Current issues in the farm sector of the tea industry in Sri Lanka

Abstract

Sri Lanka is a leading tea producer and exporter. The contribution of the tea industry to the country’s GDP, foreign exchange earnings and employment is sizable. However, its’ international competitiveness and domestic growth are threatened presently because of strong competition from emerging tea producers and exporters, and performance-related factors in the value chain and in the farm sector. Pressing issues in the farm sector are related to labour availability, high production costs, restrictive government policies, climate change and a lack of entrepreneurial tendencies. They relate to both private and estate growers and they have led to serious adverse consequences for production in th..