Privatisation gone wrong: The corporate tea sector of Sri Lanka

Abstract

The tea industry was introduced to Sri Lanka by the British in 1867. Overtime Ceylon Tea has grown to become an internationally-reputed, quality product and one of the key exports for the Sri Lankan economy. However today, the industry's future is clouded because the policies that are being implemented are not market driven. In 1992, when it was decided that the management of the tea industry would be privatised, 40% of the supply chain went through radical change with new thinking from leadership to harvesting. However, given that the ownership of the tea estates was with the Government, the private sector has been faced with many issues that have caused the industry to lose its competitiveness. The authors recommend a Strategic Evaluation Mechanism (SE Framework) as a basis by which a private public dialogue can take place and thereby force decisions to be taken in a more informed manner. © 2014 Inderscience Enterprises Ltd.