| Rupee float will boost tea exports - Daily News
The sharp devaluation of the Sri Lankan rupee following its free float last week should boost Ceylon tea exports in the long run.
Brokers Asia Siyaka Commodities said teas at the Colombo auctions were effectively cheaper after the devaluation.
Minister of Industrial Development and Deputy Finance Minister Professor G. L. Peiris told Parliament the move would support the island's three main foreign exchange earners - Ceylon tea exports, textiles exports, and remittances from expatriate workers.
The local currency wildly last week starting from 85 to the dollar and hitting the 100 rupee mark before settling down to around 90.
News of the free float came halfway through the tea auctions on Tuesday, January 23, and brokers said there was some uncertainty among buyers because of fears the rupee would fall further.
Although teas were suddenly cheaper, prices fell owing to a bigger than usual volume and lower quality, brokers said.
Last week happened to have a very large volume of 7.6 million kg which added to the downward pressure on prices, brokers John Keells said.
The Central Bank has kept the capital account closed and imposed administrative controls to keep the rupee from plunging.
It has restricted commercial banks from carrying overnight positions of over one million dollars to prevent speculation while exporters have been required to remit their foreign exchange earnings within 90 days from sales or pay a deterrent interest.
Central Bank officials said the bank would intervene to prevent the rupee from going into a free fall and would like to see the currency settling at between 86.50 - 87 to the dollar.
Balance of payments support from lending agencies may also help shore up the rupee.
Tuesday 30, January 2001
Daily News- Sri Lanka
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| Iran Issues Permits for Import of 10,000 Tons of Tea- Asia Pulse
TEHRAN, Jan 29 Asia Pulse - Managing Director of State Tea Organization Mohammad-Ali Najafi said Wednesday that licenses were issued for the import of 10,000 tons of tea during the 2000-2001 period.
Najafi told IRNA that permits for tea imports will be available only to exporters and tea production factories.
He put the domestic tea production at about 44,000 tons and the annual per capita consumption at 1.3 kg to 1.5 kg.
Asia Pulse
Monday, 29th January 2001
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