By: Staff Writer
December 23, Colombo (LNW): Sri Lanka’s tea export earnings reached an estimated $1.4 billion during the first 11 months to November 2025, reflecting a resilient performance despite softer global pricing trends, according to Sri Lanka Customs data analysed by Forbes & Walker Research. The earnings marked a 13% increase year-on-year, up from approximately $1.3 billion in the corresponding period of 2024.
The growth was largely driven by a notable expansion in export volumes, which offset a marginal decline in average Free On Board (FOB) values when measured in rupee terms. Cumulative tea exports during the January–November period climbed to 239.57 million kilograms, an increase of 16.35 million kilograms compared to the same period last year.
November 2025, however, recorded a modest slowdown in monthly shipments. Total exports for the month stood at 19.36 million kilograms, down from 20.07 million kilograms a year earlier. Traditional categories such as Bulk Tea, Tea Packets, and Tea Bags posted year-on-year declines, while Instant Tea and Green Tea showed encouraging growth, reflecting gradual diversification in product demand.
FOB prices displayed mixed trends. In rupee terms, the average FOB value for November increased to Rs. 1,768.82 per kilogram, up nearly Rs. 50 from a year earlier. In dollar terms, however, the average declined slightly to $5.77 per kilogram, down $0.12 year-on-year, largely due to exchange rate movements rather than underlying market weakness.
Over the full 11-month period, the average FOB value eased to Rs. 1,755.45 per kilogram, down Rs. 14.48 from last year, while the dollar-denominated average edged marginally higher to $5.85 per kilogram. Despite pricing pressures, the volume-led expansion ensured that export revenues remained firmly on a growth trajectory.
Market diversification continued to play a key role. Iraq retained its position as Sri Lanka’s largest tea buyer, importing 36.77 million kilograms, a 21% increase from last year. Russia ranked second with 19.94 million kilograms, although volumes declined by 13%, while Türkiye followed closely with a strong 21% growth.
Emerging markets also delivered strong momentum. Libya more than doubled its imports to 18.30 million kilograms, while the UAE, Chile, Iran, China, Azerbaijan, and Saudi Arabia remained among the leading destinations.
Industry analysts note that sustaining earnings growth amid volatile prices underscores the sector’s adaptability, though long-term competitiveness will depend on productivity gains, value addition, and stable access to key export markets.
