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Friday November 13th, 2026

Kenya looks to orthodox tea as CTC prices tumble

AFP – In a humming factory in Kenya’s highlands, tea is hand-plucked from the fields, cured and shredded into the fine leaves that have sated drinkers from London to Lahore for generations.

But Kenya’s prized black tea isn’t fetching the prices it once did, forcing the top supplier of the world’s most popular drink to try something new.

In the bucolic hills around Nyeri, factory workers are experimenting with a range of boutique teas, deviating from decades of tradition in the quest for new customers and a buffer against unstable prices.

Like the bulk of Kenya’s producers, they’ve been manufacturing one way for decades — the crush, tear and curl (CTC) method, turning out ultra-fine leaves well suited for teabags the world over.

Now however, between conveyor belts whizzing tonnes of Kenya’s mainstay CTC into heaving sacks, huge rollers also gently and slowly massage green leaves under the watchful eye of workers, all freshly trained in the art of what is known as orthodox tea production.

The end result — a whole leaf, slow-processed variety, savoured for its complex tones and appearance — is still being perfected at Gitugi, a factory in the foothills of the Aberdare Range that has been trialling these teas since June.

It has been costly shifting into orthodox, and a cultural change for workers and farmers, said Antony Naftali, operations manager at Gitugi, in Nyeri some 85 kilometres (52 miles) north of Nairobi.

But the risk was necessary: prices for stalwart CTC at auction nosedived 21 percent in 2018-2019 compared to the prior financial year, underscoring the urgency to diversify and extract more from every tea bush.

“We have relied for so many years on traditional CTC. But the price has dropped. We want to reduce the pressure… but also, to explore this new market,” Naftali told AFP.

– Market turmoil –

Even since prices have recovered somewhat, any fluctuations are still keenly felt in Kenya, the world’s biggest exporter of CTC.

Tea is a staple drink in Kenya, though, unlike other major producing countries, it consumes far less than it exports.

The humble cuppa is a pillar of the economy: one in 10 Kenyans depends on the tea industry, according to the Kenya Tea Development Agency (KTDA), which represents 650,000 smallholder farmers by selling and marketing their tea.

The poor returns this year sparked angry protests on estates, and tea companies registered losses.

Part of the problem is oversupply.

Higher prices in recent years spurred investment in tea planting, resulting in Kenya’s best-ever haul in 2018 — at 493 million kilos (1,086 pounds).

But Kenya also has long relied on too few buyers, shipping 70 percent of its tea to just four markets.

Its top three customers — Pakistan, Egypt and Britain — have all seen a weakening of their currencies in recent times, making tea imports pricey.

Other big buyers — Iran, Sudan and Yemen, chief among them — have struggled to make payments.

“Our key markets are in turmoil,” Lerionka Tiampati, KTDA chief executive, told AFP.

“When you cannot control the price, then there’s not very much you can do. But what we are doing is we are trying to diversify the product.”

– Reading the leaves –

Orthodox production opens doors to markets where whole leaf, bespoke teas and custom infusions are rewarded with higher prices, says Grace Mogambi, KTDA’s manager of specialty products, who has travelled the globe to learn what drinkers want.

Studying samples in Gitugi’s cupping room, Mogambi reels off the qualities desired by discerning tea drinkers: Russians like whole leaves, Germans prize tips, Saudis demand jet black and Sri Lankans dislike stalks.

“Consumer taste preferences are changing. Drinkers are becoming more aware of the type of tea they prefer,” said Mogambi, clad in a white laboratory coat, before swirling a mouthful of tea and ejecting it into a spittoon.

“If I’m spending more money on a cup of tea, I prefer given characteristics to be present.”

But orthodox and specialty lines represent only a tiny fraction of Kenya’s exports, and critics say the KTDA — which accounts for 60 percent of the country’s tea production — has been slow to adapt.

The board decided in 2000 to launch an orthodox range but, by the end of 2019, just 11 of its 69 factories were expected to be producing teas other than CTC.

Some like Kangaita, a factory at the southern flank of Mount Kenya, have been cultivating purple teas — a rare speciality unique to the region.

Other craft varieties include white premium, a loose leaf packaged in deluxe pyramidal teabags.

These appeal also to younger tea drinkers, a growing market demanding something other than run-of-the-mill black tea.

“Youthful tea drinkers are definitely looking for wellness, and other health benefits in tea,” said Gideon Mugo, chairman of the East African Tea Trade Association.

Major brands outside the KTDA have been targeting the youth segment.

Kericho Gold produces a line of “attitude teas” packaged in bright boxes, including one for “love” and another marketed as a hangover cure.

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Sri Lanka stocks close down 0.60-pct, dragged by HNB and LOLC

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.60 percent.

The ASPI was down 133.22 points at 22,024.18, while the more liquid S&P SL20 was down 1.06 percent, or 67.55 points, at 6,298.02.

