Forum for tea producing countries mooted

Plantation Industries Minister Mahinda Samarasinghe stressed the importance of an international forum for tea producing countries to discuss issues among tea manufacturing nations at the inauguration ceremony of the 20th session of Food and Agricultural Organization (FAO) of the Inter governmental Group on Tea under the auspices of United Nations at the Galadari Hotel.

Plantation Industries Minister Mahinda Samarasinghe was the Chief Guest and Plantation Industries Deputy Minister was the Guest of Honour.

Minister Mahinda Samarasinghe highlighted pertinent topics related to the global tea industry in general and Sri Lanka tea industry in particular.

"Sri Lanka has been successful in eradicating terrorism from the island after 30 years of long conflict which devastated its economy and the peace dividend has created immense opportunities for accelerated development" said the Minister.

"While we have won the war against terrorism, the greater challenge for the nation is to win the peace," he said. He admitted that some issues were common to tea producer and tea consumer countries.

The Minister noted that many other prevailing critical issues concerning tea producer nations' needs attention. Minister Samarasinghe proposed the establishment of an International Tea Producer forum.President Mahinda Rajapaksa has earmarked significant resources towards the development of the tea industry.

Seventy-six percent of tea small holders and 24 percent of regional plantation companies owned and operated by the government handle the tea production of the country.

Twenty-one of these Regional Tea Companies have been listed at the stock exchange. The budget of last year and budget of this year understood and appreciated the significant contribution of the tea industry to the economy of the nation.

Vast amount of resources have been earmarked to assist the small holders so that they can contribute for sustainability of the tea industry. As a result of permanent peace, all economic indicators show an increase. The foreign investments have increased significantly. Tourism industry is showing a tremendous growth. Prior to 2009, the tourist arrivals to the country was stagnating at 350,000. Today, it has more than doubled. It is predicted to exceed one million tourists before the end of the current year. This has resulted in the increase of foreign exchange, creation of new employment opportunities both directly and indirectly while contributing significantly for the GDP, Minister Samarasinghe said.

He said many challenges are ahead of the Tea Industry. The global economic down turn which erupted few years back is still continuing and has resulted in many countries revising growth rates downward.

The volatility in the Middle East and the Gulf combined with the crisis in the Euro Zone will make it harder for the smooth trade to continue.

The Tsunami and the Nuclear disaster which hit Japan brought in new difficulties. Notwithstanding this natural calamity, Sri Lanka and Japan will celebrate 60 year anniversary of Diplomatic Relations between the two countries this year.

The minister recalled how the Japanese reacted to this destruction and how Japan demonstrated to the world what civilization is all about.

The minister said Sri Lanka has taken many steps towards the sustainability of the Tea Industry and other countries could learn from such strategies.

Patrick Evans, Country Director of FAO for Sri Lanka, Kaison Chang, Secretary of FAO Committee on Commodity Problems at United Nations Head Quarters in Rome, Sudarama Karunaratne, Secretary, Ministry of Plantation Industries and Janaki Kuruppu, Chairperson of Sri Lanka Tea Board were also present.

Foreign Ambassadors were in attendance along with Senior Government Officers from state institutions and top Chief Executive Officers from the private sector.