El Niño could add fresh risk to export performance: EDB

Thursday, 3 September 2026 00:25 - - {{hitsCtrl.values.hits}}

Dry conditions could put pressure on agriculture-linked exports, including tea, vegetables, as well as fruits and nuts
NEDP works through market and product diversification across eight priority sectors

Sri Lanka’s export sector could face additional pressure in the coming months from dry weather conditions due to El Niño, particularly across agriculture-linked exports, Export Development Board (EDB) Chairman and CEO Mangala Wijesinghe warned.

Addressing the media on Monday, he said the tea, fruits, and vegetables, as well as any other crops sectors, could experience downward pressure as weather conditions deteriorate, with the potential impact compounded by the effects of El Niño.

“Tea is already facing a difficult external environment, with the Middle East crisis disrupting an important destination market. Around 35% of Sri Lanka’s tea exports are directed to Middle Eastern markets, making the sector particularly vulnerable to geopolitical and shipping disruptions in the region,” he said.

During the first seven months of 2026, earnings from tea exports declined by 7.53% year-on-year (YoY) to $ 817.53 million, with Bulk Tea exports falling 9.89% and Tea Packets declining 7.01%.

From January to July, vegetable exports declined by 14.66% YoY to $ 17.64 million, while fruits and nuts fell by 12.28% YoY to $ 23.78 million.

Wijesinghe said any further deterioration in weather conditions could add another layer of pressure to agricultural exports.

He pointed out that the most effective response was to diversify both the export basket and markets, allowing stronger-performing products and emerging sectors to offset weakness elsewhere.

“We have already commenced implementation of the National Export Development Plan (NEDP) which was launched in June, with an objective of achieving around 8-10% annual export growth,” he said.

The EDB Chief said over 35 Government institutions are involved in implementing the plan, while the EDB is monitoring the performance of eight priority sectors to ensure measurable progress.

These sectors include auto components, minerals-based industries, rubber-based industries, marine-based industries including boat and shipbuilding, spices and concentrates, digital products and services, electrical and electronic components, and processed food and beverages.