COLOMBO, Aug 5, 2025 (ePRESS) – Sri Lanka’s tea industry saw positive growth in production and export earnings in the first half of 2025, despite mounting challenges from global oversupply and currency pressure.
According to the latest data, tea production from January to June 2025 reached 135.73 million kilograms, an increase of 7.78 million kilograms compared to 127.95 million kilograms during the same period last year.
Export earnings also rose in the second quarter (April to June) of 2025. Revenue increased by Rs.11.35 billion, with US dollar earnings improving by USD 40.27 million, reaching USD 372.46 million, compared to USD 332.19 million in Q2 2024.
Iraq emerged as the largest importer of Ceylon Tea during the first half of the year, purchasing 18.71 million kilograms, up 28% year-on-year from 14.67 million kilograms in 2024.
Libya followed with 11.47 million kilograms, a massive 280% surge, placing ahead of Russia, which dropped to third place due to a 14% decline in imports.
However, the tea industry faced pressure from the strengthened Sri Lankan rupee, which negatively impacted auction prices when compared to the same period last year.
Globally, the African region began 2025 with nearly 150 million kilograms of unsold tea stock, mainly low-grade varieties. This was triggered by the introduction of minimum pricing policies, which disrupted normal trading patterns.
Sri Lanka’s own stockpile added to the global surplus, with nearly 20% of High Grown teas remaining unsold locally. Average-grade teas also continued to build up in storage, creating further market imbalances.
Industry analysts say that Sri Lanka must now focus on quality and better market alignment to remain competitive amid an oversupplied global market. While the growth in volume and export value is promising, strategic improvements are needed to maintain momentum in the second half of the year.
