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Monday November 9th, 2026

Restarting South Asia: The Tea industry faces up to its challenges

ECONOMYNEXT – The coronavirus pandemic wrought havoc on almost all walks of life, and the various industries ranging from commodities, tourism to apparel are even today trying to get back to normal. It was no different for the Tea industry, though it seems that some of the challenges it faced have helped the industry see things differently.

For one, it was a year (2020) that produced better tea than previous years explained Rudra Chatterjee, Managing Director of Luxmi Teas of India. That was certainly a challenge, given that approval for the products actually took place, not by being at the location and tasting the teas, but by viewing photos, he added.

Chatterjee was speaking at the Restart Asian Economies series organized by the Friedrich Naumann Foundation for Freedom (FNF) South Asia, which discussed ‘Ideas and Actions for the Tea Industry.’ The on-line discussion held on March 15th included the CEO of Dilmah Tea from Sri Lanka, Dilhan C Fernando, and was moderated by Subodh K Agarawal, Consultant, Friedrich Naumann Foundation for Freedom, South Asia (FNF).

Faced with lockdowns introduced to contain the spread of the coronavirus, said Chatterjee, gave them the opportunity to reach out to their customers and loyal friends and to recognise that tea is a large industry in terms of people, on whom the growers are dependent. The lockdown meant that in the first few months there was no production, and by the time restrictions were eased, most of the second pluck too had been flushed out.

He said that in terms of production there had been about a 15 per cent drop, yet morale was kept up with management which remained on the plantations having regular meetings with workers and the excellent programme put in by the government. Since India had already introduced payment of wages through technology that had not been an issue.

Like in India, production had not been affected in Sri Lanka according to Dilhan Fernando. With excellent collaboration with the government, health services, public health inspectors and technology ‘we rode the wave’ he said. However, the challenge was to get the product to the factories and keeping those operational.

Both Dilmah and Luxmi are committed to upholding the quality of their brands, and both Fernando and Chatterjee claimed that the larger issue is fighting the mediocre varieties of tea available on the market. Dilmah, says Fernando is committed to the purity of the product and environment and social sustainability, yet when consumers are unable to tell the difference between high and low-quality teas and are enticed by the various deals offered, they end up purchasing teas that are of the lower quality. That means pricing he points out, adding that price will also determine whether they could be in the frontline to battle climate change and social inequalities.

Tea, he explained has all the anti-oxidants to ensure wellness, but must compete with the many products that are marketed as being good for the health “Consumers move to teas that are not teas,’ Fernando states, adding that it is only through education that the industry could make sure that consumers know what they are buying. Here, the Dilmah School of Tea plays an important role in ensuring tea drinkers are discerning consumers. To date, says Fernando, around 10,000 have been educated on the finer points of tea, though irresponsible marketing of lesser quality teas remains a challenge. It’s not only about learning to brew a good cup of tea but being aware of its properties which act against cancer, dementia, stroke etc.

With more online shopping says Chatterjee, consumers are getting better at learning about the product, the varieties available and how the taste and aroma vary from region to region. Indeed, as they explained the taste could differ from teas that come from the same plantation, but different sections. When consumers acquire a better knowledge of the beverage, it would be that much more difficult to market a brand that comes for instance with a free spoon as against ‘I enjoy second flush tea,’ statement. It is, he says competition between the commodification of the product and the romance and nuance of tea.

Tea, says Fernando, demands that one knows its characteristics and varieties. Responding to a question on tea versus coffee, he states that the competition is not between the two beverages but a contest against all the beverages out there. Dilmah sells tea in Italy, he says, where following the morning cup of coffee, consumers look for tea and infusions as the day progresses. Adds Chatterjee, variants of the brew such as black, white, tea with spice or milk tea have been in the market for years before the advent of lattes and cappuccinos. What’s more, as Chatterjee describes the preferences of how tea is prepared and consumed too differs from region to region.

