Sri Lanka’s tea exports fell 15.1% year-on-year in July to 20.41 million kilograms, down from 24.04 million kilograms a year earlier, deepening a decline that has run through most of 2026.
The drop of 3.63 million kilograms was broad-based. Every major export category except instant tea shipped less, according to data compiled by Forbes & Walker Research from Sri Lanka Customs figures and reported by the Daily Mirror.
Packeted tea, the largest category in July, fell to 8.92 million kilograms from 10.77 million. Bulk tea dropped to 8.59 million from 10.16 million. Tea bags eased to 2.16 million from 2.24 million and green tea to 0.39 million from 0.56 million. Instant tea was the sole gainer, rising to 0.35 million kilograms from 0.30 million.
A higher price that is not really higher
The month produced a divergence worth reading carefully. The average FOB value rose to Rs. 1,921.95 per kilogram from Rs. 1,766.51, an increase of Rs. 155.44. Measured in dollars it fell, to USD 5.72 from USD 5.87.
The same split runs through the year to date. The cumulative rupee FOB value rose to Rs. 1,826.16 per kilogram from Rs. 1,748.51, while the dollar average slipped to USD 5.70 from USD 5.86. Green tea was the only segment to post a higher dollar value in either period.
For an export sector, the dollar figure is the one that reaches the balance of payments. The rupee improvement reflects currency movement rather than stronger demand.
Seven months of contraction
July pulled the year-to-date numbers down with it. Exports for January to July fell 4.9% to 143.51 million kilograms from 150.85 million a year earlier.
Packeted tea accounted for most of that, down 4.69 million kilograms to 63.89 million. Bulk tea fell 2.73 million to 59.92 million. Instant tea again ran against the trend, up 479,020 kilograms to 2.43 million.
Daily FT, carrying the same Forbes & Walker release with additional analysis by Siyaka Research, reported that export earnings for the seven months came to about USD 817 million against USD 884 million a year earlier — a decline of roughly USD 67 million — and attributed the renewed July pressure partly to continued disruption on Middle East shipping routes. Its market-level figures show exports to Libya down about 58% to 5.4 million kilograms and to the United Arab Emirates down by a similar margin to 4.4 million, with Chile off about 24% and China down 8%.
The market map has been redrawn
Türkiye is now Sri Lanka’s largest tea buyer, taking 24.76 million kilograms in the first seven months — up 138% from 10.40 million a year earlier.
Iraq, traditionally the largest market, fell to second on a 36% decline to 14.42 million kilograms. Russia was third at 13.35 million, up 2.6%, and Azerbaijan fourth at 7.14 million, up 49%. China followed with 5.59 million. Jordan, Chile, Saudi Arabia and Syria completed the top ten.
The pattern is consistent with earlier reporting this year on Gulf shipping disruption reshaping Ceylon Tea’s destination mix: traditional Middle Eastern buyers contracting while Türkiye and the Caspian markets absorb volume.
