News & Events

Annual Conference

Dear colleagues, partners and friends! Please find the January – March newsletter published by Sri Lanka Tea Factory Owners Association, which covers the latest happenings, improvements and news from the tea field.

Click here to read our news letter

Budget 2014 – Proposals for Tea Industry/Trade

A.   Restrictions and Exemptions


The exemption on the import or supply of such imported goods set out below will be removed.


  1. Paddy, rice, wheat, cardamom, cinnamon, cloves, nutmeg, mace, pepper, DC, rubber, latex, fresh coconuts, Tea ,including green leaf, rice flour, wheat flour, bread, eggs, liquid milk or powdered milk.
  2. Agricultural tractors or road tractors for semi-trailers.
  3. Machinery and equipment for tea and rubber industry under HS Codes 8438.80.40, 8429.10
  4. Machinery for modernization of factories by the factory owner.

B.  Small Holder Plantations


  1. To propose to grant Rs.5,000.00 per acre, once a year subsidy, to all tea smallholders to improve the conditions of their through water and soil conservation.

C.   Large Scale Plantations


  1. To propose to undertake a comprehensive assessment of the underperforming plantation companies. Each Plantation Company will be required to submit a report on their performance with development plans and targets, before March 31, 2014 to enable the Golden Shareholder being the Government to make appropriate decisions for the development of plantations under each company. Similarly, the best performing plantation companies that have increase their productivity, application of bio-fertilizer and engage in walker welfare, brand promotion and investments to promote high value tea exports should be encouraged.
  2. To propose to implement a credit scheme with 8 year maturity and 6% interest to every company that has so far performed well, provided they commit to re-plant an agreed extent, are committed to ensure social development of its plantation workers and increase the volume of its value added tea exports.
  3. To proposed that banking institutions will earmark around Rs.500 million for this development loan scheme in 2014. Provisions of existing leases will be suitably amended incorporating new conditions necessary to ensure the development of this important sector.
  4. To propose to construct housing complexes with 50,000 housing units to replace poor quality housing available in the plantation sector. The construction of these houses with sanitation and other utilities will require considerable engineering supervision.
  5. To propose, to float a US$750 million long-term International Bond for the construction of urban and estate housing complexes through the UDA which will be backed by a Government Guarantee, along with a further US$750 million for the Government to finance counterpart funds required for various development projects.

D.  CESS:


  1. CESS applicable on the export of Tea. Rubber, Coconut, Cinnamon and Pepper in primary form will be further strengthened to channel such revenue to encourage value added exports made out of these primary products.

E.  Tea Export Trade:


  1. Higher Value Added Tea exporters securing prices in excess of US$ 12 per kg, having established internationally reputed local Brands in packed form having used 75% home grown tea, will be permitted to import any specialty tea, free from restrictions to facilitate blending to meet market needs.
  2. High value tea and rubber product exports will be encouraged through increased cultivation of these crops and by maintaining a high level of CESS on primary commodity exports.
  3. Marker access to Japan, India and China will be explored for these commodities through Bilateral Trade Agreements, in view of the high trade deficit Sri Lanka runs with the three countries.

F.  Research:


  1. Systems and procedures required to be followed by research institutes will be further simplified to encourage the active involvement of universities and for research institutions to be able to meet market demands and to allocate Rs.500 million for research lab facilities, equipments and research works by agricultural faculties in provisional universities at field level together with successful ventures in dairy, poultry, inland fisheries, animal husbandry and food technology.

Chinese delegation to Hidellana Tea Factory Pvt Ltd

At the request of Export Development Board, we warmly made welcome the Chinese Delegation today.

They were highly impressed with tea manufacturing process of the Factory and happy with the Tea quality also. After visiting the factory, we took them to our Organic Tea Plantation. They had an opportunity to see the tea plucking , using the equipment developed recently by Tea Research Institute. Gem mining is another interesting activity for them to see and they were very happy to visit Gem mines in Kuruwita.

We hosted lunch at our Lake Serenity Boutique Hotel.

In conclusion they made very good remarks to establish better business linkages among two parties. For this purpose they intend to visit again to Sri Lanka for business collaboration.

Thank you very much for making arrangements to send the group to us for establishing business links.

Lalith Liyanage,
Managing Director,
RTS Tea Factory Pvt Ltd,
Hidellana Ratnapura.

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