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Ceylon tea

Ceylon tea is the commercial name for cultivated and processed exclusively in from the leaves, buds, and tender stems of the plant, encompassing orthodox , , and varieties. Grown primarily in the island's central highlands across 13 designated districts, it is renowned for its high quality, with featuring a brisk, full-bodied liquor ranging from to copper in color, infused with woody, malty, and aromas. The origins of Ceylon tea trace back to the colonial era in the 1820s, when plantations were established following the of the Kingdom of in 1815, transforming the island's economy through government-supported land grants and infrastructure development. By the mid-19th century, Ceylon had become the world's largest producer, but the outbreak of coffee rust disease () in 1869 devastated the industry, prompting a rapid shift to . Scottish planter pioneered commercial production in 1867 at the Loolecondera Estate in , planting the first 19 acres and overseeing the island's initial exports of 23 pounds to London in 1873. By the late 1880s, tea acreage had expanded to nearly 400,000 acres as former coffee estates converted, with production surpassing 100,000 metric tons annually by 1927 and exceeding 200,000 metric tons by the 1960s, when Sri Lanka became the world's largest tea exporter in 1965. The industry now involves over 500,000 smallholdings and 328 large estates, supported by approximately 819 factories, and relies on hand-plucking every 6-10 days to maintain quality standards. Economically vital, Ceylon tea accounts for about 18% of global tea exports as of 2023, generating $1.43 billion in revenue in 2024, with production reaching approximately 262 million kilograms that year; exports totaled around 246 million kilograms, positioning Sri Lanka as the world's fourth-largest tea exporter. Its protected geographical indication, marked by the Lion Logo since 2005, ensures 100% Sri Lankan origin and adherence to international standards like ISO 3720.

History

Origins and introduction

The origins of tea cultivation in Ceylon trace back to the discovery of wild tea plants in the forests of Assam in 1823, which marked the beginning of commercial exploitation of the crop in British colonies. This , attributed to British explorer Robert Bruce and later verified by botanists, prompted efforts to propagate the plant beyond , introducing it to colonial territories including and Ceylon to diversify agricultural exports. The first tea seeds arrived in Ceylon in 1824, brought by the from and planted experimentally in the Royal Botanical Gardens at near for non-commercial purposes. Further introductions followed in the 1830s and 1840s, with Dr. Nathaniel Wallich, superintendent of the Calcutta Botanical Gardens, playing a pivotal role; he sent the initial consignment of tea seeds to in December 1839, followed by 205 plants in February 1840. These seeds facilitated early experimental plantings: in May 1840, superintendent H.T. Normansell distributed plants to , and by April 1842, Wallich supplied additional varieties to the region under manager Mr. Mooyart's care; meanwhile, the Worms brothers initiated small-scale trials at Estate in Pussellawa and Lobookellie in 1841. These efforts, supported by colonial policies favoring , tested the plant's viability in Ceylon's hill country but remained limited in scale amid the dominance of . The devastating outbreak of coffee leaf rust (Hemileia vastatrix) in 1869 accelerated the shift toward tea, as the fungus first appeared on outlying estates, causing leaves to yellow, fall, and ultimately kill plants with no effective cure available. Ceylon's coffee exports plummeted from 100 million pounds in 1870 to just 5 million by 1889, compelling planters to trial alternatives like tea on affected lands. This crisis catalyzed the establishment of Ceylon's first commercial tea estate at Loolecondera in the region in 1867 by Scottish planter , who had arrived in Ceylon in 1852 at age 17 and joined the estate as a coffee worker. Drawing on knowledge from , Taylor cleared and planted 21 acres (Field No. 7) using seeds from Peradeniya Gardens, initially incorporating Assam hybrids along paths from 1866; he employed hand-rolling for processing, with withering, , and panning done manually before building a dedicated tea house. Early yields were modest, enabling a first London shipment of 23 pounds in 1873, but by the early 1880s, the estate achieved 450–500 pounds per acre through refined plucking and pruning techniques learned from peers like Mr. Cameron.

