National Tea Sale Average declined to Rs. 1,174.46 per kilogram in August 2026 from Rs. 1,182.27 a year earlier, reflecting weaker prices despite a higher year-to-date average in rupee terms.
National Tea Sale Average weakens year-on-year despite higher 2026 rupee average
Sri Lanka’s National Tea Sale Average (NTSA) fell year-on-year in August 2026, according to the latest “National Tea Sale Averages – August 2026” report released by Forbes and Walker. The national average stood at Rs. 1,174.46 per kilogram, down Rs. 7.81 from Rs. 1,182.27 recorded in August 2025.
The decline was also more pronounced when measured in US dollar terms. The average price fell to US$3.53 per kilogram in August 2026 from US$3.92 a year earlier, representing a decrease of US$0.39.
The monthly comparison, however, was more moderate. The national average declined by Rs. 1.64 from July 2026, when it stood at Rs. 1,176.10 per kilogram. In dollar terms, the direction was different, with the average increasing by US$0.03 from US$3.50 in July to US$3.53 in August.
The latest figures point to a mixed performance for the country’s tea industry, with movements in the rupee value of tea differing from those recorded in US dollar terms. This distinction is important for exporters and other participants in the tea value chain, where international prices and exchange-rate movements both influence earnings.
Despite the weaker August performance, the National Tea Sale Average remained higher on a year-to-date basis. For the first eight months of 2026, the national average reached Rs. 1,165.66 per kilogram, compared with Rs. 1,156.37 during the corresponding period of 2025.
This represents an increase of Rs. 9.29 per kilogram in rupee terms. However, the year-to-date picture was less favourable in dollar terms. The average stood at US$3.62 per kilogram in 2026, compared with US$3.87 in the same period of 2025, marking a decline of US$0.25.
The performance also varied across Sri Lanka’s major tea-growing elevations. The High Grown category recorded a monthly decline of Rs. 4.89 in August, falling to Rs. 1,057.06 per kilogram from Rs. 1,061.95 in July. In US dollar terms, however, the High Grown average increased slightly to US$3.18 from US$3.16.
Compared with August 2025, the High Grown average was substantially lower, declining by Rs. 49.14 per kilogram and US$0.49. The figures indicate that the category experienced notable year-on-year pressure despite the small month-on-month improvement in dollar terms.
The Medium Grown segment recorded a marginal monthly improvement. Its average increased by Rs. 0.88 to Rs. 954.82 per kilogram in August from Rs. 953.94 in July. The dollar average also increased by US$0.03, reaching US$2.87 from US$2.84.
However, the Medium Grown category remained weaker compared with the same month of the previous year. Its average declined by Rs. 74.28 per kilogram and US$0.54 from August 2025, making it one of the more significant year-on-year declines among the three elevations.
The Low Grown category experienced a different pattern. Its average fell by Rs. 16.23 month-on-month to Rs. 1,276.83 per kilogram in August from Rs. 1,293.06 in July. In dollar terms, the average declined marginally by US$0.01 to US$3.84 from US$3.85.
Despite the monthly decline, Low Grown tea performed better than it had a year earlier in rupee terms. The August average was Rs. 25.74 per kilogram higher than in August 2025. In US dollar terms, however, it was US$0.31 lower.
These differences across growing elevations underline the uneven nature of Sri Lanka tea prices during the period. While Low Grown tea recorded a year-on-year increase in rupee terms, both High Grown and Medium Grown categories recorded declines. The movement in dollar terms was weaker across all three elevations when compared with August 2025.
For the tea industry, the year-to-date figures provide a broader perspective than the August monthly result. High Grown and Low Grown tea, together with the national average, recorded positive variances in rupee terms during 2026, while Medium Grown tea remained below the corresponding 2025 level.
In US dollar terms, however, all three elevations recorded negative year-to-date variances. This suggests that the apparent improvement in rupee-denominated averages has not translated into higher dollar-denominated prices.
The figures remain important for producers, exporters and other participants in the Ceylon tea industry as they assess market conditions and revenue prospects. The divergence between rupee and dollar averages highlights the importance of considering both local currency prices and international market values when evaluating the industry’s performance.
The August results therefore present a mixed picture for Sri Lanka’s tea market. Although the monthly national average eased and the year-on-year dollar value weakened, the year-to-date rupee average remained above the corresponding period of 2025.
With global market conditions, exchange-rate movements and performance differing across growing regions, the direction of tea prices will remain closely watched by producers and exporters through the remainder of 2026.