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Sri Lanka’s tea industry, long considered the backbone of its agricultural exports, is navigating a turbulent year in 2025.
While Ceylon Tea remains a prized global brand, the sector has been hit by declining export volumes, rising production costs, and external market pressures.
The recent increase in U.S. import duties on tea has further dampened earnings potential, creating uncertainty for exporters already grappling with higher energy costs and climate-driven supply fluctuations.
Against this backdrop of mixed fortunes, Sri Lanka’s domestic tea sector is finding new opportunities in brand-building and retail diversification, with premium labels focusing on value addition rather than bulk exports.
One of the strongest examples of this shift is Tea Avenue, the country’s flagship tea café chain, which is now stepping boldly into the Indian market.
Tea Avenue, a brand rooted in four generations of tea heritage, this week announced its official entry into India through a strategic partnership with FranGlobal, the international arm of Franchise India Group.
The move marks the Colombo-based chain’s first expansion outside Sri Lanka and signals its ambition to create a global network of more than 200 outlets by 2035.
Founded in 2014 by the De Silva family, Tea Avenue has redefined Ceylon Tea consumption from a traditional beverage to a lifestyle café experience. Known for its signature brews, curated menus, and modern design, the brand has grown into a leading destination for locals and tourists alike.
“Our brand is rooted in heritage, but it is also about creating spaces that reflect the way people live today,” said Sajeev De Silva, Founder and Managing Director of Tea Avenue. “India has always been on our horizon. With FranGlobal’s reach, we see this not just as an expansion, but as an extension of our story.”
The rollout in India will begin in Delhi, Mumbai, and Bangalore over the next 12 to 18 months under a Franchise-Owned, Franchise-Operated (FOFO) model. Formats will vary from flagship cafés to kiosks and in-hotel tea stations, offering investors flexible entry points.
Alongside the café experience, Tea Avenue plans to launch a premium retail line including specialty tea blends, tea tins, and gift collections, allowing consumers to extend the experience into their homes.
Jeewaka Liyanage, CEO of Tea Avenue, emphasized the group’s global ambitions. As part of Empire Teas—which exports over 14 million kilograms of Ceylon Tea to more than 120 countries—the café chain is leveraging its parent company’s market reach to establish itself internationally. “India is a cornerstone of our global journey,” Liyanage said.
For Tea Avenue, the India entry also carries cultural resonance. “India’s relationship with tea is rich, emotional, and deeply cultural,” noted Gaurav Marya, Chairman of Franchise India Group. “Tea Avenue is more than a café; it is a curated experience combining heritage and modernity.”
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