The ASPI ended the week up 784.53 points from last Friday.

Positive contributors to the ASPI were Dialog Axiata (up 0.40 percent at 50.20 rupees), Distilleries Company of Sri Lanka (up 0.52 percent at 58.30 rupees), Aitken Spence (up 3.60 percent at 151.00 rupees), Ceylon Tobacco Company (up 1.05 percent at 1,828.50 rupees), and LOLC Finance (up 1.96 percent at 5.20 rupees).

Hatton National Bank (down 1.88 percent at 403.75 rupees), Richard Pieris and Company (down 6.21 percent at 27.20 rupees), LOLC Holdings (down 2.17 percent at 405.00 rupees), Sampath Bank (down 1.91 percent at 154.00 rupees), and Singer (Sri Lanka) (down 2.40 percent at 77.30 rupees) were top negative contributors.

Market turnover was 3.23 billion rupees. Capital goods led turnover with 869.21 million rupees. (Colombo/Nov13/2026)

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Sri Lanka MP slams budget speech for omitting Tamil national question

ECONOMYNEXT – A Sri Lanka legislator has voiced strong disappointment that the President’s budget speech failed to make a single mention of the Tamil national question.

“It is very unfortunate that in His Excellency the President’s speech, there has not been a single word mentioned about the Tamil national question. Not a single word,” Shanakiyan Rasamanickam said.

“A budget speech generally, is a policy direction of the government for the next year. The budget speech is not only a statement of the country’s fiscal position or the economy’s position. It is the country’s, the government’s, plan, or what the government plans to do the following year. That’s a policy statement.”

Former presidents would at least mention the Tamil question even if it was not resolved, he said.

Former President Ranil Wickremesinghe in his speech, in his policy statement, he would mention: “The Tamil national question must be resolved,” Rasamanickam said.

Former Presidents Maithripala Sirisena and Gotabaya Rajapaksa also mentioned that the national ethnic question must be resolved, he added.

“Every President, every country’s Head of State, in their policy statements, have acknowledged the fact that there is an unresolved national issue, the Tamil national question, that it needs to be resolved. Various governments have proposed various mechanisms; none of them have succeeded, but at least it was mentioned.”

This year’s budget made allocations for the Office of Missing Persons, and the Office of Reparations.

“But the domestic mechanism is a mechanism that the victim community has rejected. So you all are allocating money to a mechanism where the victim community is not going to be part of.”

Last year’s budget 1 billion was allocated to be spent on the Trincomalee and Jaffna airports.

“Where was that 1 billion for the Trincomalee and Jaffna airports spent last year?”

“The trajectory of this government, Honourable Deputy Speaker, is worrying to me. It’s really worrying to me. Because if the objective is to say that there is no Tamil national question, if the objective is to say that you all have resolved any ethnic issue that this country faced, then Honourable Deputy Speaker, then I think the Tamil people will teach this government a very, very, very harsh lesson in the future.” (Colombo/Nov13/2026)

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Sri Lanka sells extra Rs6.5bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 6,500 million rupees of treasury bills offered on tap at an average rate of 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 85.562 billion rupees.

The issue offered 90 billion.

Total market subscription was 6.5 billion rupees.

The debt office sold a 12-month bill at 9.95 percent.

On Wednesday (11) the debt office raised 79 billion rupees of 3, 6 and 12 month bills after offering 90 billion.

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Sri Lanka Treasury bill yields hold broadly steady, less bills sold

The settlement date is November 13. (Colombo/Nov13/2026)

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Access Engineering Sept quarter group net profit surges 200-pct to Rs4.75bn

ECONOMYNEXT — Sri Lanka’s Access Engineering PLC recorded a group net profit attributable to equity holders of Rs. 4.75 billion for the quarter ended September 30, surging 200 percent from Rs. 1.58 billion a year earlier, interim accounts showed.

Basic earnings per share rose to Rs. 4.08 for the September quarter, up from Rs. 1.58 previously.

Quarterly group revenue expanded 36 percent to Rs. 20.39 billion from Rs. 14.94 billion, underpinned by condominium property handovers — reflected in inventories dropping Rs. 7.69 billion since March to Rs. 35.71 billion — alongside strong automobile sales and steady civil engineering execution.

Cost of sales rose at a slower 27 percent to Rs. 14.34 billion, lifting gross profit by 64 percent to Rs. 6.05 billion and expanding gross margins to 29.7 percent from 24.7 percent.

Other income jumped 144 percent to Rs. 259.9 million, while administrative expenses rose 75 percent to Rs. 1.14 billion, leaving operating profit up 64 percent at Rs. 5.16 billion.

However, finance costs more than doubled, rising 107 percent to Rs. 1.18 billion on elevated group borrowings of Rs. 43.74 billion, partly offset by finance income climbing 302 percent to Rs. 42.2 million.

Share of results from equity-accounted investees rose 122 percent to Rs. 26.7 million, pushing pre-tax profit up 56 percent to Rs. 4.05 billion.

