September 13, Colombo (LNW):As Sri Lanka progresses towards economic recovery, revitalizing its tea industry is critical for growth, stated Gevorg Sargsyan, World Bank’s Country Manager for Sri Lanka and the Maldives, during the 25th Annual General Meeting (AGM) of the Tea Exporters Association (TEA) in Colombo.
“To ensure the long-term success and sustainability of this iconic sector, it’s vital for public and private stakeholders to work together to foster growth across the entire ecosystem.
This will enable the tea industry to make meaningful contributions to the nation’s sustainable and prosperous future,” Sargsyan noted.
Despite its status as a key economic pillar and symbol of national pride, Sri Lanka’s tea industry has faced considerable challenges in recent years. From climate change to policy inconsistencies and intense global market competition, the industry has been under mounting pressure.
Research shows that by 2070, Sri Lanka’s prime tea-growing regions could reduce by 30%, posing serious sustainability challenges.
However, Sargsyan expressed optimism, noting, “The sustainability of Sri Lanka’s tea industry is complex, but we have the ability to address these challenges. As someone who grew up drinking Ceylon tea, I have a strong connection to this industry.”
Outgoing TEA Chairman, Ganesh Deivanayagam, highlighted that while Sri Lanka exported 263 million kilos of tea 25 years ago, generating $598 million in revenue, today, despite exporting 20 million kilos less, the industry’s earnings have doubled to $1.3 billion.
“This reflects the global demand and value of Ceylon tea, yet it also underscores the untapped potential. Maintaining volumes could turn this into a $3 billion industry.
Nevertheless, exporters face significant challenges, including tax burdens and outdated perceptions of the sector. But the numbers show we’ve achieved extraordinary results, and with the right support, we will overcome these challenges,” he added.
Sri Lanka’s tea production totaled 256,039 metric tonnes in 2023 but has been in decline since 2019 due to various factors like climate change, fertilizer bans, and inadequate replanting.
This downturn has also affected exports, which dropped to 241,912 metric tonnes in 2023 from 292,000 metric tonnes in 2019. However, despite declining volumes, tea exports consistently generate around $1.3 billion annually, proving its continued importance to the national economy.
The AGM also saw the election of Huzefa Akbarally as the new Chairman of the Tea Exporters Association, with over 500 participants in attendance.
September 13, Colombo (LNW):
