Sri Lanka’s tea industry is facing a severe crisis as the Iran war drives up fuel prices and reduces global demand for exports. Tea workers in the Hatton region, such as Jasintha Malar from the Dunkeld estate, told Reuters they are struggling to cope with rising living costs. With cooking gas prices soaring, many families have turned to firewood, while declining exports have left workers in deep uncertainty.

According to the Export Development Board (EDB), Sri Lanka’s tea export earnings fell by 17.3 percent in March compared to the same month last year, dropping to 114.75 million dollars. Demand from Iraq, the country’s largest buyer, declined by 38 percent, while shipments to the United Arab Emirates plunged by about 93 percent due to maritime and logistics disruptions.

Dilhan Fernando, chairman and CEO of Dilmah Ceylon Tea Company PLC, said the industry has been absorbing rising costs for some time, but fuel and logistics expenses are now driving inflation across trade routes from Colombo to Dubai and beyond.