Tea export volumes fall through August as dollar prices weaken

Sri Lanka’s tea exports fell in August and over the first eight months of 2026, with higher average prices in rupees failing to offset lower shipment volumes, according to Sri Lanka Customs figures compiled by Forbes & Walker Research.

August exports totalled 22.82 million kg, down 887,079 kg, or 3.7 percent, from 23.70 million kg a year earlier. The average free on board (FOB) value rose 5.8 percent to Rs. 1,910.27 per kg, but fell to US$5.74 from US$5.99 when expressed in dollars.

For January to August, exports declined 8.23 million kg, or 4.7 percent, to 166.32 million kg. The average FOB value increased to Rs. 1,837.70 per kg from Rs. 1,756.23, while its dollar equivalent slipped to US$5.71 from US$5.88.

Based on the reported volumes and average FOB values, export earnings for the eight months were approximately Rs. 305.7 billion, compared with Rs. 306.6 billion a year earlier. The calculation indicates that the increase in the rupee price per kilogram did not fully compensate for the fall in shipments.

Tea packets made up the largest share of exports during the eight months, at 74.20 million kg, but also recorded the biggest volume decline, falling 4.67 million kg from a year earlier. Bulk tea shipments dropped 3.15 million kg to 69.74 million kg, while tea bag exports declined by about 686,000 kg to 16.57 million kg.

Instant tea was the only category to post volume growth over the period, rising by nearly 490,000 kg to 2.73 million kg. Green tea exports fell by about 202,000 kg to 3.08 million kg.

The August figures showed a similar pattern. Tea bag shipments fell by 486,252 kg to 1.98 million kg, while bulk tea exports declined by 425,882 kg to 9.82 million kg. Green tea exports edged lower. Tea packets rose slightly to 10.31 million kg, and instant tea shipments increased to 302,750 kg.

Prices varied sharply by product. The August FOB value for tea bags rose to US$10.30 per kg from US$9.83 a year earlier, making them the only category to record a dollar price gain for the month. Green tea saw the steepest dollar price decline, falling to US$14.46 per kg from US$16.22. Bulk tea fell to US$4.64 per kg from US$5.04.

For the eight-month period, tea bags and green tea recorded marginal gains in average dollar FOB values, while bulk tea, tea packets and instant tea registered declines.