The exit offer price is 240 rupees per share, the company said in a stock exchange filing.

“The Board of Directors of the Company has made arrangements with Aitken Spence PLC, MJ F Holdings (Private) Limited, and Mr. D. A. de S. Wickramanayake, three largest shareholders of the Company (the “Major Shareholders”) and the Major Shareholders have indicated the willingness to acquire the shares of the minority shareholders of the Company who may wish to divest/sell their shares.”

The total shares that the minority shareholders wish to sell under the exit offer will be purchased by the Major Shareholders in proportion to their respective shareholding percentages vis a vis each other by adopting a suitable and practical modality agreed upon with the Company, so that the Major Shareholders will maintain their respective shareholding percentages in the Company post de-listing.

A circular to the shareholders detailing the rationale of the proposed de-listing, together with the notice of Extraordinary General Meeting, convening an EGM to seek shareholder approval in relation to the aforesaid de-listing of shares will be dispatched to the shareholders of the Company shortly, the company said.

The share last traded at 56.80.
(Colombo/May29/2024)

“267 employees have given consent to be retired under the VRS to be implemented for employees in relation to the amalgamation of Ceylon Fertilizer Company Limited and Colombo Commercial Fertilizer Company Limited,” Gunawardena told reporters Tuesday.

The Cabinet of Ministers approved the proposal to implement the VRS at a cost of 844 million rupees from the funds of the two fertilizer companies for execution of the proposed retirement scheme.

This is subject to the recommendations of a committee appointed to study retiring excess employees in state enterprises, Gunawardena said. (Colombo/May29/2024)

Dry weather and heat in March had reduced crop intake.

“There was hardly any rain in tree growing areas in March which affects the crop,” a tea industry official said.

“After the rains from later April, crop is improving in May.”

High grown tea production fell from 6.49 million kilograms to 4.58 million kilograms, according to industry data published by Ceylon Tea Brokers, a Colombo-based commodities brokerage.

Medium growns fell from 4.51 to 3.55 and low growns fell to 13.32 from 14.92 million kilograms.

Tea production for the first four months were down 6.2 percent to 79.7 million kilograms, with growth seen up to the first quarter. (Colombo/May26/2024)

“What they do is for private estates, they will get a retired person from the army or the Police,” Thondaman told reporters on Monday.

“Back in the day it was only planters running the show, so planters knew you have to look after the workers to get good productivity. Unfortunately, that is not the case anymore.”

This follows an incident where violence was perpetrated against estate workers at an privately-owned estate in the Ratnapura District recently.

In footage shared on social media, two people were seen dragging an estate worker to the ground.

“I did speak to the IGP this morning and the IGP gave me an assurance that this is not acceptable. We are immediately going to take action,” Thondaman said.

The minister said that the management of the estate was arrested, and later released on bail. (Colombo/May14/2024)

Thondaman, who has been critical on RPCs over their resistance in paying the latest daily wage of 1,700 rupees per tea plucker, said he wants action against the companies for destroying government assets.

“We are reviewing the agreement as we speak. There is a committee that is going through it,” he told reporters at a media briefing on Monday (13) in Colombo.

“My personal opinion is we can’t just look at it as just tea. Tea is an asset of the government of Sri Lanka. So when it is a Sri Lankan government asset, say if we have given 10,000 hectares of tea estates to a company, with 8,500 hectares of tea and 1,500 of abandoned, then today we need to conduct an audit to see of the 8,500 ha of tea lands exist.”

“If the tea (lands) have reduced, then action should be taken against the companies, because they have destroyed the assets of the government of Sri Lanka, tax payers assets.”

“So we are looking at all options, opportunities and exploring all possibilities on action.”

The lease review comes as the RPCs has vehemently rejected President Ranil Wickremesinghe’s May 1 announcement of raising the daily wage by 70 percent to 1,700 rupees.

Industry experts say tea producers face a daunting task in paying increased daily wage mainly due to appreciation of the rupee since early last year.

Sri Lankan estate workers live in poor conditions with higher level of poverty, analysts say.

Workers have been living sometimes in crowded shacks, without sanitation, running water, medical facilities or schools for their children.

Thondaman said he has requested for strong action against RPCs for not maintaining the tea properly.

“Now a lease review is going on and post that we will definitely go for that,” he said.

