Sri Lanka recorded the highest cinnamon prices in its history in May, with Alba-grade cinnamon reaching Rs. 7,000 per kilogram, according to the Department of Cinnamon Development.

Director General Janaka Lindara said the record prices come as the country targets US$300 million in cinnamon export earnings this year.

Sri Lanka’s cinnamon industry generated nearly Rs. 80 billion (around US$260 million) in export revenue in 2025, marking the highest annual earnings ever recorded for cinnamon and cinnamon-based products.

He added that cinnamon export earnings during the first five months of this year increased by Rs. 27 million compared to the corresponding period last year, indicating continued growth in the sector. (Newswire)

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Yesol Lanka, a Board of Investment (BOI)‑approved enterprise based in Madurankuliya, Puttalam, has transformed Sri Lanka’s discarded fish waste into a profitable export industry.

According to a BOI statement, for decades, fish heads, frames, viscera, and skins piled up at markets as an environmental burden. Today, through Yesol Lanka’s fish‑waste valorization project, that same stream is being converted into internationally traded animal feed ingredients, generating foreign exchange, employment, and a cleaner coastline.

Founded by entrepreneur Vijitha Kumara Rajapaksa, who gained expertise in fish‑waste valorization while working with South Korea’s Hantech Group, the project has introduced new technology to convert waste into animal feed ingredients. The BOI approved the venture citing four benefits: tackling a worsening environmental problem, generating foreign exchange, creating jobs, and providing fishermen and collectors with new income.

Established on a 50‑acre site with an investment of US$ 3 million, Yesol Lanka employs 45 people directly and processes up to 100 metric tons of fish waste per day. Fishermen and collectors are paid Rs. 20–30 per kilogram for waste that previously had no market. The company now exports 30,000–35,000 metric tons annually of fish meal, fish oil, and fish paste, earning US$ 2–2.5 million a year. Its clients include Vietnam’s CP Company, a global leader in shrimp farming.

Yesol Lanka has also achieved 100% Green Project status by adopting recyclable packaging. The BOI highlights the venture as a model for converting environmental liabilities into export‑earning industries, noting that Sri Lanka currently processes less than 3% of its total fish catch into marine ingredients despite landing 480,000–530,000 metric tons annually.

Globally, the fishmeal and fish oil market is valued at US$ 9.9 billion in 2026 and projected to reach US$ 19.1 billion by 2036, while the aquafeed market is forecast to grow from US$ 67.7 billion in 2026 to US$ 97.1 billion by 2031. With Asia‑Pacific already accounting for more than 42% of consumption, Sri Lanka is well‑positioned to expand exports into nearby aquaculture and pet‑food markets.

Speaking on the venture’s progress, Vijitha Kumara Rajapaksa urged Sri Lanka’s youth to embrace innovative, export‑oriented entrepreneurship, while the BOI continues to encourage similar circular‑economy investments that generate foreign exchange and promote sustainability. (Newswire)

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Sri Lanka’s total exports, including both merchandise and services, reached US$ 1,467.31 million in March 2026, reflecting a year-on-year decline of 5.2 % compared to March 2025, according to the Export Development Board (EDB) of Sri Lanka. 

The EDB said in a statement that, however, on a month-on-month basis, exports increased by 9.0% compared to February 2026 (US$ 1,346.2 million), indicating a recovery in export momentum during the month.

Provisional data from Sri Lanka Customs, along with estimated figures for Gems & Jewellery and Petroleum Products, show that merchandise exports for March 2026 decreased by 4.94% to US$ 1,180.39 million.

Earnings from services exports were estimated at US$ 286.92 million in March 2026. While this represents a moderate decline of 6.26% compared to March 2025, the services sector continues to demonstrate its growing importance to Sri Lanka’s export portfolio.

On a cumulative basis, total exports for the period January to March 2026 are estimated at US$ 4,308.11 million, recording a growth of 1.59 % over the corresponding period in 2025.

The EDB further states that overall, the positive performance recorded during the first quarter underscores the resilience of Sri Lanka’s external sector. Despite the temporary setback in March, sustained export earnings supported by stable merchandise trade and the increasing contribution of services signal a steady recovery trajectory for 2026.

Commenting on this achievement, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board (EDB), stated:

“While Sri Lanka’s export earnings experienced a temporary moderation in March 2026, reaching US$ 1,467.31 million, the overall performance for the first quarter reflects continued resilience and stability in the export sector. The cumulative growth recorded during January to March 2026 demonstrates the sector’s ability to navigate evolving global market conditions. This is supported by sustained demand in key export categories, the gradual strengthening of services exports, and ongoing export promotion and market diversification efforts. Looking ahead, a series of key policy decisions to be taken by the Export Development Council of Ministers (EDCM) will further strengthen the export ecosystem. These include measures to enhance trade facilitation, streamline regulatory processes, support market diversification, and improve access to finance for exporters. With these strategic interventions, alongside the continued implementation of the National Export Development Plan, Sri Lanka is well-positioned to sustain export growth momentum and achieve its annual export targets in 2026.”

Further analysis indicates that cumulative merchandise export earnings amounted to US$ 3,387.0 million during January–March 2026, reflecting a 1.18 % increase compared to the corresponding period in 2025.

Meanwhile, services exports maintained a strong upward trajectory, recording an estimated 3.13 % growth during the same period, reaching US$ 921.11 million.

This robust expansion highlights the increasing importance of Sri Lanka’s knowledge-based economy and its growing contribution to national export earnings. 

The services sector, comprising ICT/BPM, Construction, Financial Services, and Transport & Logistics, continues to play a pivotal role in diversifying the country’s export base while generating high-value employment opportunities across the economy, the EDB added. 

Full statement:

Major Exports in March 2026

• Products and Services with Positive Growth (Increases)

Coconut-based products recorded a strong performance in March 2026, with export earnings increasing by 9.64 % year-on-year. Within the sector, Coconut Fibre Products expanded by 12.59 %, while Coconut Shell Products surged by 44.31%, reflecting robust global demand and increased value addition.

Notably, among coconut shell-based exports, Activated Carbon, a key value-added product registered a significant increase of 36.46%, reaching US$ 23.43 million. This underscores the sector’s growing contribution to Sri Lanka’s export earnings through higher-value product segments.

The Food & Beverages sector also demonstrated notable growth, recording an 18.51% year-on-year increase to reach US$ 65.75 million. This expansion was largely driven by processed food exports, which grew by 20.24%, indicating rising demand for value-added food products in international markets.

Seafood exports recorded a significant increase of 31.92% year-on-year, reaching US$ 22.4 million in March 2026. This growth was driven by strong performance in key product categories, particularly frozen fish, which increased by 33.36%, and shrimp exports, which surged by 111.76%.

Export earnings from Electrical and Electronic Components showed remarkable growth, increasing by 31.83% to US$ 50.78 million. This performance was supported by strong gains in Insulated Wires and Cables and Electrical Transformers, which grew by 54.79% and 33.94%, respectively, compared to March 2025.

Meanwhile, the Diamonds, Gems & Jewellery sector is estimated to have recorded a substantial increase of 26.56%, reaching US$ 33.94 million in March 2026.

On the services, ICT/BPM services are estimated to have achieved steady growth, reaching US$ 169.46 million, while Financial Services expanded significantly by 74.53% to US$ 6.82 million. This continued upward trend highlights the resilience and expanding role of Sri Lanka’s knowledge-based and services-driven economy, further strengthening its contribution to overall export performance.

Products with Negative Growth (Decreases)

Export earnings from Apparel & Textiles declined by 11.22% year-on-year to US$ 440.32 million in March 2026. This downturn was primarily driven by a 12.78% reduction in shipments to the United States, alongside a 2.01% contraction in exports to the European Union. Exports to the United Kingdom also recorded a notable decline of 15.7%, further contributing to the overall decrease in the sector’s performance.

Tea exports declined by 17.34% year-on-year to US$ 114.75 million in March 2026, primarily due to reduced earnings from Bulk Tea (-29.2%) and Tea Packets (-9.79%). Export volumes also contracted by 15.8%, reflecting weakened demand in key markets. Notably, exports to Iraq, Russia, and the UAE declined significantly by 37.66%, 36.36%, and 92.64%, respectively, exerting substantial downward pressure on overall sector performance.

Export earnings from Rubber and Rubber-Based Products declined marginally by 0.64% year-on-year to US$ 92.48 million in March 2026, primarily due to contractions in key product segments. Notably, exports of Industrial and Surgical Rubber Gloves decreased by 11.09%, exerting downward pressure on overall sector performance.

Exports of Spices and Essential Oils declined by 14.56% to US$ 35.97 million during the period, primarily due to weaker performance in key product categories. Notably, pepper exports fell sharply by 55.12%, while cloves exports recorded a significant decline of 77.19%, contributing to the overall downturn in the sector.

Similarly, ornamental fish exports also registered a decline of 13.29%, falling to US$ 1.5 million in March 2026.

Exports during the period of January – March 2026

Cumulative total exports, including both merchandise and services, are estimated at US$ 4,308.11 million for the period January–March 2026, reflecting a growth of 1.59 % compared to the same period in 2025.

Merchandise exports during the first quarter of 2026 are estimated to have increased by 1.18 % to US$ 3,387.0 million, based on provisional data from Sri Lanka Customs together with estimated figures for Gems & Jewellery and Petroleum Products.

Meanwhile, earnings from services exports are estimated to have grown significantly by 3.13 % to US$ 921.11 million compared to the corresponding period in 2025.

• Products & Services with Positive Growth (Increases)

Earnings from Coconut-based products, Processed Food and Beverages, and Electrical & Electronic Components increased by 20.85%, 26.05%, and 44.18%, respectively, during the first quarter of 2026 compared to the corresponding period in 2025.

Export earnings from Coconut and Coconut-based products rose significantly by 20.76 % to US$ 314.09 million during January–March 2026 compared to the same period last year. This performance was supported by growth across all major coconut product categories, including Coconut Kernel products (21.05 %), Fibre products (0.04%), and Shell products (52.68%).

The sector’s strong performance was primarily driven by increased export earnings from Coconut Oil (34.97%), Desiccated Coconut (35.07%), Coconut Cream (37.27%), Liquid Coconut Milk (12.63%), and Activated Carbon (46.8%), reflecting sustained global demand and continued value addition within the industry.

Export earnings from Food & Beverages increased by 26.05% year-on-year to US$ 174.5 million during the period January to March 2026, supported by strong performance in processed food exports, which grew by 35.85% to reach US$ 78.44 million.

Meanwhile, earnings from exports of Electrical and Electronic Components (EEC) increased by 44.18% to US$ 142.02 million during January–March 2026 compared to the corresponding period in 2025. This growth was driven by strong performance across key product categories, including Electrical Transformers (+41.73%), Insulated Wires and Cables (+35.9%), and Switches, Boards & Panels (+22.22%).

In addition, exports of Boilers and piston engines also contributed to the upward trend, reaching US$ 16.28 million, reflecting a notable increase during the first quarter of 2026.

Further, export earnings from Seafood increased by 30.93% to US$ 63.16 million during January–March 2026 compared to the same period in 2025. This growth was driven by strong performance in key product categories, including frozen fish (+17.56%) and fresh fish (+106.27%), reflecting improved export volumes and stronger market demand.

Furthermore, the estimated value of ICT exports is expected to increase by 31.15 % to US$ 468.72 Mn during the period of January to March 2026 when compared to the corresponding period of 2025. 

Products with Negative Growth (Decreases)

Export earnings from Apparel & Textiles declined by 8.06% to US$ 1,271.98 million during the January–March 2026 period compared to the corresponding period in 2025. This contraction was largely driven by weaker demand in key export markets, particularly the United States and the European Union, which together account for over 50% of total market share. Exports to the United States declined by 6.37%, while shipments to the European Union fell by 7.28%. In addition, exports to the United Kingdom also decreased by 7.93%, further contributing to the overall sectoral downturn.

Earnings from tea exports decreased year-on-year by 5.22% to US$ 351.58 million during January–March 2026. This decline was mainly driven by weaker performance in key product categories, with Bulk Tea exports falling by 9.3% and Tea Packets decreasing by 4.98%, compared to the corresponding period in 2025.

Export earnings from Rubber and Rubber Finished Products recorded a marginal decline of 0.96% to US$ 248.86 million during January–March 2026 compared to the same period in 2025. This slight decrease was primarily attributed to reduced exports of Industrial and Surgical Rubber Gloves, which fell by 9.2%, exerting downward pressure on overall sector performance.

In addition, export earnings from Spices and Essential Oils recorded a marginal year-on-year decline of 5.38%, to US$ 112.63 million during January–March 2026. This decrease was mainly driven by the weak performance of key product categories, particularly Pepper (-45.9%) and Cloves (-77.36%), which significantly impacted overall sector earnings.

Table 1 shows a comparative analysis of merchandise export performance for March 2025–2026, along with the cumulative figures for the January–March period.

Table 1: Comparison of Product-wise Merchandise Export Performance

Sri Lanka’s Export Performance in Major Markets

Among the top fifteen export markets, the India, China, Italy, Belgium and Japan demonstrated positive year-on-year growth both in March 2026 and cumulatively for the January–March period, indicating emerging market resilience.

Meanwhile, the United States the largest single export destination for Sri Lanka, accounting for approximately 22% of total merchandise exports recorded a decline of 8.42%, reaching US$ 251.74 million in March 2026. Cumulative exports for the period January to March 2026 also registered a marginal decrease of 3.38%, amounting to US$ 749.38 million compared to the corresponding period in 2025.

India consolidated its position as Sri Lanka’s second-largest export destination, surpassing the United Kingdom, with exports growing by 12.02% to US$ 287.49 million during January–March 2026, despite a marginal increment in March 2026. Meanwhile, exports to the United Kingdom declined by 5.84 % to US$ 235.73 million over the same period, reflecting weaker performance in this key European market.

The United Arab Emirates, which has consistently ranked among the top 15 export destinations in recent years, recorded a notable decline of 11.83% during the period from January to March 2026. This negative trend further intensified in March 2026, with a year-on-year contraction of 72.60% in monthly export performance, primarily attributable to geopolitical tensions between the United States and the Gulf region.

Table 2 shows a comparative analysis of merchandise export performance across the top 15 export markets for March 2025–2026, along with the cumulative figures for the January– March period.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations

Exports to FTA Partners (India & Pakistan)

• March 2026

Exports to India and Pakistan together accounted for 8.74% of Sri Lanka’s total merchandise exports in March 2026, totaling US$ 103.11 million, a year-on-year growth of 7.53%

Exports to India increased by 4.44% to US$ 95.47 million, primarily driven by higher demand for key export categories such as petroleum products, animal feed, and selected industrial raw materials, supported by strengthened bilateral trade ties under the Indo-Sri Lanka Free Trade Agreement. 

Exports to Pakistan gradually increased by 70.54 % to US$ 7.64 million, supported by higher shipments of other textile articles, desiccated coconut, and chemical products.

• January – March 2026

Over the cumulative January – March period, exports to India expanded significantly by 12.02 % to US$ 287.49 million. The growth was driven primarily by higher shipments of Petroleum oils, Animal feed, and Areca nuts.

Meanwhile, exports to Pakistan surged by 41.39% to US$ 22.41 million, reflecting robust performance in other textile articles, betel leaves, desiccated coconut, woven fabrics, and base metal products.

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region wise exports for March 2025 – 2026, along with the cumulative figures for the January–March period.

Table 3: Comparison of Region wise Merchandise Export Performance

Exports to the European Union (EU), which represent 25.5% of Sri Lanka’s total merchandise exports, increased by 8.73% in March 2026. Similarly, during the cumulative period from January to March 2026, they increased by 5.07%.

Exports to the top five EU markets were recoded as; Italy US$ 175.21 Mn (increased by 14.67 %), Germany US$ 168.38 Mn (decreased by 7.24%), Netherlands US$ 105.16 Mn (decreased by 7.10 %), France US$ 64.59 Mn (decreased by 0.83%) and Belgium US$ 62.43 Mn (increased by 5.46 %) during the cumulative period of January to March 2026 in comparison to the corresponding period in 2025. (Newswire)

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The Export Development Board (EDB) says Sri Lanka’s total exports, including both merchandise and services, reached US$ 1,401.78 million in February 2026, reflecting a notable year-on-year growth of 4.22% compared to February 2025.

