Sri Lanka tea exports recorded solid growth in 2025 as higher shipment volumes and marginally improved prices lifted foreign exchange earnings, reinforcing the sector’s resilience despite shifting demand patterns across key international markets.
Sri Lanka tea exports rise in volume and earnings amid global demand
Sri Lanka’s tea industry closed 2025 on a positive note, with export volumes and earnings both posting year-on-year growth, according to the latest industry data. Total tea shipments rose by 4.74 percent to 257.44 million kilograms, reflecting a steady recovery in global demand and sustained production levels across the country’s major growing regions.
Export earnings reached approximately 1.51 billion US dollars during the year, marking an increase from the previous year’s performance. Industry figures showed earnings at 1.506 billion dollars, compared with 1.434 billion dollars a year earlier, underlining the continued importance of tea as one of Sri Lanka’s leading agricultural export commodities.
The improvement in earnings was supported by a marginal increase in average export prices. The average free-on-board price for Sri Lankan tea was estimated at 5.85 dollars per kilogram in 2025, slightly higher than the 5.84 dollars recorded the previous year. While the price increase was modest, exporters noted that maintaining price stability amid volatile global conditions was itself a positive outcome.
Industry analysts say the growth in Sri Lanka tea exports reflects the sector’s ability to adapt to evolving market dynamics, including currency movements, logistical challenges, and competition from other tea-producing countries. Demand remained particularly strong in several traditional markets, helping to offset softer performance in others.
Monthly data also pointed to a steady close to the year. In December, tea exports totalled 17.86 million kilograms, generating export revenue of 105.82 million dollars. The end-of-year performance was seen as a reflection of consistent buying interest and improved shipment scheduling, particularly to the Middle East and Eurasian regions.
Iraq emerged as Sri Lanka’s largest tea export destination in 2025, consolidating its position as a key market for Ceylon tea. Shipments to Iraq rose to 39.3 million kilograms, up from 34.26 million kilograms the previous year. Exporters attributed the increase to stable consumer demand and long-standing trade relationships.
Russia ranked as the second-largest destination, although shipments declined compared to the previous year. Exports to Russia amounted to 21.59 million kilograms in 2025, down from 24.98 million kilograms a year earlier. Market participants cited economic pressures and changing consumption patterns as factors influencing the lower volumes.
Turkey followed closely as the third-largest buyer of Sri Lankan tea. Exports to Turkey increased to 21.27 million kilograms, up significantly from 17.73 million kilograms in the previous year. The growth highlighted renewed demand from Turkish buyers and improving trade flows between the two countries.
The geographic spread of Sri Lanka tea exports continues to play a crucial role in supporting overall performance. While fluctuations in individual markets remain a challenge, diversification across regions has helped cushion the industry against sudden demand shocks.
Producers and exporters also benefited from relatively stable production conditions during the year, although rising input costs and labour constraints remained ongoing concerns. Industry stakeholders have repeatedly stressed the need for productivity improvements and value addition to sustain long-term growth and competitiveness.
Looking ahead, analysts expect global tea demand to remain steady, with emerging markets offering further opportunities for expansion. However, they caution that maintaining quality standards and managing costs will be critical if Sri Lanka is to preserve its premium positioning in the international tea trade.
Overall, the 2025 performance of Sri Lanka tea exports reflects a sector that has demonstrated resilience and adaptability. With volumes rising, earnings improving, and key markets holding firm, the industry enters the new year with cautious optimism, even as global economic uncertainties persist.