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Major boost for tea exports

by Ravi Ladduwahetty

Sri Lanka's tea exports will shortly be given a major boost following three landmark decisions - trading teas in US Dollars, the imminent establishment of a Futures market and the establishment of a new 30 acre Duty Free Shopping Complex on the Colombo-Katunayake Road, aimed a making Sri Lanka the premier tea exporter in the world.

These three developments are mandatory for the Sri Lanka tea industry to turn around and gain a competitive edge in the international market. The industry, despite being a major foreign exchange earner has not progressed substantially in the last decade to the levels it ought to have, Commerce and Consumer Affairs Minister Ravi Karunanayake told the Daily News last night.

Prime Minister Ranil Wickremesinghe has given the nod for all three projects as he is keen to see that the tea industry is fully developed. The Government will finalise all arrangements for these three projects within the next few days, Minister Karunanayake said.

This would mean that tea exports would reach stability when negotiated in Dollars unlike the present situation where it is traded in Sri Lanka Rupees. The values are not fully realised when the Sri Lanka Rupee is devaluated, Minister Karunanayake explained.

A majority of the exporters are fully supportive of this proposal to export teas using Dollars barring a few who thrive on foreign exchange fluctuations, he noted.

Also on the drawing boards is the establishment of a Futures Market where buyers would have the facility of making forward bookings and trading teas in the manner in which financial markets operate overseas, he said. This would enable Sri Lanka to take the lead over its competitors such as India, Kenya and China.

The third project is the establishment of a 30 acre Duty Free Shopping Complex on the Colombo- Katunayake Road which will not only have teas but also other consumer goods such as electronic appliances.

Efforts will also be made to promote intra- regional travel within the SAARC region and especially with special emphasis on Indian and Pakistani tourists, who will be permitted to purchase goods in Indian/Pakistani Rupees, he stressed.

The Prime Minister is very keen that relations with India are fostered and this project would also strengthen ties between the two countries, he added. 

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