Business · Sri Lanka Bureau
Sri Lanka's tea sector faces production crisis as aging bushes slow replanting efforts
The World Bank has warned that Ceylon tea production is declining due to slowing replanting rates and aging tea bushes across the industry. The trend threatens the long-term viability of a sector that remains central to Sri Lanka's agricultural economy.
LSN Sri Lanka ·
Sri Lanka's renowned tea industry is confronting a significant production challenge as replanting efforts lag and tea bushes reach the end of their productive lifecycles, according to analysis by the World Bank.
The slowdown in replanting activity has left large sections of tea estates vulnerable to declining yields, with older bushes becoming increasingly less productive. Without sustained investment in replacing aging plants, the sector faces the prospect of further output reductions that could impact export revenues and employment across tea-growing regions.
The issue reflects broader challenges facing Ceylon tea, including cost pressures, market competition, and the capital requirements needed to maintain and upgrade plantations. The World Bank's assessment underscores the need for the industry to accelerate replanting programs to sustain production levels and remain competitive in global markets.
Tea remains one of Sri Lanka's most important export commodities, generating significant foreign exchange earnings and providing livelihoods for thousands of workers in central highland regions. Industry stakeholders have previously indicated that sustained investment is essential to maintaining the sector's productivity and international market share.