Tea exports in 1H hit four-year high

Thursday, 24 July 2025 00:06 - - {{hitsCtrl.values.hits}}

Tea exports reach 126.8 Mnkg in 1H, marking 6% YoY growth
June exports rise 11% YoY to 23 Mnkg, boosting overall 1H performance
Export earnings reach $ 743 m, highest since 2014
FOB value up from $ 5.77 in 2024 to $ 5.87, driven by more value-added products
Iraq emerges as top importer during 1H, Libya makes second place edging over Russia

Sri Lanka’s tea export performance in the first half of 2025 has reached its highest level in four years, driven by strong demand, an improved value-added product share, and rising shipments to key markets, according to Customs data analysed by Asia Siyaka Research.

June tea exports rose to 23 million kilograms (Mnkg), marking an 11% increase compared to the same month last year. This surge pushed total exports during the first half to 126.8 Mnkg, up 6% from 119.1 Mnkg in 2024.

The country earned around $ 743 million from tea exports in the first six months of 2025, making it the highest first-half earnings since 2014. Back then, Sri Lanka exported 157 Mnkg, generating about $ 805 million.

The average Free on Board (FOB) price per kilogram also improved to $ 5.87, compared to $ 5.77 during the same period last year. This rise is largely attributed to the growth in value-added exports, which now account for 59% of total tea shipments.

Notably, Tea in Packets exports rose sharply to make up 46% of all exports, up from 39% a year ago. This shift also caused a drop in Bulk Tea shipments, which fell to 41% from 47%. Tea Bags held steady at 10% of total exports, with volumes rising to 12.5 Mnkg, a 2% year-on-year (YoY) increase. Instant Tea saw the highest percentage growth, jumping 23% YoY to reach 1.6 Mnkg.

On the destination front, Iraq retained its position as the top importer of Ceylon Tea, with imports increasing 28% to 18.7 Mnkg. Libya recorded an exceptional 280% surge, rising from 3 Mnkg to 11.4 Mnkg and moving up the rankings significantly. Russia, traditionally one of Sri Lanka’s largest markets, fell to third place as its import volume declined to 11.2 Mnkg from 13 Mnkg last year.

The strong export figures come even as domestic production faced challenges in June due to irregular weather, underscoring the resilience of Sri Lanka’s tea industry and its strategic pivot towards higher value products and market diversification.

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