Sri Lanka’s tea exports rise in April
Daily FT: Sri Lanka’s tea export performance saw a notable uptick in April 2025, with total exports reaching 18.20 million kilograms, marking an increase of 1.82 million kilograms compared to 16.38 million kilograms recorded in April 2024.
As per Forbes & Walker research analysis, the growth was driven by improved performance across all categories except Tea in Bulk, reflecting a diversified demand for value-added products such as Tea Packets, Tea Bags and Instant Tea.
The Free on Board (FOB) value for April 2025 rose to Rs. 1,760.31, up Rs. 14.86 year-on-year (YoY) compared to Rs. 1,745.45 in April 2024. When measured in US dollar terms, the FOB value also increased by $ 0.07, suggesting stronger performance in foreign markets despite currency fluctuations.
In the cumulative period from January to April 2025, tea exports totalled 81.41 million kilograms, reflecting a positive variance of 2.71 million kilograms over the 78.70 million kilograms recorded during the same period in 2024.
Iraq emerged as the top importer of Ceylon Tea with a total of 11.52 million kilos, an increase of 13% YoY in January-April 2025 against the previous year’s 10.23 million kilos. Libya ranks second with a 353% YoY increase to 7.61 million kilos, while Russia was ranked third place, witnessing a significant decline of 9% YoY with 7.50 million kilos vis-à-vis 8.27 million kilos registered in 2024. Other major importers included the UAE, which saw a significant 35% YoY decline, followed by Türkiye, which registered a 19% YoY decrease to 4.29 million kilos. Chile secured the seventh position with 3.77 million kilos edging over China’s 3.15 million kilos and Saudi Arabia’s 2.89 million kilos, followed by Germany at 2.73 million kilos for January-April 2025.
OSL take:
Sri Lanka’s tea industry is on a growth path showing much growth potential given the record of increasing tea production and the improvements in the prices fetched by locally produced tea and related products. The many trade agreements as well as trade concessions enjoyed by Sri Lanka with many foreign countries, the promotional campaigns in foreign markets and the encouragement of local tea producers to look at value addition and diversification of tea and tea-based products that are being exported have all helped boost Sri Lanka’s tea industry. These developments have also opened up a host of business/investment opportunities for foreign businesses/investors as well. The growth and profits recorded by local businesses in the tea industry and the incentive schemes presented by the Sri Lankan government to encourage more investments to the industry, indicate the growth and business potential in Sri Lanka’s tea industry.
| Article Code : | VBS/AT/20250604/Z_3 |