Sri Lanka's tea exports reached 63.7 million kilograms in the first quarter of 2022, the lowest level since 1999, according to official data. This decline reflects the worst performance of the sector since the country's economic crisis began in 1948, exacerbated by fertilizer restrictions and reduced demand from key markets.
Tea, Sri Lanka's primary export commodity, previously generated around $1.3 billion annually before the current economic downturn. The fertilizer import ban introduced in 2021 to address foreign currency shortages caused an 18% production drop between November 2021 and February 2022, according to industry reports.
Customs figures show exports fell to 63.7 million kg in Q1 2022 from 69.8 million kg in the same period the previous year. The decline coincided with a 10% reduction in shipments to Russia and Ukraine, major buyers of Sri Lankan tea. Despite lifting the fertilizer ban by October 2021, farmers faced ongoing challenges accessing imports due to severe foreign exchange shortages.
Export earnings for the first quarter dropped to $287 million, down from $338 million in 2021. The crisis has deepened Sri Lanka's economic collapse, with shortages of essential goods triggering widespread protests demanding President Gotabaya Rajapaksa's resignation.
