News & market updates

Lumbini Tea Valley won the Grand Prize Award and multiple awards at the Global Tea Championship 2025 in Las Vegas on 25 March, including top honors in white and black tea categories. Awards include the Grand Prize (Overall Tea), a Silver Feathers Honourable Mention for White Tea and several Superior and Premium awards.

Russel’s Wellness (subsidiary of Russel’s Group) launched a new range of five wellness tea categories on 22 March 2025 aiming at export markets. The launch includes scientifically validated blends, retail availability nationwide and a charity share for indigenous communities.

Lanka India Business Association (LIBA) has launched in Sri Lanka to strengthen and facilitate closer commercial and investment ties between Indian and Sri Lankan businesses. Membership is now open (one month free offer) as the group aims to boost trade, digital/startup links, exports and sector collaboration.

Samantha Dodanwela was appointed Chairman of Mercantile Produce Brokers Ltd effective 1 April 2025. He brings over three decades of tea-industry experience, including roles as Managing Director at Bartleet & Company and chair of the Colombo Tea Brokers Association.

The Lanka India Business Association (LIBA) was launched in Sri Lanka to strengthen business links with India, aiming to boost trade, tourism, tech/start‑ups and exports (including tea and garments). The governing council comprises senior Sri Lankan business leaders from multiple industries.

Fitch assigned a 'AAA(lka)' National Long-Term Rating to Hayleys PLC's proposed senior unsecured redeemable debentures of up to LKR7 billion. Fitch said the rating aligns with Hayleys' national rating, noted proceeds will repay short-term debt, and forecast ~10% revenue growth in FY25.

Sri Lanka's merchandise exports fell 0.27% year-on-year to $1,056.39m in February 2025; tea exports dropped 6.52% to $119.41m while rubber-based products, seafood, ornamental fish, vegetables and fruits also declined. The US remained the top buyer at $240.53m (-3.63%) and the UK fell 12.30% to $72.73m.

Sri Lanka's total exports rose 4.62% y/y to US$1,382.53 mn in February 2025 (merchandise US$1,056.39 mn; services US$326.14 mn), and Jan–Feb cumulative exports grew 6.65% to US$2,730.33 mn. ICT, coconut products and spices showed strong gains while tea, rubber, seafood and electronics exports fell.

President Anura Kumara Disanayake said seven key SOEs are operating at a loss, with SriLankan Airlines carrying almost Rs.340 billion in debt. He named other loss-making SOEs including Milco (>Rs.15.09bn), Lanka Sugar (>Rs.11.16bn), State Plantation Corp (>Rs.3.21bn), ITN, SLRC and SLBC with rising losses/debts.

Fitch has assigned a national long-term rating of 'AAA(lka)' to Hayleys PLC's proposed senior unsecured redeemable debentures of up to LKR7 billion. The proceeds will be used to repay the company's short-term debt and Fitch notes Hayleys' large scale, export earnings and diversified operations supporting the rating.

Kelani Valley Plantations PLC (KVAL.N0000) expanded its Kelani Valley Protectors Initiative with a green sponsorship model and has planted 6,500 native trees to protect the Weoya catchment. Sponsors can fund plants at Rs.850 each (including three years' maintenance); volunteers contributed over 2,000 hours and KVPL's Halgolla estate received a 'regenagri' certification.

The Pekoe Trail, a 300 km, 22-stage long-distance hiking route through Sri Lanka's central tea country launched in late 2023, is gaining international recognition after being listed in TIME's World's Greatest Places 2025 and by National Geographic in 2024. The nonprofit-led route links tea estates and villages from Hantana to Nuwara Eliya and uses online tools and partnerships to promote rural entrepreneurship and tourism.

IPS warns that loss of EU GSP+ preferences could raise tariffs to MFN levels, causing an estimated USD 1.23bn (36.7%) export loss to the EU–28 and hitting apparel and processing-fish sectors while putting about 4.99% of industrial workers at risk.

Tea exports fell to 20.40 million kg in February 2025, down 1.91m kg YoY, with FOB at Rs.1,737.25/kg (down Rs.51.91) while USD terms rose marginally by $0.13. Jan–Feb shipments totaled 39.77m kg (down 1.30m kg); Iraq was the top importer.

