Sri Lanka’s tea exports to the UAE continued to grow in 2025, reaching 18.32 million kilograms compared to 17.73 million kilograms in 2024, registering an increase of 3.3 per cent, a senior official said.

Dr Arusha Cooray, Sri Lanka’s ambassador to UAE, expects tea exports from Sri Lanka to both the UAE and the GCC region will continue to grow in the coming years on the back of strong demand for Sri Lankan tea and its reputation for quality and authenticity.

Data showed that Iraq was the largest destination for Sri Lankan tea exports in 2025, accounting for 15.31 per cent of total exports, followed by Russia at 8.39 per cent and Türkiye at 8.27 per cent.

The comments were made during a celebration organized by the Embassy of Sri Lanka in Abu Dhabi to mark International Tea Day at Abu Dhabi Global Market (ADGM).

Speaking at an event held in Abu Dhabi, Ambassador Dr Arusha Cooray highlighted the legacy of Sri Lankan tea, its contribution to the country’s economy and the international recognition the industry has earned over the years.

She also spoke about the unique characteristics of tea grown across Sri Lanka’s seven tea-producing regions, the evolution of tea production on the island and the country’s continued role as a major exporter to global markets.

The event brought together more than 75 participants, including senior UAE officials, ambassadors, tea importers, media representatives and industry stakeholders.

Dr Ahmed Mukhtar, FAO Representative to the UAE, attended as chief guest and highlighted the diversity of Ceylon tea, its sustainable cultivation practices and its competitive position in global markets.

Several leading Sri Lankan tea companies, including Dilmah, Akbar Tea, Ahmad Tea, Eswaran Brothers and Stassen Tea, showcased their products during the event.

Guests also participated in a tea-tasting session led by Mohamed Rikas, a certified tea master from Ahmad Tea, who introduced the distinctive flavor profiles of teas cultivated across Sri Lanka’s seven tea-growing regions.

Product samples provided by the Sri Lanka Tea Board and tea importers were displayed at the venue, while the event concluded with a networking session featuring traditional Sri Lankan canapés accompanied by Ceylon teas and tea-based mocktails.

The event highlighted the strong cultural and economic ties between Sri Lanka and the UAE while reinforcing the growing trade relationship between the two countries. (Khaleej Times)

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Sri Lanka’s tea export earnings fell 17.3% year-on-year to $114.75 million in March, while exports to Iraq dropped 38% and shipments to the United Arab Emirates plunged 93%, as the Middle East conflict continues to hit the country’s tea industry and wider economy, according to a Reuters report.

The report highlighted that Sri Lanka’s $1.5 billion tea industry, which supports around 2.4 million people, is increasingly feeling the impact of the crisis, with nearly half of the country’s annual tea exports, worth around $680 million, destined for Middle Eastern markets.

State-run Export Development Board (EDB) data cited by Reuters showed the sharp decline in exports has added pressure on plantation communities already grappling with rising living costs.

Tea plantation worker Jacintha Malar told Reuters she had switched from cooking on gas to firewood due to higher fuel prices. Malar and her husband, a tea plucker in Sri Lanka’s central hills, are among millions dependent on the tea sector.

Tea plantation workers typically earn between Rs. 1,350 and Rs. 1,750 per day, only slightly above Sri Lanka’s daily minimum wage of Rs. 1,200. Reuters reported that more than half of plantation workers live below the World Bank’s international lower-middle-income poverty line.

Thangawel Ganeshalingam, convener of the Movement for Plantation People’s Land Rights, told Reuters that plantation workers were facing “crisis after crisis,” warning of rising school absenteeism, fewer meals and workers leaving plantations in search of better opportunities.

Exports to Iran also remain a concern, with the country importing between 8 million and 10 million kilograms of premium Sri Lankan tea annually.

Meanwhile, Dilmah Chairman and CEO Dilhan Fernando told Reuters the company was dealing with shipping and logistics disruptions and rising fuel costs linked to the conflict.

The Reuters report noted that pressure on the tea sector comes as Sri Lanka’s broader economy also faces fallout from the Middle East crisis, including higher energy costs and supply disruptions. (Newswire)

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Sri Lanka has settled USD 55 million out of its USD 250.9 million fuel debt to Iran through tea exports, Sri Lanka Tea Board Chairman Niraj De Mel said.

He said under the Memorandum of Understanding with Iran, Sri Lanka commenced the repayment of its fuel debt through tea exports starting in August last year.

The Sri Lanka Tea Board Chairman revealed that to date, Sri Lanka has repaid USD 55 million of this debt. 

In the first four months of 2024, Sri Lanka exported 4.1 million kilograms of processed tea to Iran, marking a threefold increase compared to the amount exported during the same period in 2023, he added. 

In December 2021, it was announced that Iran had agreed to accept Ceylon tea in exchange for some $251 million in oil debt from Sri Lanka.

Head of Iran’s Trade Promotion Organization, Alireza Peyman-Pak said “In recent negotiations, we reached a written deal to reimburse Iran’s debt and interest on it in the form of a monthly shipment of tea produced in Sri Lanka.”

At the time, Peyman-Pak further said a deal was reached in which Sri Lanka would export tea to Iran every month “to settle a $251 million debt for Iranian oil supplied to Sri Lanka nine years ago.” (Newswire)

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