On the instructions of President Mahinda Rajapaksa, a special discussion was held at the Central Bank on Tuesday (28) to look into the problems being faced by the tea industry and to take immediate steps to resolve them.

The meeting was held under the patronage of the Governor of the Central Bank, Ajith Nivard Cabraal. The Secretary to the Ministry of Plantation Industries, the Chairman of the Sri Lanka Tea Board and various representatives of commercial banks in Sri Lanka also participated.

The discussion focused on a number of key issues and several actions to be implemented with immediate effect were decided upon. Accordingly, commercial banks will cut interest rates on loans offered for purchasing tea by 6%, while the existing grace period of one week for settlement of these loans is to be extended to four weeks. A ‘Tea Price Stabilisation Fund’ will also be set up.

The Government has allocated Rs. 1.5 billion as the initial capital for setting up this ‘Tea Price Stabilisation Fund’.

Apart from these measures, the Sri Lanka Tea Board has already taken steps to purchase tea from the ‘Tea Auction’.

T he above moves will ensure the viability of the industry, which includes about 400,000 small-scale tea estate owners and numerous other contributing parties such as suppliers, manufacturers, exporters and stockbrokers.