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Revitalizing Sri Lanka’s Tea Industry Key to Economic Growth amid Challenges, Say Experts at TEA AGM

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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 Nevertheless, exporters face significant challenges, including tax burdens and outdated perceptions of the sector.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):

ADB Approves $100 Million Loan for Water Supply and Sanitation sector in Sri Lanka

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September 13, Colombo (LNW):The Asian Development Bank (ADB) has sanctioned a $100 million policy-based loan to support reforms in Sri Lanka’s water supply and sanitation sector. The initiative aims to bolster the country’s climate resilience and ensure the long-term sustainability of water services.

The Water Supply and Sanitation Reform Program is divided into two subprograms, each valued at $100 million. Subprogram 1 focuses on establishing national policies and strategies for the sector, while Subprogram 2 will support the implementation of these reforms through specific guidelines and actions.

Pedro Almeida, Senior Urban Development Specialist at ADB, highlighted the pressing challenges in the sector, citing fragmented water management and the growing impacts of climate change.

He emphasized that many Sri Lankans still lack access to piped water, and the program aims to rectify this by improving governance and creating opportunities for private sector participation.

Sri Lanka’s water resources management faces several long-standing issues, including imbalanced water allocation between agriculture and drinking water, inadequate climate change considerations, and disorganized planning due to the involvement of multiple agencies.

 The program aims to address these challenges through policy interventions that promote equitable water distribution, gender-sensitive services, and a climate change roadmap.

Subprogram 1 will also enhance the sector’s financial sustainability and operational efficiency. This will be achieved through frameworks like the climate-resilient project appraisal for investments and strategic plans for the National Water Supply and Drainage Board (NWSDB).

It is also helping to enhance the efficiency and performance of the sector through the Ministry of Water Supply and Estate Infrastructure Development’s (MWS) approval of a climate-resilient project appraisal framework for investments in the drinking water sector, and NWSDB’s financial sustainability, efficiency, and performance through financial sustainability and public-private sector roadmaps, and a business efficiency action plan.  

Additionally, a technical assistance grant of $800,000 will support the Ministry of Water Supply (MWS) and NWSDB in deploying and monitoring reform initiatives. This includes $500,000 from ADB’s Technical Assistance Special Fund and $300,000 from the Water Innovation Trust Fund.

These efforts will pave the way for improved access to safe water and a more sustainable future for Sri Lanka’s water supply and sanitation sector.

September 13, Colombo (LNW):

Sri Lanka Sets Sail for Cruise Tourism Boom: Cordelia Cruises Drives New Wave of Visitors

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September 13, Colombo (LNW): As Sri Lanka ramps up efforts to bolster its tourism industry, the country is expected to see a surge in cruise passengers, particularly from India, in 2024. 

Cordelia Cruise Lines has completed its second season at Hambantota International Port (HIP), with six successful calls between July and September, bringing over 5,000 tourists. The next season is scheduled from June to September 2025.

Since June 2023, Cordelia has made 16 port calls, offering travel packages from Chennai to Sri Lanka. Nalin Perera, Director General of the Sri Lanka Tourism Development Authority (SLTDA), highlighted that cruise tourism plays a crucial role in boosting the country’s tourism profile. 

He noted ongoing collaborations with top travel agents and cruise lines, aiming to streamline operations and provide better facilities, including transportation and accommodation, to enhance tourist experiences.

Lance Zuo, General Manager of Commercial and Marketing at HIP, emphasized the port’s modern amenities and scenic location, making it an attractive cruise destination. Clarion Shipping, in partnership with Cordelia Cruises, offers passengers a range of excursions, from exploring historical landmarks like Galle Dutch Fort to visiting Yala National Park.

The integration of cruise operations at HIP is not only solidifying Sri Lanka’s role in global tourism but also positively impacting the local economy with a steady stream of visitors.

As a new and modern port with a 17 metre depth, HIP can accommodate any cruise liner in the world. We are fully geared to handle the needs of crews and passengers, customs, immigration & emigration and secure services. 

