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Thursday March 23rd, 2023

Sri Lanka tea production may recover in 2023 with fertilizer

ECONOMYNEXT – Sri Lanka expects tea production to recover in 2023 to 300 million kilograms after output fell to 260 million kilograms in 2022 with President Gotabaya Rajapaksa banning fertilizer and agro-chemicals.

“With the current conditions and the crop lost due to fertilizer issue and everything we expect around 260 million kilograms of tea by the end of 2022 which will bring the total revenue through tea selling to around 1.4 billion US dollars,” Chairman of Sri Lanka’s Platers’ Association Senaka Alawattegama said.

“In 2023 we expect a total production of 300 million kilograms, with the fertilizer now being available again with other agro chemicals”.

Fertilizer is now coming back to tea farms but at a sharply higher price, he said.

President Gotabaya Rajapaska banned fertilizer and agrochemicals on the advice of the Government Medical Officers Association and a Buddhist monk.

Then GMOA chief Anuruddha Padeniya had said to Pliny the Elder, a Roman author who had produced an encyclopedia about 2000 years ago, ancient Sri Lankans had lived for around 140 years and their life expectancy had now almost halved to 74 years due to agrochemicals.

In 2021 Sri Lanka reversed the policy but fertilizer could not be imported due to foreign exchange shortages after Mercantilists in the country printed money for stimulus triggering the worst currency crisis in the history of the island’s central bank.

Sri Lanka’s previous President Maithripala Sirisena had also banned glyphosate, a weedicide after others including Channa Jayasumana, a university lecturer who became a minister claimed a link between heavy metals in water and glyphosate. Heavy metals in water has been suspected of contributing to chronic kidney disease.

Sri Lanka’s tea production was down 7.8 percent in September 2022 from a year earlier.

In 2020 Sri Lanka has exported 265.57 million kilograms of tea and recorded a total revenue of 1.2 billion US dollars while in 2021, the nation had exported 286.02 million kilos and generated 1.3 billion US dollars.

From January-September 2022, the total production was 192.37 million kilograms down from 234.72 million kilograms last year which was a 26 year low.

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  1. Shuvasubramaniam says:

    This correct answer should come from Srilanka tea research intuition or tea board?
    Using fertilizer will going to bring 4million kgs excess ? What was the value for fartilizers in USD? Need a loss and profit accounts to see?

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

  1. Shuvasubramaniam says:

    This correct answer should come from Srilanka tea research intuition or tea board?
    Using fertilizer will going to bring 4million kgs excess ? What was the value for fartilizers in USD? Need a loss and profit accounts to see?

Sri Lanka establishes committee to investigate aircraft incidents

An aircraft lands at the Jaffna International Airport, which was opened in October 2019 and promises to push the tourism frontiers in Jaffna.

ECONOMYNEXT: Sri Lanka’s has established an expert committee under the state-run Civil Aviation Authority to investigate aircraft accidents and to implement precautionary methods in the Sri Lankan airspace, an Official said.

“Even if it is only one flight, there is a chance an accident may occur,” Civil Aviation Authority of Sri Lanka, Director General, P. A. Jayakantha said.

“This particular committee is there to investigate aircraft accidents and act as a mechanism to take over if something goes wrong”.

Sri Lanka has encountered around 2,700 minor aircraft accidents and incidents mostly on the ground in the 19 years through 2021, the CAA annual reports showed.

The new committee will analyze the past accidents and take precautionary measures while also conducting investigations and provide independent reports in the future, Jayakantha said.

The team is provided with required training and qualifications by the CAA along with an International organization, free of charge.

“Internationally also it is a requirement to have a team to investigate the aircraft accidents,” Jayakantha added.

“For a long time we have not fulfilled this requirement and that is why we established this team with the cabinet approval. Moreover, recently, Sri Lanka’s two aircrafts, one training aircraft and a commercial aircraft met an accident”

The committee will be on active duty, until the Accident Investigation Act is passed and a proper Aircraft Accident and Incident Investigation Bureau is established. (Colombo/ Mar23/2023)

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Sri Lanka bond yields steady, Rupee 319/325 at close

ECONOMYNEXT – Sri Lanka’s treasury bond yields closed steady on Thursday while rupee closed weaker, dealers said.

A 01.07.2025 bond closed at 30.60/31.00 percent on Tuesday, down from 30.25/75 percent on Wednesday.

A 15.09.2027 bond closed at 27.80/28.10 percent, steady from 27.90/28.00 percent from Wednesday.

Sri Lanka rupee closed at 319/325 against the US dollar depreciating from 318/320 from a day earlier. (Colombo/ March23/2023)

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Sri Lanka shares dive to two-week low on local debt restructuring fears

ECONOMYNEXT – The Sri Lanka market fell for a fourth session to a two-week low on Thursday, led by financials, as worries over domestic debt restructuring continued after the IMF loan was approved earlier this week resulting in investors adopting a wait-and-see approach until further clarity was provided, analysts said.

The main All Share Price Index (ASPI) closed down 1.38 percent or 131.07 points to 9,395.98, lowest since March 02.

Analysts said, majority of the banks have been on slower investment trends on fears of domestic debt restructuring after the IMF approval and waiting for more clarity on the local debt restructuring.

“The market is on muted sentiments despite the IMF loan being approved and is going through a period of consolidation,” Ranjan Ranatunga of First Capital Holdings said.

The market saw a net foreign outflow of 298 million rupees and the total offshore inflows recorded so far in 2023 to 3.3 billion rupees.

The most liquid index, S&P SL20, closed 1.64 percent, or 45.33 points, down at 2,722.94.

The market saw a turnover of 3.4 billion rupees on Thursday, above this year’s daily average of 1.8 billion rupees.

This is the highest turnover generated since March 08, which is when the market was driven off of positive sentiments from International Monetary Fund deal hope after Chinese assurances.

Top contributors to revenue was Agalawatte Plantations, on off board transactions of a stake change, contributing revenue of 1.6 billion rupees, Ranatunga said.

Top contributors to revenue industry wise was Food and Beverage and Telecommunications.

Sri Lanka Telecom has been seeing positive uptrends as the Secretary to the Treasury has informed the Board of Directors of Sri Lanka Telecom PLC (SLT) and Lanka Hospitals PLC that the Cabinet of Ministers has granted approval in principle for the divestment of the stakes held by the Treasury Secretary in the two companies.

Top losers were Sampath Bank, Hatton National Bank and Commercial Bank.

Sri Lanka is looking at options to re-structure domestic debt, or local law local currency debt (LLLC), without harming the banking sector and announce them the International Monetary Fund said in a report.

Banks have been witnessing profit taking and selling pressures after continuous uptrends prior to the IMF loan had been approved.

Analysts said, selling pressures is expected to ease as the IMF hopes to reduce inflationary pressures which will in turn lead to reductions in interest rates. (Colombo/Mar23/2023)

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