Sri Lanka is world renowned for its high quality Ceylon tea. In a misguided attempt to raise the standard of living of Sri Lankan tea consumers the government introduced price controls on tea in 2015 – tea vendors are only permitted to charge a maximum price of US7 cents per cup of plain tea and US17 cents for a cup of tea containing milk. This has a number of devastating unintended consequences,
not only for poor tea vendors who cannot earn a sufficient return on their investments, but also for consumers who can no longer receive their morning cup of quality tea that they are accustomed to. Predictably, tea vendors have reacted to the introduction of price controls by adjusting the size of the serving and by reducing the quality of their products and services. As a result of the price controls most of the country’s tea is exported since the local market for their highest quality tea has been destroyed. Tea vendors are restricted to supplying only the lowest quality offering and consumers choice has been severely curtailed
Join our cause to secure a free, vibrant Sri Lankan economy, where the heavy hand of government does not crush the aspirations of small businesses, and where ordinary people are afforded the dignity and liberty to interact and cooperate to their mutual advantage.
