FINANCIAL CHRONICLE – Over the past two weeks, the prices of Ceylon tea in Sri Lanka have declined due to economic disruptions in Iran, although High Grown teas showed some recovery on the second day of trading this week, according to brokers.
Iran, a key market for Ceylon tea, permits food imports despite sanctions. However, when the Iranian Riyal experiences a collapse, it complicates the import process. Locally, the depreciation of the Sri Lankan rupee has supported prices in local currency, dealers noted.
Low Grown teas, which are highly sought after in the Middle East, have continued to experience a drop in prices. Forbes and Walker reported, “Tippy teas in general were substantially lower and mostly unsellable due to a lack of suitable bids. A few high-priced FF1’s maintained their price due to special inquiries, while the rest saw a general decline.”
High Grown teas managed to recover some losses on the second day of trade. According to a report by Ceylon Tea Brokers, “A few selected invoices gained by Rs.20-40/- per kg, while others were irregular and eased by a similar margin. A few selected teas in the Below Best category held firm, whereas the others were irregular.”
There was notable demand for High Grown teas from markets such as Russia and Dubai, brokers indicated.
(Colombo/Jan14/2026)
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