Friday Oct 30, 2026
Friday Oct 30, 2026
Friday, 30 October 2026 00:06 - - {{hitsCtrl.values.hits}}
Commercial Bank Deputy General Manager Personal Banking S. Ganeshan (centre) at the signing of a loan agreement with Jayasinghe Tea Factory, in the presence of (from left) Sri Lanka Tea Factory Owner’s Association Coordinating Manager Harshi Perera, Jayasinghe Tea Factory Partner Amal Jayasinghe, Sri Lanka Tea Factory Owner’s Association Chairman Lionel Herath, Commercial Bank Assistant General Manager Personal Banking Mithila Shamini, and Commercial Bank Development Credit Department Senior Manager Malika De Silva and Manager W.T.C. Lasantha
The Commercial Bank of Ceylon has introduced a dedicated loan scheme to revitalise Sri Lanka’s tea industry, enabling tea smallholders to invest in the renewal of ageing tea fields, improve cultivation practices and strengthen the productivity and sustainability of one of the country’s most important export sectors
The ‘Revitalising the Sri Lankan Tea Sector’ Loan Scheme, developed in collaboration with the Sri Lanka Tea Factory Owners Association (SLTFOA) and participating tea factories, seeks to address a critical constraint facing the industry: limited access to affordable financing for the long-term investments needed to sustain tea production and improve farmer incomes.
Sri Lanka’s tea industry generated approximately $ 1.51 billion in export revenue in 2025 and supports more than 400,000 tea smallholder families, contributing to the livelihoods of nearly 1.5 million people across rural communities. Yet, despite the global reputation of Ceylon Tea, the sector faces challenges including declining national production, ageing tea bushes, inadequate replanting, soil degradation and the financial constraints that prevent many farmers from investing in more productive cultivation.
Tea smallholders account for more than 70% of national tea production, making their capacity to maintain and improve their lands central to the future of the industry. By directing financing towards essential cultivation improvements, Commercial Bank said this timely initiative aims to help address these challenges while safeguarding the rural communities whose livelihoods depend on tea.
The scheme’s distinguishing feature is its industry-linked financing model, which brings together the bank’s financial expertise, the SLTFOA’s industry network and the tea factories maintained by tea smallholders. Moving beyond standard banking services, this collaborative approach is designed to connect eligible farmers with the funding they need to renew their tea lands and improve productivity.
The financing is available for replanting and infilling, soil rehabilitation, land preparation, the purchase of certified planting material and agricultural inputs, nursery establishment, mechanisation, modern agricultural practices and irrigation systems. These investments are intended to help farmers replace ageing bushes, fill vacant spaces in existing fields and make more productive use of their tea-growing land.
Under the scheme, eligible tea smallholders can obtain loans of up to Rs. 1 million per acre for replanting and infilling, or up to Rs. 1.5 million per acre for replanting and infilling with an irrigation system. The loan scheme has been designed with tailor made features to support tea cultivation projects. Repayments will be made through deductions linked to green-leaf deliveries to factories, with a corporate guarantee from the tea factory serving as security.
The bank said eligible applicants must be registered tea smallholders supplying green leaf to recognised tea factories that are members of the SLTFOA. Applicants must also meet the Bank’s lending and repayment-capacity requirements. Priority will be given to farmers with aged tea bushes, low-productivity holdings and those undertaking replanting or rehabilitation, while female participation will be encouraged, the Bank said.
Beyond its immediate beneficiaries, the initiative is intended to contribute to the continued competitiveness of Ceylon Tea in international markets by supporting a healthier production base. It also demonstrates how collaboration between financial institutions and industry stakeholders can help address structural challenges in agriculture, where the benefits of investment often depend on a longer-term commitment to land, cultivation and productivity.
