Exports in first five months grow by 7% to over $ 6.93 b

EDB Chairman and CEO Mangala Wijesinghe 

• Merchandise exports up 5.46% YoY to $ 5.34 b, services by 13.2% to $ 1.58 b
• Performance in May reaches over $ 1.38 b, up 6.35% YoY
• May merchandise exports up 1.7% YoY to $ 1.02 b; services by 22.39% to $ 358.14 m
• Apparel and textiles, coconut-based products, spices and concentrates, ICT/BPM and transport and logistics boost earnings in first five months
• US remains single largest market with Jan.-May exports increasing by 5.82% to over $ 1.18 b
• EDB Chairman and CEO Mangala Wijesinghe expresses confidence in achieving $ 19 b target by year-end 

 Despite global uncertainties, Sri Lanka’s export sector continues to show strong recovery and resilience, with total exports in the first five months of 2025 reaching over $ 6.93 billion, registering a 7.14% growth compared to the same period last year.

The latest figures, released by the Sri Lanka Export Development Board (EDB), underscore a steady upward trajectory in both merchandise and services exports, despite growing competitiveness and uncertainties in the global markets.

May 2025 marked a notable performance, with total exports, including both merchandise and services, climbing to over $ 1.38 billion, registering a significant 6.35% year-on-year (YoY) increase and a 7.3% rise compared to April 2025, reflecting the resilience of Sri Lanka’s export sector and the positive impact of strategic efforts to diversify markets and enhance competitiveness.

Merchandise exports for May 2025 reached over $ 1.02 billion—a 1.7% YoY increase, including estimated earnings from key sectors such as gems and jewellery and petroleum products. During the period from January to May, merchandise exports for the first five months of 2025 amounted to over $ 5.34 billion, reflecting a 5.46% growth compared to the same period last year.

Services exports in May 2025 are estimated at $ 358.14 million, up 22.39% YoY. During the first five months, services exports reached an estimated $ 1.58 billion—a robust 13.2% increase over the same period in 2024.

The services sector, which includes ICT/BPM, construction, financial services, and transport and logistics, has not only bolstered export earnings but also contributed to the creation of high-value employment opportunities across the country.

As per the data shared by the EDB, apparel and textile exports saw a robust 9.2% YoY increase between January and May of 2025, reaching over $ 2.13 billion. 

Agriculture exports also witnessed a remarkable growth during the first five months. Tea exports, which comprised 12% of total merchandise exports, rose by 7.93% YoY to $ 610.10 million, whilst coconut-based exports increased by 26.89% YoY to $ 427.69 million, and spice and concentrates exports grew by 57.76% to $ 173.64 million. 

On the services side, transport and logistics and ICT/BPM showed positive growth during the first five months, up by 28.89% YoY to $ 859.01 million and 4.10% YoY to $ 602.59 million, respectively.

“This positive export performance underscores Sri Lanka’s growing prominence in global trade and reflects the effectiveness of ongoing efforts to enhance the country’s export competitiveness and market access. Our exporters continue to demonstrate remarkable resilience and adaptability in global markets,” EDB Chairman and CEO Mangala Wijesinghe said.

He also noted that efforts in market and product diversification are yielding positive results, with exports growth visible in key markets such as India, China, Japan, the Netherlands, Germany, and African countries.

Wijesinghe expressed confidence that the EDB is on track to meet its ambitious export revenue target of $ 19 billion for 2025, aiming for steady growth in both merchandise and services exports within the remaining seven months of the year.

Merchandise exports are projected to climb from $ 12.7 billion in 2024 to $ 14 billion in 2025, while services exports are expected to rise from $ 3.5 billion to $ 4.2 billion by the end of the year. 

These targets also align with a broader five-year strategy to boost total export earnings to $ 36 billion by 2030, with $ 25 billion from shipment of goods and $ 11 billion from services exports.

Among the top 10 export markets, India, Germany, the 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.

Exports to the US, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, decreased by 2.67 % to$ 261.67 million in May 2025 compared to the same period a year earlier. However, exports to the US over the cumulative period from January to May 2025 increased by 5.82 %, reaching over $ 1.18 billion.

Similarly, exports to the UK decreased by 5.77% YoY to $ 68.37 million in May 2025. But, exports in the cumulative period of January to May 2025 to the UK increased by 3.85% to $ 392.29 million compared to the corresponding period in 2024.

In terms of exports to Free Trade Agreement (FTA) partners, exports to India and Pakistan accounted for 7.86% of totalmerchandise exports, registering a slight YoY increment of 0.79 % to reach $ 80.81 million 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 coconut and coconut ekels.

During the period from January to May 2025, exports to India and Pakistan accounted for 8.2% of SriLanka’s total merchandise exports, recording a substantial increase of 28.02% to reach $ 438.29 million compared to the same period in the previous year. Exports to India increased significantly by 31.41% YoY to $ 409.74 million, driven primarily by increased shipments of animal feed and pepper. Meanwhile, exports to Pakistan decreased by 6.55% due to decreased exports of betel leaves and other textiles.

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

Exports to the top five EU markets were registered as; Germany $ 181.53 million (up by 10.73%), Italy $ 152.8 million (down by 3.18%), the Netherlands $ 113.2 million (up by 28.89%), France $ 65.13 million (up by 7.44%), and Belgium $ 59.2 million (up by 6.82%) during the cumulative period of January to May 2025 in comparison to the corresponding period in 2024.

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