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Annual Report of the Sri Lanka Tea Board for the Year 2012

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Annual Report of the Sri Lanka Tea Board for the Year 2012 SRI LANKA TEA BOARD ANNUAL REPORT 2012 Postal Address: Sri Lanka Tea Board 574, Galle Road, Colombo 03, Sri Lanka. Cables: Tea Board, Colombo Tel: +94-11-2587814 +94-11-2582121 +94-11-2583687 Fax: +94 112587341 +94 112589132 E-Mail: [email protected] Web: www.pureceylontea.com Published in February 2014 Black Tea Black tea is a type of tea that is more oxidized to gain the optimum quality and colur. Black Tea is made from leaves of the bush Camellia sinensis . Black tea is generally stronger in flavor. Green Tea Green tea is made from the leaves from Camellia sinensis that has not under gone oxidation during processing. Green tea originated in China, but it has become associated with many cultures throughout Asia. CONTENTS Vision and Mission 06 Members of the Sri Lanka Tea Board 09 Members of the Audit Committee 10 Members of the Promotion and Marketing Committee 11 Senior Management Staff 12 Message from the Chairperson 13 Basic Comparative Indicators 15 Corporate Background 19 Industry Profile 25 Activities Undertaken by the Board 67 Tea Commissioner’s Division 67 Tea Exports Division 77 Tea Promotion Division 83 Tea Tasting Unit 95 Analytical Laboratory 101 Administrative Division 107 Internal Audit and Information Technology Divisions 110 Financial Review 113 Offices of the Sri Lanka Tea Board 135 www.pureceylontea.com 06 VISION To position CEYLON TEA as the “MOST ASPIRED BEVERAGE” in the global market. SRI LANKA TEA BOARD Annual Report 2012 07 www.pureceylontea.com MISSION To increase the foreign exchange earnings to the country through SUSTAINABLE DEVELOPMENT OF THE INDUSTRY and thereby ensuring the economic development of the plantation community SRI LANKA TEA BOARD Annual Report 2012 09 www.pureceylontea.com Members of the Sri Lanka Tea Board Chairperson Ms. Janaki Kuruppu Secretary to the Board Director General Sri Lanka Tea Board Mr. H.D.Hemaratne (up to 23rd July 2012) Secrataries(pvt) Ltd. (23rd July 2012-16th October 2012) Director General Sri Lanka Tea Board Mr. D.W.S. Narangoda (From 17th October 2012) Members of the Board Member Addl. Secretary (Development) Ministry of Plantation Industries Represented by Mr.P.L.U. Dissanayake Member Ministry of Finance & Planning Represented by Director General, Department of National Planning, Ms. Pushpa Wellappilli (From 28th March 2012) Member Chairman, Tea Small Holdings Development Authority Mr. N.P. Kariyawasam Member Chairman, Colombo Tea Traders’ Association Mr. Jayantha Keragala Member Chairman Planters’ Association of Ceylon Mr. S.K.L. Obeyesekera Member Chairman, Colombo Brokers’ Association Mr. S.C. Munasinghe (up to 23rd April 2012) Mr. Deepal Jayamanne (from 23rd April 2012) Member Chairman, Tea Exporters’ Association Mr. Niraj de Mel (up to 27th August 2012) Mr. Rohan Fernando (from 14th November 2012) Member President, Sri Lanka Federation of Tea Small Holder Development Societies Represented by Mr. Kumara Gunasinghe (30th October 2012) Mr. Neville Ratnayake (From 31st December 2012) Member Chairman, Sri Lanka Tea Factory Owners’ Association Represented by Mr. Anil Perera Member Member nominated by the Hon. Minister of Plantation Industries Mr. Geoff Aloysius Observers Dr. S.S.B.D.G. Jayawardene Mr. T. Sambasivam SRI LANKA TEA BOARD Annual Report 2012 www.pureceylontea.com 10 Members of the Audit Committee Chairperson Ms. Pushpa Wellapili, Director General, Department of Public Finance Ministry of Planning, ( from 23rd April 2012) Members of the Committee Member Mr. P.L.U. Dissanayake Additional Secretary (Development) Ministry of Plantation Industries Member Mr. Jayanatha Keragala Chairman, Tea Exporter’s Association Member Mr. Anil Perera Representative of Chairman, Sri Lanka Tea Factory Owners Association Observer Ms. C.M.S. Anthony Superintendent of Audit Auditor General’s Department Convener Mr. H.D. Hemaratne Director General, Sri Lanka Tea Board (up to 21/07/2012) Convener Mr. Hasitha de Alwis Actg. Director General, Sri Lanka Tea Board (from 31/07/2012 to 02/11/2012) Convener Mr. D.W.S. Narangoda Director General, Sri Lanka Tea Board (from 02/11/2012) SRI LANKA TEA BOARD Annual Report 2012 11 www.pureceylontea.com Members of the Promotion & Marketing Committee The promotion & marketing committee is a sub- committee appointed to guide the board on promotional and marketing activities for Ceylon Tea. Chairperson Ms. Janaki Kuruppu Chairperson, Sri Lanka Tea Board Members of the Committee Public Sector Private Sector Mr. P.L.U. Dissanayake Mr. Malin Goonetilleke Addl. Secretary (Development), Secretary General, Ceylon Planters Ministry of Plantation Industries Association Mr. D.W.S. Narangoda Mr. Ravi Abeywardena Director General, Sri Lanka Tea Board Member, Private Tea Factory Owners Association Mr. Hasitha de Alwis Mr. Anil Cooke Director (Promotion), Sri Lanka Tea Board Chairman, Colombo Brokers Association Mr. P.D. Fernando Mr. Rohantha Athukorala Director General, Department of Head