ECONMYNEXT – Finlays Colombo, a Sri Lankan tea exporters that is part of Britain’s Swire group, has completely lost its Syrian market owing to conflict in the Middle East region.
Finlays Colombo chairman C. L. K. P. Jayasuriya said the troubles in the region reduced buying by key importers of Sri Lankan tea and led to lower prices at the Colombo auctions.
“The turmoil in the Middle East and especially in Syria, Iraq and Turkey together with the almost year-long decline in oil prices resulted in harsh economic and security conditions in these countries,” he told shareholders in the firm’s annual report for 2015.
Currency devaluations across the region and also in Russia, the largest importer of Sri Lanka tea, meant that the purchasing power in these markets was drastically eroded, resulting in a significant reduction in demand at the Colombo Auctions, Jayasuriya said.
“These developments had mixed fortunes for our business. Firstly and adversely, we completely lost the Syrian market, which in previous years had yielded approximately 600,000 kg, as it became impossible to find a shipping route into that country, let alone putting in place a distribution system within it.”
But Jayasuriya said on the plus side because of the decline in demand from some of the major importers of Ceylon tea, the significant drop in prices enabled Finlays Colombo to buy tea on “advantageous terms” for shipment to some of the markets less affected by these upheavals.
(COLOMBO, March 14, 2016)