Sri Lanka’s national Colombo Tea Auction average fell for a third consecutive month in March 2026, slipping to Rs. 1,144.23 (US$ 3.63) per kilogram from Rs. 1,152.11 in February, according to broker data published by Forbes & Walker Research and reported by Daily FT.
The March average was Rs. 39.53 — and 36 US cents — below March 2025, indicating weakening external demand for Ceylon Tea on top of a steady three-month domestic price retreat. Cumulatively, the national sales average has dropped Rs. 57.35 from December 2025’s peak of Rs. 1,201.58.
For the first quarter as a whole, the national sales average stood at Rs. 1,153.25 (US$ 3.70), down Rs. 26.07 and 28 US cents from Rs. 1,179.32 in the corresponding period of 2025. The slide has flowed through directly into auction revenues, which fell to about Rs. 74 billion in Q1 2026 from Rs. 83 billion a year earlier — a contraction of roughly 11%.
The decline was sharpest in the Medium Grown segment, which fell Rs. 69.21 year on year, and the Low Grown segment, which dropped Rs. 13.95 month on month and Rs. 55.02 against March 2025. High Grown teas bucked the wider trend, gaining Rs. 5.72 versus a year ago even as they slipped Rs. 8.31 from February.
The slide compounds an already difficult quarter for plantation companies. Energy costs jumped after the April LP gas price hike, which has squeezed factory margins, and the recent rupee depreciation has only partially offset the price decline at auction. The combination is feeding through to lower export earnings at a time when the broader economy is also bracing for the impact of the 44% United States tariff on apparel and other major Sri Lankan exports.