Colonial expansion

Following the initial experiments in the mid-19th century, tea cultivation in Ceylon experienced rapid expansion during the 1870s under British colonial administration, as planters converted vast tracts of former lands devastated by leaf rust disease into tea estates. This shift was pioneered by figures like , whose early successes at Loolecondera Estate demonstrated the viability of large-scale tea production. By the late 1870s, tea acreage had begun to multiply exponentially, driven by favorable conditions in the central highlands and the economic imperative to replace declining coffee revenues. Tea plantations quickly surpassed coffee in scale, with cultivation area exceeding that of coffee by 1888 and reaching nearly 400,000 acres by the late 1880s, primarily in the elevated terrains suitable for the crop. Key regions developed during this period included the in the central hills, where mid-grown teas thrived at elevations of 650 to 1,300 meters, and the to the east, known for its high-grown varieties benefiting from cooler influences. Estates in these areas, such as those in the Dimbula and vicinities adjacent to and Uva, became central to the industry's growth, establishing distinct flavor profiles that would later define Ceylon tea's global reputation. To support this expansion, the colonial government invested heavily in , particularly rail networks introduced and extended in the to facilitate the efficient transport of fresh leaves from remote hill estates to processing factories and the . These lines, building on earlier coffee-era tracks from the 1860s, connected key plantation districts like and to coastal export hubs, reducing transit times and enabling the industry's logistical scalability. The labor demands of this booming sector led to the systematic importation of workers from southern , primarily Tamil speakers from , who were recruited under indentured contracts to provide the intensive manual workforce needed for planting, weeding, and harvesting on the sprawling estates. By the , tens of thousands of these laborers had settled in line rooms on tea properties, forming the backbone of the and creating enduring social structures within the up-country regions. In response to these developments, the Planters' Association of Ceylon, originally formed in for interests, intensified its focus on and published key proceedings in 1881 to advocate for planters' needs, including labor regulations and market protections. This organization played a pivotal role in coordinating the industry's growth amid economic shifts. By 1886, Ceylon exports had surged to approximately 9 million pounds, signaling the crop's emergence as a dominant colonial .

Post-independence era

Following Sri Lanka's independence from British rule in 1948, the tea industry continued to operate under private management inherited from the colonial era, but significant structural changes began in the 1970s amid efforts to redistribute land and assert state control over key economic sectors. In 1972, under the Land Reform Law (Act No. 1 of 1972), the government nationalized large plantations, including those producing tea, expropriating estates exceeding 50 acres from both British and local owners to promote equitable land use and boost productivity. This led to the creation of the Janatha Estates Development Board (JEDB) in 1976, which managed 263 nationalized estates covering 140,000 hectares, initially focusing on rehabilitating underproductive lands but facing immediate challenges such as mismanagement and declining yields that adversely impacted the tea sector. Concurrently, the adoption of a new on April 22, 1972, renamed the country the Democratic Socialist Republic of , marking the end of the Dominion of Ceylon. Despite this shift, the "Ceylon tea" brand was deliberately retained for international exports to preserve its established reputation for quality, as rebranding to "Sri Lanka tea" was deemed too costly and risky for the industry's global market position. To oversee the sector's regulation and promotion, the Sri Lanka Tea Board was established on January 1, 1976, under the Sri Lanka Tea Board No. 14 of 1975, assuming responsibilities for quality control, research, and export standards, including mandatory compliance with ISO 3720 for to ensure consistent high standards. The nationalized era brought operational difficulties, exacerbated by labor unrest, including widespread strikes in the such as the that disrupted production across plantations and contributed to output declines of up to 7% in some years. These challenges, coupled with bureaucratic inefficiencies, led to chronic losses and low worker morale, prompting a policy reversal in the late . commenced in under the Janatha Estate Development Board Act No. 4 of , transferring management of 90% of state estates to 23 Regional Companies (RPCs) by 1995, which improved efficiency through private investment and rehabilitated aging infrastructure, aiding recovery. By 2000, these reforms helped surpass 300 million kilograms in annual tea production for the first time, reflecting renewed growth in the sector.

Cultivation

Growing regions

Ceylon tea cultivation is centered in the Central Highlands of , which form the core production area and are characterized by rolling hills, valleys, and varying elevations that shape the industry's output. This region is broadly divided into three elevation-based zones: high-grown areas above 1,200 meters, exemplified by with its cool, misty plateaus; mid-grown zones between 1,000 and 1,200 meters, such as Dimbula on the southwestern slopes; and low-grown areas below 1,000 meters, including parts of in the eastern highlands. Key districts contributing to tea production include , located on the western slopes of the highlands with undulating terrain; in the eastern sector, featuring dramatic escarpments and valleys; and Sabaragamuwa, encompassing lower foothills and inland plains. These areas leverage Sri Lanka's diverse topography, from steep inclines to gentler undulations, to support extensive networks. As of the , the total cultivable area under stands at approximately 203,000 hectares, with a significant portion situated in the regions that dominate the landscape. plays a crucial role in determining yield and quality, as higher altitudes result in slower plant growth and enhanced flavor compounds; for instance, Nuwara Eliya's persistent misty conditions at over 1,800 meters foster teas with superior aroma and lightness. Lower elevations, conversely, support higher yields but produce bolder, more robust leaves due to warmer temperatures and increased sunlight exposure.

