Business
The Evolving Story of Pure Ceylon Tea
Sri Lanka’s Liquid Gold:
The world recently celebrated International Tea Day on 21 May 2025 under the theme “Bringing people together over a cup of tea.” The day aims to raise awareness of tea’s long history and its deep cultural and economic significance worldwide, promoting collective action for sustainable production and consumption while highlighting tea’s fundamental role in uplifting the Sri Lankan economy.
The origins of tea stretch as far back 4762 years to Emperor Shen Nong. Since then, this beverage has been lauded for its flavor, and its contributions to health, culture and socioeconomic development, a legacy which remains as relevant as ever. Today, tea is grown in many diverse regions across the world, supporting over 13 million livelihoods —including smallholder farmers and their households globally.
Yet of the world’s tea growing regions, none is more unique than Sri Lanka and its famed Pure Ceylon Tea. Synonymous with premium quality, authenticity, sustainable and ethical production, the island’s orthodox black tea has stood out for nearly 160 years as the world’s most sought after brew.
An unlikely global sensation: the ascendency of Pure Ceylon Tea
Sri Lanka’s own journey towards mastery of tea was non-linear. In the mid-19th century, Sri Lanka’s plantation economy teetered on the brink of collapse. Coffee had been the island’s main export, but when a virulent strain of coffee-rust fungus struck in 1869, entire estates were laid waste. Facing financial ruin, enterprising planters turned their gaze toward tea—a crop that, until then, had been little more than an experimental curiosity.

James Taylor, a Scottish planter, who began cultivating tea at the Loolecondera Estate, laying the foundation for the island’s tea industry.
Among those visionaries was James Taylor, a young Scottish planter who in 1867 began cultivating tea on a seven-hectare plot at Loolecondera Estate near Kandy. Taylor’s rigorous trials, conducted with Assam hybrid seedlings from the Peradeniya Botanical Gardens, quickly demonstrated tea’s promise.
By 1872, he had erected a rudimentary factory of his own design, complete with a leaf-cutting machine, and sent the first small consignment of Ceylon tea to London. Overcoming initial skepticism, early tasting reports praised its bright liquor and brisk flavour—qualities that would soon distinguish Ceylon tea on the global stage. The rest as they say is history.
What began as a lifeline for a struggling coffee sector rapidly evolved into a powerful engine of growth in its own right. Within a decade, hundreds of acres of abandoned coffee fields had been replanted with tea, and the landscape of the central highlands was transformed.
Railway lines, initially built for coffee, were extended deeper into the hills to carry the new tea harvests, while Colombo agency houses organized exports to European markets. By the 1888s, Ceylon tea was commanding premium prices. While the cultivated extent of tea exceeded peak coffee cultivation, it’s emergence not only salvaged the island’s plantation economy but laid the foundation for what would become the world’s sole benchmark for a quality cuppa.
An island of diversity: the recipe for global success
Found across the island’s picturesque central mountains and down to its southern foothills, Sri Lanka tea’s shifting elevations, winding valleys and patchwork microclimates combine to shape distinct qualities in every harvest that cannot be found anywhere else in the world.
Sri Lanka’s tea country unfolds across three elevation bands, each imparting its own signature. High-grown gardens above 1,200 meters—like the fog-shrouded slopes of Nuwara Eliya and the undulating heights of Dimbula—thrive in cool, misty air that slows leaf growth and concentrates delicate floral aromas. Their cups are bright and fragrant, with Nuwara Eliya often likened to champagne, while Dimbula brings a mellow sweetness and fine golden hue.
Mid-grown estates between 600 and 1,200 meters—anchored by Uva, Uda Pussellawa and Kandy—experience moderate temperatures and alternating monsoon rains that sculpt versatile flavours. Uva teas carry an aromatic natural bouquet. The famous desiccating ‘kachan’ winds that originate in the arid deserts of North India and sweep across Sri Lanka’s Eastern slopes and through the Malwatte belt between July and September each year, these seasonal valley-grown teas are among Sri Lanka’s most prized produce. Uda Pussellawa yields darker, tangy infusions with liquors of medium body and a rosy character; and Kandy, one of the island’s oldest regions, delivers a sturdy copper brew with spicy, nutty depth.
Below 600 meters, low-grown districts such as Ruhuna and Sabaragamuwa bask in warmth and humidity. Here the long sunshine hours and gentle breezes of the southern plains accelerate leaf growth, producing full-bodied teas with dark liquor—robust and richly flavoured in Ruhuna, softly sweet with caramel hints in sprawling Sabaragamuwa.
An evolving range of premium varietals
Even within a single estate, ridges, hollows and varying exposures create micro-climates that lend subtle nuance to each. It is this intricate interplay of elevation, soil, wind and rain that gives Pure Ceylon Tea its extraordinary diversity and a character which cannot be found anywhere else in the world.
These qualities are further characterized by two dominant distinct wet and dry monsoons; the North East and the South West. The North East monsoon from October to January and the South West monsoon from May to August.
