Sri Lanka’s tea exports declined during the first four months of 2026 as disruptions to global shipping routes following the escalation of the US-Iran conflict weighed on access to key export markets across the Middle East and North Africa, according to an analysis of Sri Lanka Customs data by Asia Siyaka Research published in Daily FT.
April exports totalled 17.9 million kg, down 1.6% year-on-year from 18.2 million kg in April 2025. Cumulative January–April shipments fell to 78.3 million kg, a 4% decline from 81.3 million kg in the same period of 2025.
Export earnings for the four months reached $451 million, down 5.64% from $478 million a year earlier. The average free-on-board value per kilogram slipped to $5.76 from $5.88, suggesting both volume and price weakness combined.
Iraq remained Sri Lanka’s largest tea export destination during January–April, but its purchases fell to 10.2 million kg from 11.5 million kg the year before — underscoring the direct hit from shipping route uncertainty around the Strait of Hormuz and the Red Sea.
Asia Siyaka Research said the data highlighted the vulnerability of Sri Lanka’s tea sector to geopolitical instability and disruptions in international shipping routes, particularly given the industry’s heavy reliance on markets in the Middle East, the Commonwealth of Independent States and neighbouring regions.
The Planters’ Association of Ceylon had warned at the start of May that the Gulf shipping crisis was threatening exports to Iran, Iraq and Syria. The customs data confirm those warnings have begun to feed through to actual volumes and dollar earnings.
Source: Daily FT.
