Sri Lanka’s tea export earnings cross $ 1 billion mark by September
Daily FT: Customs data analysed by Siyaka Research indicates that Sri Lanka’s tea export earnings reached approximately $ 1.083 billion during the January–September 2026 period, compared with $ 1.163 billion earned during the corresponding period of the previous year.
Despite September export volumes declining to 23 MnKg from 23.7 MnKg a year earlier, cumulative earnings in Sri Lankan Rupees increased to Rs. 350 billion from Rs. 347 billion. This improvement was largely attributable to the depreciation of the Rupee against the US dollar.
Total tea export volumes for the nine-month period amounted to 189.4 MnKg, down 4% from 198.3 MnKg recorded in 2025. The decline in export volumes was less pronounced than the depreciation of the rupee over the period, helping to support rupee-denominated export earnings despite lower USD earnings.
Value-added tea exports continued to account for approximately 58% of total exports. Tea in packets, tea bags and instant tea remained the principal contributors to this segment, underscoring the continued importance of value addition to Sri Lanka’s tea export trade.
Against the backdrop of ongoing turmoil in the Middle East, export flows to and through Turkey recorded a significant increase of 134%, rising to 35.7 MnKg from 15.2 MnKg a year earlier.
Iraq, traditionally one of Sri Lanka’s key tea destinations, recorded a sharp decline in imports to 18.4 MnKg from 30 MnKg in the corresponding period of 2025. Russia maintained relatively steady volumes at 16.9 MnKg, while exports to Azerbaijan increased by 34% to 9 MnKg.
Shipments to China declined by 10% year-on-year to 7.1 MnKg. Libya also recorded a substantial reduction, with volumes falling from 15.9 MnKg to 6.6 MnKg, reflecting changes in shipment patterns and the movement of goods through alternative routes.
Exports to Syria improved by 5% to 6.4 MnKg, while shipments to Jordan increased by 51% to 6.3 MnKg, indicating a shift in trade flows amid the regional disruptions. Saudi Arabia continued to perform steadily, with Sri Lanka shipping 6.3 MnKg during the period, broadly in line with the previous year.
Chile rounded off the top ten destinations, with exports declining sharply to 6.3 MnKg from 8.5 MnKg a year earlier. Chile’s total tea imports reached a five-year high of 21.8 MnKg in 2025. However, the latest figures suggest that the market may be relinquishing some of those gains in 2026.
OSL take:
Sri Lanka’s tea industry continues to offer business/investment opportunities for foreign businesses/investors, particularly in value-added processing, international marketing, export distribution and partnerships with local producers, as the country seeks to strengthen its position in the global tea market. Tea export earnings reached approximately US$1.083 billion during January–September 2026, according to Customs data analysed by Siyaka Research. Although export volumes declined 4% year-on-year to 189.4 million kilograms, value-added products accounted for around 58% of total exports, highlighting the importance of processed tea. For international businesses, opportunities extend beyond bulk tea exports to branded packaged tea, tea bags, instant tea, specialty blends, organic products and premium beverages. Investment in modern processing, packaging and product development could help Sri Lankan producers access higher-value international markets. Changing trade patterns are also creating opportunities to diversify export destinations. Turkey recorded a 134% increase in tea shipments during the first nine months of 2026, while exports to Azerbaijan grew 34%, highlighting potential in emerging regional markets. Foreign investors can explore joint ventures with established Sri Lankan tea exporters, plantation companies and smaller producers to develop processing facilities, introduce international brands and strengthen overseas distribution networks. Technology transfers, quality certification, sustainable cultivation and supply-chain modernisation offer additional investment opportunities. With its established tea-growing industry, internationally recognised Ceylon Tea identity and export infrastructure, Sri Lanka offers foreign businesses/investors opportunities to participate in both traditional tea exports and the expanding global market for value-added products.
| Article Code : | VBS/AT/20261103Z_4 |