Colombo, Sri Lanka – 24 September 2026 – The Sri Lankan tea market demonstrated resilience this week, maintaining a “fair general demand” despite registering its lowest quantity on offer since April 2024. According to the Forbes & Walker Tea Brokers Tea Market Report for the Sale of 22 & 23 September 2026 (Sale No. 37), a total of 4.83 million kilograms of tea were offered, drawing attention to market dynamics amidst fluctuating global conditions.
Auction Highlights and Market Performance
The latest auction, held on 22nd and 23rd September 2026, saw 10,269 lots totaling 4,826,774 kilograms on offer. This volume represents the lowest quantity on offer since Sale No. 16 of 22nd/24th April 2024, yet the overall market sentiment remained largely consistent with the previous week, indicating a stable underlying demand.
Market Segment Breakdown:
- Ex-Estate Teas: Offerings stood at 0.6 million kilograms, a slight decrease from the previous week. Better teas continued to sell well, though some of the select high prices recorded last week were not sustained. Western region teas commanded a premium, while Uva BOPs experienced appreciation of up to Rs. 50 per kilogram for limited availability.
- High & Medium Grown CTC Teas: This segment witnessed an improved market outlook, with prices appreciating by Rs. 20-40 per kilogram, particularly for better quality teas.
- Low Grown Teas: Accounting for approximately 2.2 million kilograms, Low Grown teas continued their strong sales performance. Premium category teas met with “good demand,” while Leafy, Semi-Leafy, and Tippy categories experienced “fair demand.” Well-made BOP1s remained firm, while select best OP1s and best varieties generally saw declines. Tippy teas in the Premium category were reported as dearer overall.
- Off-Grades and Dust: The Off-Grade market saw select best FGS1 varieties initially ease but recover to previous levels. Brokens largely maintained their positions. Dust1s, particularly select best varieties, appreciated significantly by Rs. 50-100 per kilogram, with other categories also seeing gains.
National Tea Exports: August 2026 Overview
The Forbes & Walker report also provided critical insights into Sri Lanka’s national tea export performance for August 2026 and the cumulative period of January-August 2026, revealing mixed trends:
- August 2026 Exports: Total tea exports for the month were 22.82 million kilograms, marking a 0.88 million kilogram decrease year-on-year (YoY) compared to August 2025. Despite the volume decline, the Free On Board (FOB) value recorded a positive variance, increasing by Rs. 104.92 to Rs. 1,910.27 per kilogram (USD 5.74) against the corresponding month of 2025, primarily driven by gains in LKR terms across most categories except Green Tea.
- January-August 2026 Cumulative Exports: Cumulative exports reached 166.32 million kilograms, an 8.23 million kilogram decrease YoY from the same period in 2025. The cumulative FOB value, however, increased by Rs. 81.47 to Rs. 1,837.70 per kilogram (USD 5.71) in LKR terms, though it recorded a negative variance of USD 0.17 in USD terms.
Key Importer Dynamics:
Türkiye emerged as the top importer of Ceylon Tea in August 2026, importing 30.42 million kilograms, a significant 143% increase YoY. This pushed Iraq, which saw a 37% decline, to the second position with 16.42 million kilograms. Russia held strong at third place, followed by Azerbaijan, China, and Libya, showcasing a shifting landscape in key export markets for Sri Lankan tea.
Global Tea Market Developments
In related news, the report highlighted directives from the Kenyan government for tea factories to reject green leaf that does not meet the “two leaves and a bud” standard. This move aims to enhance tea quality and secure better international prices for Kenyan tea, particularly by increasing orthodox and specialty tea production.
Crop and Weather Report
For the period 15th-21st September 2026, all Sri Lankan tea regions, including Western, Nuwara Eliya, Uva, Udapussellawa, and Low Growns, reported an increase in crop intake, benefiting from widespread rainfall during the week. The Department of Meteorology anticipates continued rain in the week ahead, which could further support crop volumes.
The next auctions, Sale No. 38 and Sale No. 39, are scheduled for 29th/30th September and 6th/7th October 2026, respectively, with industry stakeholders closely monitoring market movements and global demand trends.
Source: Forbes & Walker Tea Brokers Weekly Tea Market Report 22nd/23rd September 2026
