Demand for Sri Lankan Tea Rises in Middle East: Tea Board

26-Mar-2026

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The Sri Lanka Tea Board reports a significant increase in demand for Ceylon tea in Middle Eastern countries amid regional tensions.

Chairman Raj Obeyesekere stated that the surge is driven by consumer stockpiling due to conflict-related uncertainty.

Although auctions saw a slight decline in the initial phase, prices and demand have now stabilised. The average auction price last week was Rs. 1,153 per kilogram.

Unsold tea volumes remain within the normal range of 8–10% of total auction quantities.

While exports to countries such as Kuwait, Saudi Arabia, and Iran were initially disrupted due to tensions around the Strait of Hormuz, alternative distribution routes have now been established to markets including Turkey and Iraq.

Measures are also underway to support production, including fertiliser distribution for three months and ensuring uninterrupted fuel supply to factories.