Introduction:Did you know? Sri Lanka exports approximately 320,000 metric tons of tea annually. In the early days, all of this Ceylon tea was shipped to London for auction until a domestic auction market gradually took shape. This article takes you through the historical trajectory of the Colombo Tea Auction, from the poorly attended first local auction in the late 19th century to its official establishment in 1894, and how it helped the Ceylon tea industry establish an independent trading system. Understanding this developmental journey also offers deeper insight into the international status and quality background of Ceylon black tea today.
As a globally significant tea-producing country, Sri Lanka exports around 320,000 metric tons of tea each year from the Port of Colombo. This port is not only a logistics hub but also the lifeblood of the entire Ceylon tea industry. Colombo is home to the Tea Board, auction houses, brokerage firms, and numerous related service providers, forming a complete tea trade ecosystem. Among these, the evolution of the Colombo Tea Auction is particularly noteworthy — from the lackluster first local auction in the late 19th century to its official launch in 1894, it marks a pivotal turning point where Ceylon tea transitioned from reliance on the London market to establishing its own trading system.
Colombo holds an irreplaceable position in the Ceylon tea industry. Since the British began tea cultivation there in 1867, the city has gradually become the heart of tea trade. Even after Sri Lanka gained independence from Britain in 1948, Colombo remained a stronghold of the tea industry, continuing to play a key role in the global tea trade landscape. The Colombo Tea Auction is located at No. 50, Nawam Mawatha, in the “Ceylon Chamber of Commerce” building, serving as an important window into the history of tea trading as a whole.
In the early days, almost all Ceylon tea was shipped to London, England for sale. In 1873, the first 23 pounds of tea from the Loolecondera Estate were sent to London, marking the beginning of Ceylon tea’s entry into the international market. In 1875, a London brokerage firm mentioned “Ceylon tea” for the first time in its product catalog. Then, on October 28, 1878, 10 chests of Ceylon OP and Pekoe teas, along with 277 chests of Indian tea, were auctioned at a London auction house — this was the first time Ceylon tea appeared in a local auction market. Subsequently, teas from renowned estates such as Kandapola, Windsor Forest, and Westhall also made their way onto London auction floors. In 1884, 2.5 million pounds of Ceylon tea were sold in London; by 1886, exports had risen to 9 million pounds, reaching 15 million pounds in 1887, and surpassing 34 million pounds by 1890.
However, the truly landmark event was the first tea auction held locally in Ceylon in 1878. Led by Mr. Somerville, founder of the Somerville & Co., this auction was not expected to succeed but still attracted some buyers. A total of five lots of tea were up for bid, comprising 140 chests, including ungraded black tea from Kabaragala Estate, various teas from Agar Estate, and Pekoe and BP teas from Oddawela Estate. At the auction, Mr. Somerville presided personally, but the initial bids received no takers, creating an awkward scene. In the end, only 999 pounds of tea from Kabaragala Estate were sold at 45 cents per pound, while the remaining 1,250 pounds from Agar and Oddawela Estates failed to sell. Although the results were limited, this event marked the beginning of local tea auctions in Ceylon. The Ceylon Observer reported at the time that there was a gap between buyer and seller expectations on pricing, but noted that improvements could be made in the future.
Surprisingly, after this first auction, local tea auctions in Ceylon went quiet for over a decade. During this period, most tea continued to be shipped to London for auction, with only a small portion sold directly to overseas buyers. Although Forbes and Walker conducted a second local auction in 1885, selling 14 lots, no further records exist afterward. However, brokerage firms including Somerville, as well as others like John, Gordon, Forbes and Walker, Bartlett, Cole and Waldock, continued to promote tea cultivation and export, leading to rapid growth in Ceylon tea production. By the summer of 1885, many brokers had accumulated sufficient business volume and believed the time was ripe for local auctions, though actual implementation still faced opposition from many exporters.
It wasn’t until 1894 that the Ceylon Chamber of Commerce officially established the Colombo Tea Traders Association (CTTA), and drawing on the successful model of the Calcutta Tea Auction in India, the Colombo Tea Auction was finally formally launched. The new auction house adopted an operational model that remains in use to this day, holding weekly auctions in a dedicated auction hall within the Ceylon Chamber of Commerce building in Colombo. From then on, the Colombo Tea Auction gradually gained recognition and support from both exporters and buyers. By the 1930s, about half of Ceylon’s tea output was sold through local auction houses, with the other half still being sent to London for auction.
For consumers who enjoy Ceylon black tea, understanding this history can help deepen their appreciation of the cultural and trade context behind the tea. If you wish to taste authentic Ceylon black tea, it is recommended to choose teas from Sri Lanka’s core producing regions — these teas are typically of consistent quality and showcase the unique flavor profile of Ceylon tea. There’s no need to travel all the way to the Colombo auction house; trustworthy options can be found at local specialty retailers.
The above content is compiled by CoffeeHunters, a coffee news website.