Climate and plant requirements

Ceylon tea cultivation thrives in a with bimodal rainfall patterns, delivering annual between 1,900 and 5,000 mm to support consistent growth. Optimal temperatures range from 15°C to 30°C, allowing for steady and shoot development without frost damage or excessive heat stress. High , typically 60% to 90%, is crucial for maintaining plant turgor and facilitating nutrient absorption through the leaves. These conditions align with Sri Lanka's monsoon-driven weather, where two rainy seasons prevent prolonged droughts that could hinder yield. However, is increasingly impacting cultivation, with rising temperatures, erratic rainfall, and more frequent droughts reducing yields in highland areas by up to 20% in recent years. The primary species cultivated is Camellia sinensis var. assamica, which is well-suited to Sri Lanka's warmer low-elevation areas and produces robust bushes with larger leaves for high-quality tea. Since the , clonal propagation of this variety has become standard practice, enabling the selection of disease-resistant stocks that improve uniformity and productivity across plantations. This method replaced seed , reducing genetic variability while enhancing resilience to local environmental pressures. Ideal soils for C. sinensis var. assamica are acidic and well-drained loamy types, with a of 4.5 to 5.5 to optimize nutrient availability, particularly and . Deep, friable profiles prevent waterlogging and support extensive systems essential for during drier intervals. These plants remain vulnerable to pests and diseases, notably blister (Exobasidium vexans), which proliferates in prolonged wet, shaded conditions and can devastate young flushes. In new plantings, shade trees such as are thus incorporated to provide 30-50% canopy cover, moderating light intensity and humidity while protecting immature bushes from direct sun and wind.

Farming practices

Farming practices in Ceylon tea cultivation emphasize maintaining plant health and productivity through regular agronomic interventions, adapted to Sri Lanka's diverse terrains and climates. is a key technique performed every 3-5 years to control bush growth and rejuvenate the plant, ensuring the plucking table remains at an optimal height of 1-1.5 meters for efficient leaf harvest and sustained yields. This cycle varies by elevation and clone type, with higher altitudes often requiring longer intervals to account for slower growth rates. Fertilization regimens focus on supplying essential macronutrients—nitrogen for vegetative growth, for root development, and for overall vigor—applied in balanced ratios based on tests to optimize tea bush performance without excess runoff. In addition to inorganic fertilizers, methods such as and green manures are increasingly integrated to enhance and reduce chemical dependency, aligning with broader goals. Weed management combines manual labor, where workers uproot competing vegetation, with selective herbicide applications to minimize soil disturbance and maintain field access. Integrated pest management (IPM) strategies are widely adopted, incorporating biological controls like natural predators, cultural practices such as , and targeted chemical interventions only when pest thresholds are exceeded, thereby reducing residues in the final product. The industry has shifted toward sustainable practices to address environmental challenges, including efforts to achieve through adherence to standards prohibiting synthetic inputs. A notable development was the 2021 government ban on chemical imports, intended to promote , which led to a 23% drop in in 2022 due to nutrient deficiencies and was partially reversed in 2022 to stabilize yields; by 2024, had recovered to approximately 262 million kilograms. Water conservation efforts include systems and on select estates to mitigate impacts and preserve integrity. Hand-plucking remains the dominant method for leaf collection, a labor-intensive that employs over 1 million workers across estates and smallholdings, ensuring selective harvesting of the finest shoots for Ceylon tea quality.

Production

Harvesting methods

Harvesting of Ceylon tea primarily relies on hand-plucking, where skilled workers selectively pick the top from the tea bushes to ensure high-quality output. This method, known as "fine plucking," preserves the tenderness and flavor potential of the shoots, distinguishing Ceylon teas from coarser varieties. In the regions, where growth rates are slower due to cooler temperatures, plucking occurs approximately 40 to 50 times per year, allowing bushes to recover between rounds. The harvesting cycle follows seasonal flushes influenced by Sri Lanka's monsoonal climate. In high-grown areas, the first flush typically begins in and peaks through , yielding bright, brisk teas from the fresh spring growth. The second flush arrives in to , producing fuller-bodied leaves during the drier inter-monsoon period. These flushes dictate the timing of plucking rounds, with intervals of 7 to 10 days in highlands to match the slower shoot development. While hand-plucking dominates, mechanical harvesting is employed in low-grown areas for greater efficiency amid labor challenges. Devices like the TRI selective tea harvester cut shoots selectively but are limited to about 10% of total production, mainly in flatter terrains unsuitable for precise manual work. This approach doubles output per worker but risks uneven cuts if not managed carefully. Plucked leaves are collected daily and transported to nearby factories within 4 hours to minimize unintended oxidation and preserve freshness. Delays beyond this window can degrade quality by initiating enzymatic changes prematurely. The workforce consists predominantly of female pluckers, who form the backbone of Ceylon tea harvesting and often meet daily quotas of 15 to 20 kilograms of green leaves. These women, comprising up to 70% of laborers, navigate steep terrains with baskets strapped to their backs, contributing to the labor-intensive that sustains the industry's reputation.

