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Govt to make Colombo intl'l tea hub

The feasibility of conducting Dollar Tea Auctions is now being seriously considered by the Government are part of the revolutionary changes envisaged to realise its vision of making Colombo the international hub for tea.

This was disclosed by Plantation Industries Minister Lakshman Kiriella at the AGM of the Ceylon Tea Traders Association held at the Taj Samudra Hotel, Colombo on Thursday.

The Minister said radical changes are necessary to enable the country achieve this vision. As such the government hoped to ensure that all tea factories obtained international quality standards. Steps would also be taken to ensure a self-motivated, highly competent and customer oriented workforce in the tea industry.

Among other ambitious plans envisaged are to encourage product diversification, sustain the leadership in global tea exports market, establish an Information Centre for the tea industry, introduce modern IT technology to conduct Colombo tea auction, establish Ceylon tea as an international brand, impart modern methodologies in manufacturing of team and encourage bio-organic tea manufacture.

Minister Kiriella further said "Prime Minister Ranil Wickremesinghe and our government have a vision to make Colombo the international hub for the tea world. Radical decisions and revolutionary steps may have to be taken. Separate committees are now examining the feasibility of a Dollar Tea Auction in Colombo."

The Minister said, "Since my assumption of duties as the Minister of Plantation Industries, I have received the fullest support from the CTTA in all important matters and deliberations.

I am sure my deputy Naveen has also received the maximum of co-operation from the apex body of the private sector tea industry in Sri Lanka. One particular goal, I and Naveen were striving to achieve for the last few months was to obtain a consensus among all stakeholders in the tea industry for an umbrella body.

In that attempt, I am a happy person today since the first ever Tea Association of Sri Lanka has been just formed. I am confident that the new umbrella organization of the private sector will become a great catalyst for the progress of this great industry during the 21st century."

Continuing the Minister observed that, during the year 2000 the production of Sri Lanka exceeded the magical 300 million kilo mark. Currently, over 40% of all tea export from the country is in pre-packed form and all efforts are being taken to enhance this share with the fullest support and co-operation to nurture 100% Sri Lankan own brands.

Sri Lanka received another world's first when the ISO Technical Committee pronounced "Ceylon tea as the cleanest tea in the world" as far as pesticide residues are concerned. "Sri Lanka has retained its position for the seventh consecutive year as the world's largest black tea exporter with off-takes of around 295 million kgs constituting a significant global market share of 23%. The privatization programme in the industry has paid rich dividends. Ceylon tea has clinched a position int he top end of most of the quality markets in he world. Today Sri Lnaka remains, not only as the largest exporter of tea to the world but also continues as the largest orthodox black tea producer.

In volume terms, the tea corp of Sri Lanka is only behind that of India and China. The remarkable recovery of a country that had lagged behind in production and export due to nationalisation of the plantations in early 1970s, in view of privatization is noteworthy," the Minister said.

He stressed "This unparallel transformation of the tea industry in Sri Lanka is primarily due to the outstanding contributions made by Low Grown tea cultivators who are predominantly smallholders. It is this sector, that has recorded an unimpaired growth rate and remained as the pinnacle of the country's tea industry.

The average yield level of the smallholder sector which remained at around 1450 kgs per hectare in mid 1990s has risen to over 2100 kgs per hectare by 2000. The Tea Smallholding Development Authority (TSHDA) played a vital role in helping the smallholders by providing enhanced assistance for replanting, infilling, fertilizer application, planting material supply and advisory services.

"As local financial resources were not adequate to implement all development programmes in the Plantation Sector, donor support was provided for some of the investments. The main donor funded projects are the Plantation Reform Project, Tea Development Project and Plantation Development Support Programme; the total costs of these three projects were Rs.10 billion, Rs. 4.2 billion and Rs. 2.6 billion respectively. All these projects made substantial positive impact in the Plantation Industry on improving productivity, profitability and the quality of life of the Plantation Community."

The Minister commended the CTTA for the co-ordination and implementation of its diverse activities and the continuity of its dialogue with the relevant state controlled organizations in the achievement of its aims.

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