Tea industry targets Rs. 100 b - SLTB chief

The tea industry must achieve a net income of Rs. 100 billion in the next few years, increase its value added exports to 65 percent and reduce exports in bulk form, said Sri Lanka Tea Board Chairman Lalith Hettiarachchi.

He was addressing the media in connection with the Colombo International Tea Convention to be held from August 29 to September 1 at the Cinnamon Grand Hotel.

"The tea cess of over Rs. 1.2 billion has not been ploughed back to the industry by the Treasury which is a major hindrance to develop the industry. Although certain organisations are given a share of the cess funds the industry does not get that benefit," he said.

Hettiarachchi said the quality of products, the standard of estate employees, their education, health and factory standards will suffer if the industry does not have sufficient funds.

"Ceylon Tea has been our pride which needs to be maintained. Today the industry has to compete with Kenya, India and China who have made tremendous progress over the years.

Sri Lanka is one of the four main tea producers in the world along with India, China and Kenya and was the largest exporter over the years till Kenya took the top slot recently.

Exports this year dropped due to bad weather and other market conditions. The volume of tea exported up to now this year is around 150 million kilograms. Sri Lanka exported 327 million kilograms last year and earned an income of Rs. 91.7 billion.

"The industry is targeting to produce over 300 million kilograms next year", the Chairman said.

Chairman, Colombo International Tea Convention Michael de Zoysa said 200 factories of the 680 in Sri Lanka have been recognised for following good labour practices and meeting international food safety standards.

The Colombo International Tea Convention is organised by the Colombo Tea Traders' Association in collaboration with the Sri Lanka Tea Board to mark 140 years of the industry.

James Taylor was the first to plant tea in Sri Lanka in 1867 and over the years the industry has been the mainstay of the country's economy with an average annual turnover of Rs. 90 billion and over one and a half million people employed in the industry.

LF