Sri Lanka’s tea industry posted a modest boost in exports during the first quarter of 2025, with volumes and dollar earnings both climbing despite a dip in rupee-denominated revenues.
According to fresh industry data released this week, Ceylon Tea exports in March reached 23.43 million kilogrammes, up by 2.18 million kilogrammes compared to March 2024. While tea bag shipments dipped slightly, other product categories showed notable gains, driving the overall monthly increase.
For the January–March 2025 period, total tea exports stood at 63.21 million kilogrammes, up from 62.33 million kilogrammes during the same stretch last year. The growth was fueled mainly by stronger shipments of tea packets, tea bags, and instant tea. However, bulk tea and green tea exports saw year-on-year declines.
The average Free on Board (FOB) price per kilogramme in March slipped to Rs. 1,753.16, a drop of Rs. 42.71 from March 2024’s Rs. 1,795.87. Despite this, the average price in US dollar terms edged up by $0.04 to $5.92. Over the first quarter, the average FOB stood at Rs. 1,738.80, down Rs. 40.63 from last year, but recorded a 19-cent increase in dollar terms.
On the demand front, Iraq maintained its spot as the largest buyer of Ceylon Tea, importing 9.02 million kilogrammes in Q1—a 7% rise year-on-year. Russia followed with 6.33 million kilogrammes, a slight dip compared to 6.42 million kilogrammes last year.
Libya was a standout market, registering a massive 416% surge in imports, leaping from 1.03 million kilogrammes to 5.31 million kilogrammes. Among other major importers were the UAE (4.54 million kilogrammes, down 35%), Turkey (3.32 million kilogrammes, down 19%), and Chile (3.07 million kilogrammes, up 41%).
Iran also edged ahead of China, with 2.78 million kilogrammes compared to China’s 2.47 million kilogrammes. Saudi Arabia (2.23 million kilogrammes) and Germany (2.22 million kilogrammes) rounded off the top ten list.