Tea export earnings cross $ 1 b by August

Wednesday, 24 September 2025 00:36 - - {{hitsCtrl.values.hits}}

Tea exports up 7% YoY, highest since 2014
FOB value climbs to $ 5.88/kg, up from $ 5.80 in 2024
Value-added share grows to 58% of total shipments from 53% last year
Iraq, Russia, and Libya remain top three markets, with Libya up 198% YoY

Sri Lanka’s tea export earnings in the first eight months of 2025 has reached its highest level since 2014, according to Customs data analysed by Asia Siyaka Research.

Sri Lanka exported 174.5 million kilograms (Mnkg) of tea during the period January-August 2025, up 7% from 162.5 Mnkg a year earlier, earning an export revenue of Rs. 306 billion or $ 1.2 billion in the eight-month period, compared to Rs. 288 billion or $ 942 million a year ago.

“Interestingly the 2025 US dollar earnings for the period ending August are the highest since 2014 when the country recorded $ 1.09 billion. In that year, however, the total quantity shipped for the period was 214 Mnkg,” Asia Siyaka Research said.

The approximate FOB value per kilo therefore, converts to $ 5.88 per kilogram, higher than $ 5.80 achieved last year and significantly up on the comparable 2014 number of $ 5.09.

A review of the segments that make up total exports has Bulk Tea shipments accounting for 42% of the total while Packet Tea has grown to 45% from 40% a year ago.

Tea Bag exports have held steady at 10% of the total, while growing quantity from 16.6 to 17.2 Mnkg this year. High value instant tea has grown from 1.8 to 2.2 Mnkg, while green tea exports have remained steady at 2% of the total. Total value-added exports have therefore risen to a 58% of the total compared with 53% last year.

A review of the prime destinations for Sri Lanka tea exports has Iraq topping the list with a quantity of 26 Mnkg amounting to 15% all shipments. Coming in second is Russia with imports of 14.7 Mnkg, but lower than the quantity of 16.5 Mnkg imported in 2024.

Export to and through Libya has jumped a massive 198% YoY from 4.8 Mnkg to 14.3 Mnkg by end August 2025. The UAE follows with a quantity of 12.7 Mnkg and shipments to Turkey are at 12.4 Mnkg.

Export to Iran have risen 6% to 8.3 Mnkg and is followed by Chile whose imports have grown 37% YoY to 7.7 Mnkg. Exports to China had declined to 6.8 Mnkg and Azerbaijan 5.9 Mnkg and Saudi Arabia 5.8 Mnkg round off the top ten destinations.