Tuesday Oct 27, 2026
Tuesday Oct 27, 2026
Tuesday, 27 October 2026 02:10 - - {{hitsCtrl.values.hits}}
Sri Lanka’s export sector posted its highest-ever monthly performance in September 2026, with total earnings surpassing $ 1.69 billion and reflecting a 17.23% year-on-year (YoY) growth driven by strong merchandise shipments, despite the challenges faced by the tensions in the Middle East and its direct impact on overall costs.
The latest data released by the Sri Lanka Export Development Board (EDB) showed that merchandise exports shipped in September were up 21.66% YoY to over $ 1.38 billion, though estimated service earnings in the month showed a moderate growth of 0.67% YoY to $ 306.17 million.
The September exports registered a 5.6% month-on-month (MoM) increase compared to August 2026.
Cumulative exports during the first nine months of 2026 rose by 5.04% YoY to over $ 13.61 billion, also marking the highest recorded level for the period.
Merchandise export earnings during January-September increased by 5.35% YoY to over $ 10.76 billion, whilst services exports during the same period were estimated to have surged by 3.88% to $ 2.85 billion. Services exports include sectors such as ICT/BPM, construction, financial services, and transport and logistics.
Addressing the media, EDB Chairman and CEO Mangala Wijesinghe described the September outcome as a resilient way towards achieving the country’s annual merchandise export target of over $ 18 billion, whilst commending exporters for navigating external shocks and yet contributing to economic development.
“This performance demonstrates the potential of Sri Lankan exporters to strengthen their presence in international markets despite an increasingly competitive global trading environment. As we move forward, our priority must be to sustain this growth momentum by strengthening the competitiveness of existing export sectors while accelerating the development of new products, services and markets,” he said.
For 2026, Sri Lanka has set an ambitious export revenue target of $ 20 billion, reflecting an anticipated YoY growth of 10-12%. Merchandise exports are expected to exceed $ 15.7 billion in 2026, while services exports are projected to rise to $ 4.3 billion.
The EDB noted that the merchandise exports growth in September was driven largely by improved demand across the agricultural and industrial product categories, while services lagged.
Apparel and textile exports rose 3.46% YoY to $ 439.78 million in September 2026, from $ 425.07 million a year earlier. Exports to the US rose 6.33%.
Rubber and rubber-based product exports surged 33.68% to $ 99.31 million, up from $ 74.29 million in September 2025. Industrial and surgical rubber glove exports grew 34.38% to $ 31.70 million, while pneumatic and retreaded tyres and tubes increased 39.57% to $ 54.95 million.
Exports of spices, essential oils and oleoresins climbed 73.19% to $ 74.73 million. Pepper exports jumped 165.38% to $ 23.46 million, while cinnamon exports rose 68.27% to $ 42.59 million. Coconut fibre-based product exports recorded a 2.99% increase.
Activated carbon exports grew 43.52% YoY to $ 25.26 million, reflecting stronger earnings from value-added coconut-based products.
Food and beverage exports increased 27.92% to $ 63.77 million in September 2026, compared with $ 49.85 million a year earlier. Electrical and electronic component exports surged 88.35% YoY to $ 68.54 million, supported by a 114.62% increase in insulated wire and cable exports.
Seafood exports rose 4.01% to $ 23.61 million, from $ 22.70 million in September 2025. Frozen fish exports increased 15.85% to $ 13.96 million, while shrimp exports surged 207.27% to $ 3.38 million.
Meanwhile, transport and logistics services exports were estimated at $ 167.9 million, up 23.32% from $ 136.15 million in September 2025.
Cumulative export earnings from key value-added sectors recorded YoY growth during January–September 2026. Rubber-based products rose 8.44%, coconut-based products 3.68%, processed food and beverages 20.9%, electrical and electronic components 61.05%, and spices and concentrates 30.53%.
However, apparel and textile exports declined 5.68% YoY to $ 3,783.76 million. Apparel exports fell 5.36% to $ 3,513.37 million, while textile exports dropped 9.66% to $ 270.39 million. Exports to the US, European Union (EU) and the UK decreased by 3.83%, 5.54% and 10.41%, respectively, amid subdued demand in key markets.
Tea export earnings fell 6.83% to $ 1,083.58 million. Tea packet exports declined 4.42%, while bulk tea earnings dropped 11.13%. Growth in tea bag exports of 53.39% and instant tea exports of 9.85% was insufficient to offset the overall contraction.
Weaker demand in the Middle East further affected performance, with tea exports to the region falling 34.22%. Shipments to the United Arab Emirates, Iran and Iraq declined by 59.66%, 65.80% and 47.72%, respectively.
The US, Sri Lanka’s largest export market, accounting for 20.3% of merchandise exports, recorded an 18.06% YoY increase in September 2026, with earnings reaching $ 281.84 million. Cumulative exports to the US rose marginally by 0.05% to $ 2,252.99 million during January–September 2026.
India overtook the UK to become Sri Lanka’s second-largest export destination, with cumulative exports increasing 12.3% to $ 889.84 million during the first nine months of 2026. September exports to India surged 29.65% YoY to $ 113.22 million. In contrast, exports to the UK fell 3.17% to $ 71.71 million in September, while cumulative earnings declined 9.33% to $ 654.36 million.
Exports to the EU, accounting for 20.12% of Sri Lanka’s merchandise exports, increased 1.92% YoY in September 2026. However, cumulative exports to the bloc declined marginally by 0.15% during January–September 2026, indicating broadly stable performance in the key market.
