Banks to support...

Firstly, we need to know that the funds are used for the right purposes,” Dr.Jayasundara said.

The need for a comprehensive replanting programme in the tea sector has been building according to various tea industry stakeholders, with aging tea bushes leading to slumping yields.

Commenting on the need urgent need for replanting programmes for smallholders, and plantations in general, Chairman Colombo Tea Traders’ Association, Jayantha Keragala said: “At present only 20% of replanting requirements are being achieved. It costs approximately Rs 3.2 million per a hectare to carry out replanting. This in combination with a long gestation period during which no production will happen, makes replanting commercially unviable.

“There is however no time to lose. If we neglect the small holders, it will be detrimental to total production . So, replanting needs to be dealt with as a matter of urgency.”

Banks to support re-planting drive

Sri Lankan banks will soon be directed to release funds for replanting programmes in the tea plantation sector in the near future, according to the Secretary to the Treasury. “Banks can now use funds from tax savings to lend on a long-term basis to growers, and this should be sufficient to carry them through the gestation period required for newly planted tea.” “We have also been talking to the Asian Development Bank about long term funding for the development of the plantation sector.