SRI LANKA'S TEA INDUSTRY IN CRISIS: 225 FACTORIES SHUT DOWN AMIDST CHALLENGES

Sri Lanka's tea industry, long a cornerstone of its global reputation and a pioneer in its export economy, is facing significant challenges, with 225 tea factories having ceased operations so far this year, according to the Chairman of the Small Tea Estates Development Authority.

Tea cultivation is widespread across Sri Lanka, particularly in the central highlands and in districts like Matara, Galle, and Ratnapura.

Despite thousands of acres being cultivated as small-scale tea estates, contributing significantly to the national economy, the industry is now struggling.

Sri Lankan tea has historically maintained its global standing due to its unique flavour and quality, setting it apart from other major export crops like rubber and coconut.

The industry is a primary source of foreign exchange for Sri Lanka, contributing over US$1.5 billion to the economy in 2013 and boosting the GDP by 2%.

 The tea industry also provides direct and indirect employment to over a million people, making its contribution to the economy immense.

The temperate climate of the central highlands is ideal for high-quality tea cultivation, while the higher temperatures and rainfall in districts like Matara, Galle, and Ratnapura produce tea with a rich, strong flavour.

However, the tea industry is now facing numerous issues.

Key challenges include the unaffordable high cost of replanting, the fertiliser crisis, and rising labour expenses. These factors have already led to the closure of over 200 tea factories in the Southern Province.

Nimal Udugampola, Chairman of the Small Tea Estates Development Authority, stated that approximately 225 tea factories have shut down from January to date.

The primary reason for these closures is the severe shortage of tea leaves, mainly attributed to the inadequate supply of sufficient and quality fertilisers.

The closure of these factories poses a significant threat to the livelihoods of a large population dependent on the industry.