Many plantation workers have already shifted from estates due to poor wages.

Activists say tea pluckers have to work under very difficult conditions because most RPCs do not replant tea as per agreement.

“They should replant 2.5 percent of the land. They have been replanting 0.08 percent,” Thondaman said.

“Though it is a breach of agreement, there has been 400 agreements signed. Now the legality comes into question,” he said.

“Anyway, right now that’s why the president has gazetted the RPCs under the Finance Ministry.” (Colombo/May 13/2024)

The national weekly sale average increased by 11.98 rupees to 1261.40 rupees a kilogram this week, from 1249.42 rupees a week ago, industry data published by Ceylon Tea Brokers showed.

However prices were down from March highs.

Low Grown Teas

The weekly average of Sri Lanka’s highest priced teas, the Low Grown, rose by 6.48 rupees to 1350.83 rupees.

OP1 was down 60 rupees, OP/OPA were largely flat. PEK was down 10 rupees and BOP1 were down 40 rupees.

Medium Grown Teas

The Medium Grown average rose by 8.28 rupees to 1084.74 rupees.

FBOPs were up 100 rupees BFPFP1 were up 50 PEK1 were down 50 and OP1 was largely flat

High Grown Teas

The High Grown weekly average rose by 33.97 rupees to 1181.48 rupees a kilogram.

High grown BOPs went up about 30 rupees a kilo while BOPFs were up 50 rupees. BP1 were down 50 rupees and PF1 were up about 30 rupees. (Colombo/May12/2024)

“Even through the economic crisis, RPCs have benefitted from the weakening of the Rupee that gave them an over 80% increase in Rupee revenue in 2023 vs 2021,” Thondaman said on X (twitter).

“When the real value of daily worker wages plummeted from around 5 USD to 2.7 USD and inflation plunged over half the workers to below the poverty line, RPCs continued to reap the benefits of their hard labour.”

“While export revenues grew exponentially, none of those benefits went to the workers, who are the backbone of the industry.”

The minister said he was hopeful of an announcement favourable to the workers from RPCs who have said that they will be responding to the wage hike for plantation workers today (6).

“This is not a situation that the Government alone can fix. RPCs must take the responsibility and stop what is by all means a gross exploitation of labour.” (Colombo/May6/2024)

Already some workers who were paid on a model somewhat similar to that of small holder workers, were earning higher wages than those who were paid through a mandate wage.

According to the gazette notice, plantations workers will have to be paid 1350 rupees a day, there will be a ‘daily special allowance’ of 350 rupees and an over kilogram rate of 80 rupees a day.

Talawakelle Tea Estates Plc closed down at 112.75, Elpitiya Plantations Plc closed down at 120.50, Watawala Plantations Plc closed down at 90.10, Madulsima Plantations Plc closed down at 9.90, Kelani Valley Plantations Plc closed down at 74.90, Sunshine Holdings Plc closed down at 61.60, Maskeliya Plantations Plc closed down at 32.00.

Kahawatte Plantations Plc closed down at 18.00, Agalawatte Plantations Plc closed down at 34.50, Malwatte Valley Plantations Plc closed down at 61.90, Namunukula Plantations Plc closed down at 349.75, Hapugastenne Plantations Plc closed down at 32.00, Udapussellawa Plantations Plc closed down at 71.40, Bogawantalawa Tea Estates Plc closed down at 36.50, Kotmale Holdings Plc closed down at 426.75, Kegalle Plantations Plc closed down at 116.25.

Hatton Plantations Plc was up at 75.40, while Horana Plantations Plc closed up at 39.80.

Kotagala Plantations Plc closed flat at 6.30. (Colombo/May02/2024)

Wickremesinghe announced the wage hike when he addressed the May Day rally of the Ceylon Workers’ Congress (CWC) held in the central Sri Lankan town of Kotagala, an area predominantly plantation workers live.

“It was the up country people who suffered the most during the hard times. But they were the people who also worked hard to produce tea and ensured foreign exchange,” Wickremesinghe told the May Day rally.

“I don’t think nobody wants back to 2022. We have suffered a lot. Now we have stabilize somewhat. The rupee has strengthened,” he said referring to the 2022 economic crisis that led to a political crisis and ousting of former president Gotabaya Rajapaksa and his government.

