Sri Lanka’s tea exports cross US$ 1.5bn mark in 2025

• December exports fell sharply on a year-on-year basis, with shipments dropping to 17.87 million kg from 22.57 million kg a year earlier
• Iraq retained its position as the largest buyer, importing 39.36 million kg, up 14.9% year-on-year

Sri Lanka’s tea export earnings climbed past the US$ 1.5 billion mark in 2025, up from about US$ 1.4 billion in 2024, underpinned by higher prices and steady demand for value-added products, even as shipment volumes showed mixed trends through the year.
December exports fell sharply on a year-on-year basis, with shipments dropping to 17.87 million kg from 22.57 million kg a year earlier, reflecting across-the-board declines in all categories. However, prices moved in the opposite direction. The average FOB value rose to Rs. 1,831.11 per kg, up Rs. 130.06 from December 2024, while dollar terms recorded a marginal US$ 0.09 increase, cushioning the impact of lower volumes on export revenue.
On a full-year basis, January–December 2025 tea exports rose to 257.44 million kg, a gain of 11.65 million kg compared with 2024. All segments recorded volume growth except bulk tea, signalling a gradual shift in the export mix. The average FOB value for the year eased slightly in rupee terms to Rs. 1,760.70 per kg, down Rs. 2.91, though it edged up by US$ 0.01 in dollar terms, highlighting the stabilising effect of currency movements and pricing discipline.
Value performance across categories remained uneven. Bulk and packeted teas posted declines in rupee-denominated FOB values, while tea bags, instant tea and green tea recorded gains, reinforcing the sector’s reliance on higher-margin formats. In dollar terms, all categories except bulk and packets showed improvements over 2024.
Market diversification continued to support exports. Iraq retained its position as the largest buyer, importing 39.36 million kg, up 14.9 percent year-on-year. Russia ranked second with 21.59 million kg, despite a 13.6 percent decline, while Türkiye moved close behind with 21.27 million kg, up 20 percent. Libya recorded the strongest growth among major markets, with shipments surging 83.9 percent to 18.93 million kg.
The UAE placed fifth with 18.32 million kg, though volumes fell 13 percent, while Chile emerged as a standout, importing 11.09 million kg, a 28.5 percent increase, overtaking China, which saw a 9.9 percent decline to 10.42 million kg. Iran, Azerbaijan and Saudi Arabia rounded out the top ten.
The 2025 performance underscores a sector increasingly reliant on price resilience, value addition and market diversification rather than pure volume growth—an important signal as producers navigate cost pressures, climate risks and shifting consumer preferences heading into 2026.