Income tax swung to a net reversal of Rs. 186.6 million from an expense of Rs. 804.1 million, boosted by deferred tax assets on unrelieved losses from a 100 percent enhanced capital allowance claimed by 60 percent-owned radiopharmaceutical subsidiary Access Medical Tracers (Private) Limited.

Total period profit rose 136 percent to Rs. 4.24 billion, with non-controlling interest declining 24 percent to Rs. 164.9 million following last year’s buyout of minority shareholders in Harbour Village (Private) Limited.

No separate exchange gain or loss was itemized in quarterly earnings, though foreign currency translation via associates recorded a Rs. 17.4 million loss in other comprehensive income, alongside USD 16.6 million in corporate guarantees.

Notes also flagged an expected Rs. 1.45 billion recovery from the terminated South Asia Commercial and Logistics Hub project, a Rs. 225 million post-quarter legal settlement already provided for, and a Supreme Court appeal over a 2011/12 PAYE tax ruling.

Group assets stood at Rs. 132.4 billion as of September 30, with net asset value per share at Rs. 46.70, as the Employees’ Provident Fund raised its stake to 5.69 percent.

Access Engineering shares closed at 80.00 rupees at the end of September and are currently trading around 85.80 rupees. (Colombo/Nov13/2026)

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Sri Lanka private sector says timely implementation of Budget 2027 key

ECONOMYNEXT – Private sector body, The Ceylon Chamber of Commerce, said it was encouraged by the broad direction of Budget 2027, noting that it reinforces Sri Lanka’s commitment to economic transformation while maintaining policy continuity, macroeconomic stability, and fiscal discipline.

“This continuity is particularly important as the country seeks to transition from economic stabilisation to a more durable, investment-led growth trajectory.”

The chamber also noted several areas where the Budget could have placed greater emphasis to strengthen the country’s growth prospects.

“In particular, there is a need for a stronger focus on attracting Foreign Direct Investment (FDI), accelerating factor market reforms, particularly in land and labour, and fast-tracking public procurement reforms to improve the efficiency and speed of project implementation.

“More targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics.”

The chamber said the budget contains positive measures aimed at enhancing competitiveness, and external sector resilience, while presenting opportunities for focus on sectors that can accelerate growth.

“A number of the key structural reforms identified in last year’s Budget have been carried forward and strengthened, providing greater certainty and predictability to businesses and investors.

“These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the rollout of the Digital ID framework, efforts to expand market access through new Free Trade Agreements (FTAs), the strengthening of one-stop-shop investment facilitation mechanisms, progress on Customs reforms, the expansion of Bandaranaike International Airport (BIA), enhanced financing support for SMEs, and reforms relating to the management of State-Owned Enterprises.”

The CCC said that more than 20 proposals submitted by it have been reflected in Budget 2027.

These include measures to strengthen investor facilitation through the establishment of a professionally managed investment promotion agency; continued efforts to improve trade facilitation and export competitiveness; the Government’s consideration of a successor programme with the International Monetary Fund (IMF); accelerated progress on key legislative reforms; the expansion of digital government services; and the promotion of cashless payments and broader digital adoption. The Budget has also captured several priorities relating to energy security, including the accelerated deployment of Battery Energy Storage Systems (BESS) and investments in fuel storage infrastructure, initiatives to optimize underutilized agricultural land, measures to support the expansion of the digital economy and the IT/BPO sector, and tax reforms to support exporters, including the acceptance of newly VAT-registered exporters as eligible exporters.

“The inclusion of these priorities reflects the value of sustained public-private dialogue and demonstrates increasing alignment between national policy objectives and the needs of a competitive, export-oriented economy.

“The priority now must be effective and timely implementation to translate policy commitments into investment, competitiveness, exports and sustainable growth.” (Colombo/Nov13/2026)

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Sri Lanka stocks trend lower day after budget reading

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trending lower on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.66 percent.

The ASPI was down 146.78 points at 22,011, while the more liquid S&P SL20 was down 0.94 percent, or 59.99 points, at 6,306.

Positive contributors to the ASPI were Access Engineering (up 1.30 percent at 85.80 rupees), LAUGFS Gas (up 3.31 percent at 49.90 rupees), Ceylon Tobacco Company (up 1.13 percent at 1,830 rupees), Ceylon Cold Stores (up 0.80 percent at 126 rupees), and Namunukula Plantations (up 1.79 percent at 68.10 rupees).

LOLC Holdings (down 1.03 percent at 409.75 rupees), Hatton National Bank (down 0.61 percent at 409 rupees), Sunshine Holdings (down 3.81 percent at 30.30 rupees), and Sampath Bank (down 1.91 percent at 154 rupees) were top negative contributors.

Market turnover was 1.55 billion rupees. Capital goods led turnover with 459.57 million rupees. (Colombo/Nov13/2026)

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