Sri Lanka’s tea industry is poised for significant growth in 2026, with production expected to rise by 10–12%, despite a loss of nearly one million kilograms caused by Cyclone Ditwah, according to Sri Lanka Tea Board Chairman W.L.P. Wijewardene.

Speaking to the media, Wijewardene said that if favourable weather conditions continue, the country could reach its annual target of 300 million kilograms of tea production.

Sri Lanka’s tea output in 2025 reached 264.12 million kilograms, surpassing the 2024 level of 262.69 million kilograms, a year-on-year increase of 1.43 million kilograms. He credited the government’s fertilizer subsidy as a key factor contributing to this growth. Production in 2025 also exceeded 2023 levels by 8.03 million kilograms.

However, the Tea Board Chairman noted that the Department of Census and Statistics’ GDP by Product Report for Q3 2025 indicated an 8.1% decline in tea production volume, caused by supply-side challenges such as rising input costs, delays in replanting estates, and labour shortages.

On the export front, Sri Lanka shipped 257.4 million kilograms of tea in 2025, up from 245.7 million kilograms in 2024, representing an increase of 11.65 million kilograms. Export earnings grew to USD 1.506 billion, compared to USD 1.434 billion in the previous year. The Free on Board (FOB) average price remained steady at USD 5.85 per kilogram, slightly higher than USD 5.84 recorded in 2024.

Wijewardene expressed optimism that continued government support and favourable conditions would enable the tea sector to maintain steady growth in 2026, despite the setbacks caused by natural disasters.