Chinese investors engage in tea production discussion with Sri Lanka
The Morning: A delegation of Chinese investors has met with officials of the Ministry of Agriculture to discuss tea production in Sri Lanka, a statement released by the Department of Government Information (DGI) said.
“A Chinese delegation held a special discussion with the Ministry of Agriculture, Livestock, Lands and Irrigation. Discussions were held on tea production in Sri Lanka. Accordingly, it was explained that tea production in Sri Lanka takes place in three stages: large-scale, medium-scale and small-scale,” the statement said.
Sri Lanka exported 245 million kg of tea last year, falling behind the 24 million kg of tea exported by India, which surpassed Sri Lanka in exports.
Industry officials attributed the drop in production to lack of redress on the Sri Lankan Government’s part with regards to reversing the long-term consequences of its fertiliser ban in 2021.
However, Capital Trust Securities, a Sri Lankan stockbroking firm, projected that Sri Lankan tea production is to increase to 275-280 million kg this year.
The statement further added that Deputy Minister of Agriculture and Livestock Namal Karunaratne also participated in this event.
OSL take:
While Sri Lanka’s export industry is on a steady growth path, there has been an increase in several key export commodities including tea and tea-based products. Given the high standards and high quality of the tea produced in Sri Lanka, there has been an increase in demand in the global markets with an increase in the prices fetched by local teas in the marketplace. With Sri Lanka’s tea authorities and stakeholders working towards regaining the top slot enjoyed by Ceylon Tea in the international market in the past, the many promotional campaigns and the move to add more value to local tea products while diversifying the existing tea as well as tea-based export product portfolio to meet the evolving demands of foreign markets, there has been a steady expansion in business/investment opportunities in Sri Lanka’s tea industry. These opportunities range from tea plantations to the production of local teas and tea-based products for export markets. Realizing the increasing business potential in Sri Lanka’s tea industry, the Sri Lankan government has also presented incentives to businesses in the industry and to attract more businesses to the industry and related sectors. Given all these factors, foreign businesses/investors could explore the growing business/investment opportunities in Sri Lanka’s tea industry and related sectors while also looking at the possibility of entering/expanding operations in the industry through local collaborations.
| Article Code : | VBS/AT/20251106/Z_2 |