Ceylon Tea Risks Irrelevance without Regenerative Shift and Reform

Sri Lanka’s Ceylon Tea industry is at a critical juncture. Although global demand for premium, ethically sourced tea is rising, Sri Lanka continues to lose influence as faster-moving competitors invest aggressively in branding, sustainability, and new product categories.Industry experts warn that the country risks missing a historic market opportunity unless political leadership and state institutions begin delivering urgent reforms.

Speaking at the Asian International Tea Summit in Colombo, Hayleys Group Managing Director and former Planters’ Association Chairperson Roshan Rajadurai said the only way for Sri Lanka to differentiate itself is to embrace regenerative agriculture, a growing global standard.

He highlighted that Sri Lanka’s tea industry is currently “over-certified” with requirements imposed by buyers that do not translate into higher prices. However, he argued this burden could be turned into an advantage through strategic differentiation.

Rajadurai stressed that global consumers increasingly demand sustainability compliance, traceability, and low-impact production.

“We need to elevate the product as a Regenagri product and approach the market,” he said, referring to the international programme that certifies regenerative agricultural practices. He added that early successes over the past two years especially in agroforestry-based rare teas and specialty teas prove the model is commercially viable.

Official data echoes the urgency. Tea export earnings for October fell 0.21% year-on-year to USD 126.55 million, although cumulative earnings from January to October rose 8.72% to USD 1.289 billion, largely due to strong performance in tea packets, which accounted for 15.18% of export revenue.

Analysts warn these gains remain fragile given global competition and Sri Lanka’s weak marketing visibility.

The political dimension is equally concerning. The NPP government has yet to lay out a comprehensive strategy to modernise production, reposition Ceylon Tea, or exploit sustainability-focused market niches.

Senior industry stakeholders privately express doubts about the minister in charge, citing a lack of English communication ability, limited global exposure, and weak public relations critical deficiencies for a sector that depends on international promotion and trade negotiations. Their concerns are compounded by lethargic ministry bureaucracy and slow decision-making.

Experts argue that without strong political leadership capable of engaging global buyers and investors, Sri Lanka cannot leverage the very certifications and standards that Rajadurai says could distinguish Ceylon Tea as a premium regenerative product.

Sri Lanka has a narrow window to reposition Ceylon Tea not just as a drink, but as a Regenagri-certified, health-focused, sustainable luxury product.

 But unless the government empowers professionals, accelerates reforms, and fixes institutional weaknesses, the world’s most respected tea brand risks further decline in a market it once owned.