The nexus with Hayleys Advantis (Clarion Shipping), agents for Cordelia Cruise Lines is yet another step in promoting Hambantota as an ideal cruise ship destination. While the port’s location away from the busy metropolis, and its green environment, are added attractions, we also have a wide range of touristic offerings at a very short distance from the port’s gate.” says Lance Zuo, General Manager Commercial and Marketing.

Clarion Shipping, agents for Cordelia Cruises in Sri Lanka and GOL Travels Lanka Pvt Limited, offer several excursions to passengers disembarking at HIP, such as walks through the Galle Dutch Fort, river cruises, hikes to the Diyaluma Waterfall, visits to a nearby turtle hatchery, and treks through Yala, Udawalawe, and Bundala national parks. Visits to the Unawatuna Beach and shopping sprees are also included.

The integration of cruise ships into HIP’s operations not only solidifies the port’s role in international tourism but also contributes to the local economy by attracting a steady influx of visitors.

In the current situation, where the Government is intensely focused on elevating the country’s position in tourism, reports suggest that Sri Lanka is anticipated to welcome an increased number of cruise tourism passengers in 2024.

Sri Lanka Tourism Development Authority (SLTDA) Director General Nalin Perera, noted that cruise tourism was a well-organised arrangement as cruises played a major role in promoting tourism.

Indo-Lanka Electricity Grid Connectivity MOU to be signed soon 

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September 13, Colombo (LNW):The Indo-Lanka electricity grid connectivity project is nearing approval, with the Sri Lankan Power and Energy Ministry having already submitted comments on the draft Memorandum of Understanding (MoU) and awaiting feedback from India. 

This ambitious project, according to Ministry Secretary Dr. Sulakshana Jayawardena, envisions a 120 km undersea submarine cable connecting Mannar in Sri Lanka with Madurai in southern India. It will consist of 25 km of overhead transmission in Sri Lanka and 130 km in India. 

The aim is to enhance Sri Lanka’s energy security and position the country within the regional renewable energy (RE) market.

The concept of an interconnected power grid between India and Sri Lanka has been under consideration for over a decade but has gained momentum in recent years. 

The Sri Lankan government has set a target to connect the two grids by 2030, aligning with its broader renewable energy goals.

One of Sri Lanka’s key energy objectives is to generate 70% of its electricity from renewable sources by 2030. The grid connection with India is seen as a critical step in achieving this, along with transitioning its thermal plants from diesel to liquefied natural gas (LNG).

 However, there are commercial, technical, and environmental challenges in optimizing the electricity mix. Sri Lanka will need to determine the right balance of electricity imports from India, LNG-based power generation, and renewable energy to meet its growing energy demands.

The commercial aspect of the project is particularly complex. While India’s coal-heavy energy grid could provide Sri Lanka with cheaper electricity, it may undermine Sri Lanka’s renewable energy goals.

 India’s energy sector is still highly dependent on coal, which accounts for over 70% of its electricity generation. Importing electricity from India would reduce costs for Sri Lanka but not necessarily boost its green credentials. 

As Prof. Anura Wijayapala from the University of Moratuwa points out, negotiating a favorable power purchase agreement (PPA) with India is essential for Sri Lanka to benefit from lower electricity prices.

In addition to managing commercial aspects, there is a challenge in coordinating the expansion of Sri Lanka’s renewable energy sector with the grid connection.

 If Sri Lanka develops its renewable energy resources more quickly than anticipated, it could lead to excess capacity, which could potentially be sold to India. 

However, the market conditions in India, with low tariffs due to competitive bidding, may not favorably support Sri Lanka’s renewable energy developers.

Moreover, the infrastructure needed for LNG generation, including terminals and pipelines, adds another layer of complexity. There are concerns that commitments to LNG could hinder Sri Lanka’s ability to fully harness its renewable energy resources.

Despite these challenges, the grid connection offers significant benefits. It would allow Sri Lanka to export excess renewable energy to India and enhance energy security by ensuring a two-way flow of electricity.

 The project could also create jobs and attract investment in renewable energy projects in Sri Lanka. However, ensuring the optimal mix of imported electricity, LNG-generated power, and renewables will require careful planning, including the use of simulation models to guide decision-making.

