An Echelon Media Company
Tuesday April 16th, 2024

Sri Lanka January Ceylon tea production down 16.1-pct

ECONOMYNEXT – Sri Lanka’s Ceylon Tea production has dropped by 16.13 percent in January 2023 from a year earlier to 19.14 million kilograms, mainly due to policy mismanagement and bad weather, reports said.

The effects of a chemical fertilizer ban under former President Gotabaya Rajapaksa’s government are still lingering in tea farms and bushes are still recovering from the lack of nutrition. The fertilizer ban was lifted in 2022 but supplies were limited amid forex shortages.

Sri Lanka tea production for January 2023 was 19.14 million kilograms down from 22.8 million kilograms a year ago.

In January 2023, high grown tea production fell 34 percent to 3.5 million kilograms.

Medium grown fell 36.9 percent to 2.3 million kilograms and low-grown was down 3.01 percent to 13.1 million kilograms, industry data published by Forbes and Walkers Tea Brokers show.

The national average tea price in January was 4.05 dollars or 1,466.76 in rupees.

Sri Lankan tea has been earning higher prices for tea exports in rupees after the currency was depreciated in March against the USA dollar in 2022.

Tea exports were also down by 9.4 percent from a year ago to 17.56 million kilograms in January 2023.

“We are talking about a tea bush that had little to no fertilizer for one and half years, some of them even for two years,” Tea Board Chairman Niraj de Mel told EconomyNext.

“Some private sector companies got it after the ban but it was also a very small percentage.

“Just because the fertilizer issue’s being sorted out, does not mean everything is sorted now.”

The first three months may not indicate the response to fertilizer De Mel said but a recovery is likely to be seen later, on a lower base.

“So my outlook is in the second quarter, April, May or June should be better than last year” he said.

In 2022, Sri Lanka produced 251 million kilograms of tea and the new target of 2023 is around 272-280 million kilograms, with an expected forex revenue of 1.4 billion US dollars. (Colombo/Feb 26/2023)

Leave a Comment

Your email address will not be published. Required fields are marked *

Leave a Comment

Leave a Comment

Cancel reply

Your email address will not be published. Required fields are marked *

IMF urged Sri Lanka to preserve “hard earned gains” after economic crisis: State FinMin

ECONOMYNEXT – The International Monetary Fund has urged Sri Lanka to preserve the hard earned gains after an unprecedented economic crisis under the global lender’s programme, State Finance Minister Shehan Semasinghe said.

The Sri Lankan delegation led by Shehan Semasinghe met Kenji Okamura, the Deputy Managjng Director of the IMF on the first day of the IMF and  World Bank Spring meeting.

“Mr. Okamura commended the Sri Lankan authorities on strong programme implementation and excellent reform progress. He emphasised the need to preserve the hard earned gains Sri Lanka has experienced since the beginning of the IMF programme and continue strong ownership,” the State Minister said in his X (Twitter) platform.

He said the Sri Lankan delegation including Central Bank Governor Nandalal Weerasinghe and Secretary to the Treasury Mahinda Siriwardana explained the recent socio-economic developments to Okamura.

He also affirmed the IMF top official on the authorities’ commitment to ensuring continuity and consistency of macroeconomic policies and reforms undertaken under the programme. (Colombo/April 16/2024)

Continue Reading

Sri Lanka State FinMin meets BCIU in US; discusses post-crisis investment prospects 

ECONOMYNEXT – Sri Lanka’s State Finance Minister Shehan Semasinghe met Business Council for International Understanding( BCIU) in Washington on the sideline of the IMF/World Bank Spring Meetings late on Monday and discussed investment prospects in the island nation which is gradually recovering from an unprecedented economic crisis.
“Our discussion centered on the potential that Sri Lanka offers for international investors. Explored various sectors, including education, tourism, renewable energy, agriculture and technology, where strategic investments can drive sustainable economic growth and development,” Semasinghe said in his X (Twitter) platform. 
“We reviewed the current macro-economic landscape of Sri Lanka, including recent reforms that have transformed to results. Glad to concluded the forum by marking constructive dialogue and a shared commitment to support the economic development of Sri Lanka.” 
“We thank participants, stakeholders holders and global partners for the significant interest shown in unlocking the full potential of the Sri Lankan economy and fostering greater international understanding and cooperation.” (Colombo/April 16/2024) 
Continue Reading

India allows Sri Lanka to import 10,000MT of onions

ECONOMYNEXT – India has relaxed an export ban allowing 10,000 metric tonnes of onions to be shipped to Sri Lanka, the Indian High Commission in Colombo said.

“The exemption for Sri Lanka reiterated India’s Neighbourhood First policy, adding to the Sinhala and Tamil New Year festivities here,” the statement said.

Onion prices went up in Sri Lanka after India and Pakistan banned exports.

The Directorate General of Foreign Trade has issued a notice allowing National Co-operative Exports Limited to ship 10,000 MT of onions.

The UAE has also been allowed to import 10,000MT of onions on top of 24,400MT already permitted.

A large Indian and South Asian expat community lives in the UAE. (Colombo/Apr15/2024)

Continue Reading