Ceylon Tea exports fall again in early 2026 as weaker value-added shipments offset gains in bulk tea and instant tea.
Ceylon Tea exports continued to decline in the first four months of 2026, as weaker value-added shipments dragged down overall volumes.
Sri Lanka’s tea exports slipped marginally in April 2026, extending a weak start to the year, with lower shipments of tea packets and tea bags offsetting gains in bulk tea exports.
According to industry data, tea exports for April stood at 17.97 million kilogrammes, down 0.23 million kilogrammes from 18.20 million kilogrammes recorded in the same month last year.
The decline was mainly driven by reduced exports of tea packets, tea bags and green tea.
However, bulk tea and instant tea recorded year-on-year gains during the month.
Despite weaker volumes, export earnings remained broadly stable in rupee terms, supported by higher prices.
The average free-on-board value for April edged up slightly to Rs.1,760.95 per kilogramme, compared to Rs.1,760.31 a year earlier.
However, in US dollar terms, overall FOB values declined, reflecting continued pressure from global demand conditions and currency movements.
Green tea was the only category to record an increase in dollar-denominated FOB value compared to April 2025.
For the first four months of 2026, cumulative tea exports fell by 3.07 million kilogrammes year-on-year to 78.34 million kilogrammes.
That was down from 81.41 million kilogrammes recorded during the corresponding period of 2025.
All export segments, except instant tea and green tea, posted negative volume variances during the January-April period.
This signalled continued softness in Sri Lanka’s traditional value-added tea categories amid challenging global market conditions.
Meanwhile, the cumulative FOB value for the January-April period rose to Rs.1,796.64 per kilogramme, from Rs.1,743.61 a year earlier.
However, the dollar-denominated FOB value declined to US$5.73, from US$5.87.
Among Sri Lanka’s key export destinations, Iraq remained the largest buyer of Ceylon Tea.
However, its imports fell 11 percent year-on-year to 10.26 million kilogrammes.
Turkey emerged as the standout growth market, with imports surging 128 percent year-on-year to 9.78 million kilogrammes.
That was sharply higher than the 4.30 million kilogrammes imported a year earlier, cementing Turkey’s position as the second-largest importer.
Russia retained third place, with imports of 7.31 million kilogrammes, down 2.5 percent from the previous year.
Azerbaijan recorded a strong 54 percent increase in imports to 4.06 million kilogrammes.
Libya’s purchases, however, fell sharply by 56 percent to 3.34 million kilogrammes.
China imported 3.24 million kilogrammes during the period, up 3 percent year-on-year.
The United Arab Emirates dropped to seventh place among the top importers, with 2.96 million kilogrammes.
Saudi Arabia, Chile and the United States also remained among the top 10 buyers of Ceylon Tea during the period.
