📈 April Tea Exports & Earnings Fall Amid Mideast Shipping Disruptions

Sri Lanka’s tea exports and earnings declined during the first four months of 2026, driven by global shipping disruptions and logistical delays following the escalation of the US-Iran conflict. • Overall Performance (Jan-Apr 2026): • Total export volumes fell 4% YoY to 78.3 Mn/Kg, down from 81.3 Mn/Kg in 2025. • April volumes alone declined 1.6% YoY to 17.9 Mn/Kg. • Export earnings dropped 5.64% YoY to US$ 451 Mn (vs. US$ 478 Mn last year). • Average FOB value per kilo decreased to US$ 5.76 from US$ 5.88. • Top Export Markets: • Iraq: Remained the top buyer at 10.2 Mn/Kg, though volumes fell from 11.5 Mn/Kg YoY. • Türkiye: Secured second place with imports surging to 9.7 Mn/Kg (up from 4.2 Mn/Kg), driven by rerouted shipments through alternative channels. • Russia: Ranked third at 7.3 Mn/Kg, maintaining steady volumes despite payment and geopolitical challenges. • Azerbaijan: Showed strong growth, increasing imports to 4 Mn/Kg from 2.6 Mn/Kg YoY. • Economic Impact: As a primary merchandise export earner and critical source of foreign exchange and employment, the tea sector remains highly vulnerable to geopolitical instability, rising shipping costs, and supply chain disruptions in its core Middle Eastern and CIS markets.