ComBank launches dedicated loan scheme to revitalise Sri Lanka’s tea industry

Industry-linked financing initiative targets renewal of ageing tea fields, improve productivity and empower tea smallholders 

The Commercial Bank of Ceylon has introduced a dedicated loan scheme to revitalise Sri Lanka’s tea industry, demonstrating its strategic initiatives designed to penetrate the Small and Medium Enterprise (SME) sector and the rural micro-economy and catalyse sustainable growth across the national tea industry. 

The new loan scheme enables tea smallholders to invest in the renewal of ageing tea fields, improve cultivation practices and strengthen the productivity and sustainability of one of the country’s most important export sectors. 

The ‘Revitalizing the Sri Lankan Tea Sector’ Loan Scheme, developed in collaboration with the Sri Lanka Tea Factory Owners Association (SLTFOA) and participating tea factories, seeks to address a critical constraint facing the industry: limited access to affordable financing for the long-term investments needed to sustain tea production and improve farmer incomes. 

Sri Lanka’s tea industry generated approximately US$ 1.51 billion in export revenue in 2025 and supports more than 400,000 tea smallholder families, contributing to the livelihoods of nearly 1.5 million people across rural communities. Yet, despite the global reputation of Ceylon Tea, the sector faces challenges including declining national production, ageing tea bushes, inadequate replanting, soil degradation and the financial constraints that prevent many farmers from investing in more productive cultivation.

Tea smallholders account for more than 70% of national tea production, making their capacity to maintain and improve their lands central to the future of the industry. By directing financing towards essential cultivation improvements, Commercial Bank said this timely initiative aims to help address these challenges while safeguarding the rural communities whose livelihoods depend on tea.

The scheme’s distinguishing feature is its industry-linked financing model, which brings together the Bank’s financial expertise, the SLTFOA’s industry network and the tea factories maintained by tea smallholders. Moving beyond standard banking services, this collaborative approach is designed to connect eligible farmers with the funding they need to renew their tea lands and improve productivity. 

The financing is available for replanting and infilling, soil rehabilitation, land preparation, the purchase of certified planting material and agricultural inputs, nursery establishment, mechanisation, modern agricultural practices and irrigation systems. These investments are intended to help farmers replace ageing bushes, fill vacant spaces in existing fields and make more productive use of their tea-growing land. 

Under the scheme, eligible tea smallholders can obtain loans of up to Rs. 1 million per acre for replanting and infilling, or up to Rs. 1.5 million per acre for replanting and infilling with an irrigation system. The loan scheme has been designed with tailor made features to support tea cultivation projects. Repayments will be made through deductions linked to green-leaf deliveries to factories, with a corporate guarantee from the tea factory serving as security.

Eligible applicants must be registered tea smallholders supplying green leaf to recognised tea factories that are members of the SLTFOA. Applicants must also meet the Bank’s lending and repayment-capacity requirements. Priority will be given to farmers with aged tea bushes, low-productivity holdings and those undertaking replanting or rehabilitation, while female participation will be encouraged, the Bank said.

Commercial Bank’s initiative reflects its recognition that the long-term health of the tea industry is closely linked to the economic resilience of rural Sri Lanka. By helping tea smallholders overcome financial barriers to essential cultivation investments, the scheme seeks to support stronger productive capacity, more sustainable farming operations and improved income-generating potential. 

Beyond its immediate beneficiaries, the initiative is intended to contribute to the continued competitiveness of Ceylon Tea in international markets by supporting a healthier production base. It also demonstrates how collaboration between financial institutions and industry stakeholders can help address structural challenges in agriculture, where the benefits of investment often depend on a longer-term commitment to land, cultivation and productivity. 

Through the ‘Revitalizing the Sri Lankan Tea Sector’ Loan Scheme, Commercial Bank is extending its role beyond financing to supporting the renewal of a vital national industry, helping tea smallholders invest in the future of their lands, their livelihoods and Sri Lanka’s enduring tea heritage.

Commercial Bank was the first Sri Lankan bank to achieve a market capitalisation exceeding US$ 1 billion. The Bank emerged as the No. 1 ranked Sri Lankan bank in the 2026 edition of the prestigious Top 1000 World Banks ranking published by The Banker magazine, UK. The Bank has the highest capital base among all Sri Lankan banks, and is one of the largest private sector lenders in Sri Lanka. Ranked No. 1 in the Business Today Top 40, Commercial Bank is recognised as the most respected and most-awarded bank in Sri Lanka, is a leader in digital innovation and is the country’s first 100% carbon-neutral bank.

Commercial Bank operates more than 270 strategically-located branches and an extensive network of automated machines island-wide, and has the widest international footprint among Sri Lankan banks, with 21 branches in Bangladesh, a majority stake in a fully-fledged Tier I Bank in the Maldives, a microfinance company in Myanmar, and a representative office in the Dubai International Financial Centre (DIFC). The Bank’s fully-owned subsidiaries, CBC Finance PLC and Commercial Insurance Brokers (Pvt) Limited, also deliver a range of financial services via their own branch networks.