Records indicate that the first Tea Auction in Colombo took place in 1883. Ever since the tea auction tradition has been the key channel in marketing Ceylon Tea.

With the formation of the Ceylon Tea Traders Association the venue of the auction was moved to its present location at the Ceylon Chamber of Commerce. Even today the tea auction tradition is still carried on with the Colombo Tea Auctions having an average of 5.5 million kilos and sometimes even over 8 million kilos of some of the finest Ceylon teas exchanging hands each week, making it one of the largest and most professional tea auctions in the world.