Sri Lanka targets US$ 3.5 billion foreign exchange through tea production by 2030
A former official of the Colombo Tea Traders’ Association of Sri Lanka has reportedly stated that the country is targeting US$ 3.5 billion in foreign exchange and 350 million kilogrammes of tea production by 2030.
“Our target is 350 million kilogrammes of tea production and 3.5 billion US dollars in exports,” a former Chairman of the Colombo Tea Traders’ Association (CTTA), Michael de Soyza has been quoted as saying.
The CTTA is an industry body that has a long history of 125 years of operations in Sri Lanka.
He has made this observation at the event to mark the 125th anniversary of the association.
De Soyza has reportedly said that a workshop was held on August 9 to start the programme, with presentations from experts including former Sri Lanka Tea Board Chairpersons such as Rohan Pethiyagoda and Janaki Kuruppu to give initial guidance.
The initiative is being led by de Soyza and Anil Cooke, who are industry veterans. Cooke, is a former Chairman of the Colombo Brokers’ Association.
The local media has reported that Sri Lanka’s tea production has remained at around 300 million kilogrammes over the past two decades, with a peak 340 million kilogramme crop in 2013, as the country’s tea growing land has remained unchanged, according to official data.
Tea production in 2018 was 303.8 million kilogrammes, which is a decline from 307.1 million kilogrammes from a year earlier.
Sri Lanka still exports most of its produce as loose tea in bulk or packets, while the world enjoys new products at present, such as instant tea and iced-tea.
OSL take:
Sri Lanka’s tea sector has recorded a steady growth in the past few months. Sri Lanka’s tea exports have seen an increase as well. The government of Sri Lanka has taken steps to launch a massive global promotional campaign that commences next month. Authorities have also introduced several incentives to businesses engaged in the tea plantation in the country. There have been global feature reports that have noted the high prices fetched by tea produced in Sri Lanka in overseas markets, especially in the UK. Sri Lanka has many trade agreements and enjoys several trade concession schemes with foreign countries, which would be beneficial to the local tea industry if properly exploited. Sri Lanka is yet to fully reach its potential in the tea sector. Therefore, Sri Lanka’s tea industry has many business/investment opportunities for foreign businesses/investors.
| Article Code : | VBS/AT/13082019/Z_7 |