Sri Lanka tea prices rise after rupee depreciation

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

Feb 17, 2012 (LBO) – Prices of Sri Lankan teas rose at the Colombo auctions this week with brokers attributing the increase to the fall in the value of the rupee against the dollar after the central bank stopped defending the currency. “There was improved demand,” Forbes & Walker Tea Brokers said in a report. “The improved activity this week could be attributed primarily to the strengthening of the US dollars vis-à-vis the rupee.”

They said teas from the western planting districts, which yield their best quality at this time of year, were improved.

“There was better demand, particularly, for the improved Westerns which moved up 20-30 rupees a kilo following quality.”

Asia Siyaka Commodities also said there was “good general demand” but that prices realized “did not fully reflect the depreciated rupee.”

Demand for low grown teas, which make up the bulk of the crop, was also better, the brokers said.