The tea industry in Sri Lanka witnessed notable growth in 2024, marked by a rise in the National Tea Sales Average (NSA) across all elevations. This upward trend was reflected in both Rupee and Dollar terms, demonstrating strong market demand and favorable pricing dynamics.
Tea Industry Growth in 2024
The NSA for 2024 closed at Rs. 1,225.17 ($4.08), an increase of Rs. 53.88 and $0.49 from the previous year’s averages of Rs. 1,171.29 and $3.59, respectively, according to Forbes and Walker Tea Brokers. December 2024 wrapped up the year with a monthly average of Rs. 1,184.82 ($4.08), showing a month-on-month rise of Rs. 47.60 ($0.17) compared to November.
However, it registered a marginal year-on-year decline of Rs. 1.59, despite a notable gain of $0.43 in Dollar terms, underscoring the influence of currency fluctuations.
The year-end overall average of $4.08 highlighted steady international demand, led by Low Grown teas, which contributed $4.34. High Grown and Medium Grown teas also experienced positive momentum.
December 2024 capped the year with a monthly average of Rs. 1,184.82 ($ 4.08), an increase of Rs. 47.60 ($ 0.17) from November.
However, this marked a slight decrease of Rs. 1.59 year-on-year (YoY) compared to December 2023, despite a significant rise of $ 0.43 in Dollar terms over the same period. This highlights the impact of currency fluctuations and potential market dynamics influencing year-end performance.
In Dollar terms, the year-end overall average figure stood at $ 4.08 whilst showing an increase across the board, sustaining demand in international markets. It was also complemented by the highest contribution from Low Grown teas at $ 4.34, while High Grown and Medium Grown teas also showed positive trajectories.
High Grown teas averaged Rs. 1,141.63 ($3.80) in 2024, reflecting year-on-year increases of Rs. 69.15 and $0.52. Medium Grown teas achieved Rs. 1,064.48 ($3.55), up Rs. 52.13 and $0.45. Low Grown teas, the most lucrative segment, recorded Rs. 1,304.38 ($4.34), representing gains of Rs. 52.23 and $0.51 compared to 2023.
December 2024 revealed a distinct performance for each elevation. High Grown teas increased month-on-month by Rs. 35.27 to Rs. 1,128.16, while Medium Grown teas rose by Rs. 47.52 to Rs. 1,037.77. Low Grown teas remained the leader at Rs. 1,253.76, with a monthly increase of Rs. 62.03, though slightly below December 2023 levels by Rs. 24.32.
The tea sector’s strong performance underscores sustained demand in international markets and highlights the potential for further growth. Together, the tourism and tea industries position Sri Lanka for a prosperous 2025, leveraging its natural and cultural assets to drive economic development and global appeal.
New Government Targets High-End Tourism to Drive Growth this year
Sri Lanka’s tourism industry is making a strong start in 2025, with nearly 40,000 arrivals recorded in the first five days of the year—a notable increase from the same period in 2024.
This growth has been driven largely by Russian tourists, followed by visitors from India and the UK. Daily arrivals have risen to 7,883, marking progress in the country’s recovery and growth.
Tourism Minister Vijitha Herath, speaking at the inauguration of an Ayurvedic resort in Bentara, emphasized the need for a balanced approach to tourism that prioritizes both quality and quantity of arrivals.
Highlighting wellness tourism as a key focus, Herath called for the development of Ayurvedic treatments to attract affluent travelers seeking longer stays.
He stated that elevating service standards, travel experiences, and innovative offerings will be critical in positioning Sri Lanka as a high-end destination.
Herath also acknowledged challenges in the industry, such as visitors misusing tourist visas for business purposes or overstaying.
He proposed fostering permissible business opportunities through partnerships and joint ventures to attract investment while mitigating illegal activities.
These initiatives, he noted, could create local jobs, promote cultural exchange, and ensure tourism benefits extend to rural areas.
Sri Lanka Tourism has set ambitious goals for 2025, aiming to attract 3 million visitors and generate $5 billion in revenue. By 2030, the vision is to reach 5 million annual arrivals and $8.5 to $10 billion in earnings.
Although the industry fell slightly short of its 2024 target of 2.1 million arrivals, closing the year with 2.05 million visitors, this represents the third-highest annual total ever recorded.
In November 2024, Sri Lanka Tourism Chairman Buddhika Hewawasam announced plans to launch a unified national tourism brand to redefine the country’s global appeal.
This branding initiative, aimed at achieving a higher return on investment, is set to roll out in January 2025, with peak promotional activities scheduled for May.
Key markets such as Germany, Australia, the US, Poland, France, China, and the Netherlands also contributed to the industry’s positive trajectory.
With the introduction of the new national brand and continued growth in visitor numbers, Sri Lanka’s tourism leaders are optimistic about reclaiming the nation’s status as a top global destination.
By combining strategic initiatives, an emphasis on wellness tourism, and a focus on high-value travelers, Sri Lanka aims to strengthen its tourism sector, stimulate economic growth, and foster sustainable development.
