Monday, 28 April 2003  
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$ 3.2 m ADB loan to reconstruct roads

by Shirajiv Sirimane



A low grown estate managed by a tea small holder

The Tea Development Project (TDP) is planning to utilise $ 3.2 million US dollars from the Asian Development Bank (ADB) for the reconstruction of underdeveloped roads and infrastructure development in the 13 districts where tea is grown.

According to the Head of the External division, Tea Research Institute, B. A. D. Sumanasiri this amount had been released to the TDP early last year and due to the fluctuation of the dollar more construction work could be done. "We have reconstructed over 225 km of roads from the earlier loan and this year we are hoping to reconstruct 260 km of roads by the end of the year.

He said that a lot of green leaf gets damaged while being transported in tractors on bumpy roads and a smooth road network is a must for the industry as value addition to the tea leaf should be done the same day.

Sumanasiri said that a further $ 1.2 million was released to the TDP by the ADB to provide better living conditions for estate workers. "We are hoping to build community centres, provide better sanitary facilities and supply other facilities for the working class." He said that they are hoping to work with the owners and decision makers of the industry to provide these facilities.

P. Ailapperuma, Project Co-ordinator Tea Development Project said that the tea industry is facing a lot of problems since 50% of the tea plants that have been planted are too old and do not yield a good crop. "Another problem the industry is facing is the rising labour costs and scarcity of labour which have resulted in high production cost." Ailapperuma said that new markets too have threatened the industry. He said that TRI has launched a program (Mother Bush) to provide better nurseries.

He said that the privatisation of the tea factories have had a very good impact on the industry as production has increased and more idle land had been put to use. He said that 14% of Sri Lanka export revenue is from the tea industry and 7% of the local work force is involved in the tea industry. The tea industry is also the breadwinner for 10% of the country's population.

He said that it is the tea small holders who joined the industry nearly five years ago that are yielding the best profits and they supply nearly 60% of tea to the market and own most of the land.

Acting Director General, Sri Lanka Tea Board, Hasitha De Alwis said that Sri Lanka is still the largest supplier of tea to the world. "Sri Lanka together with India (850 million Kg) China (700 mn. kg) Sri Lanka (310 mn. kg) and Kenya (290 mn. kg) supply 70 of tea to the world market." He said that though India and China manufacture more than Sri Lanka the bulk of their production is for consumption in their own countries."

He said that China had increased its exports from 13% from 20 years ago to 17% last year while India exports have decreased from 22% to 19%." Sri Lanka's market share in the global tea market today is 21%.

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