Tea exports dip 5% in August

Wednesday, 23 September 2026 05:24 - - {{hitsCtrl.values.hits}}

Tea exports during the first eight months of 2026 have declined by 5% year-on-year, with shipments continuing to be affected by higher freight and insurance costs and access disruptions in key markets.

Data analysed by Asia Siyaka Commodities PLC Research records tea exports of 22.8 Mnkg in August 2026, down 4% from the 23.7 Mnkg shipped during the corresponding month last year.

Cumulative exports for the eight-month period stood at 166.3 Mnkg, compared with 174.2 Mnkg recorded during the same period last year, reflecting a decline of approximately 5%.

Despite the lower export volumes Sri Lanka Rupee earnings have remained relatively stable, declining marginally from Rs. 306.5 billion to Rs. 305.6 billion, due to depreciation of the currency. However, when converted into US dollar terms, export earnings amounted to approximately US$948 million, compared with US$1.026 billion during the corresponding period last year.

The decline in export earnings in US dollar terms has been compounded by the sharp increase in freight and insurance costs. On the Positive side quantities offered at the Colombo Tea Auctions continue to be sold without major disruption.

The average FOB value during the eight-month period worked out at approximately US$5.70 per kg, which is 3% lower than the US$5.88 per kg recorded during the corresponding period last year.

Turkey has retained its position as Sri Lanka’s leading export destination, with shipments almost doubling to 24.7 Mnkg, compared with 12.4 Mnkg during the corresponding period last year.

Exports to Iraq, however, have declined sharply by 45% to 14.4 Mnkg. Shipments to Russia were also down by 10%, from 14.7 Mnkg to 13.3 Mnkg.

Azerbaijan has recorded significant growth, with exports increasing by approximately 20% to 7.1 Mnkg, compared with 5.9 Mnkg a year earlier.

Exports to China have continued to disappoint, declining by 18% to 5.5 Mnkg, from 6.8 Mnkg during the corresponding period last year.

Shipments to and through Libya have declined sharply by 62% to 5.4 Mnkg. In contrast, exports to and through Jordan have increased significantly, rising by approximately 39% from 3.7 Mnkg to 5.2 Mnkg by the end of August this year.

Chile recorded a sharp 36% decline, with exports falling from 7.7 Mnkg to 4.9 Mnkg, while shipments to Saudi Arabia declined by 19% to 4.7 Mnkg.

Exports to Syria were down 14% to 4.7 Mnkg, while Germany remained relatively steady at 4.5 Mnkg.

The UAE’s role as a major transit hub for Sri Lankan tea has come under severe pressure, with shipments declining by 65% from 12.7 Mnkg to 4.4 Mnkg during the first eight months of the year.

The significant contraction in volumes through the UAE highlights the changing dynamics in regional tea distribution and the impact of disruptions affecting traditional trading and transit routes.

Asia Siyaka Commodities PLC said overall, while Sri Lanka’s tea export volumes have contracted during the first eight months of 2026, the relatively marginal decline in Rupee earnings reflects the continued strength of export prices in local currency terms. However, the lower US dollar earnings and declining average FOB value, together with elevated freight and insurance costs, remain key challenges for the industry.