The study, a part of an on-going project, focuses on the need for increasing value added tea in Sri Lanka’s exports. The study analyses the performance of a past policy initiative to promote higher value added teas under a duty free import regime for value added re-exports. The objective was to consider the re-introduction of such a policy in the future for promoting higher value added tea re-exports. The study attempted to calculate the value addition to the local economy from re-exports, and assess the views of local industry stakeholders on the suitability of a re-export regime for the tea industry. In addition, the study focused on a number of miscellaneous issues, including the suitable policy regime to promote re-exports, the tariff regime, a quota regime based on production, and the potential of an Export Processing Zone to promote manufactured exports.
Liberalizing Imports of Foreign Orthodox Teas for Value Addition in Sri Lankan Tea Exports
Thushari de Zoysa