A special discussion was held yesterday (4) at the Ministry of Plantation and Community Infrastructure to assess the impact of the ongoing war situation in the Middle East on Sri Lanka’s tea industry and to explore measures to safeguard the sector.
The meeting, chaired by Minister of Plantation and Community Infrastructure Samantha Vidyarathna, brought together officials from key institutions and representatives of the tea industry to examine the challenges already emerging and the risks that could arise if the conflict continues.
Minister Vidyarathna said the Government was prepared to extend financial relief if necessary and that discussions would be held with the Ministry of Finance and the Cabinet on possible support measures. He emphasised that the Government remained committed to protecting all stakeholders connected to the tea industry in the event of any emergency situation.
The meeting also proposed maintaining current tea production levels and storing unsold tea stocks so that they could be released to the market once conditions stabilise.
Speaking at the discussion, Tea Exporters’ Association Chairman Lionel Herath said the industry had raised concerns about maintaining tea prices at the Colombo tea auction under the prevailing conditions.
“We discussed with the Minister how to maintain tea prices at the auction in the current situation and also addressed issues faced by exporters when exporting the tea they purchase,” he said.
Sri Lanka Tea Factory Owners’ Association representative Lushantha de Silva said the industry appreciated the swift response by the Government in convening discussions soon after the crisis began.
He warned that factories could face serious challenges if buyers reduce purchases.
“Even if buyers do not purchase tea, growers cannot stop plucking tea leaves. Production must continue and therefore factories require working capital to sustain operations,” he said.
De Silva added that proposals had been submitted to the Minister seeking bank concessions and other financial relief in the event that tea sales are disrupted.