Upholding centuries-old orthodox methods, the majority of Sri Lankan tea bushes are still hand-plucked with “two leaves and a bud” at first light and processed through careful withering, rolling and oxidation to preserve leaf integrity and maximise flavour.
In recent decades, Ceylon’s high-elevation estates have also produced exceptional green and white teas. Sun-withered “Silver Tips” and lightly steamed green leaves showcase delicate floral and grassy notes, commanding premium prices and demonstrating that Sri Lanka’s mastery extends far beyond its black tea heritage. Innovators have also revived heirloom cultivars like “Golden Curls” and introduced single-estate seasonal flushes, each offering a distinct taste of its garden’s terroir.
People & Communities—Stewards of the Leaf
Behind every cup of Pure Ceylon Tea lies the labour and dedication of estate workers and smallholder farmers. While livelihoods in the tea sector have always been a contentious issue, Sri Lanka tea harvesters have continuously earned as much as 50% more than their peers in comparable tea-producing countries.
Smallholders, who now account for almost three-quarters of national production, cultivate tea on family plots that supply a network of tea factories – both independent and connected to Regional Plantation Companies (RPCs). Many of these factories are now global leaders in adoption of rooftop solar, biomass, mini-hydro and other energy efficient mechanisms that are reshaping efficiency in the global plantation industry.
The Planters’ Association of Ceylon has long championed these stewards of the leaf, pioneering training programmes in sustainable agronomy and ethical workplace standards. Through RPC-led certification schemes, global best practices in modernized and precision agriculture have been integrated into daily operations, including integrated pest management, water, soil, flora and fauna conservation techniques that protect both the environment and tea quality.
Crucially, significant portions of revenue generated from tea flows back into rural schools, clinics and infrastructure projects, reinforcing tea’s role as an engine of social development. RPC estates also fund Child Development Centers which provide early childhood education and nutrition.
These initiatives which have resulted in significant improvements in health and overall education outcomes among the 1 million strong community that resides on the estates, as well as the approximately 125,000 strong RPC workforce and their families.
Women’s empowerment initiatives including focused opportunities for professional development and career advancement have opened new avenues in Sri Lanka’s tea industry to rise into positions that under colonial rule were closed off to them.
Community centres double as agricultural extension hubs, blending technical advice with literacy classes and health screenings. These efforts underscore a central truth: the strength of Pure Ceylon Tea rests not only in its soil and climate but in the hands of the people who cultivate it.
As global demand grows, it is this human network of skilled pickers, innovative smallholders and community advocates working in partnership with globally respected RPCs that set standards and continue to drive innovation that ensures Ceylon tea remains a model of quality, sustainability and shared prosperity.
As the industry evolves to cater to traditional demand as well growing value-added innovations including tea concentrates, essences, and ready-to-drink formats —it remains rooted in the hands of dedicated estate workers and smallholder families who uphold standards of quality and sustainability.
Business
Focus on developing the Coconut and Food & Beverage export industries into a USD 3 billion economy within the next two years
A discussion was held on Friday (26) afternoon at the Presidential Secretariat between President Anura Kumara Dissanayake and industrialists in the coconut and food and beverage manufacturing sectors on developing the coconut and food and beverage export industries into a USD 3 billion economy within the next two years.
Accordingly, the objective is to expand the coconut-based export industry into a USD 2 billion sector and the food and beverage export industry into a USD 1 billion sector, and extensive discussions were held on the plans required to achieve these targets.
The President stated that the Government is prepared to provide every possible form of incentive necessary to promote export diversification and encourage value-added products.
Proposals and suggestions aimed at developing these industries were also presented during the meeting, and the President further noted that future plans would be formulated after taking all such proposals and recommendations into consideration.
The President also expressed agreement to provide incentives for establishing industries in the Northern Province and assured that the Government would extend its fullest support for setting up coconut-based manufacturing industries in the region.
Attention was also focused on plans to streamline the importation of raw materials required for export production while safeguarding domestic producers. President Anura Kumara Dissanayake further stated that his Government’s objective is to build the country’s economy into an export-oriented production economy by strengthening domestic supply chains.
Minister of Labour and Deputy Minister of Finance and Planning Anil Jayantha Fernando; Secretary to the Ministry of Finance, Planning and Economic Development, Dr Harshana Suriyapperuma; Secretary to the Ministry of Industry and Entrepreneurship Development, Thilaka Jayasundara; and Chairman of the Export Development Board, Mangala Wijesinghe, were among those present.
The President of the Sri Lanka Food Processors Association, Aruna Senanayake; Vice President Rasika Seneviratne; Managing Director of CBL Group, Shyamali Wickramasinghe; Chief Executive Officer of SriLankan Catering Ltd, Mangala Wijesekera; Managing Director of Ma’s Tropical Food Processing (Pvt) Ltd, Mario D. Alwis; Chairman of the Consumer Foods Sector of John Keells Food Holdings PLC, Daminda Gamlath; together with a number of leading business leaders from the food production sector were also present.
President’s Media Division (PMD)
Business
Sri Lanka Retailers’ Association unveils strategic roadmap for the future at 9th AGM
The Sri Lanka Retailers’ Association (SLRA) successfully held its 9th Annual General Meeting (AGM) on 23 June 2026 at Hilton Colombo Residencies, bringing together members of the country’s organized retail sector to review the Association’s achievements over the past year and outline its strategic priorities for the future.