According to provisional data from Sri Lanka Customs, along with estimated figures for Gems & Jewellery and Petroleum Products, merchandise exports for February 2026 increased by 1.32% to US$ 1,066.88 million.

Meanwhile, services exports demonstrated strong momentum, with earnings estimated at US$ 334.9 million, marking a significant 14.68% increase over the corresponding month in 2025. This robust performance underscores the growing contribution of the services sector to the country’s export portfolio.

On a cumulative basis, total exports for the period January to February 2026 are estimated at US$ 2,896.31 million, recording a notable growth of 7.56% compared to the same period in 2025.

The continued expansion in export earnings highlights the resilience of Sri Lanka’s external sector, supported by steady merchandise performance and accelerated growth in services exports.

Commenting on this achievement, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board (EDB), stated:

“Sri Lanka’s export earnings for February 2026 reached US$ 1,401.78 million, recording a solid year-on-year growth of 4.22% and signalling a positive trajectory toward achieving our annual export targets.

This performance reflects the resilience and increasing competitiveness of Sri Lanka’s export sector, underpinned by the gradual recovery in key international markets, sustained industrial capacity, and the continued implementation of targeted export development initiatives.

Looking ahead, with strengthened policy support, enhanced value addition, and proactive market diversification, Sri Lanka is poised to build on this momentum throughout 2026, even amid ongoing geopolitical tensions and energy market volatility”

Further analysis indicates that cumulative merchandise export earnings amounted to US$ 2,215.63 million during January–February 2026, reflecting a 5.22% increase compared to the corresponding period in 2025.

Meanwhile, services exports maintained a strong upward trajectory, recording an estimated 15.95% growth during the same period, reaching US$ 680.68 million.

This robust expansion highlights the increasing importance of Sri Lanka’s knowledge-based economy and its growing contribution to national export earnings. 

The services sector, comprising ICT/BPM, Construction, Financial Services, and Transport & Logistics, continues to play a pivotal role in diversifying the country’s export base while generating high-value employment opportunities across the economy.

Full statement: 

Major Exports in February 2026

1. Products and Services with Positive Growth (Increases)

Coconut-based products also recorded a strong performance, with export earnings increasing 25.22 % year-on-year in February 2026. Within this sector, earnings from Coconut Kernel Products increased by 33.07 %, while Coconut Shell Products grew by 69.96%, reflecting strong global demand and enhanced value addition.

Among Coconut Kernel Products, February 2026 exports showed substantial gains: Coconut Oil (+35.34%), Coconut Cream (+40.82%), and Liquid Coconut Milk (+25.73%) compared to February 2025. Meanwhile, earnings from Activated Carbon, a key Coconut Shell product, increased by 68.84 %, reaching US$ 21.73 million, underscoring the sector’s expanding contribution to Sri Lanka’s export earnings.

The Food & Beverages sector recorded a significant 36.36% year-on-year increase, reaching US$ 56.22 Mn, with processed foods contributing the largest share of growth (+72.95%).

Exports of Spices and Essential Oils recorded a growth of 3.98% to US$ 39.44 million during the same period, mainly supported by a strong performance in cinnamon exports, which surged by 41.88%.

Electrical and electronic components recorded remarkable growth, with export earnings surging by 54.37% to US$ 48.35 million. This growth was driven by strong increases in exports of electrical transformers and switches, boards and panels, which expanded by 42.56% and 67.03% respectively in February 2026 compared to the same period in 2025.

The estimated export value of Diamonds, Gems & Jewellery is expected to increase by 11.51%, reaching US$ 30.86 Mn in February 2026 compared to February 2025.

Meanwhile, except for construction services, other export services are estimated to record positive growth in February 2026 compared with February 2025: ICT/BPM (+36.66%, US$ 153.62 Mn), Financial Services (+18.91%, US$ 4.78 Mn), and Transport and Logistics (+0.86%, US$ 170.15 Mn). This performance underscores the continued expansion and resilience of Sri Lanka’s knowledge and services-driven economy, highlighting its growing contribution to national export earnings.

Products with Negative Growth (Decreases)

Tea exports, accounting for 12.8% of total merchandise exports, declined by 3.71% to US$ 114.98 million in February 2026, driven primarily by reduced earnings from Bulk Tea (-2.14%) and Tea Packets (-6.78%). Export volumes also fell by 2.34%, with key markets such as Russia registering a notable decline of 33.31%, exerting downward pressure on overall performance.

Export earnings from Rubber and Rubber-Based Products declined by 5.66% year-on-year to US$ 78.41 million in February 2026, primarily due to contractions in major product categories. Exports of Pneumatic and retreaded rubber tyres and tubes decreased by 4.44%, while Industrial and Surgical Rubber Gloves declined by 5.14%, weighing on overall sector performance

Export earnings from Apparel & Textiles declined by 10.03% year-on-year to US$ 384.44 million in February 2026, primarily due to a 3.09% reduction in shipments to the United States and a sharp 19.33% contraction in exports to the European Union.

Seafood exports also recorded a significant decline, falling by 16.84% year-on-year to US$ 11.31 million. This downturn was driven by decreases in key product categories, including frozen fish (-25.52%) and shrimps (-41.82%), while ornamental fish exports dropped by 29.33% to US$ 0.53 million.

Exports during the period of January – February 2026

Cumulative total exports, including both merchandise and services, are estimated at US$ 2,896.31 million for the period January–February 2026, reflecting a notable growth of 7.56% compared to the same period in 2025.

Merchandise exports during the first two months of 2026 are estimated to have increased by 5.22% to US$ 2,215.63 million, based on provisional data from Sri Lanka Customs together with estimated figures for Gems & Jewellery and Petroleum Products.

Meanwhile, earnings from services exports are estimated to have grown significantly by 15.95% to US$ 680.68 million compared to the corresponding period in 2025.

1. Products & Services with Positive Growth (Increases)

Earnings from the export of Tea, Coconut products, and Food & Beverages increased by 2.04 %, 27.86 %, and 30.84%, respectively during the period of January – February 2026 in comparison to the corresponding period of 2025.

Earnings from the export of Tea increased y-o-y by 2.04 % to US$ 236.84 Mn in the period of January to February 2026. This increase was mainly due to the strong performance in the export of Bulk Tea (3.5 %).

Export earnings of Coconut & Coconut-based products increased by 27.86 % to US$ 203.01 Mn during January – February 2026 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January – February 2026 compared with the corresponding period of 2025 due to the strong performance in export of Coconut Oil (53.98 %), Desiccated Coconut (48.62 %), Coconut Milk Powder (16.54 %), Coconut Cream (44.17 %), Liquid Coconut Milk (24.37 %), and Activated Carbon (53.26 %).

Export earnings from Food & Beverages have increased by 30.84 % y-o-y to US$ 108.56 Million in the period of January to February 2025, with the positive performance in exports of Processed food (49.39 %).

Further, export earnings from Seafood increased by 30.28 % to US$ 40.74 Mn during the period of January to February 2026 compared to 2025 due to the strong performance in frozen fish (+9.77%) and Fresh Fish (+103.09%).

Meanwhile, earnings from export of Electrical and Electronic Components (EEC) increased by 52.74 % to US$ 91.28 Mn in the period of January to February 2026 compared to the corresponding period of 2025. This increase was due to the strong performance in exports of Insulated Wires and Cables (+37.12%), Printed Circuits (+14.71%), Switches, Boards & Panels (+39.32%).

Furthermore, the estimated value of ICT exports is expected to increase by 37.25 % to US$ 306.62 Mn during the period of January to February 2026 when compared to the corresponding period of 2025. 

In addition, the estimated value of Logistics & transport services is expected to increase by 5.31 % to US$ 354.59 Mn during the period of January to February 2026 when compared to the corresponding period of 2025. 

Products with Negative Growth (Decreases)

Export earnings from Rubber & Rubber finished products decreased by 1.14 % to US$ 156.38 Mn in January – February 2026 compared to the same period in 2025 attributed to decreased exports of Industrial & Surgical Gloves of Rubber (-8.17 %). 

Export earnings from Apparel & Textiles declined by 6.29% to US$ 831.67 million during the January–February 2026 period, compared to the same period in 2025. This contraction was largely influenced by reduced demand in key markets, with exports to the United States and the European Union, together accounting for more than 50% of total market share, declining by 2.9% and 2.8%, respectively.

In addition, export earnings from Spices and Essential Oils slightly decreased y-o-y by 0.35 % to US$ 76.65 Mn in the period of January to February 2026. This decrease was due to the poor performance in exports of Pepper (-40.88 %), Cloves (-77.36 %).

Table 1 shows a comparative analysis of merchandise export performance for February 2025–2026, along with the cumulative figures for the January–February period.

Sri Lanka’s Export Performance in Major Markets

Among the top ten export markets, the United Arab Emirates, China, Australia, and Mexico demonstrated positive year-on-year growth both in February 2026 and cumulatively for the January–February period, indicating emerging market resilience.

Meanwhile, the United States, the largest single export destination for Sri Lanka, accounting for around 22% of total merchandise exports, recorded a marginal decline of 0.3% to US$ 239.8 million in February 2026, with cumulative exports for January–February 2026 also marginal down by 0.61% to US$ 497.65 million compared to the same period in 2025

India consolidated its position as Sri Lanka’s second-largest export destination, surpassing the United Kingdom, with exports growing by 16.21% to US$ 192.01 million during January–February 2026, despite a temporary dip in February. Meanwhile, exports to the United Kingdom declined by 1.86% to US$ 149.44 million over the same period, reflecting weaker performance in this key European market.

Table 2 shows a comparative analysis of merchandise export performance across the top 15 export markets for February 2025–2026, along with the cumulative figures for the January–February period.

Exports to FTA Partners (India & Pakistan)

1. February 2026

Exports to India and Pakistan together accounted for 7.8% of Sri Lanka’s total merchandise exports in February 2026, totaling US$ 84.7 million, a year-on-year decline of 4.07%.

Exports to India decreased by 7.35% to US$ 78.44 million, mainly due to lower shipments of pepper and certain textile and apparel items.

Exports to Pakistan increased by 1.28% to US$ 6.25 million, supported by higher shipments of other textile articles, desiccated coconut, and chemical products.

1. January – February 2026

Over the cumulative January–February period, exports to India expanded significantly by 16.21% to US$ 192.01 million. The growth was driven primarily by higher shipments of Petroleum oils, Animal feed, and Areca nuts.

Meanwhile, exports to Pakistan surged by 29.9% to US$ 14.77 million, reflecting robust performance in other textile articles, betel leaves, desiccated coconut, woven fabrics, and base metal products.

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region wise exports for February 2025–2026, along with the cumulative figures for the January–February period.

Exports to the European Union (EU), which represent 24% of Sri Lanka’s total merchandise exports, increased by 2.86% in February 2026. However, during the cumulative period from January to February 2026, they declined by 6.42%

Exports to the top five EU markets were recoded as; Italy US$ 104.89 Mn (increased by 10.17 %), Germany US$ 104.29 Mn (decreased by 5.93 %), Netherlands US$ 66.82 Mn (decreased by 4.67 %), France US$ 40.47 Mn (decreased by 4.39 %) and Belgium US$ 38.67 Mn (increased by 1.5 %) during the cumulative period of January to February 2026 in comparison to the corresponding period in 2025. (Newswire)

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Sri Lanka’s export sector began 2026 on a strong momentum, recording a robust year-on-year growth of 13.71%, signalling renewed momentum in external trade performance, the Export Development Board of Sri Lanka (EDB) said in a statement. 

According to statistics released by Sri Lanka Customs, together with estimated export figures for gems and jewellery, petroleum products, and services, total export earnings reached US$ 1,532.6 Mn. 

The encouraging performance reflects broad-based growth across key export sectors, improving global demand conditions, and sustained national efforts to enhance export competitiveness at the outset of the year. 

“Sri Lanka’s export earnings for January 2026 reached US$ 1,532.6 Mn, reflecting a strong year-on year growth of 13.71% and a promising start toward achieving our annual export targets. This performance highlights the resilience and growing competitiveness of the country’s export sector, supported by the gradual recovery of key international markets, sustained industrial capacity, and the continued implementation of strategic export development initiatives. We remain confident that, with focused policy support and market diversification efforts, Sri Lanka is well positioned to maintain this positive momentum throughout 2026,” Mangala Wijesinghe, Chairman and Chief Executive Officer of the EDB said. 

In January 2026, merchandise exports recorded a year-on-year growth of 10.66 %, reaching US$ 1,165.02 Mn, according to provisional data released by Sri Lanka Customs, including estimated figures for gems and jewellery and petroleum products. This steady expansion reflects improved demand across key product categories and the strengthening performance of the industrial export sector. 

Meanwhile, services export earnings for January 2026 are estimated to have increased significantly by 24.59%, reaching US$ 367.55 million. This strong growth highlights the rising importance of Sri Lanka’s knowledge-based economy and its expanding contribution to overall national export earnings. 

The services sector, comprising ICT/BPM, construction, financial services, and transport and logistics, continues to play a pivotal role in diversifying the country’s export basket while generating high-value employment opportunities nationwide, further reinforcing Sri Lanka’s transition toward a more innovation-driven and services-oriented economy. 

Full statement: 

Major Exports in January 2026 

a) Products and Services with Positive Growth (Increases) 

Most export sectors recorded notable year-on-year increases in January 2026. Tea exports, which accounted for 12.8 % of total merchandise exports, increased by 8.11% to US$ 121.84 Mn, driven primarily by higher earnings from Bulk Tea (+ 9.72%) and Tea Packets (+ 2.3%). In terms of volume, tea exports grew by 6.9 %. Key markets such as Turkey, Russia, and Saudi Arabia recorded significant increases of 120.95 %, 8.84 %, and 11.24 %, respectively. 

Coconut-based products also recorded a strong performance, with export earnings increasing 30.69 % year-on-year in January 2026. Within this sector, earnings from Coconut Kernel Products increased by 43.32%, while Coconut Shell Products grew by 46.87%, reflecting strong global demand and enhanced value addition. 

Among Coconut Kernel Products, January 2026 exports showed substantial gains: Coconut Oil (+76.2%), Coconut Milk Powder (+60.71%), Coconut Cream (+47.94%), and Liquid Coconut Milk (+23.09%) compared to January 2025. Meanwhile, earnings from Activated Carbon, a key Coconut Shell product, increased by 39.51 %, reaching US$ 20.34 Mn, underscoring the sector’s expanding contribution to Sri Lanka’s export earnings. 

Export earnings from Rubber and Rubber-based products have increased by 3.88 % y-o-y to US$ 77.97 Mn in January 2026, driven by strong growth in Pneumatic & Retreated Rubber Tyres & Tubes, which increased by 18.61%. 

The Food & Beverages sector recorded a significant 25.29% year-on-year increase, reaching US$ 52.31 Mn, with processed foods contributing the largest share of growth (+28.7%). 

Electrical and electronics components showed remarkable growth, with earnings rising 50.79% to US$ 42.93 Mn, led by a 73.49% increase in exports of Insulated Wires and Cables. 

Seafood exports surged 66.55% year-on-year to US$ 29.43 Mn, boosted by higher shipments of frozen fish (+37.64%) and fresh fish (+135.39%). Ornamental fish exports also recorded a significant growth of 70.06% to US$ 2.67 Mn.

Meanwhile, exports across all major services sectors are estimated to record positive growth in January 2026 compared with January 2025: ICT/BPM (+60.21%, US$ 177.83 Mn), Construction (+5.48%, US$ 11.6 Mn), Financial Services (+5.71%, US$ 5.29 Mn), and Transport and Logistics (+2.88%, US$ 2 172.83 Mn). This performance underscores the continued expansion and resilience of Sri Lanka’s knowledge and services-driven economy, highlighting its growing contribution to national export earnings. 

b) Products with Negative Growth (Decreases) 

Export earnings from Apparel & Textiles decreased by 2.82 % y-o-y, reaching US$ 447.25 Mn in January 2026, compared to the same month in 2025. This decrease was primarily due to a 2.73% drop in exports to the United States and a 1.82% decline in shipments to the EU region. 

