Tea Exporters Association (TEA) emphasized the need to help the tea smallholder farmers in order to increase the tea crop at a meeting with President Anura Kumara Dissanayake held on 26th June 2026 at the presidential secretariat to discuss the export sector issues.

Mr. Huzefa Akbarally, Chairman, TEA pointed out that though the exporters are capable of handling 400 million kg of tea per annum the export volumes are restricted due to the decline in tea production from 340 million kg in 2013 to 261 million kg by 2025. The tea export revenue too is hovering at around $ 1.5 billion per year due to the drop in volumes.

The tea smallholder farmers are the backbone of the tea production in the country. The tea smallholder farmers numbering 480,000 plus account for 75% of Sri Lanka’s tea crop.  With the succession of two government induced crises (i.e: the glyphosate ban followed by the agrochemical ban), tea smallholder productivity has reduced to ~150kgs of green leaf per acre per month compared to a potential of ~600kgs per acre per month, yielding each farmer about ~Rs. 23,000 per month.  Urgent action is needed in the form of infilling to get tea smallholder’s yield closer to the potential yield thereby increasing their monthly income. Although 5,000 plants can be grown in an acre of land most smallholder farmers have less than 3,000 plants per acre. In order to infill, they need assistance in the form of loan/grants from GOSL, international financial institutions, local banks etc.  The one-time cost of infilling is about Rs. 200 per plant.  After 2 years and continuing for the next 30 years, the smallholder will make more than Rs.450 per plant per year and the country will make more than Rs 850 per plant per year in foreign exchange. (based on current prices).

The President was supportive of this initiative.  He highlighted the importance of increasing the export revenue from tea and other agricultural sectors for the economic recovery and stabilization of the country. The government is committed to extend any assistance required by the industry to enhance the tea production and export revenue.

Secretary to Treasury, Dr. Harshana Suriyapperuma, Chairman, Export Development Board and other relevant officials were also present at the meeting.