Sri Lanka Tea Industry
Hasitha De Alwis
Director (Promotion)
Sri Lanka Tea Board
Sri Lanka – Wonder of Asia

Island is united ending 30 years long conflict.

Multi-ethnic, multi-cultural, multi-religious and multilinguistic nation once again in harmony.

Immense opportunities for sustainable growth in all
sectors and tea industry is no exception.

Probably the safest country today in South Asia.

Peace dividends results in leap-frog development in Sri
Lanka’s infra-structure & other sectors of economy.
INTRODUCTION





Sri Lanka tea industry proudly celebrates 145 years of
commercial history in 2012.
Tea industry continues to occupy a pivotal position in terms of
foreign exchange earnings & employment.
Tea export earnings reached USD 1.5 Billion in 2011 a
historical high contributing 15% to the nation’s foreign
exchange.
Generating 65% of export agriculture revenue, tea industry
contributes approx. 2% of island’s GDP.
With 2 Million employed directly & indirectly 10% of the
population of Sri Lanka depends on the industry.
AGRO-CLIMATIC TEA GROWING
REGIONS OF SRI LANKA
SRI LANKA TEA PRODUCTION
ELEVATION WISE (Mn. KGS)
Year
High
Grown
2005
80.3
25
55.1
18
181.7
57
317.1
2006
74.7
24
51.6
17
184.5
59
310.8
2007
72.5
24
54.4
17
177.7
59
304.6
2008
84.4
26
49.0
15
185.3
59
318.7
2009
72.8
25
44.7
15
173.1
60
290.6
2010
79.1
24
56.1
17
196.2
59
331.4
2011
79.2
24
52.5
16
196.6
60
328.4
(%)
Mid
Grown
(%)
Low
Grown
(%)
Total
CATEGORY-WISE TEA PRODUCTION
(Mn.KGS)
2006
(%)
2007
(%)
2008
(%)
2009
(%)
2010 (%)
2011 (%)
Orthodox
288
93
283
93
297
93
271
93
310
94
303
92
CTC
18
5
16
5
17
5
16
5
18
5
22
7
Green Tea
3
1
4
1
3
1
2
1
3
1
3
1
Others
2
1
2
1
2
1
2
1
-
-
-
-
Total
311
100
305
100
319
100
291
100
331
100
328
100
AREA OF TEA PLANTED IN SRI LANKA
Elevation
Planted (Ha)
Share
High Grown
41,137
19%
Mid Grown
71,018
32%
Low Grown
109,814
49%
221,969
100
Total
SRI LANKA TEA EXPORTS
(Mn. KGS)
2006
Bulk
2007
2008
2010
2009
2011
197.8
179.9
178.0
164.6
176.8
179.9
Packets
79.4
72.7
84.3
75.5
89.8
95.8
Tea Bags
19.1
22.0
20.3
18.7
25.7
24.6
Others
18.6
19.7
18.6
21.2
1.8
2.9
ReExports
12.5
15.6
18.6
10.6
18.6
20.5
Total
327.4
309.9
319.8
290.6
305.7
323.7
Value
Billion USD
0.882
1.01
1.26
1.18
1.37
1.51
RE-EXPORTS
(CEYLON TEA BLENDED WITH OTHER ORIGINS)
Year
Qty (MT)
Value
(Rs. Mn)
Value
(USD Mn)
2005
11,456
4,154
41.33
2006
12,499
5,330
51.20
2007
15,597
6,617
59.80
2008
18,577
10,683
98.61
2009
10,574
5,089
44.27
2010
18,607
11,567
102.30
2011
20,529
13,363
118.30
Tea Imports to Sri Lanka
Year
Quantity
(Kgs)
2007
13,683,732
3,141.6
28.56
2008
2009
2010
2011
14,598,248
9,960,129
12,172,753
11,406,044
3,754.8
2,979.4
3,768.0
3,770.4
34.13
27.08
34.25
34.28
Value
(Rs. Million )
Value
(USD M.)
Tea Imports to Sri Lanka
(Country Wise)
Qty in Kgs.
2009
2010
2011
India
4,708,695
4,776,141
4,353,513
China
1,755,521
2,802,873
2,895,761
Kenya
2,867649
3,871,167
3,690,453
Vietnam
240,725
352,203
97,909
Indonesia
203,260
207,068
182,620
Malawi
129,580
143,104
150,660
33,080
10,805
23,898
Taiwan
8,888
7392
-
Japan
5,600
900
-
U.K
5,130
-
9980
Nepal
2,001
1100
1250
TOTAL
9,960,129
12,172,753
11,406,044
Germany
MAJOR DESTINATIONS FOR CEYLON TEA
Country
Russia
UAE
Syria
Iran
Turkey
Jordan
Kuwait
Iraq
Japan
Libya
2009
Qty.
42.4
30
29.4
27.7
15.7
13.4
10.1
9.8
9.5
8.1
%
15.1
10.7
10.5
9.9
5.6
4.8
3.6
3.5
3.4
2.9
2010
Country
Qty.
Russia 45.5
UAE
29.6
Iran
27.6
Syria
26.3
Turkey
18.4
Jordan 17.3
Iraq
13.6
Libya
10.9
Kuwait
10.8
Japan
10.3
2011
%
15.2
9.9
9.2
8.8
6.2
5.8
4.6
3.7
3.6
3.4
Country
Russia
Iran
Syria
Iraq
UAE
Turkey
Azerbaijan
Japan
Qty
%
47.3 14.8
30.8
9.6
28.5
8.9
22.2
6.9
21.5
6.7
18.9
5.9
11.8
3.7
11.3
3.5
Kuwait
9.1
2.8
Ukraine
7.8
2.4
DOMESTIC CONSUMPTION
Year
Qty. (Mn. Kgs) Approx.
2005
2006
2007
2008
2009
2010
2011
27.5
27.5
28.0
28.5
28.5
28.4
28.9
DISTRIBUTION CHANNELS
Type





