Sri Lanka’s tea exports fell 5% year-on-year in the first eight months of 2026, with higher freight and insurance costs and disrupted access to key markets continuing to weigh on shipments, the Daily FT reported.

Data analysed by Asia Siyaka Commodities PLC Research records 22.8 million kg shipped in August, down 4% from 23.7 million kg in the same month last year. Cumulative exports for the eight months stood at 166.3 million kg, against 174.2 million kg a year earlier.

Rupee steady, dollars down

Rupee earnings were close to flat, easing from Rs. 306.5 billion to Rs. 305.6 billion, cushioned by currency depreciation. In dollar terms the picture is sharper: earnings came to about $948 million, down from $1.026 billion.

The average FOB value worked out at roughly $5.70 per kg, 3% below the $5.88 recorded a year earlier. Asia Siyaka noted that volumes offered at the Colombo Tea Auctions continue to sell without major disruption.

Market-by-market

Turkey has held its place as the leading destination, with shipments almost doubling to 24.7 million kg from 12.4 million kg.

The losses are concentrated in the Middle East and its transit routes. Shipments to Iraq fell 45% to 14.4 million kg, and the UAE β€” long a major transit hub for Ceylon tea β€” collapsed 65%, from 12.7 million kg to 4.4 million kg. Trade to and through Libya dropped 62% to 5.4 million kg.

Elsewhere, Russia was down 10% to 13.3 million kg, China fell 18% to 5.5 million kg, Chile dropped 36% to 4.9 million kg, Saudi Arabia fell 19% to 4.7 million kg and Syria was down 14% to 4.7 million kg. Azerbaijan grew about 20% to 7.1 million kg and Jordan rose 39% to 5.2 million kg. Germany held steady at 4.5 million kg.

The August fall is shallower than the month before it: July volumes dropped 15% to 20.41 million kg.

Sources