Sri Lanka is fast losing Russia, a key market not only for tea and tourism, but also a close development partner and friend due its failure to collaborate, work closely and tap the vast market for trade, said former President of the Sri Lankan Business and Professional Workers Society in Russia, Dr. Jagath Chandrawansa.
“Sri Lanka is losing a golden opportunity to accelerate development through trade and mutual cooperation by distancing itself from Russia which is keen to extend its fullest support for Sri Lanka’s economic growth,” Chandrawansa said.
Russia is a significant importer of Sri Lankan tea. In 2023, Sri Lanka exported $122 million worth of tea to Russia, making it one of the leading destinations for Sri Lankan tea exports. The tea trade between the two countries is a key aspect of their bilateral economic relationship.
In 2023, Sri Lanka’s exports to Russia were valued at USD 144.25 million, while imports from Russia were USD 393.55 million.
However, the momentum could reverse if speedy action is not taken to save the fast declining market share for tea, a vital export revenue earner to Sri Lanka.
“The issue now is Sri Lanka losing the business it had with Russia for tea,” Dr. Chandrawansa said.
In the early part of this century, Russia was the largest market for value added tea from Sri Lanka. However, the market share for it dropped gradually due to Russian wanting to develop its value added tea by granting tax benefits to local producers but most importantly it is due to Sri Lanka not having doing a proper study of the issue and coming up with a strategy.
“If we had a proper strategy to the position Ceylon Tea Brand this wouldn’t have happened,” he said, adding that many presentations which were made to the Sri Lanka Tea Board was not taken seriously by the former officials who did not want to involve us in overcoming the issue.
He said the Tea Board officials did not have a proper vision and mission and were not patriotic.
“Sri Lanka needs a national strategy, vision and mission to position its Ceylon Tea brand once again for which it needs to market quality tea. An industry that is focused on profit-making forgetting the welfare of workers cannot produce quality tea,” Dr. Chandrawansa said.
He said along with gem and jewellery and fish exports, there is ample scope for and potential for Sri Lankan apparel exports to Russia.
“Tourism is the other major sector that Sri Lanka should benefit from Russia. There has to be a national awareness program to know the Russian tourists, his/her culture, food preferences and choice of places to visit and the kind of entertainment they prefer if Sri Lank is to attract more Russian visitors and develop the sector,” he said.
Russian travellers are a significant source of tourists for Sri Lanka. In 2023, Sri Lanka saw a large number of Russian tourists, with 197,498 visitors, making up a substantial 13.6% of total tourist arrivals.
“In the short term it is urgent to find ways to make payments between two countries. (As many regional countries do with Russia). Small and medium sector companies should be supported to promote their brands with Ceylon Tea Produced and packed in Sri Lanka with the Lion logo.
The tourism industry should identify areas in which with expertise and experience foreigners could be involved and encourage investments to the industry under state control,” Dr. Chandrawansa said.
