Tea Production in Sri Lanka Set to Climb in 2026

Sri Lanka’s tea industry is poised for a 10–12% increase in production in 2026, despite challenges from adverse weather and ongoing structural issues.

W. L. P. Wijewardene, Chairman of the Tea Board, highlighted that the sector remains hopeful even after nearly one million kilograms of tea were lost due to Cyclone Ditwah. With favorable weather conditions, the industry could reach its 2026 production target of 300 million kilograms.

In 2025, the country’s tea output rose to 264.12 million kilograms, up from 262.69 million kilograms in 2024, marking a growth of 1.43 million kilograms. Wijewardene credited the government’s fertilizer subsidy program as a significant factor behind the increase, which also represented an 8.03 million kilogram rise compared to 2023 production.

However, challenges persist. The Department of Census and Statistics reported an 8.1% drop in tea output during the third quarter of 2025, citing rising input costs, delays in replanting, and labor shortages as key constraints on supply.

On the export side, Sri Lanka shipped 257.4 million kilograms of tea in 2025, up by 11.65 million kilograms from the previous year. Export revenue reached $1.506 billion, with the average price remaining steady at approximately $5.85 per kilogram.

Despite setbacks, industry leaders remain confident that production and exports will continue to grow in 2026.