Sri Lanka hosted a promotional high tea event in Jordan recently, according to a statement released by the Embassy of Sri Lanka in Jordan, amidst a 17.52% decrease in Iranian tea exports from Sri Lanka on a year-on-year (y-o-y) basis in July.

“The Embassy of Sri Lanka in Jordan successfully hosted a tea promotional event under the theme ‘Ceylon High Tea’ at the Olive Tree Hotel on 23 September 2023. This initiative was part of the Embassy’s ongoing trade and tourism promotion initiatives,” the statement said.

Though tea export earnings increased by 13.09% y-o-y to $ 141.02 million in July compared to July 2024, and export volume increased by 12.56% in the same period, tea exports to Iran decreased by 17.52% in July compared to the same month in 2024.

Sri Lanka has a tea-for-oil agreement with Iran, a barter agreement meant to help Sri Lanka set off its debt from previous oil purchases through the export of tea, which continues to be operational.

The agreement was seen as beneficial for Sri Lanka at the time of its signing, as it eased pressure on the country’s balance of payments and its long-endured foreign exchange crisis.

Auction prices of tea began rising when the tea-for-oil barter mechanism piqued demand from other nations as well, prompting an expansion in exports.

However, due to a 12-day war with Israel in June, there has been a record dip in Iran’s imports, signalling a contraction in consumption, with specific disruptions affecting goods like agricultural products.

Tea exports to Iraq and Libya, on the other hand, recorded significant increases of 25.84% and 126.13%, respectively, on a y-o-y basis in July.

The event effectively showcased Sri Lanka’s flagship export, Ceylon Tea, while fostering deeper trade and cultural connections between Sri Lanka and Jordan.