SUPPLY CHAIN OF TEA EXPORT IN SRI LANKA

Sri Lanka's tea industry plays a vital role in its economy, contributing significantly to employment, GDP, and foreign exchange earnings. This paper examines the supply chain of tea exports in Sri Lanka, focusing on improving its efficiency, sustainability, and competitiveness in the global market. The research identifies key aspects such as production, processing, logistics, marketing, and regulatory frameworks that influence the tea supply chain. The study employs a qualitative approach, analyzing historical data, trade statistics, and current practices within the industry. It also examines challenges and bottlenecks, particularly those affecting smallholder farmers and exporters. The Supply Chain Operations Reference (SCOR) model is used as the analytical framework to evaluate inefficiencies and recommend strategic improvements. Key findings reveal that Sri Lanka’s tea industry, while globally competitive, faces inefficiencies in logistics, outdated processing technologies, and a lack of modern marketing strategies. The analysis highlights the pivotal role of the Colombo Tea Auction, which handles 70% of tea exports, and the need for enhanced transparency and quality standards in the auction process. To address these issues, the study recommends adopting sustainable agricultural practices, upgrading processing technologies, and improving logistics infrastructure. Enhanced marketing strategies, including leveraging digital platforms, are also critical for positioning Ceylon tea as a premium product globally. The paper calls for collaboration between government and private stakeholders to implement these strategies and ensure the long-term success of Sri Lanka’s tea export industry. By implementing these recommendations, Sri Lanka can safeguard its tea industry’s competitiveness while supporting economic development and maintaining its position as a leading global tea exporter.