Growers are also dealing with the immediate issue of getting their product to the global market. A shortage of containers and congested ports across the world has made keeping track of their shipments difficult. In some instances explains Fernando, containers are kept in yards outside the ports.

There is also the issue of increased supply and more lands being put under tea cultivation, which, says Chatterjee contributes to climate change. Illegal deforestation in Assam for instance has increased land under tea cultivation, but with no respect for the environment resulting in flooding etc.

For the first time in the history of the tea industry in Sri Lanka, tea auctions were held on-line, during the lockdown. Fernando states that experience helped the sector stay afloat and also provided an avenue for smallholders to sell their product. However, there is a long way to go, he cautions. “It’s a work in progress requiring a more holistic approach and ensuring traceability etc.”

Specific challenges on the ground in Sri Lanka are the demand for better wages and making the industry more attractive for younger persons. Acknowledging the right of plantation workers to better wages, Fernando explains the challenge is in securing the right market price, which would then ensure not only better wages but also allow for other improvements in the sector. In terms of retaining younger workers, it involves bringing a human touch into the industry by addressing specific issues such as feminine hygiene, nutrition and alcoholism. Space must be created for the youth too to become entrepreneurs. These are challenging issues, he states, but those that must be addressed.

When customers begin to seek better products instead of succumbing to blanket marketing and choose teas that are produced ethically, through fair trade etc. better sustainability of the industry could be ensured, says Chatterjee.

Though consumed around the world, there seems to be low penetration of regional products within the South Asian market, and that could be overcome says Chatterjee through promoting ‘our own traditions, just like Early Gray and the English Breakfast, and going global with it.’ Promoting the very different ways tea is taken, just within India for instance where it changes from region to region; one region prefers more milk in the tea, another takes masala tea or the roadside cup of tea with lemon enjoyed in Kolkata.

Both agree that regional collaboration, where South Asia could be the hub has the potential of developing standards and promoting sustainability, health and safety and protecting the worker and the environment.

And perhaps Tea could be the panacea needed to build South Asian relations! Like cricket and similar food preferences, they point out, tea also is a common factor that binds South Asians.

What better way than to resolve any issues over a cup of tea!
(Colombo, March 23, 2021)

Sri Lanka rupee closes at 332.53/59 to US dollar spot, bond yields edge up

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.53/59 to the US dollar spot on Monday, from 332.55/60 the previous day, while bond yields closed higher, dealers said.

A bond maturing on 15.09.2029 closed at 190/98 percent, up from 10.85/95 percent.

A bond maturing on 01.08.2030 closed at 11.07/12 percent, up from 11.05/10 percent.

A bond maturing on 01.02.2031 closed at 11.30/40 percent, up from 11.10/15 percent.

A bond maturing on 15.12.2032 closed at 11.65/70 percent, up from 11.55/65 percent.

A bond maturing on 01.11.2033 closed at 11.95/12.00 percent, up from 11.90/95 percent.

A bond maturing on 15.10.2034 closed at 12.10/15 percent, up from 12.05/12 percent.

A bond maturing on 15.08.2036 closed at 12.40/50 percent, up from 12.30/40 percent. (Colombo/Nov9/2026)

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Sri Lanka stocks close up 1.37-pct, banks lead turnover

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Monday, CSE data showed, with the benchmark All Share Price Index moving up 1.37 percent.

The ASPI was up 291.72 points at 21,531.37, while the more liquid S&P SL20 was up 1.67 percent, or 100.96 points, at 6,146.34.

Positive contributors to the ASPI were Commercial Bank of Ceylon (up 2.86 percent at 216.00 rupees), Hatton National Bank (up 1.52 percent at 399.75 rupees), Asiri Hospital Holdings (up 12.86 percent at 31.60 rupees), Tokyo Cement Company (up 5.22 percent at 84.70 rupees), and Access Engineering (up 3.93 percent at 81.90 rupees).

Carson Cumberbatch (down 4.24 percent at 712.00 rupees), Richard Pieris and Company (down 2.43 percent at 28.10 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), Renuka Holdings (down 2.63 percent at 37.00 rupees), and Chevron Lubricants Lanka (down 0.61 percent at 204.25 rupees) were top negative contributors.

