Colombo – April 25, 2025: Sri Lanka’s tea industry has brewed up a strong start to the year, with first-quarter export earnings reaching an impressive $370.9 million—marking the highest Q1 performance in over a decade, according to Asia Siyaka Commodities PLC.
The 5% year-on-year (YoY) growth in dollar earnings comes alongside a slight increase in export volume, with 63.2 million kilos of tea shipped in the first quarter of 2025 compared to 62.3 million kilos during the same period last year.
The average Free On Board (FOB) price per kilo rose to $5.87, up from $5.69 in Q1 2024, indicating stronger pricing in global markets. However, the appreciation of the Sri Lankan Rupee—averaging Rs. 296 to the US Dollar compared to Rs. 313 last year—dented local currency earnings, which fell slightly to Rs. 109.9 billion from Rs. 110.9 billion.
A highlight for the industry was the continued growth in value-added exports, which now represent 56% of total shipments, up from 53% last year. This category includes tea bags, packets, instant tea, and green tea, all of which saw YoY increases in volume.
Iraq remained Sri Lanka’s top tea export destination with 9 million kilos, followed by Russia at 6.3 million kilos. Libya posted a remarkable 416% YoY surge, importing 5.3 million kilos compared to just 1 million kilos the previous year. In contrast, shipments to and via the UAE declined by 35% to 4.5 million kilos.
Other notable markets include Turkey (3.3 million kilos), Chile (3 million kilos, up from 1.9 million), Iran (down to 2.7 million kilos from 3.4 million due to bureaucratic issues related to the Tea for Oil deal), China (steady at 2.4 million kilos), and Saudi Arabia and Germany (each absorbing about 2.2 million kilos).