Sri Lanka’s tea industry is expected to record growth of 10 to 12 percent in 2026 despite weather-related losses and structural challenges.
Chairman W. L. P. Wijewardene said the sector remains optimistic despite losing nearly one million kilograms of tea due to Cyclone Ditwah. He said favorable weather conditions could help the industry reach its annual production target of 300 million kilograms.
Tea production in 2025 rose to 264.12 million kilograms, up from 262.69 million kilograms in 2024, reflecting an increase of 1.43 million kilograms. Mr Wijewardene said the government’s fertilizer subsidy played a key role in the growth, which was also 8.03 million kilograms higher than production levels recorded in 2023.
However, he noted that the Department of Census and Statistics’ third-quarter 2025 report showed an 8.1 percent decline in tea production volume, attributing the drop to supply-side challenges including rising input costs, delays in replanting and labor shortages.
On the export front, tea shipments increased by 11.65 million kilograms in 2025 to reach 257.4 million kilograms. Export earnings rose to $1.506 billion during the year, while the average export price remained stable at about $5.85 per kilogram,Mr Wijewardene said. (NewsWire)