Colombo, 02 September 2026 – Sri Lanka’s renowned tea market experienced a week of varied performance, with overall demand rated as fair, according to the latest Forbes & Walker Tea Brokers’ report for the sales held on September 1st and 2nd, 2026 (Sale No. 34). The weekly auction, which saw a marginal dip in total offerings, registered a firm-to-dearer trend for better quality teas, while others showed irregularity.
Auction Overview and Key Highlights
The total auction offerings comprised 5.34 million kilograms (M/Kgs), a slight decrease from the previous week’s 5.4 M/Kgs. A total of 11,084 lots, amounting to 5,336,085 Kgs, were on offer. Settlement dates for this sale are scheduled for September 4th, 8th, and 9th, 2026. The overall market sentiment remained “Fair” across most categories including Ex-Estate, High & Medium, Leafy, Semi-Leafy, Tippy/Small Leaf, and Dust, with Premium Flowery also recording “Fair” demand, while Off Grades were “Irregular.”
Segment Performance at a Glance
- Ex-Estate Teas: Offerings were down to 0.77 M/Kgs from 0.83 M/Kgs previously. Select Western BOP/BOPF varieties gained up to Rs. 50 per kilogram, with some Below Best invoices appreciating by Rs. 20-40 per kg. However, other categories were irregular or easier. Nuwara Eliya BOP/BOPF had no offerings, while Uda Pussellawa BOP/BOPF were mostly unsold due to poor quality. Uva BOPs saw select coloury invoices firm to dearer, and corresponding BOPFs gained Rs. 50 per kg or more.
- High & Mid-Grown CTC Teas: BP1s had minimal offerings. A wider selection of better PF1s appreciated by an average of Rs. 20 per kg. Demand from quality-conscious markets was limited due to the scarcity of better teas. Shippers to the UK and continent showed less activity, while Japan, China, CIS, and the Middle East displayed fair interest.
- Low Grown Teas: Totaling approximately 2.2 M/Kgs, all Low Grown categories met with fair demand. BOP1s, OPs, and PEKs were generally firm, with OP1s firm to dearer. Select Best and Best OPAs were easier, but Below Best and cleaner bottom-end teas appreciated. Tippy catalogue saw mixed trends, with bold varieties dearer and a few Select Best FBOPs selling around last levels. Premium Flowery Tippy teas were generally dearer.
- Off-Grades and Dusts: Off-Grades commenced lower but marginally appreciated to last week’s closing levels for select best sorts. Best and Below Best categories declined. Dust1 saw select Best and Best varieties firm to dearer by Rs. 40-50 per kg. High & Medium Grown CTCs were irregularly firm, while Low Grown CTCs were dearer.
National Tea Sales Averages for August 2026
The national tea sales average for August 2026 was recorded at Rs. 1,174.46 (USD 3.53). This represents a slight decline of Rs. 1.64 but a positive USD 0.03 gain compared to July 2026 (Rs. 1,176.10 / USD 3.50). Year-on-year, against August 2025 (Rs. 1,182.27 / USD 3.92), there was a decrease of Rs. 7.81 and USD 0.39.
For the cumulative period of 2026 to date, the total national sale average stands at Rs. 1,165.66 (USD 3.62), marking a positive variance of Rs. 9.29 (negative USD 0.25) compared to the corresponding period in 2025.
Elevation-wise summary for August 2026:
- High Grown: Declined by Rs. 4.89 (gained USD 0.02) month-on-month, and a significant decline of Rs. 49.14 (USD 0.49) year-on-year.
- Medium Grown: Recorded a positive variance of Rs. 0.88 (USD 0.03) month-on-month, but a decrease of Rs. 74.28 (USD 0.54) year-on-year.
- Low Grown: Declined by Rs. 16.23 (USD 0.01) month-on-month, but showed a positive variance of Rs. 25.74 (decrease of USD 0.31) year-on-year.
Cumulatively, High Grown and Low Grown elevations, along with the National Average, recorded positive variances in LKR terms, while Medium Growns showed a negative variance. In USD terms, all elevations experienced a decline.
Crop and Weather Update (August 25-31, 2026)
Rainfall was reported in the Western and Nuwara Eliya regions throughout the week, with intermittent showers expected. The Uva and Uda Pussellawa regions experienced bright weather, with strong winds anticipated. The Low Grown Region also saw rain throughout the week, with showers expected in the coming period. Crop intake decreased in Western, Nuwara Eliya, Uva, and Uda Pussellawa regions, while the Low Grown region reported an increase.
Global Tea Markets Mirror Mixed Trends
International tea auctions also displayed a mixed global landscape. The Mombasa Auction (August 31 – September 1, 2026) saw reduced general demand, with 17.87% unsold, particularly for leaf grades. The Bangladesh Auction (August 31, 2026) met with fairly strong demand, but prices eased slightly due to a lack of competition. Coonoor Auction (August 29, 2026) reported sustained demand for CTC leaf, with major blenders dominating purchases, while orthodox teas ruled a firm market for high-grown varieties. Auctions in Kolkata (September 1, 2026) noted good demand with Assams tending easier, and the Cochin Auction (September 2, 2026) saw export demand remain supportive, particularly for quality Orthodox teas from CIS and Middle East buyers. Other auctions in Siliguri, Malawi, and Guwahati also indicated varied demand and price movements, reflecting global market complexities impacting the Sri Lankan tea industry.
The Sri Lankan tea market continues to navigate fluctuating global demand and regional weather patterns, with careful attention to quality remaining paramount for price realization in the competitive international tea trade.
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