UTV | COLOMBO – Sri Lanka is optimistic the Ceylon Tea ban by the Russian Federation said the Commerce Minister Rishad Bathiudeen on 17 December.
“I am optimistic on a quick solution” said the Minister of Industry and Commerce Rishad Bathiudeen after his urgent consultations with his top officials on 17 December.
“Russia and Sri Lanka have long-standing friendly and cordial relations. This ban is not a refusal of Sri Lanka by Russia but only a temporary stoppage of one export product from us. Only reason for our concern is that nearly 80% of our exports to Russia is Ceylon Tea. We praise HE President Maithripala Sirisena for his prompt action in contacting highest levels of the Russian government to resolve this. I am optimistic on a quick solution” said Minister Bathiudeen.
Last year (2016) Russia ranked as the second largest buyer of all types of Ceylon Teas (including green tea made in Sri Lanka) at $ 143 Mn–the leading buyer in 2016 was Iran, at $ 154.10 Mn. However, in 2015 Russia was the topmost buyer of Ceylon Tea at $156.65 Mn, and the second leading buyer was Turkey.
According Minister Bathiudeen’s Department of Commerce, nearly 74% of Sri Lanka’s exports to Russia in 2016 was Ceylon Tea at a value of US $ 143 Mn (while total exports to Russia in the same year was $ 182 Mn). Over the years, total tea exports to Russia has shown a declining trend–US $ 240.32 Mn in 2013, $ 228.27 Mn in 2014, $ 156.65 Mn in 2015 and $ 142.55 Mn in 2016. Ceylon Tea exports to Russia from January to August this year totalled US $ 114.18 Mn (83% of all types of Lankan exports to Russia from January to August 2017). Other main items that Sri Lanka exports to Russia are apparel, vegetable textile fibres, other clothing accessories (including gloves).
Sri Lanka’s total trade (both imports and exports) with the Russian Federation which was at US $ 435.83 Mn in 2015 declined to $ 381.71 Mn in 2016. This year in January to August period, it reported a total of US $ 260.78 Mn.
