Sri Lankan authorities decides to extend finances for tea promotions to private sector as well
Sri Lanka’s Cabinet of Ministers has reportedly decided that the government should expand the Ceylon Tea Global Promotion Programme offering financial support to include private brands as well.
The Daily FT has reported that the scheme for financial assistance for Brand Promotion of Ceylon Tea Brands that carries the Lion logo, by providing matching grants, has been in existence since 2015 and the scheme provides a 50% adjustment grant on the cost incurred to promote the Pure Ceylon Tea brand with the Lion logo owned by Sri Lankans and registered with the National Intellectual Property Office (NIPO).
Under the programme, 20 companies benefited during 2015/2016 and 18 during 2018/2019.
The proposal was made by Sri Lanka’s Plantation Minister Dr. Ramesh Pathirana.
The Cabinet of Minister has reportedly approved the decision to further expand the Brand Promotion Scheme during the year 2021/2022 to include ‘Ceylon Tea Shops and Houses under the Global Promotion Programme.
It is currently implemented in 12 countries, including Russia, Ukraine, Japan, the US, Australia, Turkey, Saudi Arabia, China, UAE, Iran, Chile and Germany, the Daily FT has added.
According to published data by the Sri Lanka Tea Board, the brand promotion subsidy scheme for 2015/16 extended till 30 June 2017 had seen Rs. 177.3 million reimbursed to 10 companies while the tea exports in the first half of 2021 had increased by 14% to US$ 650.5 million from a year earlier.
OSL take:
Sri Lanka’s tea exports have continuously shown a growth momentum during the past few months. Sri Lankan authorities are engaged in an aggressive promotional campaign to boost the local tea exports. The country is working towards regaining its top slot in the global tea market. Local authorities have also offered incentives to develop and uplift Sri Lanka’s tea industry. The many trade agreements and trade concessions enjoyed by the country have also boosted Sri Lanka’s tea exports. Given the growth momentum despite challenges posed by the global Covid 19 pandemic, foreign businesses/investors could confidently explore the expanding opportunities in Sri Lanka’s tea industry.
| Article Code : | VBS/AT/24082021/Z_3 |