Sri Lanka's Tea Exports Fall Again in July as Türkiye Becomes the Top Buyer
Sri Lanka's tea exports fell 15% in July from a year earlier, and Middle East shipping disruption has reshuffled the buyer list, with Türkiye now the largest single importer of Ceylon tea for the year to date.
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Sri Lanka shipped 20.41 million kg (about 22,500 US tons) of tea in July 2026, down 3.63 million kg, or about 15%, from 24.04 million kg in July 2025. Daily FT reported the figures on 26 August. The monthly fall extends a decline that now runs across the year: cumulative exports for January to July stand at 143.51 million kg, 4.9% below the 150.85 million kg shipped in the same period of 2025.
Earnings fell further than volume in dollar terms. Export revenue for the seven months came to roughly $817 million, against $884 million a year earlier, a shortfall of about $67 million; the January-July average FOB price was $5.70 per kilo, down $0.16 from $5.86. July's own average, reported separately in rupees, was Rs. 1,921.95 per kilo (roughly US$6.05 at a similar exchange rate to the seven-month average), up Rs. 155.44 from Rs. 1,766.51 a year earlier. The two figures cover different periods and are not directly comparable; Daily FT did not report a July-only dollar price.
More consequential than the topline decline is where the tea went instead. Daily FT attributes reduced market access to disruption on Middle East shipping routes, and the destination figures for January to July are stark. Libya took 5.4 million kg, down 58% from 13 million kg. The UAE took 4.4 million kg, also down 58%, from 10.6 million kg. Iraq, historically among the largest buyers, fell 36% to 14.42 million kg. Against that, Türkiye bought 24.76 million kg over the seven months, up 138% from 10.40 million kg, making it the largest single importer of Ceylon tea for the year to date, per Daily FT's figures. Russia rose 2.6% to 13.35 million kg and Azerbaijan 49% to 7.14 million kg.
Production also slipped. Daily Mirror reports July output of 21.26 million kg, down 1.05% from 21.49 million kg a year earlier and 8.33% below the 23.19 million kg of July 2024, reversing June's year-on-year gain. Medium-grown teas fell 11.10% to 3.24 million kg and low-grown 1.20% to 13.58 million kg, while high-grown rose 8.24% to 4.19 million kg and green tea 10.69% to 246,114 kg. Cumulative output for the seven months was 153.14 million kg, down 2.62% from 157.26 million kg.
Sources: Daily FT, "Tea exports fall 5% as Middle East disruption hits key markets" (26 August 2026); Daily Mirror, "July tea output falls 1% as medium-grown production drops".