Spices and Essential Oils exports also declined by 4.57 % to US$ 37.21 Mn during the same period, largely driven by a significant 54.38% reduction in Pepper exports to India. 

The estimated export value of Diamonds, Gems & Jewellery is expected to decrease by 10.96 %, reaching US$ 33.58 Mn in January 2026 compared to January 2025. 

Table 1 shows a comparative analysis of merchandise export performance for the month of January across the years 2024, 2025, and 2026.

Sri Lanka’s Export Performance in Major Markets 

Sri Lanka’s key export destinations demonstrated resilient performance at the start of 2026. Among the top ten markets, India, the United Kingdom, Germany, Italy, the Netherlands, China, and Australia recorded positive year-on-year growth, reflecting steady demand recovery and strengthened trade engagement across both traditional and emerging markets. 

The United States, which remains Sri Lanka’s largest single export destination and accounts for approximately 22 % of total merchandise exports, recorded a marginal decline of 0.9% to US$ 257.85 Mn in January 2026 compared with the same period in 2025. 

India continued to rank as Sri Lanka’s second-largest export destination, surpassing the United Kingdom, with exports expanding significantly by 38.67 % to reach US$ 113.57 Mn in January 2026. Meanwhile, exports to the United Kingdom increased by 3.18%, reaching US$ 82.08 million compared with January 2025. 

Table 2 shows a comparative analysis of merchandise export performance across the top 15 export markets for the month of January in 2024, 2025, and 2026. 

Exports to FTA Partners (India & Pakistan) 

In January 2026, exports to India and Pakistan accounted for 10.5 % of Sri Lanka’s total merchandise exports, increasing 38.26 % y-o-y to US$ 122.08 Mn. 

Exports to India increased significantly by 38.67 %, driven mainly by higher shipments of Petroleum Oils, Apparel, Animal Feed and Electrical & Electronic Products. In parallel, exports to Pakistan increased by 32.97 %, reflecting higher shipments of Betel Leaves, Textile and Coconut Kernel Products. 

Sri Lanka’s Export Performance in Regions Table 3 shows the comparison of region wise exports for the month of January in 2024, 2025, and 2026. 

Exports to the European Union (EU), which account for 22 % of Sri Lanka’s merchandise exports, increased during January 2026 by 12.27 %. 

Exports to the top five EU markets were recoded as; Germany US$ 58.05Mn (increased by 7.76 %), Italy US$ 57.05 Mn (increased by 25.27 %), Netherlands US$ 39.02 Mn (increased by 6.52 %), France US$ 21.49 Mn (decreased by 3.02 %) and Belgium US$ 21.11 Mn (increased by 7.48 %) during the month of January 2026 in comparison to the corresponding period in 2025. (Newswire)

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Sri Lankan exports to Saudi Arabia recorded a 19% increase from January to September 2025, compared to the corresponding period in 2024, according to the Sri Lanka Embassy in Riyadh.

Commenting on this achievement, Ambassador of Sri Lanka to the Kingdom of Saudi Arabia, Ameer Ajwad, stated that this double-digit growth represents an outstanding accomplishment in 2025, achieved through sustained and well-coordinated efforts undertaken by the Embassy of Sri Lanka in Riyadh in close collaboration with the Ministry of Foreign Affairs, Foreign Employment and Tourism, the Department of Commerce, the Sri Lanka Export Development Board, the Sri Lanka Tea Board, and other relevant institutions.

The Ambassador further noted that the Embassy adopted a concerted strategy aimed at enhancing the visibility of Sri Lankan products, including active participation in major international trade exhibitions held across the Kingdom of Saudi Arabia.

Ambassador Ajwad also stated that total bilateral trade between Sri Lanka and Saudi Arabia expanded by 9%, reflecting the growing complementarities and strengthening economic partnership between the two countries.

Trade volumes have continued to increase steadily, with Saudi Arabia remaining a key export market for Sri Lankan products such as tea, spices, fruits, vegetables, coconut-based products, processed foods including frozen seafood, construction materials, and other consumer goods. Concurrently, Sri Lanka continues to import essential commodities and energy supplies from the Kingdom, underscoring a balanced and mutually beneficial trade relationship.

In 2025 alone, ten (10) Sri Lankan business delegations visited Saudi Arabia, comprising companies specializing in food and beverages, agricultural products, construction materials, furniture, tourism, and manpower. In December 2025, the Embassy facilitated the launch of Sri Lankan products by Ceylon Biscuits Limited (CBL) in collaboration with Amalcom Company, an initiative expected to further enhance Sri Lankan exports to the Saudi market.

Such coordinated trade-promotion initiatives have significantly contributed to expanding market access, strengthening commercial ties, and enhancing the visibility of Sri Lankan products in the rapidly growing Saudi market.

The year 2025 also marked a historic milestone with the establishment of the first-ever Saudi–Sri Lanka Joint Business Council, facilitated by the Embassy of Sri Lanka in Riyadh. The Council was jointly formed between the Federation of Saudi Chambers (FSC) and the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) and was officially launched during the visit of Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, to Riyadh in November 2025. The Joint Business Council is expected to be a game-changer, serving as a vital platform for structured dialogue, trade facilitation, investment promotion, and enhanced private-sector collaboration between the two countries.

In addition, to promote Sri Lankan tourism in Saudi Arabia, the Sri Lankan Embassy facilitated “Twin Tourism Roadshows” in Riyadh and Dammam in April 2025, after a six-year hiatus, with the participation of the top twenty (20) Sri Lankan Destination Management Companies (DMCs), in collaboration with the Sri Lanka Tourism Promotion Bureau (SLTPB).

The Embassy also facilitated “Twin Sri Lankan Manpower Roadshows” in Riyadh and Dammam in May 2025, following an eight-year hiatus, with the participation of the top fifteen (15) Sri Lankan manpower-supplying agencies, in collaboration with the Sri Lanka Bureau of Foreign Employment (SLBFE). Additionally, the Embassy facilitated the participation of 26 SLBFE-licensed foreign employment agencies at Saudi Arabia’s largest HRLS Manpower Expo, held in Riyadh in November 2025. The Sri Lanka Pavilion at the Expo was inaugurated by the visiting Minister, Vijitha Herath. Sri Lankan manpower agencies are actively engaged in promotional and networking activities aimed at expanding employment opportunities for Sri Lankan workers in the Kingdom.

The Sri Lankan Embassy said its proactive role in promoting trade, investment, tourism, and manpower sectors throughout 2025 has produced tangible results and contributed to a more structured and strategic framework for bilateral economic engagement. Taken together, these developments underscore a strong and forward-looking momentum in economic cooperation between Sri Lanka and Saudi Arabia across multiple sectors and initiatives, it added in a statement. (Newswire)

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The government remains optimistic about reaching its 2025 export target of USD 18 billion and building a USD 300 billion economy by 2030, despite setbacks from recent natural disasters, according to Ministry of Industries and Entrepreneur Development Secretary Thilaka Jayasundara.

Speaking at the Certified Productivity Specialist (CPS) award ceremony, she noted an 8% increase in export revenue this year but warned of a potential USD 100–200 million loss due to cyclone-related disruptions affecting over 550 direct exporters.

Jayasundara however said that improving productivity is essential for recovery, noting Sri Lanka’s labour and total factor productivity remain low.

The ministry aims to achieve at least 3% positive growth in total factor productivity by 2030, she said. (Newswire) 

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Sri Lanka’s export sector has continued its strong upward trajectory, recording a significant 5.8 % y-o-y growth during the period from January to November 2025, according to the Export Development Board of Sri Lanka (EDB).

Based on Sri Lanka Customs statistics and estimated export figures for Gems & Jewellery, Petroleum Products and services, total exports reached US$ 15,776.36 Mn, the performance signalling sustained growth and improved external trade conditions.

In November 2025 alone, total exports, comprising both merchandise and services reached US$ 1,364.52 Mn, reflecting an impressive year-on-year growth of 5.56 % over November 2024. This performance highlights the strength of Sri Lanka’s export sector and the effectiveness of the strategies implemented to expand market access and enhance global competitiveness.

Commenting on this achievement, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Export Development Board (EDB), stated that Sri Lanka’s export earnings during the January–November 2025 period reached US$ 15,776.36 million, reflecting strong year-on-year growth.

He noted that this performance underscores the resilience and competitiveness of Sri Lanka’s export sector, supported by the recovery of key markets, sustained production capacity, and the effective implementation of export development strategies. 

He further emphasized that the encouraging growth reflects Sri Lanka’s deeper integration into global trade and the continued focus on enhancing export competitiveness and market diversification, with exporters demonstrating resilience and innovation in navigating evolving global challenges. 

He also highlighted that achieving over 86.3% of the annual export target by the end of November 2025 is a clear indication of the strength and commitment of Sri Lanka’s export community.

In November 2025 alone, merchandise exports grew by 5.95 % year-on-year, reaching US$ 1,053.22 Mn, according to provisional data of Sri Lanka Customs, including the estimates for Gems & Jewellery and Petroleum Products. For the period January to November 2025, merchandise exports totalled US$ 12,417.98 Mn, reflecting 6.41 % increase compared to the same period in 2024. 

In November 2025, earnings from services exports are estimated to have increased by 4.27% to US$ 311.3 Mn. Over the period of January to November 2025, services exports are estimated to have increased by 3.63 %, totalling US$ 3,358.38 Mn. This trend highlights the rising importance of Sri Lanka’s knowledge-based economy and its growing contribution to national export earnings.

The services export sector, comprising ICT/BPM, Construction, Financial services, and Transport & Logistics, continues to diversify Sri Lanka’s export portfolio and create high-value employment opportunities across the Island.

Full statement:

Major Exports in November 2025

• Products and Services with Positive Growth (Increases)

A monthly analysis reveals that export earnings from coconut-based products showed a significant increase of 47.25 % in November 2025 compared to the same month in 2024. Notably, earnings from Coconut kernel products increased by 57.45 %, Coconut fibre products by 27.76 %, and Coconut shell products by 42.14 %, reflecting strong global demand and improved value addition across the sector.

Export earnings from Coconut Oil, Coconut Milk powder, Coconut Cream and Liquid Coconut Milk, which are categorized under the Coconut kernel products, increased by 79.89 %, 44.66 %, 97.44 % and 49.72 % respectively, in November 2025 compared to November 2024.

Being the largest contributor to the coconut-based sector, Coco Peat, Fibre Pith & Moulded products, which are categorized under the Coconut fibre products, increased by 22.01 % to US$ 19.96 Mn in November 2025 in comparison to November 2024. 

Earnings from Activated Carbon, which is categorized under the Coconut shell products, increased by 37.79 % to US$ 18.96 Mn in November 2025 compared to November 2024.

Export earnings from Food & Beverages have increased by 24.83 % y-o-y to US$ 45.3 Mn in November 2025, with the positive performance in exports of Processed Food (24.1 %).

The estimated value of Diamonds, Gems & Jewellery is expected to increase by 34.73 % to US$ 37.56 Mn in November 2025 when compared to November 2024.

Export earnings from Electrical & Electronics Components increased by 38.37 % y-o-y to US$ 48.54 Mn in November 2025.

Export earnings from Seafood increased by 2.49 % to US$ 16.89 Mn in November 2025 compared to November 2024. This increase was mainly due to the positive performance in the export of Frozen Fish (16.4 %).

Meanwhile, ICT/BPM export earnings are expected to grow marginally by 0.13%, reaching US$ 129.15 Mn during the same period.

Similarly, the estimated export value of Logistics & Transport Services is expected to increase by 12.48 % to US$ 174.36 Mn in November 2025, compared to November 2024.

Products with Negative Growth (Decreases)

Export earnings from Apparel & Textiles declined by 2.12% year-on-year, totalling US$ 388.78 Mn in November 2025 compared to the same month in 2024.

Export earnings from tea, which made up 12.8% of merchandise exports, decreased by 5.4 % y-o-y to US$ 111.77 Mn in November 2025 compared to November 2024. This increase is mainly due to the poor performance in the export of Bulk Tea (-11.72 %) and Tea Packets (-4.52%).

Meanwhile, exports of Spices and Essential Oils decreased by 9.21 % to US$ 37.47 Mn in November 2025, largely driven by a sharp decline in pepper exports to India, which decreased by 50.57 %.

Export earnings from Ornamental fish decreased by 31.28 % to US$ 1.23 Mn in November 2025 compared to November 2024.

Exports during the period of January – November 2025

Cumulative total exports, including both merchandise and services, were estimated at US$ 15,776.36 Mn for the period January to November 2025, making a notable 5.8 % growth compared to the same period in 2024.

Merchandise exports during the period of January to November 2025 are estimated to increase by 6.41 %, reaching US$ 12,417.98 Mn, based on data from Sri Lanka Customs along with the estimated figures for Gems & Jewellery and Petroleum Products.

Meanwhile, the estimated value of services exports is expected to increase by 3.62 % to US$ 3,358.35 Mn compared to the corresponding period in 2024.

Products & Services with Positive Growth (Increases)

Earnings from the export of Apparel, Tea, Coconut products, and Food & Beverages increased by 4.9 %, 7.44 %, 44.13 %, and 24.89 % respectively during the period of January to November of 2025 in comparison to the corresponding period of 2024.

Earnings from the export of Apparel & Textile have increased by 4.9 % to US$ 4,829.62 Mn during the period of January to November 2025 compared to the same period in 2024. 

Notably, exports to the United States, the United Kingdom and EU region increased by 2.05 %, 0.01 % and 12.84 % amounting to US$ 1,783.97 Mn, US$ 632.91 Mn and US$ 1,451.08 Mn, respectively.

Earnings from the export of Tea increased y-o-y by 7.44 % to US$ 1,401.36 Mn in the period of January to November 2025. This increase was mainly due to the strong performance in the export of Tea Packets (13.22 %).

Export earnings of Coconut & Coconut-based products increased by 44.13 % to US$ 1,136.92 Mn during January to November of 2025 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January to November 2025 compared with the corresponding period of 2024 due to the strong performance in export of Coconut Oil (81.41 %), Desiccated Coconut (36.92 %), Coconut Milk Powder (70.05 %), Coconut Cream (92.83 %), Liquid Coconut Milk (52.94 %), Cocopeat (24.29 %) and Activated Carbon (29.42%).

Export earnings from Food & Beverages have increased by 24.89 % y-o-y to US$ 545.24 Mn in the period of January to November of 2025, with the positive performance in exports of Processed food (42.96 %).

In addition, export earnings from Seafood increased by 1.87 % to US$ 216.81 Mn during the period of January to November of 2025, compared to year 202,4 due to the positive performance in Frozen Fish (17.93 %).

Meanwhile, earnings from export of Electrical and Electronic Components (EEC) increased by 5.46 % to US$ 403.26 Mn in the period of January to November of 2025 compared to the corresponding period of 2024. This increase was due to the positive performance in exports of Insulated Wires (6.11 %) and Electrical Transformers (7.44%).

Furthermore, the estimated value of ICT/ BPM exports is expected to increase by 6.86 % to US$ 1,442.74 Mn during the period of January to November 2025, when compared to the corresponding period of 2024. 

In addition, the estimated value of Logistics & transport services is expected to increase by 7.54 % to US$ 1,760.65 Mn during the period of January to November 2025, when compared to the corresponding period of 2024. 

Products with Negative Growth (Decreases)

Export earnings from Rubber & Rubber finished products decreased by 5.60 % to US$ 869.26 Mn in the period of January to November 2025 compared to the same period in 2024, attributed to decreased exports of Pneumatic & Retreated Rubber Tyres & Tube (-13.58 %). 

In addition, export earnings from Spices and Essential Oils increased y-o-y by 2.16 % to US$ 405.7 Mn in the period of January to November 2025. This increase was due to the negative performance in exports of Pepper (-38.81 %). 

In addition, export earnings from Ornamental fish decreased by 7.47 % to US$ 20.8 Mn in the period of January to November 2025, compared to the same period in 2024

Table 1 shows the comparison of Merchandise export performance during the month of November 2025 and the period of January to November 2025 compared to 2024.

