Sri Lanka’s tea industry is facing a severe crisis due to the ongoing drought and the prevailing war situation in the Middle East, according to National Tea Planters Association President Saman Geeganage.
He stated that the shortage of raw tea leaves has led to a reduction of nearly 50% in processing capacity, forcing around 200 tea factories across the island to shut down operations.
As a result, annual exports of finished tea have declined significantly, dropping from 250,000 metric tons to 125,000 metric tons. This decline has caused an estimated loss of approximately USD 200 million in foreign exchange earnings per month.
Meanwhile, the wholesale price of a kilogram of Ceylon super tea currently ranges between Rs. 1,000 and Rs. 1,100. Other tea varieties are being purchased by exporters at considerably lower prices, ranging from Rs. 800 to Rs. 970 per kilogram.
Geeganage further noted that the conflict in the Middle East and the Gulf region has directly impacted the international demand for Sri Lankan tea.
