Despite facing challenges from Cyclone Ditwah and other structural issues, Sri Lanka’s tea sector is preparing for a positive year ahead, with growth projected between 10% and 12% in 2026. Industry leaders are optimistic that favorable weather conditions will help meet the country’s production goal of 300 million kilograms.

In 2025, tea output reached 264.12 million kilograms, showing a modest increase compared to 2024. Support measures such as the government’s fertilizer subsidy have contributed to this steady growth, which also surpasses the production levels recorded in 2023.

However, the sector still faces hurdles. Rising input costs, delays in replanting, and labor shortages caused an 8% decline in production in the third quarter of 2025, according to official statistics.

On the export front, Sri Lanka shipped 257.4 million kilograms of tea last year, earning $1.506 billion in revenue. The average price per kilogram remained stable at around $5.85, reflecting the sustained demand for Ceylon tea in international markets.

Reference: ‘Sri Lanka’s tea output projected to rise 10–12% in 2026’, Newswire. [Online] Published: 5 February 2026. Available at: https://www.newswire.lk/2026/02/05/sri-lankas-tea-output-projected-to-rise-10-12-in-2026/ (Accessed: 6 February 2026).