Ceylon Tea losing competiveness: Research study

By Rishar Saleem-2014-12-04

Ceylon Finance Today: Ceylon Tea is gradually losing its competitive position in the global market, a frontline university don cautioned in an interview with Ceylon FT.
"Intense global competition has affected the once famous 'Ceylon Tea' that was distinguished for its quality and taste. Issues such as low yields, high cost in production, labor issues have exacerbated the Sri Lanka tea industry's position" University of Sri Jayawardenapura University Professor of Accounting, Information Systems and Chairman of the Board of Management Studies of the Faculty of Graduate Studies Professor Kennedy
D. Gunawardena told Ceylon FT.

At the same time, he said, Sri Lanka's production of only orthodox teas and not diversifying to value-added teas, had further diminished itself from the market share.

These are the alarming findings reached and revealed by the study, which is an analysis of Sri Lanka's Tea industry. To find the key factors that were affecting its exports, to remain competitive in the market., Sri Lankan Tea industry was compared both on a micro and macro levels, in the study while arguments from various academics and industry experts too taken into deliberation, he said.
Within this framework, the role of the government and its policy in the context of increasing exports is presented so as to gain further insight to assess the future sustainability of the industry, he said.