By: Staff Writer
May 26, Colombo (LNW): Sri Lanka’s tea industry is experiencing a remarkable resurgence in 2025, with both production and export earnings showing significant year-on-year gains.
According to data released by Asia Siyaka Commodities PLC and Forbes & Walker Tea Brokers, tea production in April reached a five-year high of 26.39 million kilograms, marking a sharp 22.96% increase compared to the same month last year.
The surge was driven by notable gains across all three main tea-growing elevations. Low Growns led the growth, rising from 48.5 million kilograms to 51.6 million kilograms.
High Growns also saw strong performance with a 17% year-on-year increase, climbing from 17.3 million kilograms to 20.2 million kilograms. Medium Growns followed with a 15% rise, growing from 14.3 million kilograms to 16.4 million kilograms.
The cumulative tea output for the first four months of 2025 stood at 89.38 million kilograms, up 12.10% or 9.65 million kilograms compared to the same period last year. While this marks a healthy recovery, production still remains below the 2021 January-April figure of 104 million kilograms.
On the export front, the industry also recorded encouraging results. Total export earnings from January to April reached USD 477.88 million, reflecting a 6.15% increase year-on-year. Export volumes rose by 3.44% to 81.41 million kilograms, and the average price per kilogram also climbed by 2.62%, reaching USD 5.87 on a Free on Board (FOB) basis.
April alone generated USD 107.41 million in tea export revenue, up 12.5% from the same month in 2024. Monthly export volumes saw a similar trend, rising by 11.17% to 18.21 million kilograms.
The average export price for April stood at USD 5.90 per kilogram, a 1.20% year-on-year increase. However, market analysts have noted a slight deceleration in month-on-month growth, suggesting cautious optimism as the year progresses.
The international market remains highly responsive to Sri Lankan tea. The top ten export destinations for the first four months of 2025 include Iraq, Libya, Russia, the UAE, Turkey, Iran, Chile, China, Saudi Arabia, and Germany, with Iraq importing the highest volume at 11.53 million kilograms.
According to the Central Bank of Sri Lanka, tea remained the country’s fourth-largest foreign exchange earner in 2024, following worker remittances, textile and garment exports, and tourism. With improved climatic conditions and rising global demand, the tea sector appears poised to remain a key pillar of the national economy in 2025.
