Sri Lankan authorities to form 10-year strategic plan and roadmap to boost tea industry
Authorities in Sri Lanka are reportedly in the process of formulating a 10-year strategic plan and roadmap under a public-private partnership to boost the country’s tea industry.
Sri Lanka Tea Board Chairman Jayampathy Molligoda has told the Daily FT that emphasis of the initiative is to make the tea industry sustainable and boost exports.
“The tea industry has taken the leadership to formulate strategic initiatives to put Ceylon Tea on top of the world map. This is a 10-year road map to support all stakeholders of the sector with an integrated system and consistent policy direction,” Molligoda has said.
He has noted that the ‘Road Map Ceylon Tea 2030’ will be the main document the industry will depend on going forward once fully formalised.
Since assuming duties, Molligoda has said several discussions have been held between all stakeholders of the tea industry to understand the issues, challenges, opportunities and share new ideas to develop the 150-year old industry that continues to contribute significantly to the economic development of Sri Lanka.
Sri Lanka produces around 300 million kilos of tea annually and earns about US$ 1.6 billion in foreign exchange.
Molligoda who was previously the Deputy Chairman of Bogawantalawa Tea Estates PLC has stated that Sri Lanka produces about 5.4% of the world tea production, which is inadequate considering the competition hence necessary changes are required.
“Sri Lanka used to supply around 8% of the world’s tea production 10 years ago. Our current supply has come down to 5.4%. For us to be competitive, the current model needs to be changed. The current model consisting of plantations, smallholders, factories and auctions need to be relooked at to improve efficiency, reduce costs to be productive and competitive and more innovative in order to make the industry better, to support the local community to maintain the sustainability of this industry. We need a clear strategy for the industry,” Molligoda has said.
The new Tea Board Chief has said it was important for the industry to understand global market trends, competitors and develop Pure Ceylon Tea with its exclusivity and value additions to ensure that it can be promoted as a top beverage among the world.
OSL take:
Sri Lanka’s tea industry is now on a continuous growth path and the country’s authorities are looking at further boosting the industry by formulating a road map including a strategic plan. There have been many reports in foreign media of high prices fetched by Ceylon tea in the overseas market. The many trade agreements as well as trade concessions enjoyed by the country have helped boost the country’s tea industry. Given the focus on developing Sri Lanka’s tea industry, foreign businesses/investors could explore business/investment opportunities in the country’s tea industry.
| Article Code : | VBS/AT/20200106/Z_2 |