompromising quality and specific origin characteristics remain Sri Lanka’s most reliable assets. The challenge heading into the new year will be navigating this two-tiered reality.

By Sanath Nanayakkare ✍️



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Pan Asia Bank’s Rs. 5 b debenture issue oversubscribed

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B D A Perera, Chairman and Naleen Edirisinghe Director/CEO of Pan Asia Bank

Pan Asia Banking Corporation PLC’s Senior Listed Rated Unsecured Redeemable Debenture issue of up to Rs. 5 billion was oversubscribed following its opening reflecting strong investor interest.

The debentures, with a par value of Rs. 100 each, will be listed on the Colombo Stock Exchange (CSE). The three-year debentures offer an interest rate of 12.75% interest payable annually, while the five-year debentures offer 13.50% interest payable annually.

The issue has been assigned a BBB+ (Stable) rating by Lanka Rating Agency.

The debenture issue was managed by the Investment Banking Unit of Commercial Bank of Ceylon PLC, with SSP Corporate Services (Private) Limited serving as the Registrar to the Issue.

The Bank said the strong investor response demonstrates continued confidence in Pan Asia Bank and its approach to creating long-term value for its stakeholders.

Pan Asia Bank, which positions itself as ‘The Truly Sri Lankan Bank’, continues to strengthen its role in supporting the financial requirements of individuals and businesses while contributing to the development of Sri Lanka’s economy.

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SLIIT International and Liverpool John Moores University inaugurate dedicated international learning facility

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Andrew Patrick

The Sri Lanka Institute of Information Technology (SLIIT) and Liverpool John Moores University (LJMU), United Kingdom, recently inaugurated SLIIT International in Collaboration with LJMU, a dedicated international learning facility located at No. 17, Dickmans Road, Colombo 04, marking a significant milestone in a partnership spanning more than a decade and reinforcing their commitment to providing Sri Lankan students with access to internationally recognised UK higher education qualifications.

The Grand Opening Ceremony was attended by Andrew Patrick, British High Commissioner to Sri Lanka, who graced the occasion as Chief Guest, alongside senior representatives from SLIIT, Liverpool John Moores University, the British Council, academia, industry and other stakeholders, marking the next chapter of the longstanding SLIIT–LJMU collaboration. The new facility is particularly significant as Sri Lanka’s first academic facility dedicated exclusively to the delivery of LJMU degree programmes, reflecting the strength, maturity and long-term commitment of the partnership.

Over the past decade, the SLIIT–LJMU partnership has established a growing network of more than 1,500 alumni, while providing Sri Lankan students with opportunities to gain internationally recognised UK qualifications locally. The new dedicated facility has been designed to provide a world-class learning environment exclusively for LJMU programmes, supporting future programme expansion, strengthening the student experience and creating opportunities for deeper academic collaboration, innovation, research and student engagement.

Commenting on the milestone, Prof. Lalith Gamage – Vice-Chancellor, Managing Director and Chief Executive Officer, SLIIT, stated, “The launch of SLIIT International in Collaboration with Liverpool John Moores University represents an important new chapter in our longstanding partnership with Liverpool John Moores University. Our vision is to provide Sri Lankan students with a world-class education and student experience right here in Sri Lanka, while equipping them with the global outlook, critical thinking, professional capabilities and career readiness required to succeed in an increasingly interconnected world. This dedicated facility strengthens the student experience while providing a strong foundation for the continued growth of our collaboration with LJMU.”

Prof. Timothy Nichol, Pro-Vice-Chancellor, Faculty of Society and Culture, Liverpool John Moores University, said, “The opening of Sri Lanka’s first facility dedicated exclusively to LJMU degree programmes represents a significant milestone for the University and our partnership with SLIIT. It reflects the strength of our collaboration and our shared commitment to delivering a high-quality LJMU educational experience in Sri Lanka. The new facility also creates exciting opportunities for deeper academic collaboration, innovation, research and student engagement as we look towards the next phase of our partnership.”

A key highlight of the Grand Opening Ceremony was the panel discussion titled “Beyond Borders: The Role of British Higher Education in Developing Globally Competitive Graduates.” The discussion examined the growth of international educational opportunities in Sri Lanka, the future expansion of UK degree programmes, maintaining the quality and integrity of UK qualifications, developing future-ready graduates with global competencies, and the role of international higher education in strengthening graduate employability. The panel brought together Prof. Lalith Gamage; Prof. Timothy Nichol; Mr. Sajeewa Meepage, Representative of the British Council; and Dr. Harsha Cabral, Board Member of SLIIT.

The panelists further emphasized on emerging trends in areas including law, business, psychology and artificial intelligence, as well as the contribution of UK higher education to Sri Lanka through internationally recognised qualifications that uphold global academic standards.

The discussion explored the history and future of the SLIIT–LJMU partnership, the strategic significance of the new SLIIT International facility, academic quality, graduate employability and the long-term growth of LJMU programmes in Sri Lanka.

The ceremony also featured a special address by Andrew Patrick, British High Commissioner to Sri Lanka, followed by an address by Mrs. Clare Sears, Country Director, British Council Sri Lanka. The evening also included the ceremonial exchange of the partnership document between SLIIT International and Liverpool John Moores University, symbolising the continued commitment of both institutions to strengthening their collaboration and expanding international educational opportunities for Sri Lankan students.

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Dijital Team and WinSYS City University launch two-year partnership

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Ziyam Abdeen, Chairman of WinSYS, and Peter Ward, Managing Director of Dijital Team, at the signing ceremony for the two-year partnership

Dijital Team has signed a two-year partnership with Winsys City University, strengthening the skills and capabilities of its team members to support Managed Service Providers and IT service providers while elevating tech talent to immediate industry-readiness. With a Memorandum of Understanding (MOU) signed recently, the partnership was formally launched on 9 September 2026 at Dijital Team’s office premises, Colombo.

Combining Dijital Teams’ international employer network and understanding of the capability requirements of MSPs and IT service providers across Australia, New Zealand and the United Kingdom with Winsys City University’s training heritage of 21 years, the joint programmes create legitimate classroom-to-international-career pathways, offering structured learning and certification avenues that support deeper capability across cloud, cybersecurity, automation, AI and emerging technologies.

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