CTTA calls for stable exchange rate amid rupee appreciation

Friday, 26 April 2024 02:47 - - {{hitsCtrl.values.hits}}

Colombo Tea Traders Association Chairman Sanjaya Herath

CTTA Chairman Sanjaya Herath highlights challenges posed by fluctuating exchange rates on global competitiveness
Urges for stable exchange rate to mitigate impact on export prices
Warns of potential market diversification and long-term consequences
Expresses confidence in Govt.’s efforts to address issue

By Charumini de Silva

The Ceylon Tea Traders Association (CTTA) Chairman SanjayaHerath Wednesday said the appreciation of the rupee has emerged a pressing concern for the industry, highlighting its significance and implications for the sector. “It is a very critical issue for the industry right now and it is a topic that is being spoken out loud at every forum,” he said in response to questions posed at the media conference held to announce the upcoming Colombo International Tea Convention yesterday.

Drawing comparisons with other tea-producing countries, particularly India, Herath pointed out the contrasting trends in currency valuation.

“While the Indian rupee has witnessed a gradual depreciation in recent months, the Sri Lankan rupee has shown signs of appreciation. This fluctuation poses challenges for the industry, especially concerning competitiveness in the global market,” he added.

He said the plea for a stable exchange rate reflects broader industry sentiments and concerns regarding the impact of currency fluctuations on export competitiveness and market dynamics.

Addressing concerns over the impact of a stronger rupee on export prices, Herath highlighted the potential for market diversification among buyers seeking alternative tea origins with more favourable pricing structures.

Such a shift, he warned, could have long-term repercussions on Sri Lanka’s tea exports and the overall economy.

CTTA Chairman reiterated the industry’s plea for a consistent and predictable exchange rate regime, whilst acknowledging the complexities involved in achieving such stability.

However, he expressed confidence in the Government’s efforts to address the issue and underscored the importance of a collaborative approach between industry stakeholders and policymakers.