Sri Lanka’s Plantation Industries Minister assures financial backing for tea factory owners
Plantation Industries Minister of Sri Lanka, Navin Dissanayake has reportedly assured tea factory owners of financial relief to help address the difficulties faced by the industry.
The Minister has given this assurance to over 18 tea factory owners at a high-level meeting held with 15 State and private sector financial institutions, along with Sri Lanka’s Plantation Industries Ministry Secretary J.A. Ranjith, Additional Secretary Tharangani Wickremasinghe, Sri Lanka Tea Board Chairman Lucille Wijewardena, and Tea Commissioner E. A. J. K. Edirisinghe at the Plantation Industries Ministry in Battaramulla.
According to the local media, the key outcomes of the discussions included a moratorium on sale of factories and collaterals till November due to non-payment of loans; renewing some loans for a grace period of one year; and considering a subsidised interest rate payment scheme.
The Minister has further discussed individually with the tea factory owners the hardships they face in terms of loan repayments and the relief measures they were seeking from the Government and financial institutions to continue business.
Underlining the importance of the survival of the tea industry, which claims over two million dependants and a contribution to the national economy spanning over 150 years, the Minister has reportedly urged the banks and financial institutions to make arrangements to suspend the auction of tea factories due to default of loans, and to renew some of them that has not been given an extended time.
“The Minister earnestly listened to all our woes and positively responded to support our requests at the earliest possible,” Sri Lanka Tea Factory Owners Association (SLTFOA) Chairman Harith Ranasinghe has told the Daily FT.
OSL take:
The government of Sri Lanka has given priority status to the uplifting of the country’s plantation sector. This has resulted in a steady growth recorded by Sri Lanka’s tea industry. Tea is one of the country’s key export commodities and since of late, there has been an expansion in Sri Lanka’s tea exports. Tea prices have also picked up in the last few months. Given the need for constant upgrading of systems and value additions, Sri Lanka’s tea industry is open for business/investment interventions from foreign companies. Given the assurance by Sri Lanka’s Plantation Minister to assist local plantation companies, foreign businesses/investors could explore business/investment opportunities in Sri Lanka’s tea plantations sector and also look at forming partnerships with local companies.
| Article Code : | VBS/AT/12072019/Z_2 |