“Yesterday, Manusha Nanayakkara (Labour Minister) has raised the daily wage to 1,700 rupees.”

The upcountry people and their relatives have a strong vote base of around 1 million spread throughout the country. The main political party in the upcountry CWC had already pledged its support to Wickremesinghe if he contests in the presidential election.

Wickremesinghe has yet to declare his candidacy for the presidency, but his United National Party (UNP) sources have said he is likely to contest under an independent coalition.

The presidential election will be held between September 18 and October 18.

Currently, plantation workers receive Rs. 1000 basic wage plus EPF/ETF and after plucking the set target of 20 kg, they are paid an additional Rs. 40 a kilo.

It is not immediately clear how the local plantation firms could afford the wage hike given the island nation is one of the countries with the highest cost of production compared to India and Kenya due to lower labour productivity.

Sri Lanka’s plantation companies in March proposed a 33 percent increase in take-home wages based on a productivity model or a 22 percent increase in wages on the attendance-based model. The total of that model would have been around 1,500 rupees, plantation sources said.

Based on President Wickremesinghe’s request Regional Plantation Companies (RPCs) and the Employers Federation of Ceylon (EFC) have submitted the proposal to Labour Minister Manusha Nanayakkara on a proposed wage hike for the sector.

The minimum wage was increased to 1,000 rupees in October 2021, but plantation workers have complained that it was insufficient due to the high cost of living after Sri Lanka’s unprecedented economic crisis. (Colombo/May 1/2024)

State Minister of Finance Ranjith Siyambalapitiya said employees of state-owned plantation companies have not paid EPF and ETF to their employees for 20 years.

“Some did not have the money to buy medicine and died. There are 2,000 court cases filed by these people. Some are still waiting,” he said, speaking at an event on Sunday April 28.

“A cabinet paper will be submitted this Monday to pay this entire amount by the government this year,” he said.

Meanwhile, the government is also working on a new management authority for the plantation sector.

“We’re also looking to build a management authority to better manage the work of plantations,” said Siyambalapitiya.

The state minister also said that the state-managed EPF will pay a 13 percent return to all its member in 2023.

The government has decided to pay the return from the earnings the fund made in 2023, he said.

It was higher than the 9.0 percent return the EPF had paid in recent years, Siyambalapitiya said.

The EPF was at the centre of a controversy a few months earlier with opposition parties and activists claiming that the fund would be negatively impacted by Sri Lanka’s domestic debt restructuring efforts.

However, the Central Bank, which oversees the fund, said the claims were exaggerated if not logically unsound.

Sri Lanka re-structured the debt of the EPF, extending maturities and initially raising the coupon the 12 percent, after the central bank busted the currency from 200 to 370 destroying its real value and pushing inflation to 70 percent.

However, over the past year, the central bank has appreciated the currency, recouping the fund some of its losses.

According the Central Bank, the inflation generating state enterprise that manages the fund, liability to members went up by 12.9 percent to 3,817.9 billion rupees in 2023, while the total value of the fund went up 11.5 percent to 3,857.4 billion rupees.

There has been hardly any inflation (as measured by the most widely watched Colombo Consumer Prince Index) since September 2022, when monetary stability was restored. (Colombo/Apr29/2024)

Total quantity of tea exported including re-exports with imported tea amounted to 21.25 million kilos.

The FOB price per kilo for the month was 1,795.87 rupees. Total export earnings recorded an increase of 1.87 billion rupees, a 5.17 percent increase in 2024 as against the same month last year.

Country wise analysis of exports reveals that Iraq has emerged as the largest export destination from Sri Lanka, buying 8.4 million kilos, followed by the UAE and Russia. (Colombo/Apr27/2024)

The national weekly sale average fell by 45.38 rupees to 1234.59 rupees a kilogram this week, from 1279.97 rupees week industry data published by Ceylon Tea Brokers showed.

Average tea prices which moved up in US dollar terms up to 4.47 a kilo in the the second week of February and has since fallen to 4.23 to the US dollar by the last week of March.

A total of 4.7 million kilos were sold by public auction in the first auction in April

Low Grown Teas

The weekly average of Sri Lanka’s highest priced teas, the Low Grown, fell 48.54 rupees to 1293.2 rupees.
BOP1 Select best and best maintained, while the balance varieties fell.

OP1 Select best and below best fell, as poorer sorts maintained. OPA Select best were flat.

