News & market updates

Fitch assigned Bogawantalawa Tea Estates PLC a first-time national long-term rating of 'A(lka)' with a Stable Outlook and gave its outstanding senior unsecured debentures the same rating. Fitch cited structural industry decline and cost pressures but noted Bogawantalawa's healthy financial profile and net cash position as buffers.

The Planters’ Association of Ceylon welcomed President Anura Kumara Dissanayake and urged collaborative policymaking to transform the plantation sector, prioritizing diversification and stakeholder engagement. The PA said the sector faces challenges and called for government support for diversification and modernization.

Planters' Association of Ceylon welcomed President Anura Kumara Dissanayake and urged government collaboration and policy support for diversification, modernisation and sustainable growth in the plantation sector.

The Tea Exporters Association congratulated Anura Kumara Dissanayake on his election and said Sri Lanka's tea exports generate $1.3bn annually while facing sanctions, falling local crops and a proposed SVAT abolition from April 2025. The association (members account for 80% of export volume/value) urged stakeholder consultation and remedial measures to boost production and potential exports to $2.0–2.5bn.

The Embassy of Sri Lanka in Stockholm hosted a reception with the Sweden Sri Lanka Business Council to promote business ties and explore investment and partnership opportunities, featuring Ceylon teas; it is the first event in a series marking 75 years of diplomatic relations.

Planters’ Association warns 2024 tea production could be about 50 million kg below target, likely under 250 million kg. The AGM hailed a new wage deal (daily minimum Rs.1,350 plus Rs.50/kg productivity pay) and urged mechanization, diversification and policy stability to restore returns.

NPP presidential candidate Anura Kumara Dissanayake pledged victory on 21 September, urging voters to back his grassroots campaign and promising a government that brings change. He blamed the ruling elite for hardships including medicine shortages and a fertiliser crisis that harmed farmers.

A new wage structure was gazetted setting a daily minimum basic wage of Rs. 1,350 plus a productivity-linked Rs. 50 per kg incentive, the Planters' Association said at its 170th AGM. The association urged policy stability, crop diversification (including oil palm), sustainable production and reappointed Sunil Poholiyadde as chairman.

Sri Lanka's wage board set minimum daily wages for tea and rubber workers at Rs1,350 plus Rs50 per kilo plucked above the field 'norm', effective Sept 10. The formula, mutually agreed with plantation companies, replaces a resisted Rs1,700 proposal and accounts for varying field norms.

Frontier Co-op and USAID completed the SPICE project to help smallholder spice and tea farmers in Sri Lanka, India and Guatemala build processing capacity and meet U.S. food-safety rules to sell ready-to-eat products. Initiatives include a farmer-owned tea factory in Kumaon (boosting farmers' incomes ~5x for 500–6,000 potential farmers), steam pasteurization and training benefiting SOFA's 3,500 members and FEDECOVERA's 33,000 families.

The Tea Exporters Association held its 25th AGM on 6 Sept 2024, elected Huzefa Akbarally as chairman and warned that abolition of the SVAT scheme from April 2025 would create liquidity problems for exporters. Delegates noted falling production and exports since 2019 (256,039t produced and 241,912t exported in 2023) while exports still generate about US$1.3bn annually.

Planters’ Association of Ceylon will hold its 170th AGM on 14 September with Hayleys PLC Chairman Mohan Pandithage presiding; the meeting will appoint the 2024/25 chairman and executive committee and focus on productivity, diversification and sustainability in the plantation sector.

Sri Lanka’s Planters’ Association, representing commercial tea, rubber, coconut and palm oil farms, is marking its 170th year and will hold its AGM on Sep 14 to appoint the 2024/25 chairman and executive committee. The association said the plantation sector — a major forex earner employing ~125,000 in regional plantations — will focus on productivity and diversification.

Sri Lanka Tourism Promotion Bureau and the Embassy of Sri Lanka promoted Sri Lankan tourism, culture, cuisine and tea at the Embassy Festival 2024 in The Hague on 7 September, drawing strong public interest among the event's ~60,000 visitors. Stalls showcased tourism materials, handicrafts and food, with many attendees expressing interest in visiting Sri Lanka.

The Sri Lanka–Japan Business Council held its 45th AGM and received the Japanese Foreign Minister’s Commendation Award, and Mahen Kariyawasan was re-elected president. The council elected vice-presidents (including Hayleys Advantis MD), highlighted Osaka Expo 2025 opportunities and plans to boost trade, investment and tourism.

Sri Lanka's Embassy in the Netherlands, supported by the Sri Lanka Tourism Board, promoted Sri Lankan tourism, culture, cuisine and tea at the Embassy Festival in The Hague on 07 Sept; the two stalls were popular with attendees and generated interest in visiting Sri Lanka.

Estate sector stakeholders agreed a new basic daily wage of Rs. 1,350 plus up to Rs. 50 based on productivity for tea and rubber plantation workers; the wage structure takes effect once gazetted and will remain valid for three years.

Sri Lanka's Embassy in Brussels held a 'Ceylon Speciality Tea Mocktail Evening' on 4 Sep 2024 to promote Ceylon tea in Belgium; product samples from Dilmah Ceylon Tea Company Plc and other exporters were displayed to importers, distributors and retailers.

Talawakelle Tea Estates PLC (TPL.N0000) showcased sustainability initiatives at the UN Global Compact’s Forward Faster Now event and announced SBTi-aligned net-zero by 2050 targets. The company cited Rs.103.6m in community investments benefiting over 40,000 people and highlighted renewable energy and reforestation projects.

Government has decided to immediately write off all crop loans taken by farmers. The move, announced by the President’s Media Division, is aimed at providing financial relief and support to farmers.

Sri Lanka's trade deficit widened to $604m in July (up $237m YoY) as import expenditure rose 25% to $1,734m while merchandise exports increased 10.8% to $1,130m; the cumulative Jan–Jul deficit reached $3.14bn.

Planters' Association chairman Senaka Alawattegama urged Regional Plantation Companies to diversify into spice cultivation to boost revenue and called on the government to support the sector in reaching a $1 billion export target through policy, R&D and sustainability measures.

Transparency International Sri Lanka says the Government’s pre-poll announcements — a 24–35% public-service pay rise with Rs.25,000 COLA from Jan 2025, Rs.12,000 for pensioners, fuel and fertiliser subsidies from 22 Aug, and a Rs.1,700 plantation minimum wage — violate election law and TISL has filed 80+ complaints.