The world of tea supply is controlled by two factors; the increase in area harvested and the increase in yield. The increase in harvested area is seen in countries with large amounts of arable land.
Those countries also have large populations that can facilitate the labour requirement in the tea industry. Sri Lanka, on the other hand, has the smallest land mass and the smallest population.
These factors limit Sri Lanka’s future production and supply of tea. The increase in production in Sri Lanka is purely due to the increase in the yield because the area harvested has not increased over the years.
Sri Lanka’s exports are also facing a similar fate in terms of production. Sri Lanka beat India to become the world’s largest tea exporter in the 1990s. Since then, Sri Lanka has fallen behind Kenya and China. Sri Lanka is now at the third position, competing with India and Vietnam.