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CTC announced the closure of two leaf deposits

Ceylon Tobacco Company PLC announced (CTC) announced today that it will close its deposit sheets located in Anuradhapura and Sigiriya. In December 2016, the company announced that it was considering the closure of 4-leaf deposits, due to the sharp decline in demand for leaf snuff due to lower volumes. In the first phase, CTC operations installed in Anuradhapura and Sigiriya, beginning with the closure of the two sheets deposits. It is estimated that the closure of the two deposits will affect the livelihoods of about 2,000 people dependent on the agriculture of snuff, which can lose about Rs. 200 million annual turnover.

"It is no secret that higher tax and VAT in October and November last year, which led to a dizzying 43% increase in legally manufactured cigarettes, had an impact on our business activities and In Sri Lanka. On several occasions, we stressed that any impact on our activities would have a ripple effect on the livelihoods supported by our value chain, and it is regrettable that policymakers ignored these Legal snuff of the industry and now we see the unexpected results of these actions, "said Michael Koest, CTC's Chief Executive Officer and Chief Executive Officer. The company also suffered a 20% Of heads in early 2017 due to the reduction of one shift at its Colombo plant.

The increase in the retail price of cigarettes and the consequent decline in volumes has jeopardized the viability of a company that has been operating legally in Sri Lanka for more than 100 years. This could be catastrophic for the supported livelihoods throughout the company's value chain. Currently, the CTC directly and indirectly employs more than 46,000 people and supports about 300,000 livelihoods at various stages of our business, from snacking to distribution and selling their products.

"Source of all our locally sourced tobacco leaf over 20,000 farmers and infuse about Rs. 2 billion to the rural economy each year with our agricultural activities only.We collaborate with these farmers and guarantee the purchase of its full crop A previously agreed competitive price No other agricultural community in Sri Lanka has benefited from the services and support our farmers have enjoyed for decades We are concerned that the impacts on our communities have a profound impact on local communities and rural economies The legal snuff industry, "says Koest.

High prices of legal cigarettes have also led smokers to products such as beedi smuggling or cigarettes, indicating that smokers are replacing cigarettes for cheaper legal and illegal alternatives. As a result, the government lost $ 13 billion in excise tax revenues during the last quarter of 2016. The company says it overcomes the government's main objectives of increasing tobacco taxes, Improve public health and increase incomes.

 
 

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