By: Staff Writer
October 19, Colombo (LNW): Sri Lanka is stepping up the global positioning of its iconic “Ceylon Tea” brand as export earnings surge and a European Union Geographical Indication (GI) registration is pursued to protect its identity and value. The push for GI status backed by a €1 million French-funded programme—comes as the tea industry posts robust figures and braces for new challenges.
At a recent forum in Colombo, Sri Lanka Tea Board Chairman Raaj Obeysekere described the GI move as “a major step toward safeguarding the authenticity of Ceylon Tea and securing higher export prices.”
The initiative, supported by Agence Française de Développement (AFD) in partnership with France’s Agricultural Research Centre for International Development (CIRAD), is designed to reinforce legal protection for the brand, combat counterfeiting and strengthen the premiums earned by producers and rural communities.
Meanwhile, the numbers point to a tea industry experiencing a weather-rebounce and increasing value-added transformation. Earnings for the first quarter of 2025 reached US $370.9 million, up about 5 percent from a year earlier, with export volumes at 63.2 million kg and average Free on Board (FOB) price of US $5.87 per kg.
From January to August 2025, tea export earnings had already surpassed US $1 billion, up 9.04 percent year-on-year, with 174.55 million kg shipped. For the first eight months, tea export revenue stood at around US $1,026.03 million, marking an 8.89 percent increase.
On the volume front, production for the full year of 2025 is projected at 275-280 million kg, up from 245.7 million kg in 2024. Export earnings are forecast at US $1.4-1.5 billion marginally above 2024’s US $1.435 billion.
Sri Lanka holds a reputable position in the global tea map: though no longer the world’s top producer, the country remains a significant exporter of orthodox black tea and holds a strong presence in value-added forms (tea bags, instant tea, branded packets). The shift to higher margin products is clearly underway. For example, in the first quarter of 2025 value-added selections grew their share to 56 percent of total exports.
Yet while momentum is positive, industry watchers caution that Sri Lanka still faces structural headwinds. Rising wages, older plantations, soil fertility concerns, and stiff competition from large-scale producers such as India and Kenya all present ongoing challenges.
The GI campaign is tailored in part to bolster Sri Lanka’s branding edge in a crowded marketplace. As Plantations Minister Samantha Vidyaratne noted, “Given current market conditions, internationally recognised standards through GI certification are essential.”
The GI process began around 2021 with input from over 500 stakeholders, as noted by AFD Country Director Yazid Bensaïd: “This initiative had to be participatory.” With an EU GI seal in place, “Ceylon Tea will join a global family of products whose quality and origin are celebrated,” said French Ambassador Rémi Lambert.
For Sri Lankan tea producers, the timing may be auspicious: global tea markets are undergoing shift from bulk commodities toward branded, traceable product lines, and demand from major markets such as India, China, Iraq, Russia and Libya remains strong. Analysts suggest that the GI tag, combined with the industry’s improving export performance, could help Sri Lanka leverage its premium positioning.
Overall, the tea sector’s current trajectory blends robust export growth, improved value-added offerings and strategic branding moves even as it navigates cost pressures and structural reforms. The sector’s next challenge will be converting its headline numbers and GI momentum into sustained profitability for estates and workers across the island.
