As Sri Lanka moves towards a resilient recovery of the economy, revitalizing the tea industry is a crucial step for economic growth opined World Bank’s Country Manager for Sri Lanka and Maldives, Gevorg Sargsyan, addressing the 25th Annual General Meeting (AGM) of Tea Exporters Association (TEA) held in Colombo.
“To ensure the continued success and sustainability of this unique brand, it is essential for all stakeholders, public and private sector, to unite in their efforts in enhancing growth across the entire ecosystem so it can meaningfully contribute towards a sustainable and prosperous future for the entire country. The Sri Lankan tea industry has emerged to be both an important economic pillar and a source of national pride and icon, but has faced considerable challenges over the recent past. From climate change to policy inconsistencies and global market competition, the industry has been increasingly under pressure,” he said.
“Recent research indicates that by 2070, Sri Lanka’s optimal tea-growing regions could shrink by 30%. The sustainability of Sri Lanka’s tea industry is a multifaceted challenge, but one that we are well-equipped to address. As someone who grew up drinking Ceylon tea, I have always felt a deep connection to this industry.”
Outgoing Chairman Ganesh Deivanayagam said, “25 years ago, Sri Lanka exported 263 million kilos of tea, earning 598 million dollars. Despite exporting 20 million kilos less, we’ve doubled our revenue to 1.3 billion dollars. This speaks to the global value and demand for Ceylon Tea but highlights the untapped potential we still have. If we could maintain our volumes, this would be a three-billion-dollar industry. Yet, as exporters, we face significant hurdles, from taxation that burdens our cash flow to an outdated perception of our sector. However, the numbers don’t lie – we’ve done an extraordinary job, and I believe, with the right support, our resilience will see us through.”
Sri Lanka’s tea production, which reached a total of 256,039 metric tonnes in 2023, has faced a downward trend since 2019 due to various factors, including the impact of climate change, a ban on chemical fertilizer and insufficient re-planting.
“Naturally, this has negatively impacted exports too, with total exports amounting to 241,912 metric tonnes in 2023, down from a high of 292,000 metric tonnes in 2019. “However, the country’s tea exports have continued to consistently generate around US$ 1.3 billion in revenues, annually, despite easing export volumes, remaining a vital contributor to the national economy.”
Huzefa Akbarally was elected as the new Chairman of the Tea Exporters Association where over 500 participated.