Department of Posts to Complete Distribution of Official Polling Cards by Tomorrow

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September 13, Colombo (LNW):The Department of Posts has announced that the delivery of official polling cards to households will be completed by tomorrow. Senior Deputy Postmaster General Rajitha Ranasinghe reported that 80 percent of the polling cards have already been distributed.

Ranasinghe assured that individuals who have not yet received their polling cards can verify their identity and collect them from the nearest post office between the 18th and 21st of this month.

Sri Lanka Original Narrative Summary: 13/09

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  1. President Ranil Wickremesinghe has slammed the sudden promises from presidential candidates Sajith Premadasa and Anura Kumara Dissanayake about reducing fertilizer prices and cutting farmers’ loans, questioning as to where they were when farmers were struggling without access to fertilizers. The President highlighted that his efforts, including discussions with world leaders to secure fertilizer subsidies, were instrumental in getting farmers back to their fields and boosting rice production in the country.
  2. Sri Lanka’s opposition leader contesting the presidential election next week said Thursday that if he comes to power he will renegotiate with the International Monetary Fund the 2022 economic reforms package to ensure that the rich pay more taxes and the poor see their conditions improve.
  3. The Presidential Candidate of the National People’s Power (NPP), Anura Kumara Dissanayake says that steps will be taken under his government to expand the country’s economy. He further added that the country’s economy is currently constrained and lacking in growth.
  4. The presidential candidate of the Sri Lanka Podujana Peramuna (SLPP), Namal Rajapaksa says that he will work to ensure that Sri Lanka is transformed into a developed nation in Asia within the next 10 years. He further emphasized his support for the local farmers by ensuring fair and stable prices for their produce such as tea leaves, pepper, and milk.
  5. The Postal Department says that around 77% of official polling cards for the 2024 presidential election have already been distributed thus far. Deputy Postmaster General Rajitha Ranasinghe says that the distribution of nearly 13.2 million official polling cards has already been completed. He further said that the polling cards will also be distributed to the voters on 13th and on 14th.
  6. The Inland Revenue Department (IRD) has announced that the total tax revenue collected for the period from January to August 2024 amounted to Rs. 1,229,245 million. Compared to the tax revenue collection of Rs. 956,418 million during the same period in 2023, revenue collection has increased by 28.5% in 2024, the department said in a press release.
  7. Sri Lanka has recorded nearly 1.4 million tourist arrivals during the period elapsed this year. The Sri Lanka Tourism Development Authority (SLTDA) stated that the total number of tourist arrivals from January 01 and September 08, stands at approximately 1,395,773. A higher number of tourists had visited the island in the month of February with that figure recorded as 218,350.
  8. Parliament Speaker Mahinda Yapa Abeywardena Wednesday signed a bill to raise the monthly minimum wage by 12.5 per cent, days ahead of the island nation’s presidential elections. The Speaker endorsed the certificate on the bill titled ‘National Minimum Wage of Workers (Amendment) Bill’ in accordance with article 79 of the Constitution, the Parliament’s Media office said in a statement.
  9. Presidential candidate and former Sports Minister Roshan Ranasinghe has pledged to slash fuel prices by 50% if elected in the upcoming Sri Lankan Presidential Election. He also promised to reduce the VAT rate to 10%, citing the need to provide relief to the public amidst rising living costs.
  10. Warrant Officer II Samitha Dulan, who recently set a new world record and won a silver medal in the F44 javelin throw event at the Paris 2024 Paralympic Games, was honoured by the Sri Lanka Army Military Police, at the Sri Lanka Army Military Police Regimental Centre in Polhengoda.

Sajith Premadasa Vows to Protect Public Institutions from Privatization Under SJB Government

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September 13, Colombo (LNW): Samagi Jana Sandhanaya (SJB) Presidential Candidate and Opposition Leader Sajith Premadasa assured that no government institutions will be sold under an SJB-led government. Addressing SJB trade union members from semi-government institutions in Colombo yesterday, Premadasa emphasized that a future government formed by the SJB will not privatize public institutions under any circumstances, unlike the current administration.

Premadasa promised that a government led by the SJB would establish a governance structure free from inefficiency, corruption, and waste, fostering an environment where professionals can work with pride. “Although the current government’s main objective is to privatize all profit-making public institutions, a coalition government led by us will ensure that these institutions remain under public control,” he stated. He cited examples such as Telecom and Litro Gas, which were at risk of privatization until opposition voices in Parliament, including those from the SJB, intervened.