BOP Select best and best fell, while below best and others hardly maintained. BOPF all-round fell. Select best FBOPF fell, while all others maintained. All round FBOPF1 also fell.

Medium Grown Teas

The Medium Grown average fell by 59.05 rupees to 1085.52 rupees.

BOP1 Select best fell by 50 rupees per kilogram. Best and Below best fell by 100 rupees per kilogram, while the others dropped by 50 rupees per kilogram. OP1 Select best maintained, while Best and below best gained by 50 rupees per kilogram.

OP/OPA Select best fell by 50 rupees per kilogram.

High Grown Teas

The High Grown weekly average rose 28.68 rupees to 1209.07 rupees a kilogram.

BOP Best Western’s declined by 80 to 100 rupees per kilogram. Below best and plainer types fell by a similar margin, and at times more. Nuwara Eliya’s sold around last.

Uda Pussellawa’s fell by 50 rupees per kilogram.

Uva’s fell by 30 per kilogram. BOPF Best Western’s selected invoices fell sharply, while others fell by 70 rupees per kilogram. Below best fell by 50 rupees per kilogram, while plainer types fell by a lesser margin. Nuwara Eliya’s were generally maintained, as Uda Pussellawa’s sold around last. Uva’s fell by 30 to 50 per kilogram.(Colombo/Apr6/2024)

High grown tea in February 2024 was 4.52 million kilograms, up from 4.28 million, medium growns were 3.64, up from 3.1 million kilograms, and low growns were 11.82 million, up from 11.36 million kilograms last year.

Exports, including re-exports were up 20.27 percent to 22.31 million kilograms, industry data published by Ceylon Tea Brokers show.

Export earnings were reported at 127 million US dollars, up from 104 million dollars last year. The average FOB price was 5.72 US dollars a kilo up from 5.64 dollars last year.

Tea in bulk was 11 million kilograms valued at 16.97 billion rupees, tea in packets was 8.2 million kilograms valued at 14.1 billion rupees and tea in bags was 2.2 million kilos, valued at 6.2 billion rupees.

The top buyer was Iraq with 5.3 million kilos, up from 4.6 million last year followed by the UAE with 4.9 kilos, up from 3.4 million last year.

Russia bought 4.5 million kilos up from 3.6 last year, Turkey bought 2.9 million kilos down from 4.7 million last year, while Iran bought 2.9 million up from 919 thousand last year. (Colombo/Mar22/2024)

Sri Lankan tea prices have moved up in 2024 both in rupee and US dollar terms.

The national weekly sale average fell by 20.61 rupees to 1344.39 rupees a kilogram this week, from 1,365 rupees week industry data published by Ceylon Tea Brokers showed.

The weekly average was 4.47 US dollars a kilo, up from 4.21 a week earlier.

Prices have gained from an average of 3.66 US dollar a kilo seen at the last auction in December.

A total of 4.1 million kilos were sold by public auction.

Low Grown Teas

The weekly average of Sri Lanka’s highest priced teas, the Low Grown, fell 54.11 rupees to 1,397.54 rupees.

BOP1 Select best and categories within Bests maintained and fell, whilst Below Best and poorer sorts maintained. OP1 Select best fell irregularly, while best and below best were gained. Poorer sorts of OP1 Select bests maintained. OP and OPA maintained prices, while Select bests varieties gained.

PEKOE/PEKOE1 Select best prices fell, while best and below best maintained. FBOP/FBOP1 Select best prices also maintained, while below best and others prices fell.

BOP Select best and best maintained, while below best and others prices fell. BOPF prices were all round maintained.

Medium Grown Teas

The Medium Grown average went up 14.85 rupees to 1,214.83 rupees.

BOP1 Select best gained by 100 rupees per kilogram, while others moved up by 50 rupees per kilogram. OP1 Select best and best gained by 50 rupees per kilogram, while Below Bests remained unchanged.

OP/OPA in general maintained pricing, while PEKOE/PEKOE1 Select best and best fell by 50 rupees per kilogram. All others in the category fell by 20 rupees per kilogram. FBOP/FBOPF1 Select best gained by 50 rupees per kilogram, while all others maintained.

High Grown Teas

The High Grown weekly average rose 56.98 rupees to 1,268.93 rupees a kilog.

