Industry Economy & Growth

Middle East tensions trigger surge in demand for Sri Lankan Tea

The Sri Lanka Tea Board reports a surge in demand for Ceylon Tea from Middle Eastern countries amid ongoing regional tensions.

Chairman Raj Obeyesekere said increased stockpiling of food in the region has driven demand, while prices have stabilized after an initial dip. The average auction price last week stood at Rs. 1,153 per kilogram, with unsold volumes remaining within normal levels.

Exports to countries such as Kuwait, Saudi Arabia and Iran have faced disruptions due to the closure of the Strait of Hormuz.

However, shipments have resumed to markets like Turkey and Iraq through alternative routes.

Officials say the overall impact on Sri Lanka’s tea industry is gradually easing, supported by measures to ensure fertilizer distribution and uninterrupted fuel supply for factories.

Source - The Morning