Tuesday Jun 23, 2026
Tuesday Jun 23, 2026
Tuesday, 23 June 2026 05:38 - - {{hitsCtrl.values.hits}}
Sri Lanka’s tea exports rebounded in May, with shipments rising 7.5% year-on-year (YoY), but cumulative exports for the first five months of 2026 remained below last year’s levels, highlighting ongoing challenges facing the country’s largest agricultural export sector.
According to data analysed by Forbes & Walker Research, tea exports in May increased to 23.51 million kilos (Mn/Kgs) from 21.87 Mn/Kgs a year earlier, recording a gain of 1.64 Mn/Kgs. All export categories, except Green Tea, posted YoY growth during the month.
Despite the increase in volumes, export prices remained under pressure. The average Free on Board (FOB) value declined marginally by Rs. 3.61 YoY to Rs. 1,800.70 per kilogram from Rs. 1,804.31 in May 2025.
Although most categories recorded higher values in rupee terms, all tea segments registered lower returns in US dollar terms, reflecting pricing pressures in international markets and currency movements.
The stronger May performance was insufficient to reverse the decline recorded earlier in the year. Cumulative exports for January-May 2026 stood at 101.85 Mn/Kgs, down 1.43 Mn/Kgs from the 103.28 Mn/Kgs exported during the corresponding period of 2025.
All major export segments, except Instant Tea and Green Tea, registered lower volumes during the first five months of the year.
Nevertheless, the sector delivered improved returns in local currency terms. Average FOB value for the January-May period increased by Rs. 41.12 to Rs. 1,797.58 per kilogram, compared with Rs. 1,756.46 a year earlier.
In contrast, the average dollar-denominated FOB value declined to $ 5.72 per kilogram from $ 5.91 during the same period last year, reflecting weaker international prices.
On the market front, Türkiye consolidated its position as the largest buyer of Ceylon Tea, importing 14.95 Mn/Kgs during the first five months of the year, a sharp 159% increase compared with the corresponding period of 2025. The surge enabled Türkiye to widen its lead over Iraq, traditionally Sri Lanka’s largest tea market. Iraqi imports fell 18% YoY to 11.82 Mn/Kgs from 14.47 Mn/Kgs.
Russia remained the third largest destination for Ceylon Tea, with imports rising 8% YoY to 9.83 Mn/Kgs.
Azerbaijan emerged as one of the fastest-growing markets, recording a 69% increase in imports to 5.36 Mn/Kgs, while China ranked fifth despite a marginal 4% decline to 4.04 Mn/Kgs.
Libya, previously among Sri Lanka’s strongest tea buyers, saw imports plunge 60% YoY to 3.79 Mn/Kgs, slipping behind China in the rankings.
Saudi Arabia, Jordan, the United Arab Emirates, and Chile completed the list of the top 10 destinations for Ceylon Tea during the period under review.
