Sri Lanka's tea industry was introduced in 1867 and has since become a significant part of the country's economy and culture. Tea production grew from over 250,000 metric tons in 1996 to over 300,000 metric tons by 2000. The industry faces challenges such as high production costs, price declines, and impacts of political and trade agreements. However, opportunities also exist through Sri Lanka's brand recognition, expanding markets, and adapting to changing social and technological trends. The future prospects of the tea industry depend on strategies like developing new lands, improving infrastructure, worker training, and finding new markets.

2. Introduction
 Tea is globally one of the most popular and lower cost beverages.
 Tea is consumed by a wide range of age groups
 Even though tea is not indigenous to Sri Lanka and is an area where the
country can take a lot of pride.
 Tea Industry have dominated history
 The tea industry was introduced to Sri Lanka in 1867 by James Taylor

3. History of Ceylon Tea
 Prior to 1860s sri lankas main crop was coffee and no planter showed much
interest in tea.
 A yong Scottish man Mr.James Taylor who arrived in Ceylon in 1852 to work for
one of the large coffee growers was mainly responsible for transformation of
ceylons plantation map from coffee to tea.
 Taylor planted the first tea plant in Loolcondera estate.
 By 1996, Sri Lanka's tea production had exceeded 250,000 metric tons,
growing to over 300,000 metric tons by the year 2000.

4. Tea Growing Areas in Sri Lanka

5. Tea producing process
 Tea Plucking
 Withering
 Rolling
 Sorting Teas
 Tea Bage Packing
 Packing
 Carton Packing
 Storing
Source-
http://www.ceylonbl
acktea.com/

8. Current situation of Environmental factors
TEA
Legal
Economy
Sociocultural
Technology
Environment

9. Political environment
Marketing decisions are strongly affected by development in political
environment. The political environment consist of law, government agencies,
pressure groups that influence or limit various organizations and individuals in
given society.
opportunities
 The war has ended but the conflict is still on,
 Influences of WTO
 Impact of SAARC
challenges
 EU withdrew the preferential trade agreement in July 2010.
 Influence of pressure groups like unions.
 Domestic politics
 Diplomatic , military & financial support from China ,India, Russia ,Iran &
Pakistan also has ensured the power of UN is still weak.
 Channel in trait quota region of the tea industry.

10. Legal Environment
opportunities
 The concept‘Pure Ceylon Tea’ and for our lion logo in the world market
 Tea (Tax and Control of Exports) Act No. 16 of 1959.
In 1994 the Tea Research Institute was legally separated from the Sri Lanka Tea
Board, its constitution and activities thereafter being governed by the Tea
Research Board, then newly established under the Tea Research Board Act. No.
52 of 1993.
Challenges
 Illegal tea exports

11. Economical factors
Consist of factors that affect consumer purchasing power and spending patterns.
Price
High cost of production –higher potion of cost should be allocated for
wages(60%)
price Decline
 Easy for buyers to switch from one source to another
 A large number of countries produce tea
 Tea supply is greater than demand from manufactures
Target market for Tea
 Local Market
 Global Market

12. Socio cultural factors
Social culture is the most basic course of a person’s wants and behaviors. Every
group or society has a cultural influences or buying behaviors may vary greatly
from country to country.
Opportunities
 The attention for the Sri Lankan logo
challenges
 Changes in consumption patterns
 Attitudes of Sinhala female workers towards plucking tea
 People expect more convenient

13. Technological Factors
Opportunities
 There are technology advances find in tea industry –tea plucking machines
introduction
 There is no big difference in technical background of tea industry during last
few years in sri lanka.
challenges
 The highest percentage of the tea production goes to labor wages.
 The second generation of Indian labors are not willing be the workforce of
plantation.

14. Environmental factors
opportunities
 Main planting areas are Dimbulla, Galle ,Nuwaraeliya, kandy,Rathnapura
,Uva,Badulla & there climate is more suitable.
Challenges
 Overcast and heavy rains and storms
 Declining soil quality resulting in the quality of tea production
 Government environment policies

15. Future outlook in TEA Industry

16. THE TEA HUB CONCEPT
 Set up free trade zone (FTZ) within sri lanka.
 Allow enterprises and Dilmah to set up blending facilities.
 Liberalize tea imports from other countries.
 Enforce 50% -70% Ceylon tea in the blending process,
 New logo enable differentiation between pure Ceylon tea and FTZ tea.
 Test market and expand.
 Benefits from blending and commercialization are directly passed on to the
producer in sri lanka

20. Recommendations
 Government should pay attention on tea cultivating more lands.
 Government & cultivators try to add new facilities of tea cultivation improve
production. –change stock ,use new technology for packing tea packets.
 Introduce new procedures in tea processing & new machineries to the
industry.
 Government should take necessary action to curve these illegal exporting
rackets.
 Introducing tea picking machines for providing an attractive salary to workers.
 Government should provide necessary incentives to the small scale tea
planters to encourage them.
 Government should pay their attention to improve infrastructures to develop
distribution system & other facilities.
 Training workers about technical side & management sides.
 Introduce different taste & aroma of tea to markets – flavored tea ,ice tea
 Find new foreign markets from trade agreements.