Business
Tea production plummets; prices remain high
By Steve A. Morrell
Asia Siyaka (AS) tea market report for sale no. 21, covering the period May 31- June 1, indicates a production drop of nearly 10 million kilos compared to 2021.
Results for the year up to the above dates, the report said, was 111.5 million kilos. Comparatively, for the same period in 2021, production recorded was 122.25 million kilos, indicating a minus variant for the comparative period of about 10 million kilos.
The formalized plantation sector was not on hand to corroborate these results. However, tea smallholders and private tea factory owners, when contacted, confirmed a drop in production. It should also be noted that tea smallholders are responsible for 75 per cent tea production.
Among the major factors that accounted for these results was the ill- advised decision by the current administration to ban imported fertilizer and the lack of weedicides. The above sources said fertilizer when available could not be applied because of the noxious weed growth. Additionally, as disclosed by the plantation sector, the lack of workers was also beginning to tell, because youngsters, both men and women, sought employment in urban locations.
Smallholders said, previously, each field on estates or holdings was harvested on 7- day plucking round, thereby ensuring high standards of leaf harvested. However, because of the lack of workers, harvests were done once in 14 days, thus bringing down leaf standards.
Irrespective of these debilitating influences, brokers’ reports said prices remained high.
Forbes and Walker confirmed these results. They said Western BOP’s (Broken Orange Pekoe, the marketed leaf size), sold at Rs. 50 to Rs. 100 per kilo, recording comparative gains, same as the BOPF grade (Fannings). They also confirmed teas from Nuwara Eliya were substantially more expensive.
Irrespective of leaf standards both brokers’ reports confirmed prices did not dip.
The Ukraine factor was featured in the AS market report as well. It said Russia invading Ukraine meant that the tea industry was ‘back in a heap of trouble’. For tea, the two factors that count are fuel and fertilizer. Oil price increases are causing tea factories to stop manufacturing. The end result is that smallholder leaf is not produced, resulting in the relevant group of workers being deprived of their livelihood.
There are about 400,000 tea smallholders who are affected by fuel restrictions. Besides, the power cuts for a number of hours each day seriously affect manufacturing processes and factories are unable to cope with the influx of green leaf.
Russia and Belarus represent about 25 per cent of the global potash market, and fertilizer rates have already reacted to increased costs. This adds further costs to tea production.
In a further comment the AS report said the tourism sector and foreign remittances are seriously affected, aggravating an already hopeless situation.
From a demand standpoint, the report said Russia consumes an extraordinary amount of tea (140 million kilos) yearly.
However, apart from Russia, Iraq, the UAE, Turkey, Iran and Azerbaijan, are all recorded markets for Ceylon Tea, besides Germany and the US.
Business
SLTDA launches NTSP campaign to elevate national tourism quality and standards
by Claude Gunasekera
The Sri Lanka Tourism Development Authority (SLTDA) officially launched its nationwide capacity-building campaign, “Grow your Tourism Business with National Tourism Skilling Programme (NTSP),” August 31, from the scenic regional hub of Ella. Directed under the leadership of the Tourism Deputy Minister, Prof. Ruwan Ranasinghe, the comprehensive initiative aims to transform micro, small, and medium enterprises (MSMEs) by accelerating their digital readiness and business formalization across the local hospitality ecosystem.
The entire islandwide operation is under the direct coordination of Ms. Tharanga Rupasinghe, the SLTDA Director of Standards and Quality Assurance, ensuring that all rural operators align seamlessly with international hospitality standards. By utilizing the framework of the NTSP, the campaign focuses on delivering essential digital payment tools, modern online marketing insights, and compliance frameworks directly to village-level enterprises, handcraft artisans, and independent tour operators. Speaking at the launch event in Ella, Tourism Deputy Minister Prof. Ruwan Ranasinghe emphasised that sustainable growth in the travel sector relies heavily on empowering smaller stakeholders to become resilient, data-driven participants in the modern market. “True economic resilience in our tourism sector cannot be achieved through large-scale infrastructure alone, but must be built from the ground up by transforming our local communities and regional MSMEs into direct, digitally enabled beneficiaries of global travel traffic,” Prof. Ranasinghe noted. Through this synchronized, localized training approach, the SLTDA intends to systematically protect cultural heritage while elevating the service quality benchmarks of regional travel hotspots nationwide.