Processing stages

The processing of Ceylon tea begins immediately after the fresh leaves arrive at , where they undergo a series of controlled stages to transform the green leaf into the characteristic product. This orthodox method, standard for high-quality Ceylon tea, emphasizes careful handling to preserve flavor compounds while developing the desired color, aroma, and strength. Withering is the initial stage, where freshly plucked leaves are spread thinly on racks or troughs in a well-ventilated area to reduce content and initiate enzymatic changes. This typically lasts 12-18 hours, depending on ambient conditions, resulting in a loss of 25-30 percentage points—from around 75-78% to 55-60%—and an overall weight reduction of approximately 60% to make the leaves pliable for subsequent steps. Hot or cold air may be circulated to accelerate uniform drying, preventing uneven later. Following withering, the leaves enter the rolling stage, where mechanical rollers twist and compress them to rupture walls and release intracellular juices containing enzymes and polyphenols. This action exposes the leaf's contents to oxygen, initiating the while shaping the leaves into their final form; multiple rolling passes may be used to ensure thorough breakage without excessive fragmentation. The rolled leaves then undergo oxidation, often referred to as in tea terminology, in a humid chamber at around 25-30°C and 90-95% relative to promote enzymatic browning. This stage develops the tea's brisk flavor and coppery color, lasting 1-3 hours until the leaves achieve a characteristic reddish hue, at which point oxidation is halted to prevent over-development of bitterness. Firing follows immediately, where the semi-oxidized leaves are passed through hot-air dryers or ovens at temperatures up to 120°C to deactivate enzymes, arrest oxidation, and reduce to about 3% for and packaging. This rapid preserves the volatile aroma compounds while achieving the final appearance essential to Ceylon tea. Finally, sorting mechanically separates the dried tea into basic categories based on particle size: whole or large leaf grades, broken leaves, fannings, and dust, using sieves and air blowers to remove fibers and imperfections for initial quality control.

Quality grading

Ceylon tea employs the orthodox grading system to classify processed leaves based on their size, shape, and overall quality, ensuring consistency for international markets. This system primarily distinguishes between whole leaf grades, broken leaf grades, fannings, and dust, with specific designations reflecting the leaf's integrity and brewing potential. Key whole leaf grades include (Orange Pekoe), which consists of long, wiry, well-twisted leaves producing a delicate brew, and finer variants like FTGFOP1 (Finest Tippy Golden Flowery Orange Pekoe 1), reserved for high-grown teas featuring abundant golden tips and exceptional leaf wholeness. Broken leaf grades, such as (Broken Orange Pekoe), comprise neat, medium-sized pieces that balance strength and flavor, while BP (Broken Pekoe) involves coarser, stem-heavy fragments suitable for robust infusions. Fannings grades like (Pekoe Fannings) are granular particles offering strong, quick-brewing characteristics, often used in tea bags. High-grown teas from elevated regions typically receive finer gradings, such as FTGFOP1, due to their superior leaf development and tip content compared to low-grown varieties. Quality assessment culminates at the Tea Auction, the world's oldest continuous tea auction established in , where licensed brokers evaluate teas through visual inspection of dry and infused leaves alongside liquor tasting. Brokers prioritize attributes like liquor brightness, which indicates a lively, fresh with good keeping quality, and strength, denoting a full-bodied, robust character essential for blending. These evaluations determine market value and ensure only high-standard teas are traded weekly. Beyond grading, Ceylon tea undergoes rigorous certifications to uphold and . ISO 22000 verifies compliance with international food safety management standards across production facilities, minimizing contamination risks from harvest to export. promotes sustainable practices on plantations, including conservation, fair labor, and reduced chemical use, with many estates achieving accreditation to meet global ethical demands. Sri Lanka enforces strict maximum residue limits (MRLs) for pesticides in tea exports, aligned with and importing country regulations, such as those from the and . These limits, monitored by the Tea Board and Tea Research Institute, result in rejection rates below 1% for non-compliant shipments, reflecting effective residue control and testing protocols.

