CEYLON TEA – ALWAYS AHEAD OF COMPETITION Hasitha De Alwis Director (Promotion) Sri Lanka Tea Board

Sri Lanka - A New Era Fast becoming the Wonder of Asia Island is united ending 30 years long conflict. Multi-ethnic, multi cultural, multi-religious and multi-linguistic nation once again in harmony. Immense opportunities for sustainable growth in all sectors and tea industry is no exception. Peace dividends results in leap- frog development in Sri Lanka’s infra-structure & other sectors of economy. Sri Lanka Tea Board

Economic Importance Sri Lanka tea industry will celebrate 150 years of commercial history in 2017. Tea industry continues to occupy a pivotal position in terms of foreign exchange earnings & employment. The foreign currency earnings from tea covered the entire food import bill of Sri Lanka in 2013 as well as 2014. Tea export earnings reached USD 1.65 Billion in 2014 a historical high contributing 15% to the nation’s foreign exchange. Generating 65% of export agriculture revenue, tea industry contributes approx. 2% of island’s GDP. With 2 Million employed directly & indirectly 10% of the population of Sri Lanka depends on the industry. Sri Lanka Tea Board

SRI LANKA – ONLY TEA EXPORT INDUSTRY IN THE WORLD TO REACH USD 1.65 B. REVENUE World Leader in Production & Export of Orthodox Black Tea. Global Popularity for Ceylon Tea Synonymous with superior quality. Always ahead in export of Value –added teas. “Diversity in Specialty” of seven uniquely different agro –climatic regions with 28 main grades. Colombo is the largest single origin Tea Auction Centre in the world disposing 99% of all sales. Champion in Sustainable auction prices. Expeditious conversion from crop to cash. Sri Lanka Tea Board

Ethical & Sustainable Practices Strict adherence of ISO 3720 Minimum quality Standard across entire supply chain. Ensuring certification on Ethical Tea Partnership, Fair Trade Labeling , Rain Forest Alliance, UTZ, Euro Gap etc. Clean as ever in pesticide residues. Compatibility with CODEX, FAO, EU & Japanese standards for Maximum Residue Limits. Drive for re planting and in-filling to increase productivity and reduce cost of production. Support Forest Garden Tea Growers to protect ….biodiversity & commitment for ecological sensitivity. Protection of flora & fauna within the plantations. Sri Lanka Tea Board

“CEYLON TEA” - ONLY Ozone Friendly Tea IN THE WORLD In 2007 Sri Lanka tea industry received the Montreal Protocol Implementers Award for being Ozone friendly. This accolade from Canada gave Sri Lanka first ever Ozone friendly tea status in the world . Methyl Bromide (MeBr) is a popular pest control agent used in tea plant nurseries the world over . As per 1987 Montreal Protocol on avoiding substances that deplete the ozone layer, Sri Lanka tea industry discontinued MeBr usage since 2002 under TRI guidance. Today Sri Lanka is a role model for UNEP. Sri Lanka Tea Board

Lion Logo & GI Logos Lion Logo Registered in 102 countries as a Trade Mark. Ceylon Tea Brands packed in Sri Lanka with 100% Ceylon Tea accorded Lion Logo franchise above a minimum reference standard . GI Logos Linked to area of tea produced. Registered as Certification Marks in Sri Lanka. GI Registration underway in 20 important target markets. Ceylon Tea produced in Sri Lanka eligible to use GI Logos. Brands packed outside Sri Lanka containing 100% Ceylon Tea can also use the GI logos under a licensing system.

AGRO-CLIMATIC TEA GROWING REGIONS OF SRI LANKA Sri Lanka Tea Board

AREA OF TEA PLANTED IN SRI LANKA Elevation Planted (Ha) Share High Grown 41,137 19% Mid Grown 71,018 32% Low Grown 109,814 49% Total 221,969 100

SRI LANKA TEA PRODUCTION ELEVATION WISE (Mn. KGS) Year High Grown (%) Mid Low Total 2007 72.5 24 54.4 17 177.7 59 304.6 2008 84.4 26 49.0 15 185.3 318.7 2009 72.8 25 44.7 173.1 60 290.6 2010 79.1 56.1 196.2 331.4 2011 78.2 52.6 16 196.7 327.5 2012 72.7 22 52.3 201.2 62 326.3 2013 75.8 56.2 208.3 340.3 2014 78.8 23 49.2 210.0 338.0 2015 76.9 49.7 202.4 329.0 Sri Lanka Tea Board

Sri Lanka Tea Production

SRI LANKA TEA EXPORTS (Mn. KGS) 2008 2009 2010 2011 2012 2013 2014 2015 Bulk 178.0 164.6 176.8 179.2 186.6 191.3 185.2 188.7 Packets 84.3 75.5 89.8 95.7 94.9 93.7 104.1 85.9 Tea Bags 20.3 18.7 25.7 23.9 20.6 24.1 26.3 19.9 Others 18.6 21.2 13.5 4.4 4.0 2.0 2.2 4.5 Re-Exports 10.6 19.4 18.9 8.6 9.5 8.0 Total 319.8 290.6 305.7 322.6 319.9 319.7 327.3 307.0 Value Billion USD 1.26 1.18 1.44 1.49 1.41 1.54 1.64 1.35 Sri Lanka Tea Board

Major Destinations for Ceylon Tea Rank 2014 2015 Country Qty. M/Kgs % 1 Turkey 44.7 14.1 Russia 36.1 12.1 2 43.6 13.7 33.7 11.3 3 Iran 29.3 9.2 Iraq 31.0 10.4 4 24.4 7.7 29.6 9.9 5 UAE 19.2 6.0 22.9 6 Syria 12.8 4.0 Azerbaijan 11.1 3.7 7 Libya 12.4 3.9 10.9 8 Kuwait 3.8 3.3 9 11.2 3.5 8.7 2.9 10 Japan 9.0 2.8 8.3 M.K

QUANTITIES & PRICES AT GLOBAL TEA AUCTIONS Auction Centers January to December Qty. (MT) Price (US$/Kg.) 2015 2014 Chittagong 63,529 67,122 2.41 2.19 Cochin 54,785 52,670 1.55 1.66 Colombo 315,507 333,523 2.99 3.56 Guwahati 145,428 136,906 2.16 2.3 Jakarta 20,118 26,289 1.56 Kolkata 143,416 142,041 2.47 2.64 Malawi 8,412 9,019 1.43 Mombasa 359,385 390,247 2.73 2.03 WORLD 1,110,580 1,157,817 2.59 2.56

COMPARISON OF PRICES AT DIFFERENT TEA AUCTIONS

“Ceylon Tea” – Certainly the Best Tea in the World The “Lion Logo” on your tea pack signifies 100% Ceylon Tea Sri Lanka Tea Board

THANK YOU. Sri Lanka Tea Board E-mail: promotion@pureceylontea THANK YOU. Sri Lanka Tea Board E-mail: promotion@pureceylontea.com Web : www.pureceylontea.com