📈 Sri Lanka Tea Industry Q1 2026 Overview

Sri Lanka’s tea industry faced a challenging first quarter in 2026, recording overall declines in production, export volumes, and auction prices, largely influenced by currency depreciation. • Overall Figures: • Production: Dropped by 2.55 million kg to 59.61 million kg (vs. 62.16 million kg in Q1 2025). • Exports: Declined to 60.36 million kg (vs. 63.21 million kg in Q1 2025), though earnings held stable at Rs. 109.09 Bn due to higher FOB prices. • National Sale Average: Fell by Rs. 26.07 to Rs. 1,153.25/kg. In US$ terms, averages dropped from $3.98 to $3.72. • Exchange Rate: LKR depreciated to an average of Rs. 310.31 per US$ (vs. Rs. 296.30 in Q1 2025). • Elevation Breakdowns: • Low Grown: Remains the largest category (60.33% share) but saw the steepest drop, falling 1.18 million kg to 35.97 million kg. • Medium Grown: Declined by 0.96 million kg to 10.16 million kg. • High Grown: Marginally down by 0.40 million kg to 13.48 million kg. • CTC Teas: Defied the trend, growing by 1.23 million kg to total 6.61 million kg, led by Medium Grown. • Top Markets & Segments: • Top Destinations: Iraq remains the largest buyer. Turkey recorded the highest growth (+3.68 million kg), while Azerbaijan and China also grew. • Declining Markets: Libya (-2.96 million kg), UAE (-1.83 million kg), Chile, and Russia recorded noticeable drops. • Value-Added Strength: Bulk tea and packets saw lower volumes, but instant and green tea exports grew in volume, value, and FOB prices.