Regional hospitality groups, led by the Ella Tourism Association, have strongly welcomed the launch of the SLTDA national skilling campaign, calling it a vital step toward safeguarding the destination’s international reputation. Local operators noted that rapid commercial growth in the Uva Province has highlighted an urgent need for structural standardization, making the arrival of the National Tourism Skilling Programme (NTSP) highly timely. The grassroots response focused heavily on the benefits of formalization and digital integration for the region’s diverse service sector. The Ella Homestay Owners Collective praised the focus on digital payment tools, noting that transition support will help smaller vendors capture direct bookings and reduce their reliance on third-party booking commissions.
The Uva Tuk-Tuk and Adventure Guides Association highlighted that the safety and compliance training will build trust with high-spending international travelers, effectively raising service quality benchmarks across the town. Local association leaders emphasized that having Ms. Tharanga Rupasinghe, SLTDA Director of Standards and Quality Assurance, directly coordinate the field training ensures the program addresses practical, local challenges rather than just theoretical rules. Following the initial rollout, regional committees have pledged to work alongside the SLTDA to ensure that even the smallest village artisans and micro-enterprises achieve official registration, positioning Ella as a model hub for high-quality, community-driven sustainable tourism.
Business
Sri Lanka–Indonesia Business Council holds 3rd Annual General Meeting
The Sri Lanka–Indonesia Business Council of The Ceylon Chamber of Commerce held its 3rd Annual General Meeting recently, bringing together Council members and key stakeholders to review the Council’s activities and priorities for the year ahead. The AGM was graced by Dewi Gustina Tobing, Ambassador of Indonesia to Sri Lanka and Patron of the Council
Delivering her address, Dewi Gustina Tobing, Ambassador of Indonesia to Sri Lanka, provided a comprehensive overview of Indonesia’s political and economic landscape, highlighting the country’s focus on promoting economic independence, strengthening sectoral resilience, improving public welfare, and facilitating both inbound and outbound investment.
Re-elected as President of the Council for 2026/27, Sheamalee Wickramasingha, Chairman / Group Managing Director of Ceylon Biscuits Ltd. acknowledged the instrumental role played by the Ambassador in the re-establishment of the Council and reflected on the Council’s key achievements during the past year. She highlighted the successful Sri Lanka–Indonesia Business Delegation to Indonesia, which provided valuable opportunities for Sri Lankan businesses to engage with Indonesian counterparts and explore avenues for commercial cooperation.
Business
LAUGFS Supermarkets opens 46th outlet in Kotahena
LAUGFS Supermarkets has further strengthened its growing retail presence with the opening of its 46th outlet at No. 78, K.B. Christy Perera Mawatha, Kotahena. The new outlet operates 24 hours a day, offering customers a wide range of products together with bakery and hot food options, providing greater convenience and accessibility to the surrounding community.
The new Kotahena outlet further expands LAUGFS Supermarkets’ growing network and reflects the Group’s continued focus on strengthening its presence in strategic locations across the country. The opening ceremony was attended by the Group Chairman, Group Executive Vice Chairman, Acting Group Managing Director/Group Executive Director and senior management.
Commenting on the opening, the Sector Managing Director/CEO – Retail, Niroshan De Silva, said, “The opening of our 46th outlet reflects the dedication, teamwork and determination of our people, who have worked exceptionally hard to bring this outlet together. The new Kotahena outlet is designed to offer customers greater convenience, with an inbuilt bakery and hot food facility that provides freshly prepared food alongside our wide range of products, all under one roof. Our focus is to ensure that every LAUGFS Supermarket operates to the highest standards and consistently delivers quality, convenience and service excellence to our customers.”
The opening of the Kotahena outlet marks another significant milestone in LAUGFS Supermarkets’ ongoing expansion, bringing its products and services closer to more customers while further enhancing its 24-hour retail offering. With its growing network of outlets and continued focus on customer convenience and service excellence, LAUGFS Supermarkets remains committed to strengthening its presence and creating greater value for customers across Sri Lanka.
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