Ceylon, as Sri Lanka was known in the 19th century, was a
major grower and exporter of Coffee. In the 1860's came the
great coffee crash following the coffee blight, which destroyed
the coffee plantations in the country.
The tea plant is not indigenous to Sri Lanka. Its origin
being in China and the North Eastern parts of India. The seed
was imported from China in 1824 and Assam in 1839, and grown
in the Botancial Gardens of Peradeniya and Nuwara Eliya on
an experimental basis. However, it was not until 1867 that
the first commercial scale tea plantings were undertaken.
The first clearings were opened by the brothers Solomon and
Gabriel de Worms on Labookellie Estate in Ramboda District,
from seed procured from China. At the same time, James Taylor
planted tea on Loolecondra Estate in the Hewaheta District
from seed of Assam Origin.Thus was born to Sri Lanka an industry
that has for a number of years been a major revenue earner.
The first teas exported from Ceylon, 23 Lbs. Arrived in London
in 1873. the exports increased to a staggering 82 Million
Lbs. In 20 years, with the expansion of tea planting. Today,
Sri Lanka has emerged as the leading exporter of tea in the
world exporting 294.5 Million Kg in the year 2001.
As per the trading systems that were available during this
period the imperialists produced commodities in the occupied
countries and all other commercial activities intended to
add value, such as packaging, distributing, promoting etc.
took place in their Countries. Tea produced in Sri Lanka were
initially taken to be auctioned at the London auctions where
trading took place. Blending, Packaging, Promoting, Selling
and Distribution took place in the foreign Countries.
This system of trade continued even after independence with
most Sri Lankan companies engaging in supplying tea either
in Bulk form or for private label brands.
Economic Significance
of Sri Lankan Tea Industry
Sri Lanka is the largest Tea exporter in the world enjoying
21.6% of the world market and the third largest producer contributing
11% to the global Tea Production. Presently, tea generates 14.3%
or Rs. 61.6 Bn. Export income to Sri Lanka and constitutes 75%
of Total Agricultural export income.
Tea has thus emerged to be the highest value added export earner
in Sri Lanka with the value addition amounting to 2.3% of GDP
while Rubber and Coconut industries maintain only 0.4 % and
2.0% of GDP respectively. The tea industry in Sri Lanka is the
single largest employment generator having a strength of approximately
1.3 Million employees both directly and indirectly engaged in
the value chain of the industry and is also one of the biggest
industries in terms of land utilization having a cultivated
extent of 180,000 Hectares, a wider geographic coverage in the
up, middle and low country.
The Value Chain of the tea industry in Sri Lanka is represented
by 20 Regional Plantation Companies (RPC's), 206,652 Tea Smallholders,
Sri Lanka State Plantation Corporation (SLSPC), Janatha Estate
Development Board (JEDB), 200 Exports Companies and 8 Tea Brokering
Firms.
The Plantation sector in the Colombo Bourse, which comprises
of 16 RPCs constitutes 6% of the listed public companies and
represents 4% of the total market capitalization.
Sri Lanka is the first country in the world to introduce an
Accounting Standard for Plantation Companies (SLAS 32 of the
Institute of Chartered Accountants of Sri Lanka which does not
have a corresponding IAS).
General Information
Location
Southern Asia, island in the Indian Ocean,
south of India
19,000,000