Export volumes rise, value-added segments drive growth despite mixed pricing trends
Colombo, May 24 — Sri Lanka’s tea export industry posted a robust performance in April 2025, with total shipments climbing to 18.20 million kilograms—an increase of 1.82 million kilograms over the 16.38 million kilograms exported in April 2024. According to a report by Forbes & Walker, the growth was powered by strong demand for value-added tea products, including Tea Packets, Tea Bags, and Instant Tea, although exports of Tea in Bulk declined.
The Free on Board (FOB) value for April rose to Rs. 1,760.31 per kilogram, up from Rs. 1,745.45 a year earlier. In US dollar terms, the increase was more modest at $0.07, reflecting better foreign market performance despite currency fluctuations.
During the January–April 2025 period, total tea exports reached 81.41 million kilograms, up by 2.71 million kilograms compared to 78.70 million kilograms during the same period in 2024. While value-added products gained traction, categories like Tea in Bulk and Green Tea posted year-on-year declines.
The average FOB value for the first four months of 2025 was Rs. 1,743.61, down Rs. 28.75 from Rs. 1,772.36 in the same period last year. However, when calculated in US dollars, the export value rose by $0.15, indicating stronger international demand. Interestingly, all categories except Instant Tea showed a decrease in FOB value in Sri Lankan rupees, while showing gains in US dollar terms—underscoring the influence of exchange rates on revenue.
On the international front, Iraq emerged as the top destination for Ceylon Tea, importing 11.52 million kilograms—a 13% increase year-on-year. Libya surged to second place with a dramatic 353% rise to 7.61 million kilograms, overtaking Russia, which saw a 9% decline to 7.50 million kilograms. Other major markets included the UAE, Türkiye, Chile, China, Saudi Arabia, and Germany, with varying levels of year-on-year performance.
Industry experts stressed the importance of continuing value addition and market diversification strategies to maintain momentum and competitiveness in the evolving global tea landscape.