BOP Best Western’s appreciated by 80 to 100 rupees per kilogram, following, while Below best teas gained by 100 rupees per kilo and more.

Nuwara Eliya’s tea prices were irregular, as Uda Pussellawa’s tended to fall. Uva’s gained by 100 rupees per kilogram. BOPF Best Western’s gained 100 rupees per kilogram and more.

Below best and plainer types both maintained and gained by 50 rupees per kilogram.Nuwara Eliya’s few invoices appreciated.

Uda Pussellawa’s gained by 70 rupees per kilogram.

Between the 27 February and 4 March, the Western and Nuwara Eliya planting districts experienced sunny weather throughout. The department of meteorology forecasts misty conditions in the Western province.

Uva and Udapussellawa reported bright conditions during the week. Drier weather conditions are to be expected in both regions.

The Low grown’s experienced sunny conditions, which are expected to be followed by evening showers that are to come to the Low grown district. The Western, Uva and Udapussellawa’s maintained their crop intakes while the Nuwara Eliya and Low grown’s recorded a decline.(Colombo/Mar10/2024)

The fourth phase entails building 1,300 houses across 45 estates in 10 districts.

“The Tamil community of Indian Origin, who have made significant contributions to the country’s economy, have unfortunately suffered great losses due to the lack of land and housing ownership,” Sri Lanka’s president Ranil Wickremesinghe was quoted at the event by his media division.

“It is imperative that their economic and social rights are upheld. The government is actively initiating this process, starting with negotiations with estate companies to acquire land for the construction of these houses.”

Wickremesinghe, Minister of Water Supply and Estate Infrastructure Development Jeevan Thondaman and Indian High Commissioner Santhosh Jha, virtually unveiled the foundation stone plaque.

“Education levels within estates lag behind those in other regions, necessitating the establishment of equitable educational standards across all schools,” Wickremesinghe said, adding “Efforts must extend to providing opportunities for youth, including access to education and vocational training, particularly geared towards international employment opportunities.”

Wickremesinghe said he hoped “to convene all political representatives and present unified proposals devoid of party divisions within the next month.”

“The security of a home is the first step towards economic and social inclusion of this long marginalised community,” Minister of Water Supply and Estate Infrastructure Development Jeevan Thondaman said. “Our new Saumyabhoomi programme will also ensure that 10 perches of freehold land with clear title is given to every plantation family.

Indian High Commissioner to Sri Lanka Santosh Jha “reiterated India’s commitment to building a deeper and stronger partnership based on shared security, prosperity and enhanced connectivity between the two nations.”

The decision to construct these houses was announced during Prime Minister Narendra Modi’s visit to Hatton, marking the first visit by an Indian Prime Minister to the region. (Colombo/Feb19/2024)

The weekly sale average price fell by 26.52 rupees to 1248.22 rupees a kilogram, according to industry data published by Ceylon Tea Brokers.

In the third week 4.6 million kilos were sold by public auction.

High Grown Teas

High Grown BOP teas went up with Best Westerns going up by 50 to 100 rupees. Plainer categories gained by 70-80 rupees.

Hardly any offerings from Nuwara Eliya’s and Uda Pussellawa’s fell.

The high grown sale average was down by 4.96 to 1,082.30 rupees a kilo.

Medium Growns

BOP1, Select were up by 50 rupees whilst others remained unchanged. OP1, Select best held firm whilst others gained by 50 rupees.

OP/OPA Select best fell by 50 rupees and Best fell by 20 rupees.

PEK Select Best and bests fell by 50 rupees, PEK1 – Select best fell by 50 rupees.

FBOP/FBOPF1 Select best and bests gained by 50 rupees.

The medium grown sale average was down by 9.91 rupees to 1,055.82 rupees.

Low Growns

BOP1 Select best fell, whilst the best and below best gained.

OP1 Select Bests were firm to lower while Best, Below Best gained.

PEKOE/PEKOE1 Select best together with a full range of bold PEK’s were irregular.

FBOP/FBOP1 Select best were were firm.

The Low Growns average fell by 33.92 rupees to 1356.22 rupees per kilogram.
(Colombo/Jan19/2023)

The expansion in production was driven by Medium Grown teas, which increased by 2.6 million kilos to 42.3 million kilos and High Growns which expanded by 1.6 million kilos to 58.6 million kilos.

