Sri Lanka’s tea industry—long celebrated for its iconic Ceylon Tea—is at a critical juncture, with stakeholders calling for urgent investment in smallholder plantations to meet the government’s ambitious production and export targets by 2030.
Speaking at the 26th Annual General Meeting of the Tea Exporters Association (TEA), Chairperson Huzefa Akrabally warned that smallholder yields are declining due to aging plantations and lack of replantation, threatening the industry’s future. Smallholders account for 70% of the country’s tea output.
“Without investment in replanting and block-in-filling, we will fall short of the 400 million kilogramme production and $2.5 billion export revenue target for 2030. For 2025, we project exports of 270 million kg and over $1.5 billion in revenue—nearly a 10% rise from last year. But we must build resilience and empower the smallholders who drive this growth,” he said.
The call for reform was echoed by Industry and Entrepreneurship Development Minister Sunil Handunneththi, who emphasised the need to move beyond bulk exports.
“The name ‘Ceylon Tea’ carries global prestige. To protect it, we must focus on branding, value addition, and tackling fertiliser supply and global competition,” he said, adding that public-private partnerships would be key to unlocking greater returns.
With more than 90% of Sri Lanka’s tea exported and around two million people dependent on the industry, stakeholders agree that sustainability, innovation, and targeted investment are vital for the next phase of growth.
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