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Policies and Norms of Sri Lanka for Tea Industry for Import/Export Including Licensing, Permission & Taxation

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POLICIES AND NORMS OF SRI LANKA FOR TEA INDUSTRY FOR IMPORT/EXPORT INCLUDING LICENSING, PERMISSION & TAXATION

The tea sector in Sri Lanka has always been an important component of her economy. It is also the country 's largest employer providing employment both, directly and indirectly to over one million people. It also contributes a significant amount to Government revenue as well as to the gross domestic product.

Sri Lanka as the 3rd biggest tea producing country generating US$673 million in 2000. It also contributes to political, economic, and social stability by providing a livelihood for many of Sri Lanka’s rural dwellers, especially women. Sri Lanka has 9% production share in the international sphere, and one of the …show more content…

• good supporting infrastructure- Plantations in Sri Lanka, a small island, have easy access to Colombo via a network of all weather roads, in contrast to other countries where tea is grown far inland and must be hauled long distances to ports,

• worldwide reputation- The industry has explored the possibility of expanding Colombo as a regional service provider (a “tea hub”), importing teas from other origins, then adding value by blending, packaging, and reshipping., the presence of research and development (R&D) institutes, and knowledge of current markets

Weaknesses:

• Most Sri Lankan exporters focus on bulk tea and compete on the basis of price, rather than product development, innovation, or specialization. They rely heavily on distributors in the overseas markets served.

• In addition, local investment capital is scarce and interest rates for traditional bank loans are prohibitively high.

Opportunities:

• There is a growing interest in tea as a natural and healthful beverage

• There is the willingness of some consumers to pay for a differentiated product

• Sri Lankan companies have gotten closer to the consumer, captured additional value, and have begun escaping vulnerability to price pressure.

Threats:

• Sri Lankan tea industry is vulnerable to price pressure

• The scope of services offered to distributor-owned brands is inadequate

• The Sri Lankan tea industry has

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