State-owned Kalubowitiyana Tea reports record profits and high prices paid to tea smallholders

Kalubowitiyana Tea Factory Ltd (KTFL), iIncorporated on September 30, 1992 as a public company fully owned by the government of Sri Lanka, operates four tea factories which directly contribute to the national grid.

The main factory located in Kalubowitiyana produces the record setting low grown CTC tea while the other three factories produce orthodox tea. The four factories located in Kalubowitiyana and Derangala in the Matara District, Hiniduma Hills in the Galle District and Menikdiwela in the Kandy District are committed to enriching the lives of over 4,000 tea smallholders, while supporting the livelihoods of over 350 employees. This economic benefit and stability that KTFL provides to 10,000+ people, is no small feat given the severe economic difficulties facing the country today, the company said in a media release.

Kalubowitiyana Tea has steered through the volatility to close their first quarter of 2022/23 with a revenue of Rs. 583 million and a net profit of Rs. 222 million. Aminda Rodrigo, Chairman of Kalubowitiyana Tea, said the company has recorded the all-time highest price for low grown CTC tea at more than a staggering 50 per cent of the twelve auctions held so far, peaking at a selling price of Rs. 3250 in the current financial year.

Furthermore, in July 2022, the company offered the tea smallholders that supply the award winning grades of low grown CTC tea, with a record breaking compensation of Rs. 434.82 per kilo.

Plantation Minister Dr. Ramesh Pathirana said that profits are often an indication of strong leadership and Kalubowitiyana Tea has the privilege of operating under a transparent process of governing which aims to build a legacy appointed through ethical business practices that encourage growth and sustained stability.