Market turnover was 3.33 billion rupees. The S&P/CSE Banks Industry Group led turnover with 667.76 million rupees.

The session saw heavy crossings, according to Raynal Wickremeratne, Head of Research and Strategy at NDB Securities. Significant crossings included Keells (23 million rupees), Distilleries Company (27.7 million rupees), Sunshine Holdings (30.6 million rupees), Commercial Bank (32.4 million rupees), Ceylon Tobacco Company (35.6 million rupees), Hatton National Bank (39.5 million rupees), Prime Lands (40.5 million rupees), and HAS Holdings (41.5 million rupees).

In corporate news, Hayleys Retail Holdings Ltd announced it has partnered with supply chain software provider Blue Yonder to build and scale an AI-native grocery supermarket chain across Sri Lanka. (Colombo/Nov09/2026)

 

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Sri Lanka’s Hayleys Retail to launch supermarket chain with Blue Yonder

ECONOMYNEXT — Hayleys Retail Holdings Ltd has selected supply chain software provider Blue Yonder to build its grocery retail operations from the ground up, the two companies said in a joint statement.

Hayleys Retail, a member of Sri Lanka’s diversified conglomerate Hayleys Group, plans to open several stores in the near future to serve consumers across the country. The agreement marks Blue Yonder’s first retail customer in Sri Lanka.

“Our entry into supermarket retail is about bringing that same commitment to quality and reliability closer to everyday Sri Lankan consumers,” Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC said.

“With Blue Yonder, our teams will have AI-driven insight to deliver a seamless, consistent shopping experience across every store,” he said.

Hayleys, which accounts for approximately 5 percent of Sri Lanka’s export income and operates across 17 business sectors, is entering the large-scale supermarket space by drawing on its group strengths in manufacturing, logistics, and services.

The company selected Blue Yonder to connect its data across merchandising and shelf space, deploy artificial intelligence agents to catch operational issues early, and scale its business into a national network without changing platforms.

The rollout will begin with merchandise operations to manage suppliers, items, costs, and pricing, followed by machine learning capabilities to forecast demand and balance store inventory during seasonal peaks.

“Hayleys Retail is choosing one where AI is the foundation rather than an add-on—connected data and agentic AI built into core merchandising operations, and planning that learns as the business grows,” Antonio Boccalandro, President, APAC at Blue Yonder said.

The retailer plans to use the platform to automate routine store tasks and adjust inventory according to real-time sales and local market trends as its store footprint grows. (Colombo/Nov09/2026)

 

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Sri Lanka’s Citrus Leisure extends Lotus Tower management pact

ECONOMYNEXT – Sri Lanka listed hospitality firm Citrus Leisure said it has extended an agreement to manage consumer-facing and entertainment spaces at the Colombo Lotus Tower, which includes revolving restaurant Blue Orbit, until June next year.

The initial agreement signed between Citrus Leisure and Colombo Lotus Tower Management Company (Private) Limited (CLTMC) is due to expire on December 11.

“The Board of Directors of CLTMC at meeting held on 2nd November 2026 has resolved to extend the term of the Management Agreement and continue the existing Management Agreement until 30th June 2027, to which the company has given its concurrence,” the company said in a market filing.

Citrus Leisure Plc opened its revolving restaurant at the Lotus Tower in December 2023.

The company signed a 3-year agreement with CLTMC in May 2023 to provide services in the management of (l) the banquet hall 1 on the 25th floor, (2) the banquet hall 2 on the 26th floor, (3) the revolving restaurant on the 27th floor, (4) the 6 suites situated on the 28th floor and the kitchen in the basement floor of the Colombo Lotus Tower.

The 350-meter or 1,150-feet tower, the tallest in South Asia, was built at a cost 104.3 million US dollars with 80 percent of the money borrowed from Exim Bank of China.

