Sri Lanka’s tea industry is expected to record growth of between 10 and 12 percent in 2026, despite weather-related losses and persistent structural challenges, industry officials said.
Chairman W. L. P. Wijewardene said the sector remains optimistic even after losing nearly one million kilograms of tea due to Cyclone Ditwah. He noted that favourable weather conditions in the coming months could help the industry achieve its annual production target of 300 million kilograms.
Tea production in 2025 increased to 264.12 million kilograms, up from 262.69 million kilograms in 2024, reflecting a growth of 1.43 million kilograms. Mr. Wijewardene attributed the improvement largely to the government’s fertilizer subsidy, adding that 2025 output was also 8.03 million kilograms higher than production recorded in 2023.
However, he pointed out that the Department of Census and Statistics’ third-quarter report for 2025 indicated an 8.1 percent decline in tea production volume. This downturn was attributed to supply-side challenges, including rising input costs, delays in replanting and labour shortages.
On the export front, tea shipments increased by 11.65 million kilograms in 2025 to reach 257.4 million kilograms. Export earnings rose to USD 1.506 billion during the year, while the average export price remained stable at around USD 5.85 per kilogram, Mr. Wijewardene said.
