Russians drinking more Lankan tea

Ramani Kangaraarachchi

COLOMBO: Ceylon Tea continues to be a household name in Russia overcoming barriers it had due to the Russian import duty structure, Sri Lanka Business Council President Jayantha Karunaratne said.

"It is the second highest foreign exchange earner, maintaining the position of the single largest export market for Sri Lanka accounting for approximately 20 per cent of total tea exports," he told the council's annual general meeting last week.

Karunaratne said with the economic boom in Russia, the disposable income of the Russian consumers has increased substantially resulting in an increased demand for the best quality tea from Sri Lanka there by having a favourable impact on tea prices at the Colombo tea auction.

Karunaratne said the tourist industry in Sri Lanka has also immensely benefited from the Russian tourist trade. "Russians have not been deterred by the current security situation and a large number of Russian tourists are expected during the winter season," he said.

The Russian Ambassador in Sri Lanka Alexey Shebarshin is keen to develop trade between Russia and Sri Lanka emphasizing that Sri Lanka should consider increasing imports from Russia and getting Russian businessmen to invest in Sri Lanka.

However imports from Russia in 2005 has grown up to USD 9 million compared to USD 2 million in 2001 and exports up to USD 150 million from USD 103 during the same period.