Thursday Jul 16, 2026
Thursday Jul 16, 2026
Thursday, 16 July 2026 02:50 - - {{hitsCtrl.values.hits}}
Sri Lanka’s tea production rebounded in June with a 4% year-on-year (YoY) increase, although output for the first half of 2026 remained under pressure from extreme weather, the lingering impact of Cyclone Ditwah, and soaring fertiliser prices, according to preliminary data released yesterday by the Sri Lanka Tea Board.
National tea production for June totalled 22.5 million kilograms (MnKg), compared with 21.7 MnKg recorded in the corresponding month of 2025.
Analysing the latest figures, Asia Siyaka Research said the improvement was driven entirely by stronger production from the High and Medium Grown elevations, while Low Grown production continued to weaken.
High Grown tea production rose by a robust 18% to 5 MnKg, up from 4.2 MnKg a year earlier, while Medium Growns increased 7% to 4.2 MnKg, compared with 3.9 MnKg in June 2025. However, Low Grown production fell to 13.3 MnKg, marking the lowest June output in the past four years.
Despite the stronger June performance, cumulative tea production for the first six months of the year stood at 131.8 MnKg, reflecting the challenges faced by the industry.
Asia Siyaka said prolonged adverse weather conditions and disruptions caused by Cyclone Ditwah last November had significantly affected crop yields during the first half of the year.
The research firm also highlighted the sharp rise in fertiliser prices following the Gulf conflict, which discouraged many smallholders from applying adequate fertiliser during the first and second quarters, further weighing on production.
During the first half of 2026, the High Grown sector, largely cultivated by Regional Plantation Companies (RPCs), produced 30.8 MnKg, a marginal improvement over 30.4 MnKg recorded in the corresponding period last year.
Medium Growns declined 5% to 24.3 MnKg from 25.4 MnKg, while Low Growns fell 4% to 76.6 MnKg, compared with 79.8 MnKg during the first half of 2025, effectively reversing last year’s production gains.
The industry warned that the outlook for the tea sector remains uncertain as fertiliser prices continue to rise following renewed hostilities in the Gulf region.
They stressed that timely policy intervention would be critical if Sri Lanka is to meet growing global demand for Ceylon Tea.
“In particular, providing a targeted fertiliser subsidy to the smallholder sector would help sustain production and improve yields,” they added.
They also urged authorities to implement such support without delay, noting that anticipated El Niño conditions in the fourth quarter of 2026 could place further pressure on tea production and threaten output during the remainder of the year.
