Sri Lanka is positioning itself to capitalise on a new wave of premium tea consumption in 2026, as Ceylon Tea evolves from a traditional hot brew into a high-value ingredient for cold extraction beverages and bubble tea.
Rising global interest in cold extraction technology, which preserves delicate floral and aromatic notes, is emerging as a defining consumption trend, according to analysis by Forbes and Walker Tea Brokers. Sri Lanka, with its distinctive orthodox teas and terroir-driven flavour profiles, is uniquely positioned to lead this premium segment—an advantage that mass-origin competitors cannot replicate.
The shift is further reinforced by the rapid global expansion of bubble tea franchises, many of which increasingly use Ceylon Tea as a premium base ingredient. Industry players note that Sri Lanka’s tea heritage is now being actively leveraged in marketing narratives, helping global chains differentiate their products in a market projected to grow strongly through 2026.
From a Sri Lankan perspective, as a primary supplier of orthodox tea, the country is set to benefit from a prolonged global short-supply environment. Combined with improvements in quality from the Western Slopes—entering their traditional peak season—traders anticipate a buoyant trading period between January and March 2026, Forbes and Walker noted.
This optimistic outlook comes despite lingering recovery efforts following Cyclone Ditwah in late 2025, which disrupted infrastructure and labour across the High and Mid Grown regions. Swift evacuation protocols and rapid restoration of logistics have helped safeguard the integrity of the Ceylon Tea supply chain, reaffirming the tea’s role as both a stabilising force for the national economy and a conduit of Sri Lanka’s global goodwill.
Mattala Airport Posts Rs 39 Billion in Losses as Government Shifts to New PPP Model
Mattala Rajapaksa International Airport (MRIA) has accumulated Rs 39.3 billion in net losses over the past six years, according to a recent audit, as the government pivots from a previously planned management handover to an India-Russia joint venture in favour of a new public-private partnership (PPP) model.
The state-run airport, long criticised for its severe underutilisation, recorded an operating loss of Rs 3.36 billion in 2024 alone, with expenditure exceeding revenue by nearly 15 times.
The 2024 annual report of Airport and Aviation Services (Sri Lanka) (Private) Limited showed that MRIA generated a modest operating income of Rs 242.2 million against operating costs of Rs 3.6 billion.
The Auditor General’s review noted that despite a capital injection of over Rs 36.5 billion for its construction, the airport has failed to meet its feasibility targets. Originally projected to handle one million passengers annually, MRIA has recorded a cumulative total of just 321,577 passengers over the past six years.
Financial pressures are compounded by annual interest payments of around Rs 2.05 billion on foreign loans, even as the government has suspended external debt servicing.
Amid this financial strain, the government has announced a policy shift for the airport’s future management. In December 2025, the Ports and Civil Aviation Ministry revealed plans to invite Expressions of Interest for managing specific commercial operations at MRIA under a PPP framework.
The new strategy retains core aviation functions—such as air traffic control and security—under state control, while opening up areas like cargo handling, aircraft maintenance, and hospitality to private sector participation. This move effectively sidelines the previous plan to hand over airport management to a consortium of India’s Shaurya Aeronautics and Russia’s Airports of Regions Management Company, signalling a fresh approach to reviving the airport’s commercial viability.
Ceylon Cuppa Taps Into Growing Cold Brew Coffee Trend
