Sri Lanka to boost tea exports to India
The Morning: Sri Lanka is looking to increase its tea exports to India and build new partnerships with local companies as US tariffs hinder the competitive edge the island nation had for the US.
According to The Hindu Business Line, under the existing free trade agreement (FTA), Sri Lanka is allowed to export 15 million kilogrammes of tea annually to India on a concessional tariff.
However, the island country has been unable to realise its potential.
At a trade meeting organised by the World Trade Centre in Mumbai on Wednesday (20), Sri Lanka’s Consul (Commercial) Shirani Ariyarathne pitched for an increase in trade and collaboration.
“While Sri Lankan tea has a dedicated quota in India, its full potential has yet to be realised. With duty concessions available under the free trade agreement, she affirmed that there is a much greater scope for Sri Lankan exports in the Indian market.
She reassured participants that the Sri Lankan Consulate remains dedicated to supporting trade facilitation and providing timely information to interested businesses,” Ariyarathne said.
The annual report by Agarapatana Plantations PLC said that India has overtaken Sri Lanka as the world’s third-largest tea exporter, as India expanded its production to capture a larger share of the global market in 2024.
The shift in global rankings comes despite an increase in Sri Lanka’s own tea export earnings and volumes, highlighting the intensifying competition and deep-seated domestic challenges facing the island’s iconic Ceylon tea industry.
OSL take:
Sri Lanka’s tea industry is on a steady growth with expansions being recorded in the plantation as well as exports sectors. The increasing growth and business potential in Sri Lanka’s tea industry has resulted in the Sri Lankan government as well as businesses in the industry and related sectors working towards further developing and uplifting the industry. Sri Lankan authorities have also introduced many incentives for businesses in the tea industry and related sectors. Meanwhile, the many trade agreements and trade concessions have helped boost Sri Lanka’s tea and tea-based exports. Sri Lanka’s tea industry is working to ensure that Sri Lankan tea regain the top slot once enjoyed by Ceylon Tea in the international market. The increasing tea and tea-based exports from Sri Lanka to overseas markets and the increase in prices fetched by them overseas are indicative of the overall expansion of Sri Lanka’s tea industry and related sectors, thereby opening a host of lucrative business/investment opportunities. With Sri Lanka on the path to further expand the country’s tea industry and related sectors, foreign businesses/investors could confidently explore the expanding opportunities in the industry.
| Article Code : | VBS/AT/20250901/Z_1 |