Sri Lanka to cut production amidst global slowdown
Sri Lanka, the world's fourth-biggest tea grower, announced plans to cut production due to the credit crisis and global economic slowdown. Tea prices have dropped by as much as 40 percent in the past month in Colombo as Russia and countries in the Middle East, Sri Lanka's biggest buyers, reduced purchases because of slowing demand. The Sri Lanka Tea Board has asked plantations to reduce production of cheaper grades of tea and is introducing plans to put forward 5 billion rupees ($46 million) to buy tea and support prices.