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Lanka adds glitter to green tea gold

COLOMBO, Friday(AFP) - Sri Lanka, better known for its black tea, is now venturing into the more exotic green variety with an eye on Japanese and European markets.

The black and green variation in tea is what red and white is in wines, tea experts say. And with the growing perception that green tea is healthier, Sri Lanka, the world's largest exporter of black tea, is trying to capitalise on the fad.

Sri Lanka's green tea exports almost doubled in the first half of 2004 to 1.2 million kilograms (2.64 million pounds) from the same period in 2003, as the country competes with Japanese Sencha, or common green tea.

While the medicinal properties of green tea are arguable - industry experts say both varieties contain anti-oxidants which could prevent cancer - green tea does seem to be good for sellers's financial health. A kilogram of green tea earns 469.45 rupees (4.69 dollars) on the export market, more than double the 188.04 rupees (1.88 dollars) for a kilo of black tea.

Sri Lanka exports some 27 grades of highly aromatic black teas. The industry is, however, cautious about taking the green route as the orthodox black tea has done just fine so far.

"I am not suggesting that Sri Lanka should convert to green tea," said Mahen Dayananda, chairman of the Colombo Tea Traders' Association. "We want to remain a maker of the black tea for which we are renowned."

However, Dayananda says there is room to improve green tea exports and raise the overall average price for Sri Lankan tea, identified by the island's colonial-era name Ceylon.

"Our strength is in black tea, but we can increase green tea exports to about three to five percent of our total exports," Dayananda told AFP.

"It is becoming expensive for the Japanese to make their own green tea. They are turning to us now because our quality has improved and the prices are good," Dayananda said.

A few Sri Lankan tea plantations have even shifted to pricey "organic tea," from tea bushes nurtured only with organic fertiliser and without using chemical pesticides.

Black tea goes through a process of fermentation and "firing", unlike green tea which is made in a shorter period of time to retain the deep colour of the leaves.

Dayananda said the way forward for the industry was in speciality tea and diversity and not in a mass shift to greens, a market dominated by China.

A top tea brokering firm, John Keells Limited, said Sri Lanka's green tea was becoming more acceptable in discerning markets, but stressed the island's future was still in black tea.

"The quality of green tea has been improving, but the quantity is still very small," said John Keells director Sriyan Senadhira, adding however that the country should push for improving the quality of its black tea as well.

The Central Bank of Sri Lanka is also urging the tea industry to add more value to its black tea exports.

The bank noted that export earnings jumped to 683 million dollars, up 4.5 percent last year, thanks to an increase in tea bag and instant tea exports.

Sri Lanka had earlier been exporting tea in bulk to be packeted overseas after blending with cheaper teas from Kenya, Indonesia or India, but the island is increasingly sending tea ready for supermarket shelves.

The country exported 31.7 million kilos of tea in the form of ready-to-sell packs in the first half of this year. Tea bags accounted for 8.3 million kilos, green tea 1.2 million kilos and instant tea one million kilos.

Kapruka

www.ceylincoproperties.com

www.singersl.com

www.imarketspace.com

www.Pathmaconstruction.com

www.peaceinsrilanka.org

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