Initiatives

Since its formation in 1986, Sri Lanka Tea Factory Owners Association has aimed to be both active and responsible in pursuing the best interests of its members. This practical, forthright attitude has helped it to successfully engage and work with other organizations and stakeholders, for the greater benefit of the tea trade.

At the same time, it has striven to give back to the small holder and their villages, keeping in mind their pivotal role in the success enjoyed by its members.

Our Initiatives

  • 1991: a procedure was established to dispense the extra machinery by obtaining a list about them from the Ministry of Plantation.
  • A request was made to the secretary of Ministry of Plantation, asking to abort the ad valor-em tax, by bringing out the specific reasons. As a result, the necessary steps were taken to abolish the ad valor-em tax from 21st of December, 1992 on wards.
  • A procedure was set up for small estate holders, to obtain loans from the tea factories for their fertilizer, based on 03 months loans scheme.
  • Funds were obtained to purchase CTC machinery.
  • The permission was obtained to directly sale 10% of the mass production.
  • 1993: The association expressed its strong apprehension for Ceylon Electricity Board for charging an extra security deposit, as a result the chairman of CEB informed the association on 13th February of 1993, that they would suspend it.
  • 1999: Successfully thwarted the concocted propaganda led against the private tea factories by Small Tea Plantation Development Board & its union.
  • Obtained the approval for capital funds to purchase generators.
  • 2005: Successfully resolved the hike of store charges, through the discussions held with broker companies
  • 2005 December: Held discussions with the inland revenue department to avert the late charges caused by the unpaid ESC, agreeing to pay the pending amount within a period of 06 months through installment scheme.
  • With the effect from 01st of January 2007, the factories were waived off from the VAT for electricity.
  • With the effect from 01st of January 2007, the ESC was reduced up to 0.25%.
  • The VAT & custom charges were waived off when importing machinery for upgrade & modification.
  • When re-opening the factories that have been closed for a long time, a grace period of 3 years was granted for VAT & ESC
  • VAT reimbursement not received for payments made prior to 31st of December 2004 to be debited for the payment of ESC
  • In collaboration with the Ministry of Plantation, the necessary steps were taken to establish a circular loan scheme, in order to face the highly competitive world market.
  • The measures were taken to stop the incessant import of tea from the countries like Vietnam.
  • The steps were taken to obtain loans from the CESS fund for the renovations of private tea factories.
  • The measures were taken to stop the indiscriminate setting-up of tea factories.
  • Constantly reminding the Ceylon Tea Board, regarding the tax amendment of transporting raw tea leaves. When notified in 2008 March, for the first time after that of 2004 October, with another notification followed by 2008 June, the steps were taken to amend the transport charge.
  • The due measures were taken to avert the great loss which could have been occurred to the industry due to the unprecedented rise in the unauthorized private sales.
  • When alerted the relevant bodies regarding the unreasonable taxes imposed on tea produced in the island, the viable actions were taken by them to avert the particular injustice.
  • The initiatives were taken to abolish the taxes imposed on the tea drying equipment imported to the country.
  • So far the responsibility of tea auction & tea selling were solely held by the Association of Tea Traders Colombo, no other private tea producers were able to express their views, yet from this year on wards one of our members was able to acquire its membership and franchise.
  • Obtaining tea fertilizers funds for estates exceeding over 0.5 acres
  • The initiatives were taken to show that certain tea statistical reports published by the Ceylon Tea Board are misleading therefore such reports could incur heavy damages to the industry. The assistance were given to rectify the respective reports.