Sri Lanka tea exports fell sharply in March as Middle East conflict disrupted key markets, shipping routes, and rising fuel costs.
Sri Lanka tea exports have fallen sharply as severe war tensions in the Middle East disrupt one of the country’s most important export industries, Reuters reported.
The impact has also spread into the associated energy sector, adding further pressure on producers already facing higher fuel, transport, and supply chain costs.
According to the latest data from the State Export Development Board, Sri Lanka’s tea export revenue fell by 17.3 percent to US$ 114.75 million in March.
The decline reflects the growing vulnerability of Ceylon tea to instability in the Middle East, one of Sri Lanka’s most important export destinations.
Exports to Iraq, Sri Lanka’s largest tea buyer, have dropped by 38 percent.
Exports to the United Arab Emirates have also been severely limited, falling by 93 percent.
Nearly half of Sri Lanka’s total Ceylon tea exports, worth close to US$ 680 million annually, are shipped to the Middle East region.
Iran also remains a key buyer, purchasing between 8 and 10 million kilograms of Sri Lanka’s premium grade tea each year.
Dilmah Tea Chairman and Chief Executive Officer Dilhan Fernando said the company is responding to current shipping and supply chain disruptions by expanding business operations into alternative markets.
These include Canada, South America, and the United States.
Dilmah, which receives 30 percent of its business from the Middle East region, is now facing severe inflationary pressure due to rising fuel and transport costs.
The disruptions underline how regional conflict can quickly affect Sri Lanka’s export earnings, foreign exchange flows, and one of the country’s most globally recognized agricultural brands.
