Sri Lanka Tea Exports Decline in March After Strong Start to 2026

Sri Lanka’s tea exports saw a slight decline in March 2026, largely due to the ongoing Middle East conflict, according to the latest data from Sri Lanka Customs. Despite this dip, overall export performance for the first two months of the year remained positive.

Ceylon tea exports for February reached 19.92 million kilogrammes, reflecting a year-on-year decrease of 0.48 million kilogrammes compared to 20.40 million kilogrammes in February 2025. The decline was mainly attributed to reduced shipments of bulk tea, tea bags, and green tea, although there were slight increases in tea packets and instant tea exports.

However, the sector showed resilience in value terms. The average Free on Board (FOB) value rose to Rs. 1,785.76 per kilogramme, an increase of Rs. 48.24 YoY. In contrast, the dollar-denominated FOB value slipped slightly by USD 0.11 to USD 5.77, reflecting currency fluctuations. Among product segments, only tea bags recorded a positive variance in USD terms.

For the January–February period, total exports reached 40.63 M/Kgs, reflecting an increase of 0.86 M/Kgs compared to the same period last year. All major tea categories posted volume growth over the two-month period, indicating a steady recovery in global demand for Ceylon tea.

Cumulative FOB value for the period rose to Rs. 1,804.08 per kilogramme, up by Rs. 73.75 from Rs. 1,730.34 recorded in the corresponding period of 2025. While most segments recorded gains in rupee terms, only tea bags and green tea showed improvements in USD value, with other categories experiencing marginal declines.

In terms of export structure, bulk tea continued to be the largest contributor, closely followed by tea packets. Tea bags maintained the highest unit value, averaging over Rs. 2,800 per kilogramme, highlighting their strong premium positioning in global markets.

From a geographic perspective, Iraq remained the leading importer of Ceylon tea, purchasing 6.53 million kilogrammes in February, reflecting a 9% year-on-year increase. Türkiye recorded the fastest growth, rising to second place with imports surging by 124% to 4.40 million kilogrammes. Russia moved to third place, with imports falling by 9% year-on-year to 3.72 million kilogrammes.

Other key destinations included the United Arab Emirates, Azerbaijan, and Saudi Arabia, while Chile, China, Libya, and the United States also featured among the top ten import markets.

Despite the slight dip in February volumes, the overall upward trend in export earnings and cumulative performance indicates that Sri Lanka’s tea industry remains on a stable footing in early 2026, supported by strong demand across key international markets.