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| Wednesday, 8 October 2003 |
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$1 billion tea export revenue targeted by 2008 by Ravi Ladduwahetty The Regaining Sri Lanka Tea Task Force has targeted over US $ 1 billion export earnings from tea by the year 2008 from the present US$ 730 million which will be augmented by a four-pronged drive which includes the attraction of investments into the Regional Plantation Companies (RPCs) in terms of power generation, crop diversification eco-tourism and brand marketing. A Road Show has also ben planned in an overseas destination in May next year which will showcase products on offer in conjunction with the key stakeholders of the tea industry such as airline companies, leisure, travel and hotel companies, logistics and shipping to attract principal investors and joint venture projects from global agri-business companies. This is expected to further the cause of investments in the tea sector. We are planning this road show in a major tea consuming destination in May 2004. Though the destination has not been decided yet, it is most likely that it is Germany which is the largest Sri Lankan tea drinking country among the European Union nations, a member of the Regaining Sri Lanka Tea Task Force and Managing Director of Standard Reading Co. Ltd Lalin Fernando told the Daily News yesterday. The Government has also procured loan funding and partial grant funding up to US$ 128.4 million for the development of the 23 Regional Plantation Companies (RPCs) which will be available till 2008. The funding arrangements with the donor concerns and the Regional Plantation Companies with the local banks are: Asian Development Bank-US$ 30 million (which accounts for 23 percent of the total component) the Japan Bank for International Cooperation (JBIC) US$ 14.8 million (12 p.c.) Local Banks-US $ 9.3 million (7 percent), Regional Plantation Companies- US $ 44.2 million (34 p.c.), Government -US$ 30.1 million ( 24 p.c.) which have been allocated from the Revolving Fund. The funds are now available for the private sector companies to make use of Chairman of the Planters' Association, the umbrella organisation of the 23 RPCs and Managing Director of Aitken Spence Plantation Managements (Pvt) Ltd Rohan Fernando told the Daily News. Earlier, addressing a news conference and a presentation to announce the progress of the first stage of the Action Plan and the Future Plans of the Sri Lanka Tea Task Force, Fernando said:" Under the ADB/JBIC Plantation development Project, funding has been made available for crop diversification for which 2,400 hectares will be made available and a further 9,000 hectares will be available for forestry, fuelwood and timber. The Government will also consider the extension of the 53 year leases awarded to RPCs to 99 years on a case- by-case basis provided the RPCS will be required to demonstrate positive plans with assurances for crop diversification, and non crop diversification which is expected to include gem mining and the development of hydro power projects, Fernando told journalists. Fernando said that there was unlimited potential for the development of hydro power projects within the RPC estates as they were bordering the waterfalls. The Ceylon Electricity Board has been commissioned to study this proposal, he said. The proposal has been submitted to the Cabinet Sub Committee on Economic Affairs, he said. Responding to a question as to whether mining will affect the topographical conditions which have been laid out for the industry, Fernando said that the approvals for the industries will have to meet the clearance from the Central Environment Authority. The Government has also provided tax concessions and duty free facilities for the establishment of eco-tourism facilities. There are 20 estate bungalows which have been earmarked for the project which will mean that there will be around 200 rooms which will be available for eco-tourism. These will be boutique hotels which will be ideal for upmarket tourists which will also enhance employment opportunities, he said. This has also been taken up with the Ceylon Tourist Board. There has also been a US$ 2 million allocation which will be made available for two or more RPCs to form joint marketing alliances to promote the marketing of Ceylon Tea. We are very particular about the promotion of local brands, Fernando said, adding that proposals from exporters were awaited. There is also ADB funding for the preparation of feasibility studies, investment appraisals and post harvest technology. A meeting has been convened for October 14 to consider the joint marketing body that will bundle the individual potential of the RPCs. The Planters Association will facilitate the collation of information on potential projects for investments and joint ventures. |
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