Supermarkets
Grocery retailing
Convenience stores
Tea Shops / Tea Houses
Others
Percentage
25%
30%
30%
5%
10%
TYPE OF PRODUCTS
(Domestic Market )
Domestic
Market
Volume
2010
2011
Value
2010 2011
Loose Tea
68%
67%
61%
59%
Packet Tea
Tea Bags
30%
2%
30%
3%
36%
3%
37%
4%
Value Growth on Consumer Prices for
Share of Throat
Item
Tea
Coffee
Share of
Throat
26.5%
2.5%
Value
Growth
(per Annum)
9%
Average
Price
Rs. 715/Kg
22% Rs. 1,335/Kg
Malt
15.5%
23%
Rs.167/Ltr
Soft Drinks
(Carbonated)
36.0%
43%
Rs.124/Ltr
Others
19.5%
Household Expenditure
2009/2010 (Rs. 1,750B.)
Other
19%
Cultural
Entertainment
2%
Education
3%
Food & drink
40%
Consumer
durables
3%
Transport &
Comm's 10%
Personal &
Health care
5%
Clothing &
personal effects Fuel & Light
4%
3%
Housing
11%
Monthly Household
Expenditure Rs. 32,446/-
MACRO ECONOMIC FUNDAMENTALS IN SRI LANKA
2005 VS. 2011
2005
Real GDP Growth
GDP (US $)
GDP per capita (US $)
Trade : Exports (US$ bn)
Imports (US $ bn)
Workers’ Remittances (US$ bn)
Tourist Arrivals (‘000)
Earnings from Tourism (US $ bn)
FDI (US$ bn)
6.2
24.4
1,241
6.3
8.9
1.9
549
0.3
0.3
2011
(Est/Prov)
8.3
59.1
2,830
10.5
20.0
5.2
850
0.8
1.0
Thank You
Hasitha De Alwis
Director (Promotion)
Sri Lanka Tea Board