Low growns fell 100 kilos to 155.06 million kilos. Sri Lanka’s small holders were hit by both dry weather and fertilizer costs in 2023.

Tea exports were down by 8.2 million kilos to 241.9 million in 2023.

The export value went up to 1.31 billion US dollars in 2023 from 1.26 billion US dollars.

The average export price was 5.41 US dollars, from 5.03 a year earlier. Tea prices fell in both rupee terms and US dollar terms towards the latter part of the year. (Colombo/Jan18/2023)

Sri Lanka gets the highest prices for low grown teas, which are exported to the Middle East and the lowest prices for high grown teas.

High Growns fell to 1,071.97 a kilogram from 1,359.78.

Medium Growns fell to 1,019.03 form 1,237.86 rupees.

Low Growns fell to,278.08 from 1,534.27 rupees.

In US dollar terms, average tea prices fell from 4.0 US dollars a kilogram to 3.63 US dollars or down 9.25 percent.

Prices in rupee terms fell partly due to an appreciation of the currency from 360 to 330 to the US dollar following better monetary policy and deflationary open market operations.

An appreciation of the currency also reduces food and other prices (monetary inflation) helping workers and reduce the tendency for workers to strike and also bring down energy prices.

The US dollar price tea generally falls when the US Federal Reserve tightens monetary policy strengthening the US dollar against commodities including wheat and fuel.

The action also reduces social unrest and strikes. Sri Lanka’s central bank however busted the currency from 200 to 360 in 2022 after printing money for two years to target short term rates and try to push up growth (targeting potential output). (Colombo/Jan14/2024)

“Because the government-owned fertilizer companies provide fertilizer at a minimum price, it will reduce the price of a 50 kg bundle of tea fertilizer, which is currently sold by the private sector for around 15,000 rupees,” Minister for Agriculture, Mahinda Amaraweera was quoted as saying in a statement by the Department of Government Information.

The annual fertilizer requirement for tea cultivation in Sri Lanka is 40,000 metric tons costing roughly 6,800 million rupees, according to the DGI.

Until now, the Sri Lanka Tea Board had given loans to the tea growers to purchase fertilizer, but some tea growers allegedly use the money for other purposes.

The Tea Board points out that proper application of fertilizer was essential to get a good harvest. (Colombo/Jan4/2024)

This contributes significantly to the cost of production of Sri Lanka’s tea industry.

The findings emphasise the need for RPCs, and the industry at large, to consider embracing alternative wage models such as the revenue share and outgrower models.

These suggestions are rooted in the context of grappling with soaring production costs, falling productivity, and the impact of the current wage structure on estate workers.

The report juxtaposes the minimum wage model with the more market-driven remuneration approaches observed in the smallholder sector.

It underscores how the attendance-based system, being predicated solely on attendance rather than performance, severely curtails “productivity incentives”.

One of the consequences of the minimum wage model is the persistent issue of low earnings and constrained earning potential for workers, ultimately leading to a labor shortage.

The report flags this shortage as an exacerbated problem, with workers increasingly veering away from agricultural labour, gravitating towards other employment options that offer higher compensation.

Stakeholders within the industry advocate for alternative wage models that lean towards rewarding productivity rather than mere attendance.

A proposed revenue share system departs from the weight-based remuneration of the outgrower model, and aligns workers’ incentives with quantity and quality of tea leaves produced.

This ensures that workers are motivated to prioritize quality, creating a sense of ownership and responsibility. It also drives them to adopt best practices in plucking and processing.

This effort aims at producing superior-grade tea, better market prices and increased competitiveness.

The report finds that the revenue share model comes with challenges; It requires a transparent mechanism for revenue calculation and distribution, presenting a potential administrative hurdle.

Moreover, negotiating fair revenue-sharing percentages that satisfy both workers and plantation owners can be subject to contextual nuances.

The report said that these proposed models draw inspiration from the market-driven ethos observed in the smallholder sector.

In this sector, workers are remunerated based on both the quantity and quality of their output, fostering higher productivity and a dignified approach to labour provision.

The report advocates for alternative, market-oriented wage models to uplift productivity, enhance worker welfare, and bolster the industry’s global competitiveness, in addressing the multifaceted challenges faced by large-scale tea plantations in the country. (Colombo/Dec28/2023)