SRI LANKA TEA BOARD

Sri Lanka Tea Board: Strengthening the Competitive Edge of Ceylon Tea

The Sri Lanka Tea Board (SLTB) is the most authoritative regulatory body overseeing Ceylon Tea’s global presence, ensuring its quality, authenticity, and market competitiveness. As the legal proprietor of the Lion Logo, the SLTB plays a critical role in upholding the prestige and heritage of Sri Lanka’s most renowned export.

Market Landscape & Competitive Challenges

The market for pure, unblended teas, including Pure Ceylon Tea, is considered a niche segment, accounting for just 10% of the global tea market. Despite its legacy as a premium tea producer, Sri Lanka has been facing increased competition—notably from Kenyan tea, which has been steadily capturing a greater market share at Sri Lanka’s expense.

Furthermore, over 50% of Sri Lanka’s tea exports remain in bulk form, while value-added tea products such as green tea, flavored tea, organic tea, instant tea, iced tea, and ready-to-drink tea contribute to approximately 40-45% of total exports. However, it is the value-added segment that yields higher margins, making it crucial for Sri Lanka to shift its focus toward premium and innovative tea offerings.

The Lion Logo: A Symbol of Quality & Market Differentiation

To protect the integrity of Pure Ceylon Tea, the Sri Lanka Tea Board regulates the use of the Lion Logo, a globally recognized certification mark registered in 98 countries. To display the Lion Logo, a tea brand must meet four strict criteria:
The logo must only appear on consumer-packaged products (not bulk tea).
The tea must be 100% Pure Ceylon Tea, with no blends or foreign additions.
The tea must be grown, processed, and packed entirely in Sri Lanka.
The brand must conform to the quality standards set forth by the Sri Lanka Tea Board.
Restricting the use of the Lion Logo to licensed brands guarantees the integrity of Ceylon Tea, helping to attract discerning global consumers who seek certified quality products.

Evolving Consumer Preferences & The Need for Strategic Innovation

Global tea consumption trends are shifting toward more convenient and innovative products, such as ready-to-drink teas, specialty blends, and functional teas with health benefits. While Sri Lanka enjoys a competitive advantage due to its unique terroir, climate, and traditional processing methods, the industry faces challenges in international marketing, branding, and value addition.

Additionally, rising production costs, including higher wages, fuel prices, and utility expenses, have put pressure on tea producers, making it imperative to move away from bulk exports and focus on premium packaging and global branding strategies.

Sri Lanka Tea Board’s Role in Safeguarding the Future of Ceylon Tea

As the guardian of Ceylon Tea, the Sri Lanka Tea Board is actively engaged in market expansion, research, and innovation to help Sri Lanka retain its competitive edge. It continues to:

  • Promote Pure Ceylon Tea through global marketing campaigns.
  • Support exporters in transitioning from bulk tea to value-added products.
  • Ensure compliance with Sri Lanka Tea Board quality standards to maintain global trust.
  • Strengthen Ceylon Tea’s identity as both a geographical indicator and a cultural symbol of Sri Lanka.

As the fourth-largest tea producer and third-largest exporter in the world as of 2019, Sri Lanka’s tea industry remains a pillar of its economy. However, to sustain its position in a rapidly evolving global market, the country must embrace value addition, premium branding, and strategic marketing—areas where the Sri Lanka Tea Board continues to play an indispensable role.

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