The ongoing military conflict in the Middle East has adversely impacted on the Sri Lankan tea industry as the exporters are unable to supply tea to the region. The exporters estimate the revenue loss at about $ 10-15 million per week. The exporters have orders in hand for supply of tea and it is the logistical issues and war risk preventing them fulfilling such orders, the Tea Exporters Association (TEA) said in a statement.

“In order to mitigate the impact on the industry, the tea industry has jointly requested the government to support it in addressing the cash flow issue and consider absorbing a part of the additional freight and insurance charges. It has also requested government intervention to obtain the balance payment of about $ 50 million due on tea shipments already made to Iran under the barter deal,” TEA said on Friday.

The statement said approximately 52% of Sri Lanka’s tea exports reach the affected region mainly coming from the low grown area of the country dominated by tea smallholder farmers. According to 2025 tea export statistics, about 125 million kilograms of Ceylon tea were exported to the Middle East, with an estimated value of USD 750 million. The major importing countries of Ceylon Tea in the region include Iraq, Iran, Libya, Turkey, Saudi Arabia, Syria, and the United Arab Emirates. Though Libya and Turkey can be reached via Africa, the exorbitant freight charges have prevented the buyers in those countries from importing tea at the moment.

The supply routes to Middle East countries go via Strait of Hormuz and Red sea Suez Canal. Although there is no blockade on Suez Canal, due to the war risk both channels are currently not used by the major shipping lines. The tea exports to the region have almost come to a standstill due to the following reasons:

=All major shipping lines suspended their services to the region immediately after the outbreak of the conflict.

=Several seaports in the region were temporarily closed during the initial stages.

= Although a few shipping lines resumed limited operations from March 4, freight charges have

increased significantly by approximately USD 1,800 for a 20’ container and USD 3,000 for a 40’ container.

= Existing insurance coverage obtained by exporters is no longer valid.

=There is a lack of regular and scheduled vessels operating from Colombo to Middle Eastern destinations.

The tea exporters are experiencing serious cash flow constraints, as payments for shipments already

dispatched have been delayed due to the unsettled situation in the region. This has restricted exporters’

buying capacity and that was evident at this week’s tea auction, where overall prices declined by about Rs. 50/ per kg while low grown tea prices declined by about Rs. 75/ per kg.

If the situation continues for few more weeks it will have a serious impact on the tea auction as buyers may curtail the purchase of tea if the outward movements are restricted. This could directly impact on the income of the tea smallholder farmers.

In January 2026, the country earned $ 121.8 million from tea exports compared to $ 112.7 million in January 2025 (a 5% increase). The figures for February 2026 are not yet available but should be either similar to last year or higher. The disruption to tea exports in March will certainly affect the volume and value of the exports though the exact amounts cannot be estimated at this point.

According to the available data Sri Lanka has settled about 95% of its debt to Iran by supplying tea to Iran under the Tea for Oil mechanism. Even if the military conflict comes to an end, Sri Lanka will find it difficult to continue to supply tea to Iran unless a new mechanism is introduced. Under the prevailing US sanctions on Iran, the exporters may not be able to supply tea to Iran outside the barter system. Iran purchases about 11 million kg of tea from Sri Lanka annually under the barter deal.

The situation was discussed with the Minister of Plantation & Community Infrastructure at a meeting held on March 4, 2026.

Prime Minister Dr Harini Amarasuriya said a salary commission will be established this year to address pay disparities within the principal service and several other segments of the public sector.

Speaking in Parliament on Friday (6), the Prime Minister said the proposed commission was expected to provide a sustainable solution to existing salary imbalances across public sector institutions.

She said extensive discussions had already been held with principals and principals’ associations regarding salary disparities affecting the principal service, and that the government was continuing consultations in search of a long-term solution.

Amarasuriya said the government policy was to appoint a salary commission this year to develop sustainable recommendations to address the issue.

She noted that recent salary increases had created disparities not only in the education sector but also in other public service sectors, adding that a comprehensive solution was needed.

“We are trying to resolve this through a salary commission. We expect to submit proposals specifically relating to the concerns of principals to the commission,” she said.

The post of Justice of the Peace will no longer be granted on political grounds, Minister of Justice and National Integration Harshana Nanayakkara said in Parliament on Friday (6).The Minister told the House that a mechanism had been introduced to receive complaints regarding Justices of the Peace (JP) and that an islandwide database of JPs was being developed to enable verification when certifying documents.

He said future appointments to the post would be limited to persons below the age of 75.

Nanayakkara said a system had also been introduced requiring bio-data updates every two years, along with certification through the Grama Niladhari Division – Sri Lanka and the Divisional Secretariat – Sri Lanka.

He added that contact channels, including a WhatsApp number, email address and telephone line, had been established to facilitate the reporting of any JP who commits an offence.

The Minister said authorities had not yet considered cancelling the appointments of existing Justices of the Peace en masse, noting that some had served in the role for five to ten years and had gained experience.

He said a committee had recommended the age ceiling, citing the need for appointees to possess adequate physical and mental capacity to comprehend and certify legal documents.

“I have not received any fair or justifiable reason to reconsider the age limit of 75 years,” he said.