Serious problems have arisen regarding the 15 percent increase in electricity tariffs, which has also become a threat to the tea industry, says former President of the Tea Exporters Association, Dhanesh Devanayagam.
He noted that the increase in electricity tariffs has increased the cost of production and profits, making it difficult to face direct competition with competitors such as India and Kenya.
“Since the rupee has strengthened, the cost of importing fuel and coal required for electricity has also decreased. It also costs very little to obtain electricity from hydroelectric power plants,” he emphasized.
Accordingly, he stated that he does not understand the need to increase electricity tariffs at this time.
He further emphasized that if Sri Lanka’s tea exports are hampered due to the increase in production costs, there could be severe economic impacts on the 2 million people who directly depend on the tea industry.
Against this backdrop, he stated that the authorities should give this change a thorough consideration.