Sri Lanka’s tea crop edges up in Oct.; cumulative output strengthens in 2025
Daily FT: Sri Lanka’s tea crop posted a marginal improvement in October 2025, although the month’s performance reflected mixed conditions across elevations.
Provisional data compiled by Forbes & Walker Research show the October crop at 21.78 million kilos (Mnkg), an increase of 0.50 Mnkg over the 21.28 Mnkg recorded in October 2024. All elevations except the Low Grown segment reported negative variances against last year. Compared to October 2023, the crop fell by 1.22 Mnkg from 23.0 Mnkg.
High Grown production fell 6.22% year-on-year to 3.79 Mnkg, while the Medium Grown elevation recorded a decline of 1.52% to 3.47 Mnkg. The Low Grown crop rose by 5.96% to 14.34 Mnkg, remaining the only elevation to post a positive variance. Green Tea output dipped by 1.86% to 176,195 kilos. Against 2023 levels, all categories recorded declines, with Green Tea down 13.39%.
Cumulative production for January-October reached 220.97 Mnkg, up 2.82 Mnkg from 218.15 Mnkg in the corresponding period of 2024. All elevations posted gains relative to last year, with High Grown output increasing 2.16% to 45.92 Mnkg, Medium Grown up 2.88% to 39.59 Mnkg, and Low Grown rising 0.50% to 133.51 Mnkg. Green Rea production increased 4.10% to 1.94 Mnkg.
Compared to the 216.49 Mnkg recorded in the first 10 months of 2023, cumulative production in 2025 reflects an increase of 4.48 Mnkg. The Medium Grown, Low Grown, and Green Tea segments exceeded 2023 levels, while High Grown output remained 5.17% below the corresponding period.
Forbes & Walker Research noted that although cumulative production has improved modestly, elevation-level shifts continue to shape overall output trends as the industry moves through a period of uneven recovery.
OSL take:
Sri Lanka’s tea industry is on a steady growth path while local authorities and businesses are looking at Sri Lankan tea regaining the top slot enjoyed by Ceylon Tea in the global market in the past. The high quality and standards of Sri Lanka’s tea and tea-based products have resulted in the expansion of overseas markets while there is an increasing demand for value added products in foreign markets. The many trade agreements and trade concessions enjoyed by Sri Lanka with many foreign countries have also helped boost the country’s tea industry, especially in the export of tea and tea-based products. The increasing demand for Sri Lankan tea and tea-based products in foreign markets have expanded business/investment opportunities in the country’s tea industry, especially given the need to meet the fast -growing demand for tea and tea-based products in the foreign markets. Given the nexus between the tea industry and the tourism industry, businesses in the tea industry could also look at additional revenue generation through entering the tourism industry. All these factors indicate the increasing business potential in the tea industry and related sectors, making the business/investment opportunities in the industry very lucrative for foreign businesses/investors on the lookout for such in Sri Lanka.
| Article Code : | VBS/AT/20251125/Z_2 |