Sales of Ceylon tea in Sri Lanka recorded a month-on-month dip in October, even though year-on-year figures showed a slight uptick, according to broker Forbes & Walker Ltd.. The National Sales Average (NSA) for October fell by Rs. 14.48 to Rs. 1,177.14 per kg (US$3.87), down from September’s Rs. 1,191.62 (US$3.94). Compared with October 2024, when the average was Rs. 1,172.15 (US$3.99), the October 2025 figure is modestly higher by Rs. 4.99 and US$0.12.
Breaking down by elevation, High Grown tea prices fell by Rs. 8.57 and US$0.05 month-on-month, but rose by Rs. 19.48 compared with October last year (though US$-0.07). Medium Grown tea recorded a month-on-month increase of Rs. 3.43 (US$-0.01) and a year-on-year gain of Rs. 13.06 (US$-0.08). In contrast, Low Grown tea logged a decline of Rs. 19.66 (US$-0.09) month-on-month and Rs. 1.11 (US$-0.15) year-on-year.
Despite the month’s mixed performance, the year-to-date NSA stands at Rs. 1,161.99 (US$3.87), down by Rs. 74.93 (US$0.21) compared with the same period last year when it averaged Rs. 1,236.92 (US$4.08). Meanwhile, export earnings have shown strength: September tea exports rose 17 % to US$137 million, and cumulative earnings for the first nine months hit US$1.16 billionup 9.8 % year-on-year according to Sri Lanka Export Development Board data.
These figures arrive against a backdrop of both potential and pressure in Sri Lanka’s tea sector. The island produces tea year-round and directly or indirectly supports nearly one million people, covering around 4 % of the land area in plantation estates. Sri Lanka Business+1 Production for the first nine months of 2025 stood at 199.09 million kgup 2.22 million kg from the same period in 2024. Tea Exporters Association
Yet, remaining competitive is a challenge. Rising labour costs, fertiliser and fuel inflation are squeezing margins, and the industry is contending with ageing tea bushes and low replanting rates, which have dampened output growth and increased costs. Tea Exporters Association+1 In addition, the sector is pursuing a geographical indication (GI) registration for “Ceylon Tea” and adopting sustainability standards as part of a global positioning strategy. worldteanews.com
Beyond averages and production volumes, analysts point to shifting global demand patterns: premium tea segments are growing, “grab-and-go” and ready-to-drink formats rising, and new markets opening up. Sri Lanka’s strength as a producer of orthodox (leaf) tea remains a key differentiator even as competition intensifies. Tea Exporters Association
In summary, although October brought a modest monthly decline in tea sales averages, year-on-year performance and export earnings point to resilience in the sector. The challenge for Sri Lanka now lies in balancing cost pressures, modernising estate operations, capturing higher-value segments, and protecting the global brand equity of Ceylon tea. As the world evolves, Sri Lanka’s tea industry must adapt quickly to maintain its place and value in the global marketplace.
Leave your comments
Login to post a comment
Post comment as a guest