Types and Varieties

Black tea variants

Ceylon black tea, the predominant type produced in , is categorized into several variants based on leaf size and processing, primarily through or CTC (cut, tear, curl) methods. These variants include whole leaf teas, broken teas, fannings, and dust, each suited to different preferences and commercial applications. accounts for approximately 97% of Sri Lanka's total tea output, with annual production reaching around 255 million kilograms in 2024. Whole leaf teas, such as Orange Pekoe (OP) and Flowery Orange Pekoe (FOP), consist of long, twisted leaves that yield a delicate, premium ideal for loose-leaf . These grades are typically produced via , where leaves are hand-rolled to preserve integrity, resulting in a lighter body and nuanced flavor profile favored by connoisseurs. Broken teas, including Broken Orange Pekoe (BOP) and Broken Pekoe (BP), feature smaller, chopped leaves that produce a stronger, more robust brew suitable for everyday consumption. These variants dominate exports, comprising a significant portion—often over 70% in bulk and packet forms—for their quick and balanced strength, processed either or via CTC for uniformity. Fannings and dust represent the finest particles from sorting, graded as Broken Orange Pekoe Fannings (BOPF) or Dust (D), commonly used in tea bags due to their rapid extraction and bold color. These grades are particularly employed in preparations, where their intensity enhances cold brews without bitterness. Ceylon black tea is frequently blended with or Kenyan teas to create commercial products like English Breakfast blends, balancing flavors for wider market appeal and consistent taste in packaged goods.

Specialty teas

Specialty teas in Ceylon encompass a range of non-traditional varieties produced through alternative processing methods, diverging from the dominant that constitutes approximately 97% of output. These include , , and flavored options, which represent a small but growing segment of production, appealing to health-conscious and niche international markets. While remains the cornerstone, specialty varieties leverage Sri Lanka's diverse microclimates to offer unique profiles, often emphasizing minimal oxidation or added elements for enhanced flavors. Green tea, accounting for approximately 1% of Ceylon's total , is cultivated primarily in the at mid-elevations. Unlike , it undergoes steaming or pan-firing immediately after harvesting to prevent oxidation, preserving high levels of antioxidants and resulting in a bright yellow liquor with delicate, sweet notes. This variety is grown using seed stocks from , , , and , and is exported mainly to the , , and , where it is valued for its pure, clear character. White tea involves the minimal processing of young buds and tender leaves, hand-picked and simply withered and dried without rolling or oxidation to retain natural enzymes and a light, floral essence. Produced in limited quantities, it yields a pale infusion with citrus and honey undertones, positioning it as one of the most expensive Ceylon varieties due to its labor-intensive artisanal methods. Notable examples include Virgin White from the coastal Handunugoda Estate, as well as high-estate offerings from at altitudes exceeding 2,000 meters, where cooler conditions enhance its subtlety. Flavored and seasonal teas extend Ceylon's palette through infusions or environmental curing, such as bold teas known for their smooth, mellow profiles with muscatel and floral hints, developed in regions exposed to winds. teas, a distinctive low-grown variant, are cured in humid conditions during the rainy season, imparting a robust, malty depth with notes of and , often sourced from southern estates like those in Ruhuna. These seasonal expressions highlight the impact of Sri Lanka's bimodal cycles on development. Herbal infusions, though not derived from the plant, are frequently marketed as Ceylon blends incorporating local spices like , , and cloves for aromatic, caffeine-free alternatives. These products, such as spiced variants, draw on Sri Lanka's spice heritage to create warming, digestive profiles, often certified for quality and exported to wellness-oriented consumers. Emerging lines represent a niche expansion, with numerous estates certified under standards like USDA-NOP, EU Organic, and JAS, focusing on sustainable practices to meet global demand for chemical-free teas. These certified areas target premium markets, emphasizing and , though they comprise a modest fraction of the overall 200,000 hectares under tea cultivation.

Regional distinctions

Ceylon tea exhibits distinct qualities shaped by the unique of its growing regions, where variations in elevation, climate, and soil influence the leaf's development and final profile. Higher elevations generally result in slower-growing leaves that yield lighter, more aromatic teas, while lower altitudes produce bolder, fuller-bodied varieties. These regional differences contribute to the diversity of Ceylon tea, with each district offering specialized attributes prized by connoisseurs worldwide. The region, situated at elevations exceeding 1,800 meters (6,000 feet), produces some of the lightest and most fragrant Ceylon teas, renowned for their delicate notes and floral . These high-grown teas achieve their peak quality during the first flush in and , when cooler temperatures and misty conditions enhance the leaves' subtle, citrus-like brightness and pale golden . teas form approximately 10-15% of Sri Lanka's total tea output, underscoring their premium status in the global market. In contrast, the Dimbula district, located at mid-to-high elevations between 1,100 and 1,600 meters (3,500-5,000 feet), yields medium-bodied teas with a smooth texture and hints of , often accompanied by a refreshing jasmine undertone. Benefiting from a that supports year-round production, Dimbula teas infuse to a golden-orange hue, offering a mellow balance of strength and finesse suitable for blending. This region contributes around 15-20% to national production, reflecting its consistent yield and versatility. Uva teas, grown at elevations of 900 to 1,500 meters (3,000-5,000 feet) in the eastern highlands, develop a robust, malty character particularly during the second flush from July to September, when dry winds impart a concentrated, slightly pungent aroma with woody and exotic notes. The region's exposure to both northeast and southwest monsoons fosters resilience in the plants, resulting in smooth, full-flavored brews with a coppery that stand out for their distinct seasonal intensity. Uva accounts for about 20-25% of total Ceylon tea production, highlighting its role in supplying bold varieties for international blends. Kandy, a mid-grown on the western slopes at 600 to 1,300 meters (2,000-4,300 feet), produces full-bodied teas with honey-like sweetness and a rich, coppery liquor, influenced by the protective shelter from direct impacts. These teas exhibit a balanced strength with subtle fruity undertones, making them ideal for standalone enjoyment or as a base in robust infusions. The district contributes roughly 10-15% to Sri Lanka's output, emphasizing its foundational importance in the island's tea heritage. Uda Pussellawa, adjacent to at similar high elevations of 1,200 to 1,800 meters, produces teas with a bright, brisk character and floral aromas, often featuring a pale and subtle sweetness due to the misty, cool . This contributes about 5-10% to total production and is valued for its consistency in high-grown blends. Sabaragamuwa, encompassing low to mid elevations in the southwest, yields robust, full-bodied teas with malty and spicy notes from its rich, red soils and warmer conditions. As the largest tea-growing area by extent, it accounts for around 20-25% of production, providing strong base teas for commercial blends. Ruhuna, in the southern lowlands at elevations below 600 meters, specializes in bold, coppery teas with intense, tangy flavors influenced by coastal humidity and monsoons, including distinctive monsoon-cured varieties. This region represents approximately 15-20% of output, focusing on CTC-processed teas for quick-brewing markets.

