Tea export volumes extend decline in first four months of 2026

Sri Lanka’s tea exports slipped marginally in April 2026, extending the weak start to the year, as the lower shipments of value-added categories such as tea packets and tea bags offset the gains in the bulk tea exports.

The tea exports for April stood at 17.97 million kilogrammes, down 0.23 million kilogrammes, from 18.20 million kilogrammes recorded in the same month last year, according to the industry data.

The decline was largely driven by the lower exports of tea packets, tea bags and green tea, although the bulk tea and instant tea segments recorded year-on-year (YoY) gains during the month.

Despite the weaker volumes, the export earnings remained broadly stable in rupee terms, supported by higher prices. 

The average free-on-board (FOB) value for April edged up marginally to Rs.1,760.95 per kilogramme, from Rs.1,760.31 a year earlier.

However, in US dollar terms, the overall FOB values declined, reflecting continued pressure from global demand conditions and currency movements. Green tea was the only category to record an increase in dollar-denominated FOB value compared to April 2025.

For the first four months of 2026, the cumulative tea exports fell 3.07 million kilogrammes YoY to 78.34 million kilogrammes, from 81.41 million kilogrammes recorded in the corresponding period of 2025.

All export segments, except instant tea and green tea, posted negative volume variances during the January-April period, indicating continued softness in Sri Lanka’s traditional value-added tea categories amid the challenging global market conditions.

Meanwhile, the cumulative FOB value for the January-April period rose to Rs.1,796.64 per kilogramme, from Rs.1,743.61 a year earlier, although the dollar-denominated FOB value declined to US $ 5.73, from US $ 5.87.

Among Sri Lanka’s key export destinations, Iraq remained the largest buyer of Ceylon Tea, despite the imports falling 11 percent YoY to 10.26 million kilogrammes.

Turkey emerged as the standout growth market, with imports surging 128 percent YoY to 9.78 million kilogrammes, sharply up from 4.30 million kilogrammes a year earlier, cementing its position as the second-largest importer.

Russia retained the third position, with imports of 7.31 million kilogrammes, down 2.5 percent from the previous year.

Azerbaijan recorded a strong 54 percent increase in imports to 4.06 million kilogrammes, while Libya’s purchases fell sharply by 56 percent to 3.34 million kilogrammes.

China imported 3.24 million kilogrammes during the period, up 3 percent YoY, while the United Arab Emirates dropped to the seventh place among the top importers, with 2.96 million kilogrammes.

Saudi Arabia, Chile and the United States also remained among the top 10 buyers of Ceylon Tea during the period.