Premadasa further declared that his government would prioritize the job security of all public and semi-public service employees. He laid out a plan to enhance the efficiency of government institutions through a five-pronged approach aimed at transforming loss-making entities into profitable ones, creating an efficient public service. He stressed that his administration would implement new plans that promote employee safety and pride.

Thousands of trade union members from allied parastatals participated in the event, alongside key SJB trade union leaders like Subash Karunaratne and political figures such as Dayasiri Jayasekara and Patali Champika Ranawaka.

State Minister Shehan Semasinghe Praises President Wickremesinghe’s Leadership in Economic Recovery

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September 13, Colombo (LNW): State Minister Shehan Semasinghe commended President Ranil Wickremesinghe’s leadership in transforming a country once on the brink of bankruptcy into one where economic development and public support are now attainable. Speaking at the “Ranil ta Puluwan” (Ranil Can) rally in Medawachchiya, Semasinghe highlighted the steady financial stabilization since 2022 and the government’s significant efforts to improve the lives of the people.

“We faced a crisis with 13-hour power outages, and shortages of fuel, food, and gas,” Semasinghe said. “No leader was willing to take on the country at that time, but President Ranil Wickremesinghe stepped up, addressing the basic needs of the people, such as providing fertilizers to farmers and ensuring a support scheme amounting to Rs. 25,000 per farmer for the upcoming season.”

He criticized NPP Presidential Candidate Anura Kumara Dissanayake, stating that he “lacks the capability to address the country’s needs” and engage with the International Monetary Fund (IMF). Semasinghe argued that the National People’s Power (NPP), led by the Janatha Vimukthi Peramuna (JVP), has focused on maintaining public distress rather than offering solutions, citing their responsibility for halting the Sampur power plant and delaying the Uma Oya project by seven years.

Semasinghe also criticized opposition leader Sajith Premadasa, stating that despite his claims of having a capable team, they were unwilling to take charge during the 2022 crisis. “Only President Ranil Wickremesinghe took effective control, ensuring resources for the people without shortages and working to stabilize the economy,” he said.

Looking ahead, Semasinghe expressed optimism for the next five years, anticipating that President Wickremesinghe will continue to provide relief and enhance the quality of life for citizens. He highlighted the President’s allocation of funds for the development of the North Central region and support for the Mahakanadara project, as well as the planned increase of Rs. 25,000 in state employees’ salaries from next year.

He concluded by emphasizing the importance of granting President Wickremesinghe a mandate for the next five years, reiterating that under his leadership, economic development and public support are now achievable.

AKD Pledges Equality Before the Law and Strengthened International Relations

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September 13, Colombo (LNW):National People’s Power (NPP) Presidential Candidate Anura Kumara Dissanayake has pledged to uphold the principle that “everyone is equal before the law” if elected to office. He emphasized that all individuals — including Ministers, Members of Parliament, businessmen, and citizens — should be treated equally before the law, with no one being above it.

Addressing a public meeting on Wednesday (11) at the Wevelpitiya grounds in Mahaiyawa, Kandy, Dissanayake also stressed the importance of simultaneously fortifying the country’s economy and its legal framework. He highlighted the need to establish robust international relations as a foundation for economic growth, mentioning ongoing discussions with leaders from several countries, including Japan, India, and China, to shape foreign policy under a potential future people’s government. Dissanayake reiterated that national progress requires strong diplomatic ties and cannot be achieved in isolation.

Showers or thundershowers will occur at times in Sabaragamuwa province

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September 13, Colombo (LNW): Showers or thundershowers will occur at times in Sabaragamuwa province and in Kandy and Nuwara-Eliya districts. Several spells of showers will occur in Western and North-western provinces and in Galle and Matara districts.

Showers or thundershowers may occur at several places in Uva province and in Ampara and Batticaloa districts during the evening or night.

Strong winds about (40-45)kmph can be expected at times over Western slopes of the central hills, Northern, North-central and North-western provinces and in Hambantota, Monaragala and Trincomalee districts.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.