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Lanka’s tea trade ‘watching’ Iraqi crisis
View(s):While there is no immediate cause for panic, Sri Lanka’s tea industry is ‘watching’ the troubled situation in Iraq, industry sources said. In unfolding violence, an Islamic radical group – the Islamic State in Iraq and Syria (ISIS) — has taken control of some cities in Iraq in the past two weeks, according to foreign news media reports.
Colombo Tea Traders Association Chairman Jayantha Keragala said prices eased at the Colombo Tea Auction this week but it was because of a bumper crop.
On the Iraqi situation, he said a few small-time buyers encountered payment issues but some shipments were taking place. “There is no cause for alarm now but if the crisis continues, then it could be worrying,” he said.
Iraq is Sri Lanka’s fourth largest tea importer, buying an estimated 15 million kilogrammes annually. The tea has been shipped indirectly through Dubai, Jordan and Kuwait due to the war situation (for many years) in Iraq. Other brokers said there was less interest at the auction in teas of a variety that Iraq normally buys.
Earlier this year, during talks between Government officials of both countries, Iraq agreed to facilitate direct tea imports from Sri Lanka.