Sri Lanka drops to 4th in Global Tea Exports

Sri Lanka has dropped to fourth place among the world’s top tea exporters, overtaken by India, which expanded its share of the global tea market in 2024, according to the latest annual report from Agarapatana Plantations PLC.

India’s exports rose to 14% of global market share, edging past Sri Lanka, which remained at 13%. This comes despite Sri Lanka increasing its tea export volume from 242 million kg in 2023 to 246 million kg in 2024, and export value rising from USD 1.31 billion to USD 1.436 billion.

The shift reflects rising global competition and deep-rooted domestic issues. A key concern is uncertainty over the future of 53-year plantation land leases, which now have only 20 years remaining. Industry leaders are calling for immediate government action to ensure long-term planning.

The sector also faces a 35% rise in daily wages, persistent labour shortages due to worker migration, and production losses from climate change. National high-grown tea output dropped from 59 million kg in 2023 to 56 million kg in 2024.

Aging infrastructure, declining soil fertility, and geopolitical tensions—especially in the Middle East and Eastern Europe, key export regions—have further pressured the industry. Competition from African producers is also intensifying.

To adapt, plantation companies are investing in mechanisation, tourism, and value-added products like organic teas. However, experts warn that without urgent reforms, Sri Lanka risks losing its historical prominence in global tea markets.