Sri Lanka’s tea exports in 2024 amounted to 245.7 million kilograms, generating $1.43 billion in revenue—marginally surpassing last year’s figure of 241.9 million kilograms. The total export value reached an all-time high of Rs. 437 billion, translating to a record Free on Board (FOB) price of $5.83 per kilogram. However, local earnings in rupee terms declined due to the appreciation of the Sri Lankan Rupee against the US Dollar and other currencies.
In comparison, 2023 tea exports brought in $1.3 billion at an FOB price of $5.35 per kilogram. The highest revenue from exports was achieved a decade ago at $1.6 billion on a volume of 327 million kilograms. Despite Sri Lanka’s global market presence exceeding 300 million kilograms annually, the 2024 numbers fell short due to lower production of 262 million kilograms, with the shortfall being consumed domestically.
Export patterns showed a decline in packet tea shipments, which dropped to 101 million kilograms from 108 million kilograms in the previous year, accounting for 41% of total exports. However, tea bag shipments increased by 10% to 25.5 million kilograms. Green tea exports also rose by 4% year-on-year to 4.6 million kilograms, while instant tea shipments saw a slight decline.
Iraq remained the top export destination, importing 34.2 million kilograms, marking a 5% year-on-year growth, though at a relatively low FOB price of $4.41 per kilogram. Russia followed with a 10% increase to 24.9 million kilograms, while shipments to the UAE surged 14% to 21.1 million kilograms. In contrast, exports to Turkey fell sharply to 17.7 million kilograms from 30.4 million in 2023.
Iran’s direct imports rose significantly by 60%, reaching 10.4 million kilograms under the ongoing tea-for-oil debt agreement. Saudi Arabia, a key high-value market with an FOB of $7.83 per kilogram, increased its imports by 30% to 9 million kilograms. Other notable markets included Libya (10.2 million kilograms) and Chile (8.3 million kilograms).
Looking ahead, Asia Siyaka Commodities expressed optimism for 2025, citing improved political and economic stability in key markets such as the Middle East and North Africa, which together account for 50% of Sri Lanka’s tea exports. Additionally, Russia and the Commonwealth of Independent States (CIS) absorbed 11% of total exports in 2024, with prospects for growth should geopolitical tensions ease.
Sri Lanka is hopeful of increasing both quantity and value in markets like Libya, which purchased 10 million kilograms in 2024 at a low FOB of $3.96. Furthermore, Syria’s improving political landscape could lead to higher tea demand, as the country has historically been a strong market for Ceylon Tea.
While Russia remains a key market with 24.9 million kilograms imported in 2024, challenges persist due to economic sanctions and geopolitical uncertainties. However, Asia Siyaka noted potential for growth if peace is restored in the region, which could positively impact trade volumes and value.
Overall, Sri Lanka’s tea industry looks forward to capitalizing on new opportunities in 2025, leveraging stable market conditions and longstanding trade agreements to enhance export performance.