📉 Tea Production Slumps 14.5% in March Amid Dry Weather

Sri Lanka’s tea output faced a sharp decline in March 2026, driven by prolonged heat and dry weather conditions. According to data from Asia Siyaka Commodities PLC, production fell to 20.8 Mn/Kgs, down from 24.4 Mn/Kgs in March 2025. • Key Production Figures: Monthly Drop: A year-on-year (YoY) contraction of 14.5% (3.5 Mn/Kgs). Historical Context: This represents one of the lowest outputs on record, surpassing only the 2020 lockdown lows. Q1 Performance: Cumulative production for the first quarter fell to 59.6 Mn/Kgs, down from 61.7 Mn/Kgs in 2025. • Sector Breakdowns (March YoY): High Grown: Declined by 17%. Mid Grown: Hardest hit with a 22% drop. Low Grown: Also reported declines, contributing to a total quarterly contraction of 3% in this segment. • Economic Impact: The data underscores the extreme vulnerability of the tea sector—a vital source of foreign exchange and rural employment—to adverse weather patterns. The decline in all elevation categories signals a broad-based impact on the industry's supply chain during the 2026 peak harvesting period.