The Sri Lanka Tea Board has reported a significant rise in demand for Ceylon Tea from Middle Eastern nations.

Chairman Raj Obeyesekere says that the ongoing regional conflicts have prompted citizens to stockpile food supplies, leading to increased demand. 

While the local tea auction saw a slight dip during the initial week of the conflict, the Chairman noted that both prices and demand have since stabilized.

At last week’s auction, the average selling price for a kilogram of tea stood at Rs. 1,153. 

Currently, the unsold volume at auctions remains between 8% and 10%, consistent with standard market trends.

Chairman Obeyesekere highlighted that exports to several countries, including Kuwait, Saudi Arabia, and Iran, have been disrupted due to the closure of the Strait of Hormuz and related regional hostilities. 

However, the Tea Board has successfully initiated exports to other Middle Eastern nations, such as Turkey and Iraq, via alternative shipping routes.

As a result, the adverse impact of the Middle Eastern crisis on the local tea market is gradually diminishing.

Sri Lanka’s gross official reserves increased to USD 7.3 billion by end-February 2026, continuing the upward trend from USD 1.9 billion in 2022, according to latest Central Bank data.

The Central Bank also recorded USD 0.7 billion in net FX purchases during the first two months of 2026.

The Asian Development Bank (ADB) has agreed to increase the funding approved for Sri Lanka this year from USD 380 million to USD 480 million, and to fast-track the release of USD 200 million in view of the prevailing situation.

This was disclosed during a meeting at the Presidential Secretariat between President Anura Kumara Dissanayake and a delegation led by ADB President Masato Kanda, who is currently on an official visit to Sri Lanka.

During the meeting, extensive discussions were held on how the Asian Development Bank could support Sri Lanka in achieving its future development objectives.

President Dissanayake stated that the government expects ADB assistance for its programme to rebuild the country following the recent disaster situation.

ADB President Masato Kanda commended the government’s efforts to maintain economic stability despite the post-disaster conditions and the current conflict situation in the Middle East. He said the ADB is prepared to provide all necessary support for rebuilding infrastructure damaged by Cyclone Ditwah.