Tea Exports from Sri Lanka: Evergreen Guide to Global Markets and Challenges

Sri Lanka's tea fields stretch across misty hills from Nuwara Eliya to Uva, producing the world-renowned Ceylon Tea that's fetched over $1.5 billion in exports in 2025 alone.Sri Lanka tea exports remain our economic lifeline, powering livelihoods for millions while navigating global shifts and local hurdles. Whether you're a smallholder in Ratnapura or an exporter in Colombo, this tea export guide breaks down the latest 2025-2026 trends, top markets, and practical steps to thrive.

Recent Performance: Record Revenues Amid Volume Challenges

In 2025, Sri Lanka's tea exports hit 257.44 million kilograms, a 4.74% rise from 2024's 245.79 million kg, with earnings climbing to 453.3 billion rupees ($1.51 billion USD). This marked our strongest year since 2014, driven by higher prices despite weather woes curbing production to around 264 million kg.

From January to August 2025, we exported 174.5 million kg for 306 billion rupees ($1.2 billion), up 7% in volume and 6% in value year-on-year, thanks to an average FOB price of $5.88 per kg. December saw a dip to 17.87 million kg, but value held at $105.82 million.

Value-Added Shift Boosts Profits

Bulk tea's share dropped to 42%, while bagged tea rose to 45% and value-added products like tea bags (17.2 million kg) and instant tea (2.2 million kg) grew. Overall, value-added exports hit 58% of total, up from 53% in 2024, fetching premium prices for our innovative packs.

• Packeted tea, tea bags, and green tea all increased volumes.
• Bulk tea declined, reflecting global demand for ready-to-sell formats.

Producing 264.12 million kg in 2025, we stayed ahead of exports, but global CTC tea shortages (45 million kg deficit) minimally impacted our orthodox leaf focus.

Top Global Markets for Sri Lanka Tea Exports

Iraq leads as our biggest buyer, importing 39.3 million kg in 2025 (15% of total), up from 34.26 million kg in 2024. Russia followed with 21.59 million kg (down slightly), then Türkiye at 21.27 million kg (a sharp rise).

Key Destinations Breakdown (2025)

Market	Volume (million kg)	Share (%)	Trend vs 2024
Iraq	39.3	15	Up 15%
Russia	21.59	8	Down 14%
Türkiye	21.27	8	Up 20%
Others (China, UAE, UK)	175.28	69	Stable

Earlier data shows Russia ($122M), Iraq ($121M), China ($57M), Azerbaijan, and Germany as stalwarts. Fast-growers like Turkey, Lebanon, and Syria signal Middle East potential. In 2026, target these via Colombo auctions or direct deals.

Challenges Facing Our Tea Industry

Despite gains, we're up against climate volatility, labour shortages, and competition. Unfavourable weather slashed expected 280 million kg production to 262-263 million kg. High-grown teas held firm, but low-grown dipped.

Regulatory and Compliance Hurdles

Exporting requires Sri Lanka Standards Institution (SLSI) certification for quality, plus phytosanitary certificates from the Department of Agriculture. Comply with EU Maximum Residue Levels (MRLs) on pesticides—our 2026 priority under the National Plant Quarantine Service. Glyphosate bans and EU Deforestation Regulation demand chemical-free shifts; non-compliance risks bans like China's 2021 ethylene oxide scare.

Tea exporters must register with the Sri Lanka Tea Board (SLTB) and use the Tea Export Portal for customs. GST on exports is zero-rated, but track Central Bank forex rules via CBSL.

Labour and Sustainability Pressures

Estate wages rose to Rs 170/day in 2025 under new tripartite deals, straining smallholders. Adopt drip irrigation and shade trees for resilience—Uva planters cut losses by 20% this way.

Practical Tea Export Guide for Locals

Ready to export? Here's your step-by-step for 2026.

Step 1: Quality Production and Certification

1. Grow SLTB-approved clones; test for residues at government labs (Rs 5,000-10,000/sample).
2. Register as exporter with SLTB (teaboard.gov.lk); fee Rs 25,000 annually.
3. Get ISO 22000 or Rainforest Alliance for premium markets—boosts prices 10-15%.

Step 2: Finding Buyers and Logistics

• Join Tea Exporters Association (TEA) for market reports and buyer directories.
• Attend EDB's Foodex 2026 pavilion in Japan—network with 60,000 buyers.
• Use Ceylon Tea Brokers for auctions; direct exports via letters of credit save 5% commissions.
• Ship via Colombo Port; freight to Iraq ~$1,500/20ft container (2026 rates).

Step 3: Financing and Risk Management

Access Export Development Board (EDB) loans at 7% interest or EXIM Bank guarantees. Hedge prices via International Tea Committee forwards. Track USD/LKR at 310:1 (Feb 2026).

Pro Tip: Value-add locally—blend with spices for UAE; packet for Russia. Factories in Pelmadulla report 30% margins.

Future Outlook for 2026

With global deficits and our 58% value-added push, expect $1.6 billion revenues if production hits 270 million kg. China and EU green tea demand surges; diversify beyond Iraq (volatile politics).

Sustainability sells: SLTB's "Pure Ceylon" campaign targets millennials via e-commerce.

FAQ

How do I start tea exporting as a smallholder?

Register with SLTB, certify quality, and sell via brokers. Join co-ops like Talawakelle for bulk power.

What's the average price for Ceylon Tea in 2026?

$5.85-6.00/kg FOB, higher for value-added (up to $10/kg).

Which countries ban Sri Lankan tea?

None major in 2026, but monitor EU MRLs and China's ethylene oxide tests.

Is tea GST-free for exports?

Yes, zero-rated under Inland Revenue Act; claim input refunds.

How has climate affected 2025 exports?

Droughts cut output 6%, but prices rose 1% to offset.

Best markets for new exporters?

Türkiye and UAE—growing 20% YoY, less saturated than Iraq.

Next Steps to Boost Your Tea Exports

Download SLTB's 2026 Market Report today.Connect with TEA for auctions, certify your crop, and pitch value-added samples to Iraqi buyers. We're Ceylon Tea—timeless, resilient. Start small, scale global; your estate could power our next billion-dollar year.