Sri Lanka targets US$2.5B in tea exports by 2030
Government unveils initiatives to expand tea and coconut production as part of long-term export growth strategy.
SRI LANKA – The Sri Lankan government has unveiled a new five-year strategy aimed at boosting tea exports to 2.5 billion U.S. dollars by 2030, Minister of Plantation Samantha Vidyaratna announced.
Speaking on the sector’s future, Vidyaratna noted that Sri Lanka produced 262 million kilograms of made tea in 2024, with the government targeting an increase to 400 million kilograms by 2030.
Tea export earnings reached US$1.4 billion last year, and the Minister emphasized that achieving the 2030 target would require collective efforts from plantation companies, smallholder growers, and estate workers.
As part of the plan, subsidized loan programs will be introduced for stakeholders across the tea industry. One key measure includes a 40,000-rupee (approximately 130 dollars) fertilizer subsidy per hectare for tea growers. Vidyaratna highlighted that the transformation is achievable with full industry commitment and collaboration.
Tea remains one of Sri Lanka’s most critical sources of foreign exchange, generating US$1.43 billion in exports in 2024.
Parallel to tea expansion efforts, the government is also working to enhance coconut cultivation. The northern coconut triangle project, launched in 2023, aims to bring 16,000 acres under cultivation in Jaffna, Mullaitivu, and Mannar, expanding to 50,000 acres by 2027, according to the President’s Media Division.
The Ceylon Chamber of Coconut Industries (CCCI) projected that the program will boost national coconut output, with productivity expected to rise from 2.7 billion nuts in 2024 to 2.9 billion in 2025, and further to 4.2 billion by 2030. Coconut-based SMEs in the North and East are also set to be developed, with yields forecasted to grow by 10–15 percent annually.
Through the Kapruka Saviya programme, modern market tools and regenerative agriculture practices will be introduced, supported by partnerships with the United Nations Industrial Development Organization (UNIDO) and Regen Agri. These efforts aim to strengthen compliance, improve productivity, and expand access to premium markets.
Sri Lanka’s broader export sector demonstrated resilience in the first half of 2025, with total exports reaching USD 8.35 billion, reflecting a 6.88 percent year-on-year increase.
Growth was led by coconut-based products (32.40%) and apparel and textiles (8.19%), alongside notable market expansion in India, the Netherlands, Hong Kong, and Singapore.
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