Table 1: Comparison of Product-wise Merchandise Export Performance 

                                          Values in US$ Mns

Sri Lanka’s Export Performance in Major Markets

Among the top 10 export destinations, the United States, India, Italy, Germany, the United Arab Emirates, the Netherlands, France and China recorded year-on-year growth in November 2025 as well as during the cumulative period from January to November 2025.

The United States, Sri Lanka’s largest single export market, accounting for 23% of the country’s merchandise exports, recorded a 3.97 % increase to US$ 236.2 Mn in November 2025 compared to November 2024. However, exports to the United States increased by 2.79 % during the period from January to November, reaching US$ 2,734.24 Mn.

India has continued as Sri Lanka’s second-largest export destination, surpassing the United Kingdom. Exports to India increased by 25.77 % to US$ 88.43 Mn in November 2025, while cumulative exports from January to November 2025 increased by 19.88 %, reaching US$ 955.32 Mn compared to the same period in 2024.

Exports to the United Kingdom decreased by 8.28 % to US$ 62.92 Mn in November 2025 compared to the same month in 2024. During the cumulative period from January to November 2025, exports to the UK recorded a growth of 2.49 %, reaching US$ 855.01 Mn compared to the corresponding period in 2024.

Table 2 shows the comparison of the Merchandise export performance of the top 15 export markets during the month of November 2025 and the period of January to November 2025, compared to 2024.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations 

Values in US$ Mns

Exports to FTA Partners (India & Pakistan)

• November 2025

In November 2025, exports to India and Pakistan accounted for 7.86% of Sri Lanka’s total merchandise exports, recording a year-on-year increase of 25.06 % to US$ 94.23 Mn, compared with November 2024.

Exports to India increased by 25.77%, mainly driven by higher shipments of Animal Feed, while exports to Pakistan increased by 15.08%, supported primarily by stronger Desiccated Coconut exports.

• January – November 2025

During the period from January to November 2025, exports to India and Pakistan accounted for 8.2% of Sri Lanka’s total merchandise exports, recording a substantial increase of 18.21 % to reach US$ 1,024.61 Mn compared to the same period in the previous year.

Exports to India increased significantly by 19.88 %, driven mainly by higher shipments of Petroleum Oil, Animal feed and Animal or Vegetable Fats and Oils and their Products. In contrast, exports to Pakistan decreased slightly by 0.83 %, reflecting a decrease in Desiccated Coconut shipments.

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region-wise exports during the month of November 2025 and the period of January to November 2025 compared to 2024.

Table 3: Comparison of Region-wise Merchandise Export Performance

Values in US$ Mns

Exports to the European Union (EU), which account for 24% of Sri Lanka’s merchandise exports, increased during both November 2025 and the cumulative period of January to November 2025 respectively, by 10.08 % and 14.06 %.

Exports to the top five EU markets were recoded as: Germany US$ 644.04 Mn (increased by 13.33 %), Italy US$ 628.33 Mn (increased by 14.07 %), the Netherlands US$ 429.5 Mn (increased by 21.31 %), and France US$ 258.51 Mn. (increased by 6.61 %) and Belgium US$ 231.77 Mn (increased by 6.81 %) during the cumulative period of January to November 2025 in comparison to the corresponding period in 2024.

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Sri Lanka’s export sector has continued its strong upward trajectory, recording a significant 6.0 % growth during the period from January to October 2025, the Sri Lanka Export Development Board (EDB) reported. 

According to data released by Sri Lanka Customs, along with estimated figures for Gems & Jewellery and Petroleum Products, total exports reached US$ 14,433.82 million, surpassing the performance of the corresponding period in 2024. 

This also marks the first time that exports have exceeded the 14 billion Dollar mark within the first ten months of a year. A key highlight is that exports of coconut-based products surpassed the US$ 1 billion mark during this period for the first time.

Commenting on this achievement, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Export Development Board (EDB), stated: “This is the highest-ever export figure recorded for the January–October period in Sri Lanka’s history. The continued recovery of key Western markets, along with the steady production capacity maintained by local industries, has played a pivotal role in driving this growth. I commend our exporters for their resilience and outstanding performance. Notably, 80% of the annual export target of US$ 18 billion has already been realized during this period.”

In October 2025 alone, total exports, comprising both merchandise and services, reached US$ 1,474.38 million, reflecting a month-on-month increase of 2.2 % compared with September 2025. However, this also represents a slight year-on-year increase of 0.16% compared with October 2024. 

Despite the marginal annual decrease, the October performance underscores the resilience of Sri Lanka’s export sector and the continued effectiveness of strategies aimed at expanding market access and strengthening global competitiveness.

Meanwhile, services exports have emerged as a key driver of overall export growth. In October 2025, earnings from services exports are estimated to be US$ 316.14 million. Over the first ten months of the year, services exports are estimated to have increased by 4.01 %, reaching US$ 3,060.21 million. This trend highlights the rising importance of Sri Lanka’s knowledge-based economy and its growing contribution to national export earnings.

The services export sector, comprising ICT/BPM, Construction, Financial services, and Transport & Logistics, continues to diversify Sri Lanka’s export portfolio and create high-value employment opportunities across the Island.

Full report: 

Major Exports in October 2025

• Products and Services with Positive Growth (Increases)

A monthly analysis reveals that export earnings from coconut-based products showed a significant increase of 60.46 % in October 2025 compared to the same month in 2024. Notably, earnings from Coconut kernel products increased by 75.05 %, Coconut fibre products by 19.84 %, and Coconut shell products by 77.56 %, reflecting strong global demand and improved value addition across the sector.

Export earnings from Coconut Oil, Coconut Milk powder, Coconut Cream and Liquid Coconut Milk, which are categorized under the Coconut kernel products, increased by 111.36 %, 38.3 %, 185.07 % and 90.84 % respectively in October 2025 compared to October 2024.

Being the largest contributor to the coconut-based sector, Coco Peat, Fibre Pith & Moulded products, which are categorized under the Coconut fibre products, increased by 19.71 % to US$ 20.59 Mn in October 2025 in comparison to October 2024. 

Earnings from Activated Carbon, which is categorized under the Coconut shell products, increased by 77.56 % to US$ 21.68 Mn in October 2025 compared to October 2024.

Export earnings from Food & Beverages have increased by 20.17 % y-o-y to US$ 71.25 Mn in October 2025, with the positive performance in exports of Processed Food (27.15 %).

The estimated value of Diamonds, Gems & Jewellery is expected to increase by 26.74 % to US$ 39.2 Mn in October 2025 when compared to October 2024.

Export earnings from Electrical & Electronics Components increased by 5.18 % y-o-y to US$ 38.76 Mn in October 2025.

Furthermore, the estimated value of ICT/ BPM exports is expected to increase by 26.71 % to US$ 154.5 Mn in October 2025 when compared to October 2024. 

Products with Negative Growth (Decreases)

Export earnings from Apparel & Textiles recorded a slight year-on-year decline of 0.24%, amounting to US$ 429.17 Mn in October 2025 compared with the same month in 2024.

Export earnings from tea, which made up 12.8% of merchandise exports, decreased by 0.21 % y-o-y to US$ 126.55 Mn in October 2025 compared to October 2024. This increase is mainly due to the poor performance in the export of Bulk Tea (-5.08 %).

Export earnings from Rubber and Rubber Finished products have decreased by 5.4 % y-o-y to US$ 80.12 Mn in October 2025, with the negative performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (-3.8 %) and Industrial & Surgical Gloves of Rubber (-6.33%).

Meanwhile, exports of Spices and Essential Oils decreased by 25.17 % to US$ 38.39 Mn in October 2025, largely driven by a sharp decline in pepper exports to India, which decreased by 73.6 %.

Export earnings from Seafood decreased by 9.54 % to US$ 15.36 Mn in October 2025 compared to October 2024. This increase was mainly due to the negative performance in the export of Fish Fresh or Chilled (-9.52 %) and Shrimps (-61.31 %).

Export earnings from Ornamental fish decreased by 18.78 % to US$ 1.6 Mn in October 2025 compared to October 2024.

Similarly, the estimated export value of Logistics & Transport Services is projected to decrease by 13.44 % to US$ 144.5 Mn in October 2025, compared to October 2024.

Exports during the period of January – October 2025

Cumulative total exports, including both merchandise and services, were estimated at US$ 14,433.82 Mn for the period January to October 2025, making a notable 5.99 % growth compared to the same period in 2024.

Merchandise exports during the period of January to October 2025 are estimated to increase by 6.53 %, reaching US$ 11,373.6 Mn, based on data from Sri Lanka Customs, along with the estimated figures for Gems & Jewellery and Petroleum Products.

Meanwhile, the estimated value of services exports is expected to increase by 4.01 % to US$ 3,060.21 Mn compared to the corresponding period in 2024.

Products & Services with Positive Growth (Increases)

Earnings from the export of Apparel, Tea, Coconut products, and Food & Beverages increased by 5.56 %, 8.72 %, 43.83 %, and 24.89% respectively during the period of January to October of 2025 in comparison to the corresponding period of 2024.

Earnings from the export of Apparel & Textile have increased by 5.56 % to US$ 4,440.85 Mn during the period of January to October 2025 compared to the same period in 2024. Notably, exports to the United States, the United Kingdom and the EU region increased by 1.67 %, 1.19 % and 13.82 % amounting to US$ 1,630.51 Mn, US$ 588.72 Mn and US$ 1,330.6 Mn, respectively.

Earnings from export of Tea increased y-o-y by 8.72 % to US$ 1,289.58 Mn in the period of January to October 2025. This increase was mainly due to the strong performance in the export of Tea Packets (15.18 %).

Export earnings of Coconut & Coconut-based products increased by 43.83 % to US$ 1,033.09 Mn during the period January to October of 2025 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January to October 2025 compared with the corresponding period of 2024 due to the strong performance in export of Coconut Oil (81.56 %), Desiccated Coconut (36.93 %), Coconut Milk Powder (72.56 %), Coconut Cream (92.46 %), Liquid Coconut Milk (53.32 %), Cocopeat (24.48 %) and Activated Carbon (28.52%).

Export earnings from Food & Beverages have increased by 24.89 % y-o-y to US$ 499.9 Mn in the period of January to October of 2025, with the positive performance in exports of Processed food (44.72 %).

In addition, export earnings from Seafood increased by 1.81 % to US$ 199.92 Mn during the period of January to October of 2025, compared to 2024, due to the positive performance in Frozen Fish (18.08%).

Meanwhile, earnings from the export of Electrical and Electronic Components (EEC) increased by 2.14 % to US$ 354.73 Mn in the period of January to October of 2025 compared to the corresponding period of 2024. This increase was due to the positive performance in exports of Insulated Wires (6.29%) and Electrical Transformers (6.67 %).

Furthermore, the estimated value of ICT/ BPM exports is expected to increase by 9.25 % to US$ 1,334.09 Mn during the period of January to October 2025, when compared to the corresponding period of 2024. 

In addition, the estimated value of Logistics & transport services is expected to increase by 6.07 % to US$ 1,572.19 Mn during the period of January to October 2025, when compared to the corresponding period of 2024. 

Products with Negative Growth (Decreases)

Export earnings from Rubber & Rubber finished products decreased by 5.92 % to US$ 793.7 Mn in the period of January to October 2025 compared to the same period in 2024, attributed to decreased exports of Pneumatic & Retreated Rubber Tyres & Tube (-15.21%). 

In addition, export earnings from Spices and Essential Oils increased y-o-y by 1.38 % to US$ 368.24 Mn in the period of January to October 2025. This increase was due to the negative performance in exports of Pepper (-38.33 %). 

In addition, export earnings from Ornamental fish decreased by 5.41 % to US$ 19.57 Mn in the period of January to October 2025compared to the same period in 2024

Table 1 shows the comparison of Merchandise export performance during the month of October 2025 and the period of January to October 2025 compared to 2024.

Table 1: Comparison of Product-wise Merchandise Export Performance 

                                          Values in US$ Mns

Sri Lanka’s Export Performance in Major Markets

Among the top 10 export destinations, Germany, Italy, the Netherlands, the United Arab Emirates, Canada, France and China recorded year-on-year growth in October 2025 as well as during the cumulative period from January to October 2025.

The United States, Sri Lanka’s largest single export market, accounting for 23% of the country’s merchandise exports, recorded a slight 0.46% decline to US$ 246.2 Mn in October 2025 compared to October 2024. However, exports to the United States increased by 2.68% during the period of January to October period, reaching US$ 2,498.04 Mn.

India has continued as Sri Lanka’s second-largest export destination, surpassing the United Kingdom. Exports to India decreased by 10.03 % to US$ 74.49 Mn in October 2025, while cumulative exports from January to October 2025 increased by 19.31 %, reaching US$ 866.9 Mn compared to the same period in 2024.

Exports to the United Kingdom decreased by 5.38 % to US$ 70.36 Mn in October 2025 compared to the same month in 2024. During the cumulative period from January to October 2025, exports to the UK recorded a growth of 3.45 %, reaching US$ 792.1 Mn compared to the corresponding period in 2024.

Table 2 shows the comparison of the Merchandise export performance of the top 15 export markets during the month of October 2025 and the period of January to October 2025, compared to 2024.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations 

Values in US$ Mns

Exports to FTA Partners (India & Pakistan)

• October 2025

In October 2025, exports to India and Pakistan accounted for 7.86% of Sri Lanka’s total merchandise exports, recording a year-on-year decline of 8.52% to US$ 82.03 Mn, compared with October 2024.

Exports to India decreased by 10.03%, primarily due to a drop in Pepper and Petroleum products exports. In contrast, exports to Pakistan increased by 9.59%, driven mainly by higher shipments of desiccated coconut.

• January – October 2025

During the period from January to October 2025, exports to India and Pakistan accounted for 8.2% of Sri Lanka’s total merchandise exports, recording a substantial increase of 17.56 % to reach US$ 930.38 Mn compared to the same period in the previous year.

Exports to India increased significantly by 19.31 %, driven primarily by increased shipments of Petroleum Oil, Animal feed and Animal or Vegetable Fats and Oils and their Products. Meanwhile, exports to Pakistan decreased by 2.08 %, due to the decrease in exports of Betel Leaves.

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region-wise exports during the month of October 2025 and the period of January to October 2025 compared to 2024.

Table 3: Comparison of Region-wise Merchandise Export Performance

Values in US$ Mns

Exports to the European Union (EU), which account for 24% of Sri Lanka’s merchandise exports, increased during both October 2025 and the cumulative period of January to October 2025, respectively by 14.43 % and 12.56 %.

Exports to the top five EU markets were recoded as; Germany US$ 597.78 Mn (increased by 13.47 %), Italy US$ 572.9 Mn (increased by 13.4 %), Netherlands US$ 390.68 Mn (increased by 23.45 %), France US$ 236.53 Mn. (increased by 6.11 %) and Belgium US$ 210.32 Mn (increased by 6.98 %) during the cumulative period of January to October 2025 in comparison to the corresponding period in 2024. (Newswire)

The post Sri Lanka exports hit record $14.4B in first ten months of 2025 appeared first on Newswire.

Sri Lanka’s export sector continued to demonstrate resilience and steady growth during the period of January to September 2025, recording total earnings of US$ 12,986.52 million. 

According to the Export Development Board of Sri Lanka (EDB), this reflects a strong 7 % increase compared to the corresponding period in 2024.

In September 2025 alone, total exports, comprising both merchandise and services, reached US$ 1,469.75 million, reflecting an impressive year-on-year growth of 12.33 % over September 2024. 

This performance highlights the strength of Sri Lanka’s export sector and the effectiveness of the strategies implemented to expand market access and enhance global competitiveness.

Commenting on the positive results, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Export Development Board (EDB), stated: “This encouraging growth reflects Sri Lanka’s deepening integration into global trade and the success of our continued efforts to enhance export competitiveness and diversify market opportunities. Our exporters have once again demonstrated remarkable resilience and innovation in navigating evolving global challenges.

Exceeding US$ 12.9 billion in cumulative export earnings by September 2025 is evidence of the strength and determination of our export community. With over 72% of our annual export target already achieved by the end of the third quarter, we remain confident that, through sustained collaboration and strategic action, Sri Lanka will successfully reach its 2025 export Target.”