National Portfolio Development, UNOPS Commerce Dr. S.S.B.D.G. Jayawardena Chairman, Tea Research Board Mr. Neville Ratnayake Chairman, Sri Lanka Federation of Tea Small Holder Development Societies Dr. Gamini Abeywickrama Managing Director, Basilur Tea Exports (Pvt) Ltd. Mr. Muffadel Jafferjee Managing Director, Jafferjee Brothers Mr. Romesh Moraes Director, Finlays Colombo PLC Mr. Jayantha Karunaratne CEO, Imperial Teas (Pvt) Ltd. Mr . Malik Fernando Director, MJF Group Mr.Rohan Fernando CEO, HVA Group Mr. Niraj de Mel MD, Van Rees Ceylon Ltd Mr. Tyeab Akbarally, Director, Akbar Brothers Ltd. Mr. Avi De Silva Managing Director, Unilever Ceylon Ltd. SRI LANKA TEA BOARD Annual Report 2012 www.pureceylontea.com 12 Senior Management Staff Director General Mr. H.D.Hemarathne (up to 23rd July 2012) Mr. D.W.S. Narangoda (From 17th October 2012) Director Mr. A.H. de Alwis (Promotion) Tea Commissioner Mr. E.A.J.K.Edirisinghe Asst.Director General Mr. S.I.C.Perera (Administration) Asst.Director General Ms. A.D.W.Bandarage (Finance) Actg. Chief Internal Auditor Mr. H.D.K.Jayasinghe SRI LANKA TEA BOARD Annual Report 2012 www.pureceylontea.com Message from the Chairperson When I took over the Chairmanship of the Sri Lanka One of the urgent needs for the industry in order to Tea Board in December 2011, I walked into an industry compete in the global markets was a properly planned that was facing many challenges on the competitive communication strategy to promote Ceylon Tea global scenario with low cost competition as well globally. This need has been identified and a promotion as challenges at the ground level with respect to and marketing levy has been introduced in October productivity, lack of innovation and lack of investment. 2010 by Hon. minister Mahinda Samarasinghe to While this was the external context, internally within collect funds for the said campaign and cabinet the tea board, I found an institution that was struggling approval for the procedures and the guidelines to serve the industry’s ever increasing demands for the utilization of the fund has been granted in due to lack of staff and efficient IT systems. Hence, late 2011. Hence, in 2012, action was taken to my immediate attention was focused on coming to formulate a comprehensive marketing plan with a settlement on a labour case filed against the tea identified target markets to launch this communication board that allowed to fill the cadre positions that campaign and to select suitable communication were vacant and re-negotiating with two software partners to develop and implement the campaign. companies to get IT systems to deliver according to the Sri Lanka Tea Board started the procurement process current needs of the institution.Fortunately, during the to employ the services of advertising agencies during previous Chairman’s tenure the issue of lack of funds the year under review and plans to finalize the selection was solved by revising the fees and levies after many in the coming year. Further, the board also started years without which none of the above would have the review of all export markets and started the been possible. background study for the formulation of a three year strategic marketing plan for 25 During the year under review, the Sri Lanka Tea selected markets. The board continued to Board as the apex body of the Industry successfully register the quality marks for “Lion Logo”, Environment completed a review of all laws and regulations with Friendly Ozone Logo and seven GI regions logos which the participation of all stakeholders. The draft of the symbolizes 100% Pure Ceylon Tea in global markets. new Tea Act is being further perused by the ministry legal department. Focused implementation of the As another major initiative during the year, the existing laws and regulations in the year resulted in SLTB secretariat building which has not been the better monitoring the quality of made tea both at the renovated for over 30 years since construction was points of production and sales. Development activities refurbished and upgraded to a standard that portray relating to tea factory modernization and replanting the premium image of “Ceylon Tea”. did not show significant progress mainly due to the limited participation by the stakeholders. The tea In the macro context, while still considered a producer commissioner’s department launched a “B- Leaf 60” of superior-quality tea, it is evident that Sri Lanka’s program during the year to minimize post harvest position in the global tea arena has been challenged losses and strengthened the monitoring of by new entrants such as Kenya and China. Although GMP (Good Manufacturing Practices) implementation Sri Lanka is now the third in the league of tea in tea factories. exporting countries in volume terms, marginally SRI LANKA TEA BOARD Annual Report 2012 www.pureceylontea.com 14 behind China and substantially below Kenya, this great Industry of our country has maintained the number one position in global exports in value terms which reaffirms our strategies to focus on value addition and the need to strengthen them.
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