History of Ceylon Tea

• Plantation Industries Minister Dr. Ramesh Pathirana says price of tea increased to
• Rs. 420 per kilo from Rs. 80 per kilo in 2019 amidst low crop
• Claims tea industry took a huge toll due to sudden change in fertiliser policy

Plantation Industries Minister Dr. Ramesh Pathirana said this week tea prices have shot up to an all-time high of Rs. 420 per kilo.

“Amidst low volumes, Sri Lanka’s tea has been able to secure high value for our tea once again. In 2019 Sri Lanka got Rs. 80 per kilo of tea leaves, this year it increased sharply to Rs. 250 and now to Rs. 420 per kilo. It is a great achievement for the industry which has encountered multiple challenges during the past two years,” he said recently at the opening of the newly built Tea Small Holders Association (TSHA) office in Walahanduwa Estate in Galle.

Dr. Pathirana also acknowledged that the tea industry took a huge toll due to the sudden fertiliser policy change, adding that the tea leaf yield decreased by 15% in 2021. However, he said the favourable rainfall last year helped reach 300 Mn/Kg despite the fertiliser crisis that the industry encountered. 

“Quick measures are underway to reverse the adverse impacts of the fertiliser crisis for tea plantations. These include; soil conservation, enhancing soil texture, plant nurseries, water management, and plant maintenance activities. To make these initiatives successful, we expect the support of all the tea growers,” he added.

The Minister pledged to restructure the Walahanduwa Estate with a 200,000 tea plant nursery, a 25-acre cinnamon plantation, a 20-acre new tea plantation, a 25-acre hybrid coconut plantation, and a 25-acre fruit plantation.

Dr. Pathirana insisted that the overall investments in manufacturing should be enhanced and diversified into exports. 

“Products that are in this country should be exported as much as possible. As far as the tea industry is concerned, there are a multitude of value additions the stakeholders can explore and export,” he stressed.