According to provisional data of Sri Lanka Customs, including the estimates for Gems & Jewellery and Petroleum Products, in September 2025 alone, merchandise exports grew by 15.02 % year-on-year, reaching US$ 1,163.66 million.

For the period January to September 2025, merchandise exports totalled US$ 10,240.52 million, reflecting a 7.59 % increase compared to the same period in 2024. 

Meanwhile, services exports have emerged as a key driver of overall export growth.

In September 2025, earnings from services exports are estimated to be US$ 306.09 million. Over the first three quarters of the year, services exports are estimated to have increased by 4.48 %, totalling US$ 2,746.03 million. 

This trend highlights the rising importance of Sri Lanka’s knowledge-based economy and its growing contribution to national export earnings.

The services export sector, comprising ICT/BPM, Construction, Financial services, and Transport & Logistics, continues to diversify Sri Lanka’s export portfolio and create high-value employment opportunities across the Island. 

Full report:

Major Exports in September 2025

• Products and Services with Positive Growth (Increases)

Export earnings from Apparel & Textiles have increased by 1.53 % y-o-y to US$ 425.07 Mn in September 2025, compared to September 2024.

Export earnings from tea, which made up 12.8% of merchandise exports, increased by 17.06 % y-o-y to US$ 137.0 Mn in September 2025 compared to September 2024. This increase is mainly due to the strong performance in the export of Tea Packets (11.58%), Bulk Tea (19.36%) and Instant Tea (70.44%).

In addition, the volume of tea exports increased by 20.11 % in September 2025 compared to the same month in 2024. 

Notably, tea exports to Iraq, Turkey and Libya recorded significant increases of 28.86 %, 122.6 %, and 12.5 % respectively.

A monthly analysis reveals that export earnings from coconut-based products showed a significant increase of 72.03 % in September 2025 compared to the same month in 2024. Notably, earnings from Coconut kernel products increased by 100.34 %, Coconut fibre products by 44.43 %, and Coconut shell products by 33.7 %, reflecting strong global demand and improved value addition across the sector.

Export earnings from Coconut Oil, Coconut Milk powder, Coconut Cream and Liquid Coconut Milk, which are categorized under the Coconut kernel products, increased by 92.66 %, 105.65 %, 167.87 % and 101.25 % respectively in September 2025 compared to September 2024.

Being the largest contributor to the coconut-based sector, Coco Peat, Fibre Pith & Moulded products, which are categorized under the Coconut fibre products, increased by 44.17 % to US$ 23.99 Mn in September 2025 in comparison to September 2024. 

Earnings from Activated Carbon, which is categorized under the Coconut shell products, increased by 33.64 % to US$ 17.6 Mn in September 2025 compared to September 2024.

Export earnings from Food & Beverages have increased by 50.11 % y-o-y to US$ 49.85 Mn in September 2025, with the positive performance in exports of Processed Food (71.97 %).

Export earnings from Seafood increased by 53.07 % to US$ 22.7 Mn in September 2025 compared to September 2024. This increase was mainly due to the positive performance in the export of Fresh or Chilled Fish (108.16 %) and Frozen fish (53.9 %).

Export earnings from Ornamental fish increased by 10.14 % to US$ 2.39 Mn in September 2025 compared to September 2024.

The estimated value of Diamonds, Gems & Jewellery is expected to increase by 76.95 % to US$ 43.53 Mn in September 2025, when compared to September 2024.

Export earnings from Electrical & Electronics Components increased by 29.5 % y-o-y to US$ 36.39 Mn in September 2025.

Furthermore, the estimated value of ICT/ BPM exports is expected to increase by 27.05 % to US$ 157.76 Mn in September 2025 when compared to September 2024. 

Products with Negative Growth (Decreases)

Export earnings from Rubber and Rubber Finished products have decreased by 6.55 % y-o-y to US$ 74.29 Mn in September 2025, with the negative performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (-16.27 %).

Meanwhile, exports of Spices and Essential Oils decreased by 10.18 % to US$ 43.15 Mn in September 2025, largely driven by a sharp decline in pepper exports to India, which decreased by 60.2 %.

Similarly, the estimated export value of Logistics & Transport Services is projected to decrease by 14.95 % to US$ 128.44 Mn in September 2025, compared to September 2024.

Exports during the period of January – September 2025

Cumulative total exports, including both merchandise and services, were estimated at US$ 12,986.52 Mn for the period January to September 2025, making a notable 6.92 % growth compared to the same period in 2024.

Merchandise exports during the first three quarters of 2025 are estimated to increase by 7.59 %, reaching US$ 10,240.52 Mn, based on data from Sri Lanka Customs, along with the estimated figures for Gems & Jewellery and Petroleum Products.

Meanwhile, the estimated value of services exports is expected to increase by 4.49 % to US$ 2,746.03 Mn compared to the corresponding period in 2024.

Products & Services with Positive Growth (Increases)

Earnings from export of Apparel, Tea, Coconut products, Spices & Concentrates and Food & Beverages increased by 6.22 %, 9.8 %, 41.83 %, 2.41 % and 24.75 % respectively during the period of the first three quarters of 2025 in comparison to the corresponding period of 2024.

Earnings from the export of Apparel & Textile have increased by 6.22 % to US$ 4,011.66 Mn during the period of January to September 2025 compared to the same period in 2024. Notably, exports to the United States, the United Kingdom and the EU region increased by 2.03 %, 2.47 % and 14.08 % amounting to US$ 1,473.81 Mn, US$ 540.48 Mn and US$ 1,186.85 Mn respectively.

Earnings from the export of Tea increased y-o-y by 9.8 % to US$ 1,163.05 Mn in the period of January to September 2025. This increase was mainly due to the strong performance in export of Tea Packets (16.43 %) and Bulk Tea (0.36%).

Export earnings of Coconut & coconut-based products increased by 41.83 % to US$ 909.09 Mn during the first three quarters of 2025 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January to September 2025 compared with the corresponding period of 2024 due to the strong performance in export of Coconut Oil (77.84 %), Desiccated Coconut (39.5 %), Coconut Milk Powder (77.41 %), Coconut Cream (83.68 %), Liquid Coconut Milk (48.68 %), Cocopeat (25.02 %) and Activated Carbon (24.25 %).

In addition, export earnings from Spices and Essential Oils increased y-o-y by 2.41 % to US$ 329.84 Mn in the period of the first three quarters of 2025. This increase was due to the strong performance in exports of Cinnamon (21.83 %) and Cloves (172.82 %). 

Export earnings from Food & Beverages have increased by 24.75 % y-o-y to US$ 435.31 Mn in the first three quarters of 2025, with the positive performance in exports of Processed food (48.45 %).

In addition, export earnings from Seafood increased by 2.89 % to US$ 184.56 Mn during the first three quarters of 2025 compared to 2024 due to the positive performance in Frozen Fish (18.63%).

Meanwhile, earnings from export of Electrical and Electronic Components (EEC) increased by 1.77 % to US$ 315.96 Mn in the first three quarters of 2025 compared to the corresponding period of 2024. This increase was due to the positive performance in exports of Electrical Transformers (17.62 %).

Furthermore, the estimated value of ICT/ BPM exports is expected to increase by 9.27 % to US$ 1,201.2 Mn during the period of January to September 2025, when compared to the corresponding period of 2024. 

In addition, the estimated value of Logistics & transport services is expected to increase by 6.67 % to US$ 1,403.0 Mn during the period of January to September 2025 when compared to the corresponding period of 2024. 

Products with Negative Growth (Decreases)

Export earnings from Rubber & Rubber finished products decreased by 5.97 % to US$ 713.62 Mn in the first three quarters of 2025 compared to the same period in 2024, attributed to decreased exports of Pneumatic & Retreated Rubber Tyres & Tube (-16.3%). 

In addition, export earnings from Ornamental fish decreased by 3.96 % to US$ 17.97 Mn in the first three quarters of 2025 compared to the same period in 2024

Table 1 shows the comparison of Merchandise export performance during the month of September 2025 and the period of January to September 2025, compared to 2024.

Table 1: Comparison of Product-wise Merchandise Export Performance 

                                          Values in US$ Mns

Sri Lanka’s Export Performance in Major Markets

Among the top 10 export destinations, India, Germany, Italy, the Netherlands, UAE, Canada, France and China recorded year-on-year growth in September 2025 as well as during the cumulative period from January to September 2025.

The United States, Sri Lanka’s largest single export destination accounting for 23% of country’s merchandise exports, decreased by 2.84 % to US$ 238.72 Mn in September 2025 compared to September 2024. However, exports to the United States increased by 3.04 % over the cumulative period from January to September 2025, reaching US$ 2,251.85 Mn.

India has continued as Sri Lanka’s second-largest export destination, surpassing the United Kingdom. Exports to India increased by 31.7 % to US$ 87.33 Mn in September 2025, while cumulative exports from January to September 2025 increased by 23.09 %, reaching US$ 2,251.85 Mn compared to the same period in 2024.

Exports to the United Kingdom decreased by 4.75 % to US$ 74.06 Mn in September 2025 compared to the same month in 2024. During the cumulative period from January to September 2025, exports to the UK recorded a growth of 4.4 %, reaching US$ 721.73 Mn compared to the corresponding period in 2024.

Table 2 shows the comparison of the Merchandise export performance of the top 15 export markets during the month of September 2025 and the period of January to September 2025 compared to 2024.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations 

Values in US$ Mns

Exports to FTA Partners (India & Pakistan)

• September 2025

In September 2025, exports to India and Pakistan accounted for 7.86% of total merchandise exports, registering a y-o-y increase of 29.36 % to US$ 93.5 Mn, compared to September 2024.

Exports to India increased by 31.7 % primarily due to an increase in Petroleum and Animal feed exports. Meanwhile, exports to Pakistan increased by 3.18 % mainly as a result of increased shipments of Other Betel leaves

• January –September 2025

During the period from January to September 2025, exports to India and Pakistan accounted for 8.2% of Sri Lanka’s total merchandise exports, recording a substantial increase of 20.89 % to reach US$ 848.35 Mn compared to the same period in the previous year.

Exports to India increased significantly by 23.09 %, driven primarily by increased shipments of Petroleum Oil, Animal feed and Animal or Vegetable Fats and Oils and their Products. Meanwhile, exports to Pakistan decreased by 3.45 %, due to the decrease in exports of Desiccated Coconut.

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region-wise exports during the month of September 2025 and the period of January to September 2025 compared to 2024.

Table 3: Comparison of Region-wise Merchandise Export Performance

Values in US$ Mns

Exports to the European Union (EU), which account for 24% of Sri Lanka’s merchandise exports, increased during both August 2025 and the cumulative period of January to September 2025, respectively by 26.48 % and 14.66 %.

Exports to the top five EU markets were recoded as: Germany US$ 535.94 Mn (increased by 12.28 %), Italy US$ 506.77 Mn (increased by 14.68 %), Netherlands US$ 346.66 Mn (increased by 21.39 %), and France US$ 212.69 Mn. (increased by 6.75 %) and Belgium US$ 187.5 Mn (increased by 7.71 %) during the cumulative period of January to September 2025 in comparison to the corresponding period in 2024. (Newswire)

The post Sri Lanka’s Export Sector records nearly US$ 13 Bn in earnings by Q3 appeared first on Newswire.

Sri Lanka’s export sector demonstrated remarkable resilience and steady progress during the first six months of 2025, with total exports reaching US$ 8,337.86 million, marking a robust 6.70 % growth, compared to the same period in 2024. 

According to the Export Development Board, total exports, including both merchandise and services, reached US$ 1,460.34 million in June 2025. 

This shows an impressive year-on-year growth of 8.73% over June 2024, highlighting the strength of Sri Lanka’s export sector and the effectiveness of ongoing strategies to broaden market reach and improve global competitiveness.

In June 2025 alone, merchandise exports grew by 6.85 % year-on-year, reaching US$ 1,150.73 million, according to provisional data of Sri Lanka Customs, including the estimates for Gems & Jewellery and Petroleum Products. 

For the period January to June 2025, merchandise exports totalled US$ 6,504.72 million, reflecting a 5.86% increase compared to the same period in 2024. 

Meanwhile, services exports have emerged as a key driver of overall export growth. In June 2025, earnings from services exports are estimated to be US$ 309.61 million. 

Over the first six months of the year, services exports are estimated to have increased by 9.78 %, totalling US$ 1,833.14 million. This trend highlights the rising importance of Sri Lanka’s knowledge-based economy and its growing contribution to national export earnings.

The services export sector, comprising ICT/BPM, Construction, Financial services, and Transport & Logistics, continues to diversify Sri Lanka’s export portfolio and create high-value employment opportunities across the Island.

Full statement;

Major Exports in June 2025

• Products and Services with Positive Growth (Increases)

Export earnings from tea, which made up 12.8% of merchandise exports, increased by 9.21% y-o-y to US$ 132.97 Mn in June 2025 compared to June 2024. This increase is mainly due to the strong performance in the export of Tea Packets (25.53%) and Instant Tea (49.65%).

In addition, the volume of tea exports increased by 11.02 % in June 2025 compared to the same month in 2024. Notably, tea exports to Iraq and Libya recorded significant increases of 82.99%, 172.38% respectively, while tea exports to Iran have decreased by 55.31% in June 2025 compared to the same month in 2024.

A monthly analysis reveals that export earnings from coconut-based products show a significant increase of 59.62% in June 2025 compared to the same month in 2024. Notably, earnings from Coconut kernel products increased by 88.56%, Coconut fibre products by 33.61%, and Coconut shell products by 13.09%, reflecting strong global demand and improved value addition across the sector.

Export earnings from Coconut Oil, Coconut Milk powder, Coconut Cream and Liquid Coconut Milk, which are categorized under the Coconut kernel products, increased by 97.09%, 83.03%, 131.26% and 96.79% respectively in June 2025 compared to June 2024.

Being the largest contributor to the Coconut-based sector, Coco Peat, Fibre Pith & Moulded products, which are categorized under the Coconut fibre products, increased by 33.14% to US$ 20.17 Mn in June 2025 in comparison to June 2024. 

Earnings from Activated Carbon, which is categorized under the Coconut shell products, increased by 11.55% to US$ 13.62 Mn in June 2025 compared to June 2024.

Export earnings from Food & Beverages have increased by 28.33% y-o-y to US$ 47.43 Mn in June 2025, with the positive performance in exports of Processed Food (46.44%).

Export earnings from Apparel & Textiles have slightly increased by 3.71 % y-o-y to US$ 463.12 Mn in June 2025, compared to June 2024.

Moreover, the estimated value of Diamonds, Gems & Jewellery is expected to increase by 26.96% to US$ 37.90 Mn in June 2025, when compared to June 2024.

Furthermore, the estimated value of Logistics and Transport services is projected to rise by 12.39% to reach US$ 148.18 Mn in June 2025 compared to June 2024.

Similarly, the estimated value of ICT/BPM exports is expected to grow by 34.12% to US$ 147.18 Mn in June 2025 compared to June 2024.

• Products with Negative Growth (Decreases)

Similarly, export earnings from Spices and Essential Oils have decreased by 27.16% to US$ 34.90 Mn in the month of June 2025 compared to the month of June 2024, mainly due to the poor performance in the export of Pepper (-57.13%).

Export earnings from Rubber and Rubber Finished products have decreased by 1.04% y-o-y to US$ 81.77 Mn in June 2025, with the poor performance in exports of Sheet Rubber (-66.67%). 

Export earnings from Seafood decreased by 23.83% to US$ 15.66 Mn in June 2025 compared to June 2024. This decrease was mainly due to the negative performance in the export of Fish Fresh or Chilled (-63.35%).

Furthermore, export earnings from Ornamental fish decreased by 54.66% to US$ 1.07 Mn in June 2025 compared to June 2024.

In addition, export earnings from the Electrical & Electronics Components decreased by 5.58% y-o-y to US$ 34.19 Mn in June 2025.

Exports during the period of January – June 2025

Cumulative total exports, including both merchandise and services, were estimated at US$ 8,337.86 Mn for the period January to June 2025, making a notable 6.70 % growth compared to the same period in 2024.

