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Sri Lanka's tea output decline as inflation and oil prices rise

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Sri Lanka's tea production declined during the first five months of 2026, while inflation continued to edge higher and global crude oil prices increased amid heightened geopolitical tensions, according to the Central Bank's latest Weekly Economic Indicators report.

The report noted that tea production recorded a year-on-year decline from January to May 2026, primarily due to lower output in March and April as adverse weather conditions disrupted cultivation and harvesting activities.

Rubber production also contracted during the same period. The Central Bank attributed the decline mainly to a significant reduction in May, when increased rainy days limited tapping operations and affected overall output.

The report highlighted that inflation maintained its upward trajectory during the review period, reflecting continued price pressures in the economy.

Meanwhile, international crude oil prices rose in response to escalating geopolitical tensions, adding to concerns over higher import costs and potential inflationary pressures for fuel-importing countries such as Sri Lanka.

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