Economy and Trade

Production statistics

Sri Lanka's tea production in totaled 256 million kilograms, positioning the country as the fourth-largest global producer. This output reflects a modest recovery from pandemic-related disruptions, with 2024 production reaching approximately 258 million kilograms. As of September 2025, cumulative production for the year showed an increase of about 5.6 million kg compared to January-September , with exports surpassing $1 billion by August 2025. The tea sector contributes about 2% to Sri Lanka's , underscoring its role as a key economic pillar. It provides direct and indirect employment to over 1 million people, accounting for roughly 4% of the national workforce and supporting livelihoods in rural areas. Yields vary significantly by region, with areas averaging around 1,500 kilograms of made tea per due to cooler temperatures and slower growth, compared to 2,000 kilograms per in lowland regions where warmer conditions enable higher productivity. The industry features over 600 tea factories, with approximately 567 operational as of recent assessments, processing green leaf into made tea. Smallholders, operating estates under 2 hectares, dominate , contributing about 75-80% of the total output through fragmented but extensive . Post-COVID, has shown a 5% growth trend in cumulative output from 2022 to 2024, driven by improved labor availability and market recovery. However, , including erratic rainfall and rising temperatures, are projected to reduce yields by around 10% across the , particularly affecting high-grown teas. The sector's heavy reliance on exports amplifies these vulnerabilities, as domestic consumption remains minimal.

Export markets

Ceylon tea exports are predominantly directed to a handful of key international markets, with the Middle East, Russia, and Turkey serving as the primary destinations. In 2023, Iraq led as the top importer with 32.75 million kilograms, representing approximately 13.5% of total exports, followed by Russia at 22.61 million kilograms (9.3%), the United Arab Emirates at 20.58 million kilograms (8.5%), and Turkey at 18.5 million kilograms (7.6%). These markets, particularly in the Middle East where Iraq and the UAE together accounted for about 22% of shipments, underscore the region's strong demand for bulk black teas used in blends and traditional preparations. The Tea Auction, held weekly in Sri Lanka's capital, remains the central hub for global distribution of Ceylon tea, facilitating transparent and . Auctions typically offer 5 to 7 million kilograms per sale, with an average of $4 to $5 per kilogram in , reflecting steady demand despite fluctuations in currency and logistics costs. This mechanism handles the majority of exports, enabling buyers from to secure consistent supplies of high-quality orthodox and CTC teas. To ensure authenticity and quality in global trade, all pure Ceylon tea packed in must bear the mandatory "Ceylon Tea" logo featuring the iconic lion symbol, a requirement enforced by the Sri Lanka Tea Board since the 1990s following its international registration. This distinguishes genuine products and has been pivotal in maintaining brand integrity amid competitive global markets. While the auction dominates bulk transactions, exports also include private sales, with approximately 97% of tea volume channeled through public auctions and the remaining 3% via direct contracts to international brands such as in 2021, a trend that persisted into recent years as producers seek stable partnerships for value-added products. Overall export value reached $1.3 billion in 2021, recovering to $1.31 billion in 2023 and further to $1.43 billion in 2024, driven by volume growth and in core markets.
Top Export Markets (2023)Volume (million kg)Share (%)Value (USD million)
32.7513.5121.48
22.619.3121.16
UAE20.588.5108.90
18.507.692.80