Merchandise exports during the first six months of 2025 are estimated to increase by 5.86 %, reaching US$ 6,504.72 Mn, based on data from Sri Lanka Customs, along with the estimated figures for Gems & Jewellery and Petroleum Products.

Products & Services with Positive Growth (Increases)

Earnings from export of Apparel, Tea, Coconut products, Spices & Concentrates and Food & Beverages increased by 8.19 %, 8.16 %, 32.40 %, 29.64 % and 17.22 % respectively during the period of first six months of 2025 in comparison to the corresponding period of 2024.

Earnings from the export of Apparel & Textile have increased by 8.19 % to US$ 2,599.87 Mn during the period of January to June 2025 compared to the same period in 2024. Notably, exports to the United States and the United Kingdom increased by 4.35% and 6.77%, amounting to US$ 919.92Mn and US$ 371.54Mn respectively.

Earnings from the export of Tea increased y-o-y by 8.16 % to US$ 743.07 Mn in the period of January to June 2025. This increase was mainly due to the strong performance in the export of Tea Packets (19.06 %).

Export earnings of Coconut & Coconut-based products increased by 32.40 % to US$ 536.65 Mn during the first six months of 2025 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January to June 2025 compared with the corresponding period of 2024 due to the strong performance in export of Coconut Oil (72.36%), Desiccated Coconut (23.12%), Coconut Milk Powder (80.15%), Coconut Cream (65.96%), Liquid Coconut Milk (35.43%), Cocopeat (19.80%) and Activated Carbon (16.35%).

In addition, export earnings from Spices and Essential Oils increased y-o-y by 29.64% to US$ 208.53 Mn in the period of first six months of 2025. This increase was due to the strong performance in exports of Pepper (26.86%), Cinnamon (25.01%) & Cloves (277.67%). 

Export earnings from Food & Beverages have increased by 17.22% y-o-y to US$ 278.93 Mn in the first six months of 2025, with the positive performance in exports of Processed food (37.18%).

Furthermore, the estimated value of ICT/ BPM exports is expected to increase by 11.02% to US$ 764.48 Mn during the period of January to June 2025, when compared to the corresponding period of 2024. 

In addition, the estimated value of Logistics & transport services is expected to increase by 17.92% to US$ 974.33 Mn during the period of January to June 2025, when compared to the corresponding period of 2024. 

Products with Negative Growth (Decreases)

Export earnings from Rubber & Rubber finished products decreased by 6.22% to US$ 467.81 Mn in the first six months of 2025 compared to the same period in 2024, attributed to decreased exports of Pneumatic & Retreated Rubber Tyres & Tubes (-19.07%). 

Further, export earnings from Seafood decreased by 19.02% to US$ 104.17 Mn during the first six months of 2025 compared to year 2024 due to the negative performance in Fresh Fish (-41.77 %) and Shrimps (-60.93%).

Meanwhile, earnings from the export of Electrical and Electronic Components (EEC) decreased by 1.74% to US$ 201.45 Mn in the first six months of 2025 compared to the corresponding period of 2024. This decrease was due to the poor performance in exports of Insulated Wires and Cables (-11.22%) and Printed Circuits (-64.12%).

Table 1 shows the comparison of Merchandise export performance during the month of June 2025 and the period of January to June 2025 compared to 2024.

Table 1: Comparison of Product-wise Merchandise Export Performance 

                                          Values in US$ Mns

Sri Lanka’s Export Performance in Major Markets

Among the top 10 export markets, the United Kingdom, India, Italy, Germany, the Netherlands, and France have shown positive growth in both June 2025 and the cumulative period of January to June 2025 compared to the corresponding periods in 2024.

United States, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, slightly decreased by 0.73 % to US$ 252.34 Mn in June 2025 compared to June 2024. However, exports to the United States over the cumulative period from January to June 2025 increased by 4.61%, reaching US$ 1,434.99 Mn.

Exports to the United Kingdom increased by 22.38% to US$ 91.64 Mn in June 2025 compared to the same month in 2024. During the cumulative period from January to June 2025, exports to the UK recorded a growth of 6.92%, reaching US$ 483.93 Mn compared to the corresponding period in 2024.

India has continued as Sri Lanka’s second-largest export destination, surpassing the United Kingdom. Exports to India increased by 9.23% to US$ 95.88 Mn in June 2025, while cumulative exports from January to June 2025 surged by 26.54 %, reaching US$ 505.62 Mn compared to the same period in 2024.

Table 2 shows the comparison of Merchandise export performance of the top 15 export markets during the month of June 2025 and the period of January to June 2025, compared to 2024.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations 

Values in US$ Mns

Exports to FTA Partners (India & Pakistan)

• June 2025

In June 2025, exports to India and Pakistan accounted for 7.86% of total merchandise exports, registering a slight increment of year-on-year growth of 5.94% to reach US$ 100.64 Mn compared to June 2024.

Exports to India increased by 9.23%, primarily driven by increased shipments of Animal Feed and Petroleum Oil. Meanwhile, exports to Pakistan decreased by 34.07%, largely attributed to a sharp decline in exports of Sheet rubber and Betel leaves

• January – June 2025

During the period from January to June 2025, exports to India and Pakistan accounted for 8.2% of Sri Lanka’s total merchandise exports, recording a substantial increase of 23.22 % to reach US$ 538.93Mn compared to the same period in the previous year.

Exports to India increased significantly by 26.54%, driven primarily by increased shipments of Petroleum oil and Animal feed. Meanwhile, exports to Pakistan decreased by 11.83%, due to the decrease in exports of Betel leaves and Desiccated Coconut. 

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region-wise exports during the month of June 2025 and the period of January to June 2025 compared to 2024.

Table 3: Comparison of Region-wise Merchandise Export Performance

Values in US$ Mns

Exports to the European Union (EU), which account for 24% of Sri Lanka’s merchandise exports, increased during both June 2025 and the cumulative period of January to June 2025, respectively, by 23.44% and 10.30%.

Exports to the top five EU markets were recoded as: Germany US$ 348.15 Mn (increased by13.14%), Italy US$ 316.37 Mn (increased by 6.3 %), Netherlands US$ 221.66Mn (increased by 22.46%), France US$ 131.98 Mn. (increased by 1.17%) and Belgium US$ 114.94Mn (increased by 3.71%) during the cumulative period of January to June 2025 in comparison to the corresponding period in 2024. (Newswire)

The post Sri Lanka’s exports surge to US$ 8.3 Bn in first half of 2025 appeared first on Newswire.

Sri Lanka’s export sector demonstrated remarkable resilience and steady progress during the first five months of 2025, with total exports reaching US$6,933.35 million, marking a robust 7.14% growth compared to the same period in 2024. 

According to the Export Development Board (EDB), total exports, including both merchandise and services, reached US$1,386.66 million in May 2025. This shows an impressive year-on-year growth of 6.35% over May 2024, reflecting the resilience of Sri Lanka’s export sector and the positive impact of strategic efforts to diversify markets and enhance competitiveness.

In May 2025 alone, merchandise exports grew by 1.70 % year-on-year, reaching US$1,028.52 million, according to provisional data of Sri Lanka Customs, including the estimates for Gems & Jewellery and Petroleum Products. For the period January to May 2025, merchandise exports totalled US$5,344.23 million, reflecting a 5.46% increase compared to the same period in 2024. 

Meanwhile, services exports have emerged as a key driver of overall export growth. In May 2025, earnings from services exports were estimated to be US$358.14 million. Over the first five months of the year, services exports are estimated to have increased by 13.20%, totalling US$1,589.12 million. This trend highlights the rising importance of Sri Lanka’s knowledge-based economy and its growing contribution to national export earnings.

The services export sector, comprising ICT/BPM, Construction, Financial services, and Transport & Logistics, continues to diversify Sri Lanka’s export portfolio and create high-value employment opportunities across the Island.

Full statement of the EDB :

Major Exports in May 2025

• Products and Services with Positive Growth (Increases)

Export earnings from tea, which made up 12.8% of merchandise exports, increased by 14.58 % y-o-y to US$131.81 Mn in May 2025 compared to May 2024. This increase is mainly due to the strong performance in the export of Tea Packets (14.61%).

In addition, the volume of tea exports increased by 13.78 % in May 2025 compared to the same month in 2024. Notably, tea exports to Iraq, Libya and Iran recorded significant increases of 53.74%, 236.84%, and 123.31 %, respectively.

A monthly analysis reveals that export earnings from coconut-based products show a significant increase of 33.33% in May 2025 compared to the same month in 2024. Notably, earnings from Coconut kernel products increased by 48.78%, Coconut fibre products by 13.45%, and Coconut shell products by 35.29%, reflecting strong global demand and improved value addition across the sector.

Export earnings from Coconut Oil, Coconut Milk powder, Coconut Cream and Liquid Coconut Milk, which are categorized under the Coconut kernel products, increased by 93.59%, 52.77%, 47.26% and 36.92% respectively in May 2025 compared to May 2024.

Being the largest contributor to the Coconut-based sector, Coco Peat, Fibre Pith & Moulded products, which are categorized under the Coconut fibre products, increased by 8.06% to US$18.76 Mn in May 2025 in comparison to May 2024. 

Earnings from Activated Carbon, which is categorized under the Coconut shell products, increased by 35.29% to US$16.33 Mn in May 2025 compared to May 2024.

Similarly, export earnings from Spices and Essential Oils increased by 20.25% to US$30.64 Mn in the month of May 2025 compared to the month of May 2024, mainly due to the strong performance in the export of Cinnamon (67.65%) and Cloves (37.00%). 

Export earnings from Food & Beverages have increased by 17.22% y-o-y to US$49.49 Mn in May 2025, with the positive performance in exports of Processed Food (32.45%).

In addition, export earnings from the Electrical & Electronics Components increased by 23.12% y-o-y to US$38.02 Mn in May 2025, with a notable increase in the exports of Electrical Transformers (63.64 %) and Switches, Boards & Panels (52.91%).

Moreover, the estimated value of Diamonds, Gems & Jewellery is expected to increase by 5.53% to US$31.40 Mn in May 2025 when compared to May 2024.

Furthermore, the estimated value of Logistics & transport services is expected to increase by 31.40% to US$206.14 Mn in May 2025 when compared to May 2024.

• Products with Negative Growth (Decreases)

Export earnings from Apparel & Textiles have slightly decreased by 0.38 % y-o-y to US$388.81 Mn in May 2025, compared to May 2024.

Export earnings from Rubber and Rubber Finished products have decreased by 9.33% y-o-y to US$73.6 Mn in May 2025, with the poor performance in exports of Sheet Rubber (- 40.91 %). 

Export earnings from Seafood decreased by 22.11% to US$13.56 Mn in May 2025 compared to May 2024. This decrease was mainly due to the negative performance in ethe xport of Fish Fresh or Chilled (-53.64%).

Furthermore, export earnings from Ornamental fish decreased by 57.43% to US$0.86 Mn in May 2025 compared to May 2024.

Exports during the period of January – May 2025

Cumulative total exports, including both merchandise and services, were estimated at US$6,933.35 Mn for the period January to May 2025, making a notable 7.14% growth compared to the same period in 2024.

Merchandise exports during the first five months of 2025 are estimated to increase by 5.46%, reaching US$5,344.23 Mn, based on data from Sri Lanka Customs, along with the estimated figures for Gems & Jewellery and Petroleum Products.

Products & Services with Positive Growth (Increases)

Earnings from export of Apparel, Tea, Coconut products, Spices & Concentrates and Food & Beverages increased by 9.20 %, 7.93 %, 26.89 %, 53.76 % and 15.21 % respectively during the period of the first five months of 2025 in comparison to the corresponding period of 2024.

Earnings from the export of Apparel & Textile have increased by 9.20 % to US$2136.74 Mn during the period of January to May 2025 compared to the same period in 2024. Notably, exports to the United States and the United Kingdom increased by 6.82 % and 4.00 %, amounting to US$753.37 Mn and US$303.04 Mn , respectively.

Earnings from the export of Tea increased y-o-y by 7.93 % to US$610.1 Mn in the period of January to May 2025. This increase was mainly due to the strong performance in the export of Tea Packets (17.73 %).

Export earnings of Coconut & Coconut-based products increased by 26.89 % to US$427.69 Mn during the first five months of 2025 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January to May 2025 compared with the corresponding period of 2024 due to the strong performance in export of Coconut Oil (66.33%), Desiccated Coconut (12.88%), Coconut Milk Powder (79.44%), Coconut Cream (50.67%), Liquid Coconut Milk (24.56%), Cocopeat (17.32 %) and Activated Carbon (17.27%).

In addition, export earnings from Spices and Essential Oils increased y-o-y by 53.76% to US$173.64 Mn in the period of first five months of 2025. This increase was due to the strong performance in exports of Pepper (124.75 %), Cinnamon (23.91%) & Cloves (293.32 %). 

Export earnings from Food & Beverages have increased by 15.21 % y-o-y to US$231.51 Mn in the first five months of 2025, with the positive performance in exports of Processed food (35.40%).

Furthermore, the estimated value of ICT/ BPM exports is expected to increase by 4.10 % to US$602.59 Mn during the period of January to May 2025, when compared to the corresponding period of 2024. 

In addition, the estimated value of Logistics & transport services is expected to increase by 28.89 % to US$895.01 Mn during the period of January to May 2025, when compared to the corresponding period of 2024. 

Products with Negative Growth (Decreases)

Export earnings from Rubber & Rubber finished products decreased by 7.25 % to US$386.03 Mn in the first five months of 2025 compared to the same period in 2024, attributed to decreased exports of Pneumatic & Retreated Rubber Tyres & Tubes (-21.39 %). 

Further, export earnings from Seafood decreased by 18.12 % to US$88.50 Mn during the first five months of 2025 compared to 2024 due to the negative performance in Fresh Fish (-37.27 %) and Shrimps (-64.44%).

Meanwhile, earnings from the export of Electrical and Electronic Components (EEC) decreased by 0.92 % to US$167.26 Mn in the first five months of 2025 compared to the corresponding period of 2024. This decrease was due to the poor performance in exports of Insulated Wires and Cables (-13.60 %) and Printed Circuits (-61.93%).

Table 1 shows the comparison of Merchandise export performance during the month of May 2025 and the period of January to May 2025 compared to 2024.

Table 1: Comparison of Product-wise Merchandise Export Performance 

                            Values in US$ Mns

Sri Lanka’s Export Performance in Major Markets

Among the top 10 export markets, India, Germany, Netherlands, France and China have shown positive growth in both May 2025 and the cumulative period of January to May 2025 compared to the corresponding periods in 2024.

United States, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, slightly decreased by 2.67 % to US$216.67 Mn in May 2025 compared to May 2024. However, exports to the United States over the cumulative period from January to May 2025 increased by 5.82 %, reaching US$1,182.65 Mn.

Similarly, exports to the United Kingdom decreased by 5.77 % to US$68.37 Mn in May 2025 compared to the corresponding month in 2024. Meanwhile, exports to the United Kingdom increased by 3.85 % to US$392.29 Mn in the cumulative period of January to May 2025 compared to the corresponding period in 2024.

India has continued as Sri Lanka’s second-largest export destination, surpassing the United Kingdom. Exports to India increased by 4.03 % to US$75.33 Mn in May 2025, while cumulative exports from January to May 2025 surged by 31.41 %, reaching US$409.74 Mn compared to the same period in 2024.

Table 2 shows the comparison of the Merchandise export performance of the top 15 export markets during the month of May 2025 and the period of January to May 2025, compared to 2024.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations 

Values in US$ Mns

Exports to FTA Partners (India & Pakistan)

• May 2025

In May 2025, exports to India and Pakistan accounted for 7.86% of total merchandise exports, registering a slight increment of year-on-year growth of 0.79 % to reach US$ 80.81Mn compared to May 2024.

Exports to India increased by 4.03%, primarily driven by increased shipments of Animal Feed and Areca Nuts. Meanwhile, exports to Pakistan decreased by 24.47%, largely attributed to a sharp decline in exports of Desiccated coconuts and Coconut Ekels. 

