Monday 15 December 2014

Russian rouble crisis Tea exporters voice grave concern

By Ravi Ladduwahetty

Ceylon Finance Today: Sri Lanka's tea exporters have voiced grave concern over their tea exports to Russia and the Combined Independent States following the devaluation of the Russian currency in the aftermath of the sanctions imposed by the United States on that country.

'This is a very serious situation which has prevailed for the last one year or so and we are hopeful that the government will step to mediate in this national crisis,' Chairman of the Tea Exporters' Association of Sri Lanka, Rohan Fernando told Ceylon FT yesterday.


This is a twin issue with the Russian supermarkets not willing to pay extra for the Ceylon Tea in the wake of the devaluation and on top of that, is the falling of the world tea prices as well. In fact, the Russian importers are asking for a price reduction and deferred payments as well which has aggravated the issue, he noted.

Fernando, who is the Chairman of the Colombo Stock Exchange – listed HVA Foods PLC said that the members of the association has asked for a meeting with the Governor of the Central Bank of Sri Lanka, Ajith Nivard Cabraal and Plantation Industries Minister, Mahinda Samarasinghe hoping that the government will intervene in the situation.

He also said that one of the solutions would be for the governments of Russia and the United States to negotiate a barter agreement between Sri Lanka where Sri Lanka imports petroleum from Russia in lieu of the tea. He also proposed that Sri Lanka signs up a deal with China, which would enable Sri Lanka to be paid in Chinese Remimbi for tea exports to Russia due to the excellent diplomatic relationships between Russia and China and also due to the excellent relationships that exist between Russia, China and Sri Lanka.


He also expressed his grave concern about the future of Sri Lanka's tea exports to Syria and Iran which are also facing US sanctions, which with China account for 60% of Sri Lanka's tea exports.
www.ceylontoday.lk

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