Located in the commercial heart of Colombo, the tower has been called a symbolic landmark of Sri Lanka as well as a colossal white elephant and has been mired in controversy for years. (Colombo/Nov9/2026)

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CIC Holdings Sept quarter net profit rises 20-pct to Rs1.7bn

ECONOMYNEXT — Sri Lanka conglomerate CIC Holdings recorded a net profit of 1.66 billion rupees for the quarter ended September 30, rising 20.3 percent from 1.38 billion rupees in the same quarter last year, interim accounts showed.

The group posted basic earnings per share of 0.87 rupees for the September quarter, up from 0.73 rupees a year earlier.

Quarterly revenue grew 3.4 percent to 20.89 billion rupees from 20.20 billion rupees, supported by broad-based growth across industrial solutions, livestock, and healthcare segments, which counterbalanced relative demand moderation in agricultural inputs.

Cost of sales rose 5.3 percent to 15.20 billion rupees, outpacing revenue growth and causing gross profit to contract marginally by 1.2 percent to 5.68 billion rupees.

Results from operating activities dropped 7.3 percent to 2.66 billion rupees from 2.87 billion rupees, impacted by higher operating overheads.

Selling expenses expanded 6.8 percent to 2.15 billion rupees, and general and administrative expenses climbed 5.8 percent to 1.07 billion rupees, while other operating income dropped 29.6 percent to 117.40 million rupees.

However, operating profits were cushioned by an impairment reversal on trade receivables of 85.83 million rupees, turning around from an impairment provision of 23.38 million rupees in the corresponding quarter last year.

Net finance costs climbed 35.4 percent to 712.25 million rupees from 526.01 million rupees.

The increase was driven by a 30.8 percent rise in finance expenses to 771.46 million rupees, primarily reflecting higher interest expenses on loans to finance elevated working capital and inventory requirements.

The quarter’s bottom line was strongly bolstered by CIC’s equity-accounted investment in John Keells Holdings PLC (JKH).

Share of profit from equity-accounted investees surged more than fourfold to 590.50 million rupees from 257.87 million rupees, driven by JKH’s strong profit expansion during the period.

The group also recognized a gain on bargain purchase of 55.59 million rupees during the quarter resulting from additional share purchases in JKH where the proportionate net asset value exceeded acquisition cost, compared to no such gain a year earlier.

With associate income gains offsetting operating margin contraction and higher borrowing costs, group pre-tax profit held virtually flat at 2.59 billion rupees, down 0.11 percent.

Income tax expense fell 29.4 percent to 606.24 million rupees from 858.71 million rupees, driving total group profit for the period up 14.1 percent to 1.98 billion rupees.

Total group assets stood at 108.58 billion rupees as of September 30, up from 99.75 billion rupees at the end of March 2026.

Group net asset value per share increased to 25.52 rupees from 22.10 rupees a year earlier.

CIC Holdings’ ordinary voting shares closed at 27.80 rupees at the end of September.(Colombo/Nov09/2026)

 

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Sri Lanka stocks trend up; ASPI gains 0.78-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trading higher on Monday, CSE data showed, with the benchmark All Share Price Index moving up 0.78 percent.

The ASPI was up 165.73 points at 21,405.38, while the more liquid S&P SL20 was up 0.61 percent, or 37.04 points, at 6,082.42.

Positive contributors to the ASPI were Commercial Bank (up 1.55 percent at 213.25 rupees), Ceylon Cold Stores (up 2.61 percent at 128.00 rupees), Asiri Hospital Holdings (up 10.00 percent at 30.80 rupees), Hemas Holdings (up 1.27 percent at 32.00 rupees), and Ambeon Holdings (up 6.02 percent at 37.00 rupees).

Namunukula Plantations (down 3.92 percent at 63.70 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), and Chevron Lubricants Lanka (down 0.12 percent at 205.25 rupees) were top negative contributors.

Market turnover was 428.31 million rupees. Capital goods led turnover with 82.53 million rupees. (Colombo/Nov09/2026)

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