Competition and challenges

The Ceylon tea faces intense from major global producers that dominate the market through higher volumes and lower prices. , the second-largest producer, outputs approximately 1.3 billion kilograms of tea annually, leveraging its vast plantations and cost efficiencies to capture significant shares in bulk and blended tea segments. leads with over 3 million tons, focusing on green teas but also influencing black tea dynamics through sheer scale, while , producing around 500 million kilograms, challenges Sri Lanka particularly in and Middle Eastern export markets with competitively priced orthodox teas. These rivals pressure Ceylon tea's premium positioning, as their higher yields and mechanization allow undercutting on price without compromising volume. Internal challenges exacerbate these competitive strains, notably from and labor issues. Droughts induced by shifting weather patterns have caused substantial yield reductions, with projections indicating up to a 22% decline in tea production under medium emissions scenarios due to water stress and erratic rainfall. Labor shortages plague the sector, driven by an aging workforce and out-migration of younger workers seeking better opportunities in urban areas or abroad, leaving plantations understaffed for the labor-intensive plucking process. The Tea Research Institute (TRI) of reports that these demographic shifts contribute to declining productivity, as the average age of estate workers exceeds 50 years in many regions. Pests and diseases further threaten yields, with foliar pathogens like blister blight (caused by Exobasidium vexans) and gray blight ( spp.) causing defoliation and reduced in humid highland areas. The TRI leads resistance efforts through breeding programs for tolerant clones and strategies, including biological controls to minimize chemical use while targeting pests such as the tea tortrix moth and red spider mite. These initiatives aim to sustain quality amid rising incidences linked to warmer temperatures and humidity changes. Market pressures compound these production hurdles, as Western demand for traditional loose-leaf tea wanes in favor of convenient ready-to-drink (RTD) alternatives. In the United States, a key market, RTD tea sales are projected to grow steadily, driven by health trends and on-the-go consumption, while loose and bagged tea volumes stagnate despite value increases from premiumization. This shift erodes Ceylon tea's export volumes, as consumers prioritize flavored, bottled options over pure loose varieties. To counter these challenges, the industry pursues diversification into value-added products. Innovations include tea wine production, where fermented extracts create alcoholic beverages to tap new consumer segments, and bio-fertilizers developed by the TRI, which incorporate beneficial microbes to reduce synthetic fertilizer reliance by 30-40% and enhance . These efforts seek to boost revenue streams and resilience against external threats.

Culture and Branding

Cultural role in Sri Lanka

Ceylon tea serves as a profound symbol of Sri Lankan , often referred to as the country's "green gold" due to its economic and cultural significance in transforming the island's landscape and heritage. Introduced during the British colonial era, tea cultivation reshaped the central highlands, fostering a unique blend of , practices, and global recognition that underscores 's agricultural prowess and resilience. This emblematic role is celebrated through events like the Ceylon Tea Festival, which highlights 's heritage via street stalls, tastings, and cultural performances, drawing locals to honor its place in the nation's story. Recent events, such as the Fresh Tea Festival (Neum Tea Mangallaya) held on May 13, 2025, continue to promote this heritage. In plantation communities, particularly among the Tamil estate workers descended from 19th-century South Indian migrants, tea cultivation has woven deep cultural threads, including traditional songs, dances, and festivals that reflect their labor heritage and spiritual life. Folk expressions such as the "Tea Dance," a choreographed representation of plucking routines, and songs like "Enjoy Enjaami," which capture workers' aspirations and struggles, preserve oral traditions passed down through generations. Hindu festivals at estate kovils dedicated to deities like Murugan and Kali, involving rituals and communal gatherings, reinforce social bonds and cultural continuity amid the demanding plantation environment. Domestic consumption of Ceylon tea accounts for approximately 10% of annual , with the beverage typically prepared strong and sweetened with and to suit local tastes, integrating it into everyday rituals from morning brews to gatherings. This modest local share contrasts with heavy reliance but underscores tea's in fostering community and across Sri Lankan households. Tea , encompassing factory visits, guided plucking experiences, and trails like the 300-kilometer Pekoe Trail through historic estates, has become integral to Sri Lanka's cultural narrative, attracting hundreds of thousands of visitors annually before the disrupted global travel. Such activities offer immersive insights into tea's and the lives of estate workers while boosting local economies through experiential stays in colonial bungalows. The social impact of tea cultivation highlights through their dominant role in leaf plucking, which constitutes the majority of field labor and provides income opportunities in a sector employing over a million people, though persistent low wages and demanding quotas—such as harvesting 18 kilograms daily—continue to pose challenges to equitable progress. Initiatives aimed at skill development and fair pay have enabled some women to gain and community leadership, yet systemic issues like wage disparities amid economic crises limit broader .

