Global slowdown to impact Lanka's $2b tea export target
Wednesday, 19 November 2008
COLOMBO, Nov 18 (PTI): Global slowdown can put a spanner in Sri Lanka's ambitious target of achieving USD 2 billion tea exports by 2010 with the country's foreign minister urging "friendly" tea importing nations to continue buying more tea from the island nation.
After meeting the mission and envoy head of Egypt, Iran, Russia, Saudi Arabia, Iraq, Kuwait and Qatar late last week, Foreign Minister Rohitha Bogollagama had said, "Sri Lanka is seeking the support of friendly countries who are principal buyers of Ceylon tea, to remain active in the tea market, in order to promote tea exports from Sri Lanka and to maintain price stability".
Further the minister stated, that most of the major markets for Ceylon tea is under private sector that plays a dominant role in determining prices influenced by market forces of demand and supply.
He outlined the remedial measures taken by the Government of Sri Lanka in maintaining stable tea prices at the Colombo auctions, including the activation of a Tea Stabilization Fund, a 6 per cent interest subsidy on bank loans for members of the tea trade, as well as the intervention of the Sri Lanka Tea Board at the Colombo tea auction.
He also underscored the importance of the tea industry to the Sri Lankan economy, noting that this billion dollar industry accounts for more than two-thirds of the country's agricultural export earnings, contributing about 4 per cent to the GDP.
Moreover, the tea sector provides direct and indirect employment to around 1.5 million people in Sri Lanka, he said adding this translated into family income support for 5 million dependants, roughly a quarter of Sri Lanka's population.
After meeting the mission and envoy head of Egypt, Iran, Russia, Saudi Arabia, Iraq, Kuwait and Qatar late last week, Foreign Minister Rohitha Bogollagama had said, "Sri Lanka is seeking the support of friendly countries who are principal buyers of Ceylon tea, to remain active in the tea market, in order to promote tea exports from Sri Lanka and to maintain price stability".
Further the minister stated, that most of the major markets for Ceylon tea is under private sector that plays a dominant role in determining prices influenced by market forces of demand and supply.
He outlined the remedial measures taken by the Government of Sri Lanka in maintaining stable tea prices at the Colombo auctions, including the activation of a Tea Stabilization Fund, a 6 per cent interest subsidy on bank loans for members of the tea trade, as well as the intervention of the Sri Lanka Tea Board at the Colombo tea auction.
He also underscored the importance of the tea industry to the Sri Lankan economy, noting that this billion dollar industry accounts for more than two-thirds of the country's agricultural export earnings, contributing about 4 per cent to the GDP.
Moreover, the tea sector provides direct and indirect employment to around 1.5 million people in Sri Lanka, he said adding this translated into family income support for 5 million dependants, roughly a quarter of Sri Lanka's population.