Sri Lanka promotes Ceylon Tea in Jordan
The Morning: Sri Lanka hosted a promotional high tea event in Jordan recently, according to a statement released by the Embassy of Sri Lanka in Jordan, amidst a 17.52% decrease in Iranian tea exports from Sri Lanka on a year-on-year (y-o-y) basis in July.
“The Embassy of Sri Lanka in Jordan successfully hosted a tea promotional event under the theme ‘Ceylon High Tea’ at the Olive Tree Hotel on 23 September 2023. This initiative was part of the Embassy’s ongoing trade and tourism promotion initiatives,” the statement said.
Though tea export earnings increased by 13.09% y-o-y to $ 141.02 million in July compared to July 2024, and export volume increased by 12.56% in the same period, tea exports to Iran decreased by 17.52% in July compared to the same month in 2024.
Sri Lanka has a tea-for-oil agreement with Iran, a barter agreement meant to help Sri Lanka set off its debt from previous oil purchases through the export of tea, which continues to be operational.
The agreement was seen as beneficial for Sri Lanka at the time of its signing, as it eased pressure on the country’s balance of payments and its long-endured foreign exchange crisis.
Auction prices of tea began rising when the tea-for-oil barter mechanism piqued demand from other nations as well, prompting an expansion in exports.
However, due to a 12-day war with Israel in June, there has been a record dip in Iran’s imports, signalling a contraction in consumption, with specific disruptions affecting goods like agricultural products.
Tea exports to Iraq and Libya, on the other hand, recorded significant increases of 25.84% and 126.13%, respectively, on a y-o-y basis in July.
OSL take:
Sri Lanka’s tea industry is focused on ensuring that Sri Lankan tea regains the top slot once enjoyed by Ceylon Tea in the international market. The high quality and competitive prices of Sri Lankan tea have resulted in Sri Lankan tea and tea-based products being well received in foreign markets. The trade agreements and the trade concessions enjoyed by Sri Lanka with many foreign countries have also helped boost Sri Lanka’s tea exports to the foreign markets. Local authorities are also engaged in promotional campaigns in new foreign markets while also encouraging tea exporters to focus on exporting value-added products as well as diversifying the existing tea-based product exports lists to meet the fast-growing needs and demand in the international markets. All these factors are indicative of the continuing expansion in Sri Lanka’s tea industry and related sectors as well as the growing business/investment opportunities in the industry. The growth and profits recorded by businesses already engaged in Sri Lanka’s tea industry ranging from cultivation, production and exports indicate the increasing business potential. Foreign businesses/investors could therefore confidently explore the expanding business/investment opportunities in Sri Lanka’s tea industry and related sectors.
| Article Code : | VBS/AT/20251008/Z_2 |