Tea prices edge higher in May

• Dollar earnings decline

The average national tea sale edged higher in May, supported by stronger Low Grown tea prices. 

However, the earnings in US dollar terms continued to weaken, amid the currency movements and softer international market conditions.

The national tea sale average for May 2026 rose to Rs.1,184.56 per kilogramme, up Rs.4.86 from April, according to the data compiled by Forbes & Walker Research. 

In dollar terms, however, the average declined to US $ 3.65 per kilogramme, from US $ 3.69 recorded a month earlier.

Compared with May 2025, the national average increased by Rs.33.24 per kilogramme, although the dollar-denominated average fell by US $ 0.20, highlighting continued pressure on export earnings, despite the firmer rupee prices.

The improvement in May was driven largely by the Low Grown category, which accounts for the bulk of Sri Lanka’s tea production. 

The Low Grown teas recorded a month-on-month increase of Rs.42.25 to Rs.1,272.02 per kilogramme and rose by US $ 0.06 to US $ 3.91 per kilogramme.

On a year-on-year basis, the Low Grown teas gained Rs.31.32, although the dollar returns remained lower than a year earlier.

In contrast, the High Grown teas recorded a decline of Rs.48.05 from April to Rs.1,113.89 per kilogramme, while the Medium Grown teas fell Rs.21.49 to Rs.1,010.30 per kilogramme. Both elevations also recorded lower values in US dollar terms compared with the previous month.

For the first five months of 2026, the national tea sale average stood at Rs.1,163.93 per kilogramme, down Rs.6.80 from the corresponding period of 2025. In dollar terms, the cumulative average fell to US $ 3.70, from US $ 3.94 a year earlier.

The data showed that while the High Grown teas managed a positive cumulative variance in rupee terms during January-May 2026, the Medium and Low Grown categories remained below the year-earlier levels. 

Across all elevations, the cumulative averages in US dollar terms were lower than those recorded during the corresponding period of 2025.