• January – May 2025

During the period from January to May 2025, exports to India and Pakistan accounted for 8.2% of Sri Lanka’s total merchandise exports, recording a substantial increase of 28.02 % to reach US$438.29 Mn compared to the same period in the previous year.

Exports to India increased significantly by 31.41%, driven primarily by increased shipments of Animal feed and Pepper. Meanwhile, exports to Pakistan decreased by 6.55%, due to the decrease in exports of Betel leaves and Other Textiles. 

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region-wise exports during the month of May 2025 and the period of January to May 2025 compared to 2024.

Table 3: Comparison of Region wise Merchandise Export Performance

Values in US$ Mns

Exports to the European Union (EU), which account for 24% of Sri Lanka’s exports during both May 2025 and the cumulative period of January to May 2025, increased respectively by 2.63 % and 7.59%.

Exports to the top five EU markets were recoded as; Germany US$ 278.33 Mn (increased by 9.13 %), Italy US$ 256.76 Mn (increased by 2.33 %), Netherlands US$ 179.26 Mn (increased by 23.66 %), France US$ 107.72 Mn. (increased by 0.68 %) and Belgium US$ 93.80 Mn (increased by 2.66 %) during the cumulative period of January to May 2025 in comparison to the corresponding period in 2024. (Newswire)

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Sri Lanka has entered into an agreement for direct exports of poultry products to the Chinese Market, marking a breakthrough for the local poultry industry.

Addressing the media yesterday, Foreign Minister Vijitha Herath said that the agreement was one among the 15 signed during President Anura Kumara Dissanayake’s recent visit to China.

Providing details of the agreement, he said Sri Lanka will be allowed to directly export chicken heads and feet, a by-product of its meat processing industry, to China.

“This agreement will help the economy to boost its foreign exchange revenue. The government secured the deal as it was a request made by the poultry industry. The industry can immediately start, subject to certifications and buyers,” Minister Herath said.

Prior to the President’s visit to China, the Cabinet of Ministers approved the proposal presented by the Minister of Agriculture and Livestock to sign the relevant protocol related to the export of chicken to the Chinese market.

At the time, the Cabinet said a proposal was forwarded to examine, quarantine, and sign an agreement prepared for health requirements concerning the relevant procedure between the two countries to carry out the export of chicken to China from Sri Lanka with the mediation of the General Administration of Customs of China. (Newswire)

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India’s economic outlook for the second quarter (Q2) of the financial year (FY) 2025 appears promising, with the industry expecting greater export orders and enhanced employment sentiment in the country, a survey by Confederation of Indian Industry (CII) stated.

In the Q2 of financial year 2025, the industry expects an increase in export orders due to the slight improvement in the external scenario, the survey by the industry body finds.

About 31 per cent of the respondents expressed their optimism about the enhanced export orders.

On the imports side, a large proportion of respondents expect status-quo in their orders in Q2, while 21 per cent of respondents expect them to increase in the said quarter.

The survey also highlights the employment scenario and business prospects in Indian business entities.

It noted that industries have responded positively to increased employment opportunities across various sectors, with nearly half of the survey respondents expecting an improvement in hiring during the second quarter.

“With the stability in the overall economy, employment opportunities seem to be emerging across sectors. Almost half of the respondents (49 per cent) anticipate an improvement in the employment situation within their companies during the second quarter of the current fiscal year,” it added.

The survey respondents cited factors such as improvement in consumption, especially rural demand; steady progress in monsoon; continued emphasis on reforms; and fresh sightings in private investment as the key reasons that will drive growth in the current financial year.

While 41 per cent of the respondents expect the employment situation to remain unchanged during the same period, as per the report.

However, a few niggling business concerns have also been highlighted by the respondents in the survey, with protracted geopolitical tensions, spike in global commodity prices, and slowing external demand being the top three ones.

As observed in the survey, about 24 per cent of businesses say that protracted geopolitical tensions are their top business concern for the next six months.

Meanwhile, about 18 per cent of businesses think that the spike in global commodity prices is also a significant worry for them. Alongside 17 per cent who expressed concerns about slowing external demand during this period, the survey observes. Around 16 per cent of businesses also cited skewed consumption demand as the big risk to their business confidence in the next six months.

The 128th round of CII Business Outlook Survey was conducted in the month of September 2024, covering more than 200 firms of varying sizes and across all industry sectors and regions. (ANI)

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Sri Lanka’s Export Development Board (EDB) reports that the merchandise export performance in July 2024 amounted to US$ 1,087.6 million, recording an increase of 6.58 % compared to the month of July 2023. 

As per the provisional data released by Sri Lanka Customs, this was mainly due to the increase in earnings from exports of Apparel & Textiles, Tea, Coconut-based products, Spices & Concentrates and Seafood.

Furthermore, export performance in July 2024 increased by 0.98 % compared to June 2024. 

The estimated value of services exports for the month of July 2024 was US$ 293.26 Million, increasing 16.44 % over the corresponding period of 2023. 

Consequently, total exports for July 2024, including both merchandise and services, were recorded at US$ 1,380.84 million, increasing 8.53% over the corresponding period of 2023. 

Full statement: 

Major Exports in July 2024

• Products & Services with Positive Growth (Increases)

Export earnings from Apparel & Textile increased by 3.8 % y-o-y to US $ 443.74 Mn in July 2024 compared to July 2023. Additionally, exports of Apparel & Textile to the USA increased by 5.37 % in July 2024 compared to July 2023.

Export earnings from tea, which made up 12% of merchandise exports, increased by 8.25 % y-o-y to US$ 124.7 Mn in July 2024 compared to July 2023. This increase is mainly due to the positive performance in the export of Bulk Tea (4.23%) and Tea packets (7.39%).

Additionally, Tea exports to UAE, Saudi Arabia and Iran markets, increased by 38.26 %, 57.73 % and 80.51 % respectively.

On monthly analysis, export earnings of Coconut-based products increased by 18.41% in July 2024 compared to July 2023. Moreover, export earnings of Coconut kernel products, Coconut fibre products and Coconut shell products increased by 21.49 %, 7.31% and 28.82 % respectively in July 2024 compared to July 2023.

Moreover, Export earnings from Coconut oil, Desiccated Coconut, Coconut milk powder, Coconut Cream and Liquid Coconut Milk which are categorized under the Coconut kernel products increased by 24.7%, 59.25%, 13.32 %, 31.42 % and 10.41 % respectively in July 2024 compared to July 2023.

Being the largest contributor to the coconut-based sector, Coco Peat, Fiber Pith & Moulded products which are categorized under the Coconut fiber products, increased by 13.75 % to US$ 17.46 Mn in July 2024 in comparison to July 2023. 

In addition, the export of Activated Carbon, which is categorized under Coconut shell products, increased by 26.41 % to US$ 13.45 Mn in July 2024 in comparison to July 2023.

Export earnings from Spices and Concentrates increased by 63.07 % to US$ 61.2 Mn in the month of July 2024 compared to month of July 2023 mainly due to the strong performance in the export of Pepper. Pepper exports to India increased by 127 % in July 2024 compared to July 2023. 

Export earnings from Food & Beverages have increased by 2.29 % y-o-y to US$ 37.04 Million in July 2024, with a positive performance in exports of Processed food (30.69%). 

Export earnings from Seafood increased by 27.71 % to US$ 22.03 Mn in July 2024 compared to July 2023. This increase was mainly due to the positive performance in the export of frozen fish (47.61%) and fresh fish (43.09%).

In parallel, export earnings from Ornamental fish increased by 7.78 % to US$ 1.94 Mn in July 2024 compared to July 2023.

Export earnings from Boat Building recorded US$ 12.22 Mn in July 2024.

Furthermore, the estimated value of ICT exports is expected to increase by 25.91% to US$ 124.96 Mn in July 2024 when compared to July 2023. In addition, the estimated value of Logistics & transport services is expected to increase by 11.16 % to US$ 140.74 Mn respectively in July 2024 when compared to July 2023. 

• Products & Services with Negative Growth (Decreases)

Export earnings from Rubber and Rubber finished products have decreased by 3.16 % y-o-y to US$ 76.8 Mn in July 2024, with poor performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (-12.09 %).

Export earnings from the Electrical & Electronics Components decreased by 5.83 % y-o-y to US$ 38.44 Mn in July 2024 with poor performance in exports of Electrical Transformers (-38.37%) and Switches, Boards & Panels (-31.6 %).

Furthermore, the export of Other Export crops and Flowers & Foliage decreased by 59.98 % and 5.77 % in July 2023 compared with July 2024.

Exports during the period of January – July 2024

During the first seven months of 2024, cumulative merchandise exports increased by 4.94 % to US$ 7,231.94 million compared to the same period in 2023.

The estimated value of services exports is expected to increase by 9.52 % to US$ 1,907.56 Mn during the first seven months of 2024 when compared to the corresponding period of 2023.

Consequently, total exports for the first seven months of 2024, including both merchandise and services, were recorded at US$ 9,139.5 Million, a 5.86 % increase over the same period of 2023.

• Products & Services with Positive Growth (Increases)

Earnings from the export of Tea, Rubber products, Coconut products and Food & Beverages increased by 8.12 %, 8.8 %, 18.07 % and 11.92 % respectively during the first seven months of 2024 in comparison to the corresponding period of 2023.

Earnings from export of Tea increased y-o-y by 8.12 % to US$ 811.71 Mn in the period of January to July 2024. This increase was mainly due to the strong performance in the export of Bulk Tea (16.67 %) & Tea Packets (1.97 %).

In addition, export earnings from Rubber & Rubber finished products increased by 8.8 % to US$ 575.65 Mn in January – July 2024 compared to the same period in 2023 attributed to increased exports of Industrial & Surgical Gloves of Rubber (12.81 %) and Pneumatic & Retreated Rubber Tyres & Tubes (9.07 %). 

Export earnings of Coconut & coconut-based products increased by 18.07 % to US$ 475.58 Mn during January – July 2024 compared to the last year. Earnings from all the major categories of Coconut-based products increased in the period of January – July 2024 compared with the corresponding period of 2023 due to the strong performance in the export of Coconut Oil (19.29 %), Desiccated Coconut (42.26 %), Coconut Milk Powder (36.63 %), Coconut Cream (40.22 %), Liquid Coconut Milk (20.86 %), Cocopeat (16.65 %) and Activated Carbon (14.69 %).

In addition, export earnings from Spices and Concentrates increased y-o-y by 2.45 % to US$ 222.03 Mn in the period of January to July 2024. This increase was mainly driven by the strong performance in exports of Pepper (100.91 %). Pepper exports to India increased by above 100% in the first seven months of 2024 compared to the corresponding period of the previous year. 

Export earnings from Food & Beverages have increased by 11.92 % y-o-y to US$ 274.98 Million in the period of January to July 2024, with a positive performance in exports of Processed food (55.98 %).

Further, export earnings from Seafood increased by 0.7 % to US$ 150.68 Mn during the period of January to July 2024 compared to the year 2023 due to the poor performance of Fresh Fish (22.32 %).

Furthermore, the estimated value of ICT exports is expected to increase by 11.95 % to US$ 779.76 Mn during the period of January to July 2024 when compared to the corresponding period of 2023. 

• Products & Services with Negative Growth (Decreases)

Earnings from the export of Apparel & Textiles have decreased by 1.17 % to US$ 2,846.9 Mn during the period of January to July 2024 compared to the same period in 2023. Further, earnings from the export of Apparel declined by 0.67 % and the export of Textiles declined by 6.4 % from January to July 2024.

Meanwhile, earnings from export of Electrical and Electronic Components (EEC) decreased by 17.9 % to US$ 243.49 Mn in the period of January to July 2024 compared to the corresponding period of 2023. This decline was primarily driven by poor performance in exports of Transformers (-30.88 %), Insulated wires (-10.17 %) and Other Electrical & Electronic Products (-23.73 %). 

Export earnings from Ornamental fish decreased by 0.34 % to US$ 14.84 Mn in the first seven months of 2024 compared to the same period of 2023.

Table 1 shows the comparison of Export performance during the month of July 2024 and the period of January to July 2024 compared to 2023.

Table 1: Comparison of Sector-wise Export Performance 

                            Values in US$ Mns

Sources: CBSL, Sri Lanka Customs

Sri Lanka’s Export Performance in Major Markets

Among Sri Lanka’s top 10 export markets, the USA, UK, Germany, Netherlands, France, Canada and China markets showed positive growth in the month of July 2024 and the cumulative period from January to July 2024, compared to the corresponding periods in 2023. 

Furthermore, the United States of America, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, increased by 5.21 % to US$ 267.02 Mn in July 2024 compared to July 2023. In parallel, exports to the United States of America in the cumulative period of January to July 2024 increased by 1.12 % to US$ 1,638.78 Mn compared to the corresponding periods in 2023.

Exports to the United Kingdom increased by 1.33 % to US$ 74.4 Mn in July 2024 compared to the corresponding month in 2023. Meanwhile, exports to the United Kingdom increased by 5.77 % to US$ 527.01 Mn in the cumulative period of January to July 2024 compared to the corresponding period in 2023.

Table 2 shows the comparison of Merchandise export performance of the top 15 export markets during the month of July 2024 and the period of January to July 2024 compared to 2023.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations 

Values in US$ Mns

Sources: CBSL, Sri Lanka Customs

Exports to FTA Partners (India & Pakistan)

• July 2024

In July 2024, exports to India and Pakistan accounted for 8.4 % of total merchandise exports, experiencing a notable increase of 12.26 % to US$ 98.77 Mn compared to July 2023. Specifically, exports to India increased by 13.31 % while exports to Pakistan decreased by 0.45 % in July 2024 compared to July 2023.

The positive performance of India was driven by higher exports of Pepper and Pakistan’s negative performance was led by decreased exports of Betel leaves and Other Articles of Stones.

• January – July 2024

Exports to India & Pakistan accounted for 6.8 % of total merchandise exports increasing by 0.31 % to US$ 536.12 Mn during the period of January to July 2024 compared to the corresponding period of the previous year.

Exports to India decreased by 0.44 % during the period of January to July 2024 when compared with the corresponding period in 2023 while exports to Pakistan increased by 9.54 % y-o-y in the same period.

The negative export performance of India was driven by lower exports of Animal feed (-14.22 %), while Pakistan’s positive performance was led by increased exports of Desiccated coconut and Other Textile Articles.

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region-wise exports during the month of July 2024 and the period of January to July 2024 compared to 2023.

Table 3: Comparison of Region-wise Merchandise Export Performance

Values in US$ Mns

Sources: CBSL, Sri Lanka Customs

Exports to the European Union (EU) which accounts for 24% of Sri Lanka’s exports, decreased by 4.04 % y-o-y in July 2024. In parallel, exports to the EU decreased by 0.58 % during the cumulative period of January to July 2024.

Exports to the top five EU markets were recorded as; Germany US$ 360.29 Mn (increased by 2.97 %), Italy US$ 337.89 Mn (decreased by 11.37 %), Netherlands US$ 214.87 Mn (increased by 9.01 %), France US$ 151.15 Mn. (decreased 0.72 %) and Belgium US$ 130.73 Mn (decreased by 1.34%) during the cumulative period of January to July 2024 in comparison to the corresponding period in 2023. (Newswire)

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A significant resurgence has been reported in the agricultural export sector during the first half of 2024, surpassing performance in the preceding two years, Secretary to the Ministry of Agriculture and Plantation Industries, B.L.A.J. Dharmakeerthi said.

Addressing a press briefing at the Presidential Media Centre yesterday, he attributed this growth to decisive actions taken to counter the decline in agricultural export earnings observed in 2023 compared to 2022.

Underscoring the remarkable achievement of this progress despite challenging climatic conditions in the agricultural sector in recent times, he elaborated that proactive measures implemented during 2023 facilitated substantial sector growth in the initial six months of 2024.

Providing specific examples of the sector’s recovery, Secretary Dharmakeerthi said for instance, tea exports surged from USD 407.6 million in April 2023 to USD 450.5 million in April 2024. Similarly, coconut exports rose from USD 212 million to USD 263 million over the same period. Rubber exports also showed robust growth, climbing from USD 299 million to USD 335 million by April 2024. Additionally, cinnamon export income increased from USD 53.3 million to USD 56.1 million, while pepper export income rose from USD 13.3 million to USD 14.0 million during the corresponding period.

