Forbes & Walker Ltd said in its weekly report total exports from January-November of 1997 amounted to 243.4 million kg.

The report said export earnings had increased by Rs 8.7 billion or 22.8 per cent from January to November last year to Rs 46.8 billion compared to the same period in 1997.

"The drop in monthly exports to the CIS (Commonwealth of Independent States) that occurred in September and October 1998 has been somewhat reversed in November with total exports of 2.6 million kg for the month compared with a low of one million kg per month," Forbes & Walker said.

"However, 2.6 million kg is still way below the monthly average of over four million kg that prevailed prior to the `Russian rouble' crisis," the report said.

It said notwithstanding the declining exports to theCIS during the last quarter of 1998 due to the Financial and political crisis there, the former Soviet republics remained the country's largest buyer with 40.8 million kg during the first eleven months of the year.

Forbes & Walker said the United Arab Emirates (UAE), with 32 million kg, displaced Turkey as the second largest buyer.

"With just over three million kg exported to this destination during the month of November 1998, the UAE is the single largest export outlet for our teas during the month," Forbes & Walker said.

"The disappointing feature of exports to the UAE is that out of the total exports of 32 million kg during January/November 1998, 22.6 million kg or 70 per cent comprises bulk tea with the value addition being carried out in the UAE," the report added.

Deputy finance minister Gamini Peiris said last November, Sri Lanka's tea output in 1998 would be around 285 million kg after an all-time record production of 276.86 million kg in 1997.