The AGM formally adopted the Annual Report and Audited Accounts for the financial year 2025/26 and elected the Office Bearers and Executive Council for the year 2026–2027.
Infiyaz M. Ali, Director of Healthguard Pharmacy Ltd, was announced as President of the Sri Lanka Retailers’ Association for 2026–2027. He will be supported by Mahesh Wijewardena, Executive Director and Group Chief Executive Officer of Singer (Sri Lanka) PLC, as Senior Vice President, and Kumar De Silva, CEO of SPAR SL Private Ltd, as Vice President.
The newly appointed Executive Council comprises senior representatives from leading retail organizations across Sri Lanka, reflecting the Association’s continued commitment to representing the diverse interests of the retail sector.
Addressing the gathering, President Infiyaz M. Ali emphasized the importance of collaboration, innovation, and industry advocacy in driving the next phase of growth for Sri Lanka’s retail sector.
“Retail continues to be one of the most dynamic sectors of the Sri Lankan economy. As consumer expectations evolve and technology reshapes the industry, the role of SLRA is to create opportunities for knowledge sharing, collaboration, and collective action. We remain committed to supporting our members and contributing to the sustainable growth of the retail ecosystem,” he stated.
The AGM was honoured by the presence of Wasantha Samarasinghe, Minister of Trade, Commerce, Food Security and Cooperative Development, who attended as Chief Guest. In his address, the Minister highlighted the importance of the retail sector as a key contributor to economic development, employment generation, and consumer welfare, while emphasizing the need for stronger public-private collaboration to strengthen the industry’s competitiveness.
Members also had the opportunity to gain insights from the Guest Speaker, Chayu Damsinghe, Head of Macroeconomic Advisory at Frontier Research, who shared perspectives on Sri Lanka’s economic outlook, emerging business trends, and the opportunities and challenges facing the private sector in the years ahead.
A key highlight of the evening was the presentation on the upcoming Sri Lanka Retail Forum 2026, SLRA’s flagship industry event, which will be held under the theme “Retail Without Boundaries – Building the Next Growth Engine.” The forum is expected to bring together more than 500 industry leaders, retailers, entrepreneurs, policymakers, technology providers, and investors to discuss the trends shaping the future of retail.
The Association reaffirmed its commitment to supporting retailers through industry advocacy, professional development initiatives, policy engagement, and knowledge-sharing platforms that foster innovation and business growth.
Since its establishment in 2015, SLRA has played a pivotal role in bringing together retailers from diverse sectors including FMCG, fashion, healthcare, consumer electronics, and digital commerce, creating a unified voice for the industry.
With a renewed leadership team and an ambitious programme of activities planned for the year ahead, SLRA looks forward to working closely with its members and stakeholders to strengthen Sri Lanka’s retail sector and contribute to the country’s economic development.
Business
Month-end profit-takings drive stock trading; indices up
CSE trading was yesterday driven by month- end profit-takings, market analysts said.Amid those developments both indices moved upwards. The All Share Price Index went up by 2.77 points, while the S and P SL20 rose by 10.91 points.
Turnover stood at Rs 1.91 billion with two crossings. Those crossings were; ACL Cables 2.1 million shares crossed to the tune of 209 million; its shares traded at Rs 100 and Hayleys 100,000 shares crossed for Rs 24.1 million; its shares traded at Rs 240.
In the retail market companies that mainly contributed to the turnover were: Hayleys Rs 141 million (587,000 shares traded), Lanka Realty Rs 105 million (1.8 million shares traded), CIC (Non Voting) Rs 81 million (3.1 million shares traded), HNB Finance Rs 79 million (8.3 million shares traded), Dialog Axiata Rs 56.7 million (1.2 million shares traded), Colombo Dockyard Rs 48.6 million (371,000 shares traded) and Singer SriLanka Rs 46.6 million (586,000 shares crossed).
During the day 63.9 million share volumes changed hands in 18300 transactions.
It is said that manufacturing sector counters, especially Hayleys, performed well while construction related companies, especially ACL Cables, also performed well. Banking sector counters, especially HNB, were also notable on the floor.
Meanwhile, Lee Hedges concluded negotiations with Amana Bank to sell and transfer its land and premises in Kollupitiya for a total consideration of Rs 2.7 billion, with the transaction completed on June 25, 2026.
Lee Hedges shares were trading up 2.52 percent, at Rs.325.75, while Amana Bank was up 1.13 percent at Rs.26.80.
Yesterday the rupee was quoted at Rs 336.90/337.00 to the US dollar in the spot market, from Rs 337.25/35 the previous day, while bond yields were quoted slightly higher, dealers said.
The telegraphic transfer rate for Sri Lanka’s rupee against the US dollar was 332.3416 buying, 342.0372 selling; the euro was 376.2315 selling, 389.9580 buying; and the pound was 436.5994 buying, 451.8110 selling.
By Hiran H Senewiratne
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