By: Staff Writer
June 29, Colombo (LNW): Sri Lanka’s tea export industry recorded a notable upswing in May 2025, with volumes rising 12.4% year-on-year to 21.87 million kilograms, according to the latest data. This surge pushed cumulative exports for the first five months (January–May) to 103.28 million kilograms, reflecting a 5.2% increase over the same period in 2024.
Export earnings also posted strong growth, with May earnings reaching US$ 131.81 million—a 14.58% rise compared to the same month last year. The average Free-on-Board (FOB) value per kilogram in May increased to Rs. 1,804.31, up Rs. 32.07 from Rs. 1,772.24 in May 2024. However, the FOB value for the cumulative five-month period slightly dropped to Rs. 1,756.46, marking a Rs. 15.87 decrease from Rs. 1,772.33 in the same period last year.
Positive export growth was seen across almost all tea categories for both the month of May and the January–May period, except for Bulk Tea and Tea Bags.
The final tea auction for the first half of the year, concluded this week (Sale No. 24), offered 6.5 million kilograms. Despite earlier concerns about market volatility due to the Iran-Israel conflict, market sentiment showed surprising resilience and price stability amid ceasefire speculation.
Ex-Estate offerings slightly decreased to 0.86 million kilograms. However, demand improved marginally, with select better-quality Westerns (BOP/BOPFs) fetching increases of up to Rs. 50 per kilogram. Coloury teas also saw gains between Rs. 20–40 per kilogram, although other varieties remained irregular in pricing.
Nuwara Eliya teas continued to struggle due to plainer quality, while Uda Pussellawa teas—especially those at the lower end—appreciated by Rs. 10–20 per kilogram. Uva teas with clean leaf BOP/BOPFs were firm and tended towards higher prices.
High and Mid Grown CTC PF1s showed barely steady performance among better teas, while the rest of the grades were erratic. BP1s remained in short supply. Low Grown CTC PF1s saw declines of Rs. 20 or more, particularly among lower quality teas.
The Low Growns, totaling around 2.5 million kilograms, experienced fair demand across Leafy, Semi-Leafy, and Tippy categories. Premium teas in this segment attracted significantly better prices.
In the Leafy and Semi-Leafy segments, Select Best and Best BOP1s held firm, though bolder varieties declined. OP1s were steady to dearer at the top end, while the rest showed a slight drop. OPAs generally remained stable. Among PEKs, top-end lots held firm, but mixed and open varieties saw easing prices. High-priced PEK1s dropped, but Best and Below Best grades appreciated slightly.
In the Tippy catalogue, some Select Best FBOPs held due to special demand, though most Best and Below Best varieties declined. Cleaner low-end teas held their ground, while others weakened. FF1s were mostly firm.
The Premium catalogue showed strong demand, especially for Very Tippy and Best categories, which were sold at notably higher prices, though lower-end teas remained mixed. Overall, Sri Lanka’s tea industry has shown resilience in exports and pricing despite fluctuating global conditions and mixed auction performance.