German Import Promotion Desk (IPD) representatives visited 14 Sri Lankan companies across nine districts on a sourcing mission to boost exports to the European market. The mission targeted high-potential SMEs in spices, coconut products, nuts, sweeteners, processed food, artisanal tea/coffee and cosmetic ingredients.

Hayleys Plantations (Hayleys PLC) hosted its 3rd Best Tea Harvester Competition, where Anthony Iresha Rajaletchumi of Talawakelle harvested 6.2 kg in 15 minutes to win Rs. 500,000. Winners from Kelani Valley, Talawakelle and Horana estates received cash prizes and Singer Sri Lanka-sponsored goods.

An AHK Sri Lanka official said Germany's Supply Chain Due Diligence Act is an opportunity for Sri Lankan exporters, with the country ahead of India and Bangladesh in standards. But costly certification could marginalise apparel and tea SMEs unless public and private sectors provide support.

The Sri Lanka Business Council UAE hosted an Iftar on 7 March at Crowne Plaza Deira attended by over 250 diplomatic, business and community guests. The event included cultural speeches, sponsors such as Shiraj Finance, and product showcases from Basilur Tea, Maliban and other Sri Lankan brands.

The government held the first island-wide five-minute census of crop-damaging animals (monkeys, squirrels, peacocks) asking residents to count them in non-forest land between 08:00-08:05 to gather data for management strategies to reduce crop losses and human-wildlife conflict.

ASPI rose 0.1% yesterday but is down 3.8% so far in March; turnover fell to Rs. 792.5m, led by Food, Beverage & Tobacco (28%), Banking (20%) and Capital Goods (18%). Agarapatana, Hayleys, Hemas and Sampath were among gainers while Bukit Darah, C T Holdings, Access Engineering and NDB were notable laggards.

Sri Lanka's tea production in February 2025 fell to 15.59 million kg, down 4.40 million kg from 19.99 million kg in February 2024. Jan–Feb 2025 output was 37.16 million kg (down 1.37m kg y/y); high-grown rose while medium- and low-grown declined.

Sri Lanka's Dec–Jan agricultural output saw paddy, coconut and fish decline while tea and rubber rose; paddy for 2024/25 Maha is forecast at 2.57 mt (−5.7%), coconut fell ~33% and fish fell 12% in December.

Dividend · Rs 1.40 · XD Mar 24, 2025

Second Interim dividend of LKR 1.4/share; XD 2025-03-24; record 2025-03-24; payable 2025-04-11; FY 2024/25

George Steuart & Co. has become a Strategic Partner of the Commonwealth Enterprise and Investment Council (CWEIC). The partnership is intended to expand the group's export revenues and global collaborations across Commonwealth markets.

Nine Sri Lankan exporters secured more than USD 0.2 Mn in confirmed orders and have over USD 0.83 Mn in orders under negotiation for certified organic agricultural products at BioFach 2025 in Nuremberg.

Cabinet approved expediting the drafting of amendments to the Tea Control Act, including a definition for 'Reclaimable Tea', renaming remaining portion as 'Refuse Tea', and creating registration, licensing and regulation for tea processors. The Legal Draftsman is preparing the amendments and sought renewed Cabinet approval to proceed.

Talawakelle Tea Estates Plc's Somerset Estate (Nanu Oya) fetched a record Rs. 3,050 per kg for a BOP Western High Grown tea lot at the weekly online auctions on 10-11 March. This surpasses its 2022 record of Rs. 2,600/kg; the lot was bought by Tea Tang Ltd. and marketed by Forbes & Walker.

George Steuart & Co. has become a Strategic Partner of the Commonwealth Enterprise and Investment Council (CWEIC). The partnership is intended to support the group's push to increase export revenues and expand international collaborations across its tea, travel, health and FMCG businesses.

The EDB-led Sri Lanka pavilion at BioFach 2025 secured over USD 0.2m in confirmed orders and about USD 0.83m in orders under negotiation for organic agricultural products. Nine Sri Lankan exporters showcased organic food & beverages, spices, tea, coconut products and PGI Ceylon Cinnamon.

ASPI fell 43 pts (0.27%) to 16,123 as turnover dropped to Rs.2.36bn. CTC, MELS, CCS and BIL were notable negatives while HAYL, SEYB, HHL and CARS led gains; John Keells dominated turnover and its share rose 10c.