By: Staff Writer
June 26, Colombo (LNW):Sri Lanka’s tea exports in volumes and values have increased in May, resulting in a solid growth during the first five months, despite the ongoing geopolitical volatility and economic uncertainty.
As the global tea trade continues to navigate in ambiguity, Sri Lanka’s tea industry appears to be holding steady with total export volumes in May reaching 21.87 million kilos, marking a year-on-year (YoY) increase of 2.42 million kilos compared to the 19.45 million kilos registered in May 2024.
Forbes & Walker Research said the performance reflects a resilient rebound across most product segments, although bulk tea exports lagged behind.
The average Free on Board (FOB) price for May rose to Rs. 1,804.31 per kilo, up Rs. 32.07 from the same period last year. In Dollar terms, the gain was a modest $ 0.12 YoY, but indicative of sustained international demand despite global economic headwinds.
In the cumulative period from January to May, exports totalled 103.28 million kilos, a notable increase of 5.12 million kilos from the 98.16 million kilos shipped in the same period last year. This upward trend was seen across all categories, except for bulk tea, which continues to face price and logistical pressures.
Despite the growth in volume, Forbes & Walker Research said the average FOB value during the first five months dropped slightly in Rupee terms by Rs. 15.87 to Rs. 1,756.46 compared to Rs. 1,772.33 in 2024.
In contrast, the same period from January to May 2025 saw an increase of $ 0.15 per kilo in Dollar terms, highlighting a currency effect that could be playing in Sri Lanka’s favour.
Cumulatively, all categories except bulk tea and packeted tea registered gains in Rupee-denominated FOB values, while in Dollar terms gains were recorded across the board.
Forbes & Walker Research said Iraq emerged as the top importer of Ceylon Tea in the first five months, buying 14.47 million kilos, an 18% increase from12.29 million kilos a year ago.
Libya followed with a dramatic surge in purchases, importing 9.42 million kilos, up 324% YoY, whilst Russia slipped to the third place with 9.12 million kilos marking a decline of 15% from 10.67 million kilos in the corresponding period of 2024.
The UAE with 7.20 million kilos saw a 30% YoY decrease and was placed in fourth position followed by Iran at fifth place who has recorded 5.87 million kilos, an 18% YoY increase surpassing Türkiye at 5.78 million kilos with an 18% YoY decrease.
Chile secured the seventh place with 4.74 million kilos edging over China’s 4.22 million kilos, Saudi Arabia at 3.56 million kilos and Germany at tenth position with 3.27 million kilos for the year in progress.