Packaging and labeling

Ceylon tea is traditionally packaged in wooden chests lined with foil-paper for bulk exports, providing protection against moisture and aroma loss during long-distance shipping. These chests, often hand-crafted from sustainable woods like or , typically hold between 40 and 60 kilograms of tea, though larger variants up to 100 kilograms are used for efficiency in . This method has been a staple since the colonial era, ensuring the tea's quality is preserved from Sri Lankan plantations to global markets. In modern retail packaging, Ceylon tea is increasingly offered in vacuum-sealed pouches and individual tea bags to cater to consumer convenience and freshness. Vacuum-sealing minimizes oxidation, extending for varieties, while tea bags—often pyramid-shaped for better —account for a substantial share of consumer products, with brands like and Basilur emphasizing foil-enveloped sachets. This shift supports the growing demand for ready-to-brew formats in supermarkets worldwide. Labeling requirements for Ceylon tea are governed by () standards established under Sri Lanka's 2003 Act, which mandates the inclusion of the origin () and specific grade designations such as Orthodox Black or Broken Orange Pekoe. The tag, administered by the Sri Lanka Tea Board, verifies authenticity and prohibits the use of "Ceylon" for teas not produced exclusively in the country, with detailed specifications for sensory and chemical attributes outlined in official product documents. These labels must also feature the iconic Lion Logo to confirm compliance with export regulations. Sustainability efforts in Ceylon tea have accelerated in the , with a transition to recyclable and biodegradable materials like plant-based for tea bags and reduced plastic in outer wrappings. Leading producers, including , have implemented material reduction measures, replacing non-recyclable plastics with compostable alternatives to lower environmental impact, aligning with Sri Lanka's national plastic waste management goals. This includes lighter designs that cut overall material use while maintaining product integrity. To combat counterfeiting, which threatens the integrity of Ceylon tea exports, measures such as hologram seals on premium packaging and pilot traceability systems have been introduced by the Tea Board and industry partners. Holographic labels provide visible authentication, while pilots enable end-to-end tracking from to consumer, ensuring and reducing adulteration risks in key markets. The impending GI registration further strengthens these protections against imitation products.

Sponsorships and global promotion

The Sri Lanka Tea Board has spearheaded several global marketing campaigns to elevate the profile of Ceylon tea, emphasizing its purity, quality, and heritage. In 2018, the Board launched a comprehensive international promotion initiative aimed at reinforcing Ceylon tea's position as the world's finest, targeting key markets through media and trade engagements. This effort was expanded in 2023 with a focused campaign directed at major export destinations like the UAE and , highlighting sustainable production and premium attributes to boost consumer awareness and demand. Additionally, a significant USD 30 million business-to-consumer (B2C) promotional budget was allocated in 2020 for an unprecedented global drive, including digital and event-based activities to re-establish Ceylon tea as the preferred choice worldwide. Sponsorships have played a pivotal role in associating Ceylon tea with high-profile sports and events, enhancing its international visibility. The Sri Lanka Tea Board became the primary sponsor of the for away matches starting in 2014, leveraging cricket's popularity to promote the brand during international tournaments. Similarly, the prominent Ceylon tea brand secured official sponsorship rights for the national team in 2001, marking the first such partnership by a home-grown company and linking tea's cultural significance to the sport's global appeal. In the realm of , Ceylon tea maintains a longstanding presence at The Championships, , where blends incorporating Ceylon leaves are featured in official afternoon tea selections, underscoring the product's elegance and tradition. This connection traces back to historical ties, including the champion Frank Hadow, a Ceylon tea planter who introduced innovative playing techniques. Collaborations with leading brands and endorsements from influential figures have further amplified Ceylon tea's premium positioning. , a flagship Ceylon tea exporter, has developed specialized premium lines through partnerships that emphasize ethical sourcing and artisanal craftsmanship, contributing to the industry's high-end market segment. Participation in international trade fairs has been instrumental in driving market expansion, particularly in . The Sri Lanka Tea Board and Ceylon tea exporters maintain a strong presence at events like the World Tea Expo, with notable exhibitions in 2024 at showcasing innovations and securing new distribution channels. These efforts align with strategic goals for Asian market growth, fueled by rising demand for premium and health-focused products in regions like and . Digital initiatives have complemented these promotional strategies, with the Tea Board and major brands like utilizing to highlight Ceylon tea's rich and production story. Campaigns such as the 2020 Ceylon promotion, backed by Rs. 35 million, engaged audiences across platforms to emphasize and quality, reaching millions through targeted content. 's presence, boasting over 2 million followers on and 31,000 on , has effectively disseminated narratives of ethical farming and cultural legacy, fostering direct consumer connections worldwide. The iconic Lion logo, a certified symbol of pure Ceylon tea packed in , is prominently featured in these digital efforts to assure .

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