He said the agricultural sector, known for its volatile nature, faced challenges last season due to decreased tea production, leading to heightened demand for fertilizers. Responding swiftly, a special program was launched to ensure an adequate supply of fertilizers. As part of this initiative, arrangements were made to subsidize fertilizer costs by Rs.2000 per 50 kg bag. Currently, 10,000 metric tons of tea fertilizer has been distributed to growers, with plans underway to allocate the remaining 20,000 metric tons through collaboration with tea factory owners and other stakeholders.

In efforts to bolster tea production, Secretary Dharmakeerthi said a subsidy project supporting replanting and new cultivation across 745 hectares has been ongoing since 2022, with Rs.140 million disbursed to 324 growers thus far. Additionally, a new initiative has commenced in 2024 to plant 800,000 tea saplings, backed by an allocation of Rs.60 million.

Under the financial oversight of the Sri Lanka Tea Board, the Small Tea Estate Development Authority is set to implement a direct tea cultivation project, with Rs.750 million earmarked for this purpose.

Currently, coconut shell and coconut-related products have contributed equally to foreign income as coconut milk products. In 2022, coconut-related exports generated a record income of USD 817 million. Despite a decline in coconut production in 2023 due to whitefly disease, effective regulatory and control measures ensured a country income of USD 700 million. As of April 2024, earnings reached USD 263.06 million, marking a 24% increase compared to the previous year.

In terms of rubber cultivation, he said new plantings covered 921 hectares in 2022 and 2023, while replanted areas spanned 2,743 hectares. Plans for 2024 include cultivating 1,135 hectares of rubber, with 605 hectares newly planted and 415 hectares replanted. A provision of Rs.149 million has been allocated for supplying necessary plants for this expansion. Starting in 2023, the department discontinued the previous rubber cultivation subsidy system, opting instead to provide free plants as subsidies to growers.

Following are updates from five key agricultural export sectors in Sri Lanka;

• Sri Lanka Tea Board Chairman Niraj De Mel;

Under the Memorandum of Understanding between Iran and Sri Lanka, Sri Lanka commenced the repayment of its USD 250.9 million fuel debt to Iran through tea exports starting on August 05 last year.

As per the agreement, Sri Lanka aims to settle this debt through tea exports. To date, Sri Lanka has repaid USD 55 million of this debt. In the first four months of 2024, Sri Lanka exported 4.1 million kilograms of processed tea to Iran, marking a threefold increase compared to the amount exported during the same period in 2023.

• Coconut Development Authority Chairman Prof. Roshan Perera;

The Regional Development Bank has launched the “Kapruka Jaya Isura” loan scheme aimed at supporting coconut-related producers to enhance product quality, efficiency, and quantity. The scheme offers subsidized interest rates of 6%, with loans ranging up to Rs.3.5 million initially and plans to increase this limit to Rs.10 million. In 2022 and 2023, approximately Rs.53.4 million and Rs.35.7 million, respectively, were disbursed under this scheme.

In 2024, 752 coconut-related producers and 636 exporters have registered for 1,012 products. Additionally, a whitefly control program was initiated in October 2022 to combat the impact of whitefly disease on coconut and king coconut production. This program treated 1,051,323 trees, conducted 3,046 awareness programs, and distributed 700 liquid sprayers to growers, amounting to an expenditure of Rs.85.50 million.

Additionally, efforts have been made to establish a coconut triangle in the Northern Province, alongside traditional areas. This initiative aims to meet coconut consumption and export demands while enhancing living standards in the region. To date, 489,077 coconut trees have been utilized for this project.

Moreover, job opportunities are being created by promoting Kithul and palm products for both domestic consumption and foreign markets.

• Rubber Development Department Director General, C.C.Muahandiramge;

In 2024, the Rubber Development Department plans to establish 115 hectares of new rubber cultivation in Monaragala, Ampara, and Badulla, areas not traditionally used for rubber cultivation. The project is allocated Rs.18 million and aims to increase local rubber production by 86,825 kg.

Additionally, the Rubber Research Institute has launched a project to identify suitable clones for these areas, with an estimated budget of Rs.19.25 million. As of now, Rs.17.74 million has been spent, testing 14 existing clones and planning to test 22 more in the future. Ultimately, about 10 clones are expected to be recommended for interim use.

Starting January 01, 2025, rubber and rubber-related products exported to European Union countries must be verified as non-contributing to deforestation. Products that do not meet this verification will not be approved for export. The Rubber Development Department is responsible for ensuring compliance with the EU Deforestation Regulation (EUDR) and provides the necessary facilities to support this. Given that the European market accounts for over one-third of Sri Lanka’s rubber export revenue, adhering to this regulation is crucial.

• Cinnamon Development Department Director General, Janaka Lindara;

The Department of Cinnamon Development was recently established as part of the 2023 budget proposal to advance cinnamon cultivation. Its primary goal is to promote the Pure Sri Lankan Cinnamon brand internationally. The headquarters is located near the Galle Pinnaduwa Expressway entrance and aims to benefit cinnamon exporters, growers, and industry stakeholders.

The first phase of the Cinnamon Gate project has an estimated cost of Rs. 224,909,704.31, with Rs. 21,857,211.80 spent by May 31, 2024. To enhance productivity, the department launched the Pure Sri Lankan Cinnamon project in May 2024, focusing on modern cultivation methods, post-harvest technology, and value-added industries. The project costs Rs.35 million rupees and aims to benefit around 1050 direct and 101,000 indirect beneficiaries in key cinnamon-growing districts.

During President Ranil Wickremesinghe’s visit to China in October 2023, a MoU was signed to export Sri Lankan cinnamon to China, opening a new market and increasing foreign exchange earnings. This new export project, involving selected exporters and farmers, has an estimated cost of Rs.1 million rupees.

• Export Agriculture Department Director (Development), R. K. W. Ranketh Kumbura;

The Department of Export Agriculture has implemented numerous development programs across the Ampara district and the Central, Sabaragamuwa, Western, Southern, Uva, Wayamba, North Central, and Eastern Provinces. These programs aim to boost production and export capacity, increase foreign exchange earnings, and maintain the quality of export agricultural products.

The initiative covers the cultivation of 15 crops, including cinnamon, pepper, coffee, cocoa, nutmeg, cloves, cardamom, vanilla, turmeric, ginger, areca nut, betel leaf, saffron, citrus, and lemongrass. Development programs for these crops are ongoing.

Additionally, the department provides technical knowledge for export agricultural crop cultivation through various programs. These include new cultivation programs, small-scale gardening, productivity promotion, areca nut cultivation, crop value chain development, and turmeric and ginger cultivation. Online training programs have also been offered. So far in 2024, nearly 1500 farmer training programs have been conducted. (Newswire)

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Sri Lanka’s total exports reached US$ 14.94 Billion in 2023, including merchandise exports (US$ 11.85Bn) and estimated service exports (US$ 3.08 Bn).

According to the Export Development Board (EDB), it is only a 0.39 % decline when compared to the value recorded in the previous year, which was US$ 14.99 billion.

The EDB further said that the estimated increase in service exports is around 63%. 

The full statement of the EDB on Sri Lanka’s export performance in 2023 is as follows;

Sri Lanka’s Export Performance in December 2023

Sri Lanka’s merchandise exports decreased by 11.25% to US$ 947.5 Million in December 2023 compared to December 2022 as per the provisional data released by Sri Lanka Customs. Also, it is a 5.16 % decrease when compared to the value recorded in November 2023.

However, the exports of Apparel and Textile recorded the highest in the year in December 2023 showing a positive sign of regaining its momentum. 

Major Exports in December 2023

• Products & Services with Positive Growth (Increases)

Export earnings from tea which made up 12% of merchandise exports, increased by 3.57 % y-o-y to US$ 111.12 Mn in December 2023 compared to December 2022. This increase is mainly due to the strong performance in the export of Tea packets & Tea bags, which increased by 10.95% and 142.37% respectively in December 2023 compared to December 2022.

In addition, Export earnings from Rubber and Rubber Finished products have increased by 6.92 % y-o-y to US$ 79.62 Mn in December 2023, with a strong performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (18.43 %).

On monthly analysis, export earnings of Coconut-based products increased by 2.02 % in December 2023 compared to December 2022. Moreover, export earnings of Coconut kernel products and Coconut shell products increased by 9.07 % and 3.53 % respectively in December 2023 compared to December 2022. 

Export earnings from Coconut Oil, Coconut Cream and Liquid Coconut Milk which are categorized under the Coconut kernel products increased by 9.17 %, 41.38 % and 22.27 % respectively in December 2023 compared to December 2022.

Earnings from Activated Carbon, which is categorized under the Coconut shell products increased by 4.6 % to US$ 11.5 Mn in December 2023 compared to December 2022.

Export earnings from Spices and Essential Oils increased by 0.1 % to US$ 31.42 Mn in the month of December 2023 compared to month of December 2022. This increase was mainly driven by a significant increase in the export of Cinnamon by 13.75 %.

Export earnings from Seafood increased by 11.64 % to US$ 23.79 Mn in December 2023 compared to December 2022. This increase was mainly due to the strong performance in the export of Fresh fish (74.58 %) and shrimp (49.74 %).

Furthermore, the estimated value of ICT exports is expected to increase by 33.3 % to US$ 112.9 Mn in December 2023 when compared to December 2022. Also, the value of Transport & Logistics services exports is expected to increase by 107.4 % in December 2023 compared to the corresponding period in the previous year.

• Products with Negative Growth (Decreases)

Export earnings from Apparel & Textiles have decreased by 8.64 % y-o-y to US$ 438.78 Million in December 2023 compared to December 2022. 

In addition, export earnings from the Electrical & Electronics Components decreased by 18.56 % y-o-y to US$ 34.97 Mn in December 2023 with poor performance in exports of Insulated Wires and Cables (-17.43%), Electrical Transformers (-34.75 %) and Other Electrical & Electronic products (-22.63%).

Export earnings of Coconut fiber-based products decreased by 14.65% in December 2023 compared to December 2022. Being the largest contributor to the coconut-based sector, Coco Peat, Fiber Pith & Moulded products which are categorized under the Coconut fibre products, decreased by 14.94 % to US$ 8.48 Mn in December 2023 in comparison to December 2022.

Export earnings from Food & Beverages have decreased by 16.16 % y-o-y to US$ 29.21 Million in December 2023, with a negative performance in exports of Animal feed (-49.16 %).

Moreover, export earnings from Ornamental fish decreased by 4.69 % to US$ 2.03 Mn in December 2023 compared to December 2022.

Exports during the period of January – December 2023

Cumulative merchandise exports during the period of January to December 2023, decreased by 9.54 % to US$ 11,856.3 Million compared to the corresponding period in 2022. 

• Products & Services with Positive Growth (Increases)

Earnings from the export of Tea, Spices & Concentrates, Electronics & Electronic Components and Food & Beverages increased by 4.06 %, 7.42 %, 0.62 % and 0.37 % respectively from January to December 2023, in comparison to the corresponding period of 2022.

Earnings from the export of Tea increased y-o-y by 4.06 % to US$ 1,390.9 Mn from January to December 2023. This increase was mainly due to the strong performance in the export of Tea packets (10.95 %).

In addition, export earnings from Spices and Essential Oils increased y-o-y by 7.42 % to US$ 397.78 Mn in the period of January to December 2023. This increase was due to the strong performance in exports of Pepper (18.65 %), Cloves (116.01 %) and Nutmeg & Mace (14.01 %).

Meanwhile, earnings from export of Electrical and Electronic Components (EEC) increased by 0.62 % to US$ 486.66 Mn in the period of January to December 2023 compared to the corresponding period of 2022. This increase was due to the strong performance in exports of Printed Circuits (52.37 %), Switches, Boards & Panels (3.78 %) and Boilers/ Piston Engines/ Pumps & Vacuum Pumps (639.88 %) in the period of January to December 2023 compared to the corresponding period of 2022. 

The estimated value of ICT exports is expected to increase by 13.2 % to US$ 1,259.6 Mn in the period of January to December of 2023 compared to the corresponding period in 2022. In addition, Construction, and Transport & Logistics services exports are forecasted to increase in the period of January to December 2023 compared with the corresponding period of 2022.

• Products with Negative Growth (Decreases)

Earnings from the export of Apparel & Textiles have decreased by 18.02 % to US$ 4,864.53 Mn during the period of January to December 2023 compared to the same period in 2022. Further, earnings from the export of Apparel declined by 19.01 % and the export of Textiles declined by 5.9 % from January to December 2023.

In addition, export earnings from Rubber & Rubber finished products decreased by 8.66 % to US$ 930.24 Mn in January – December 2023 compared to the same period in 2022 attributed to declined exports of Industrial & Surgical Gloves of Rubber (-23.67 %) and Pneumatic & Retreated Rubber Tyres & Tubes (-1.1 %). 

Export earnings of Coconut & coconut-based products decreased by 13.27 % to US$ 708.7 Mn during January – December 2023 compared to the last year. Earnings from all the major categories of Coconut based products decreased in the period of January – December 2023 compared with the corresponding period of 2022 due to the poor performance in the export of Coconut Oil (-10.93 %), Desiccated Coconut (-21.74 %), Coconut Milk Powder (-4.11 %), Coconut Cream (-1.72 %), Liquid Coconut Milk (-1.90 %), Cocopeat (-14.82 %) and Activated Carbon (-15.5 %).

Further, export earnings from Seafood decreased by 2.52 % to US$ 262.24 Mn during the period of January to December 2023 compared to the year 2022 due to the poor performance in Frozen Fish (-4.74 %), Shrimps (-21.58 %) and Crabs (-21.22 %).

Table 1 shows the comparison of Merchandise export performance in December 2023 and January to December 2023 in comparison to the corresponding period in 2022.

Table 1: Comparison of Product-wise Merchandise Export Performance 

                            Values in US$ Mns

Sources: CBSL, SL Customs

Sri Lanka’s Export Performance in Major Markets

Among the top 10 export markets of Sri Lanka, France has shown a strong performance in both the month of December 2023 as well as the period of January to December 2023 compared to the corresponding period in 2022. Furthermore, UAE and Italy have shown significant performance during the same period.

United States of America remained a key export destination for Sri Lanka, absorbing 23% of Sri Lanka’s merchandise exports in 2023. Exports to the United States of America, Sri Lanka’s single largest export destination, decreased by 0.96 % to US$ 253.74 Mn in December 2023 compared to November 2022. Further, exports to the United States of America decreased by 16.91 % to US$ 2,758.57 Mn during the period of January to December 2023 compared to the same period in 2022.

Table 2 shows the comparison of Merchandise export performance of the top 15 export markets in November 2023 and January to December 2023 compared to the corresponding period in 2022.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations 

Values in US$ Mns

Sources: CBSL, SL Customs

Exports to FTA Partners (India & Pakistan)

• December 2023

In December 2023, exports to India & Pakistan constituted 6.5% of the total merchandise exports, and experienced a notable 19.19 % decrease to reach US$ 57.94 Mn, compared to December 2022. Further, exports to India and Pakistan recorded a decrease of 17.35 % and 36.85 %, respectively, during the month of December 2023 compared to December 2022.

The negative performance of India was driven by lower exports of Animal feed (-43.99%) and Petroleum oil (-76.92%), while Pakistan’s negative performance was led by decreased exports of betel leaves.

• January – December 2023

Exports to India & Pakistan accounted for 7.2% of total merchandise exports decreased by 3.21 % to US$ 904.39 Mn during the period of January to December 2023 compared to the corresponding period of the previous year.

Exports to India and Pakistan decreased by 2.95 % and 6.06 % respectively during the period of January to December 2023 when compared with the corresponding period in 2022.  

The negative export performance of India was driven by lower export of Animal feed (12.92 %), while Pakistan’s negative performance was led by decreased export of Sheet rubber and Other articles of stones.

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region-wise exports during the month of December 2023 and during the period of January to December 2023 compared to 2023. 

Table 3: Comparison of Region-wise Merchandise Export Performance

Values in US$ Mns