Friday Mar 27, 2026
Friday Mar 27, 2026
Thursday, 26 March 2026 00:00 - - {{hitsCtrl.values.hits}}
Sri Lanka’s tea exports experienced a marginal setback in February, though cumulative performance for the first two months of the year indicates steady momentum, supported by improved rupee earnings and stronger value realisation.
Exports in February totalled 19.92 million kilograms (M/Kgs), reflecting a decline of 0.48 M/Kgs compared to 20.40 M/Kgs recorded in February 2025.
The data analysed by Forbes & Walker Research noted that the drop was largely driven by weaker performance in Bulk Tea, Tea Bags, and Green Tea, while Tea Packets and Instant Tea managed to post gains against the corresponding month last year.
Despite the contraction in volumes, the Free on Board (FOB) value in rupee terms strengthened. The average FOB value for February 2026 rose to Rs. 1,785.76 per kilogram, marking an increase of Rs. 48.24 year-on-year (YoY) from Rs. 1,737.52 in February 2025.
However, in US dollar terms, overall earnings declined, with only the Tea Bag category recording a positive variance of $ 0.24 compared to the same period last year, suggesting that currency movements and global pricing pressures may have diluted dollar-denominated gains.
In contrast to February’s monthly dip, cumulative exports for January-February showed a positive trajectory. Total shipments reached 40.63 M/Kgs, up by 0.86 M/Kgs from 39.77 M/Kgs during the same period in 2025. Notably, all product segments registered positive volume variances in the two-month period, underscoring broader sector resilience at the start of the year.
The cumulative FOB value for January-February stood at Rs. 1,804.08 per kilogram ($ 5.83), reflecting a significant increase of Rs. 73.75 compared to Rs. 1,730.34 during the corresponding period last year.
Forbes & Walker Research noted that all segments, with the exception of Instant Tea, recorded gains in FOB value in rupee terms. In dollar terms, Tea Bags and Green Tea showed improvements, while Bulk Tea, Tea Packets, and Instant Tea recorded negative variances compared to early 2025.
The data highlights a mixed but encouraging pattern; moderate growth in volumes combined with improved rupee returns, even as dollar earnings remain under pressure.
Among major markets, Iraq retained its position as the leading importer of Ceylon Tea in February, purchasing 6.53 M/Kgs, a 9% increase from 5.96 M/Kgs in February 2025. Türkiye recorded the most dramatic growth, climbing to second position with imports of 4.40 M/Kgs, marking a sharp 124% YoY surge from 1.97 M/Kgs.
Russia slipped to third place with 3.72 M/Kgs, reflecting a 9% decline compared to the 4.09 M/Kgs recorded in February 2025. The United Arab Emirates (UAE) ranked fourth with 2.19 M/Kgs, an 8% decrease YoY, while Azerbaijan matched that volume at 2.19 M/Kgs, but registered a robust 46% increase.
Saudi Arabia imported 1.63 M/Kgs, up 2% from last year. Chile and China secured the seventh and eighth positions with 1.49 M/Kgs and 1.37 M/Kgs, respectively. Libya and the US moved into the ninth and tenth spots, importing 1.33 M/Kgs and 1.27 M/Kgs during the month.
The strong performance in Türkiye and Azerbaijan partially offset softer demand from traditional buyers such as Russia and the UAE, signalling evolving trade flows and shifting market dynamics.
Analysts opined that with ongoing geopolitical tensions in the Middle East, March performance is likely to see major shifts in market dynamics. Thus, sustaining price competitiveness in dollar terms and consolidating gains in high-growth markets such as Türkiye will be crucial in navigating global uncertainties and demand fluctuations and currency pressures in the months ahead.
With tea remaining one of Sri Lanka’s top foreign exchange earners, maintaining diversified market access and value-added product growth will be key to sustaining export momentum in 2026.
