Sri Lanka to get US$100mn from ADB for tea industry upgrade
Sep 05, 2018 12:09 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – The Asian Development Bank (ADB) has allocated a US$100 million loan to Sri Lanka to modernise the island’s tea industry under its 2019 ending program.
The money will be to provide long-term funding for capital expenditures to modernize the tea sector, according to the lender’s country business plan.
From next year, Sri Lanka will no longer be eligible for ADB soft loans given rising incomes.
The project for modernization of the plantation sector accounts for three percent of the ADB’s lending to Sri Lanka in the next three years.
The government requested ADB aid for the tea sector as it is badly in need of capital to replacing aging tea bushes with new ones with better yields to increase production to meet growing demand.
Funds are also needed to mechanise production such as using plucking machines because of worsening labour shortages and to upgrade factories as well as to support efforts to overcome climate change.
(COLOMBO, 05 September, 2018)