Sri Lanka tea auctions reel from IMF SVAT shock

ECONOMYNEXT – Sri Lanka tea auction prices plunged for the second week with prices down over 100 rupees kilogram as buyers reduced purchases to avoid keeping stocks for which value added tax had to be paid upfront, tea sector officials said. The most badly hit are ex-estate sales (high growns), linked to regional plantations companies, industry sources said. At the auction on October 14/15 tea prices fell around 20 to 50 rupees across elevations on top of a fall of 50 – 80 across rupees the previous week, broker data show. “Exporters now have to pay VAT upfront so the…

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