Thursday Mar 12, 2026
Thursday Mar 12, 2026
Wednesday, 25 February 2026 00:00 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
Sri Lanka’s export sector has kicked off 2026 with highest January earnings in a decade, raking in over $ 1.53 billion in January, reflecting a solid 13.7% year-on-year (YoY) growth.
The latest data released by the Sri Lanka Export Development Board (EDB) showed that total merchandise exports shipped in January were up 10.66% YoY to over $ 1.16 billion, while estimated total service earnings in the month increased by 24.59% YoY to $ 367.55 million.
Addressing the media, EDB Chairman and CEO Mangala Wijesinghe described the January outcome as a promising start toward achieving the country’s annual export targets.
“We remain confident that, with focused policy support and market diversification efforts, Sri Lanka is well positioned to maintain this positive momentum throughout 2026,” he said.
The robust January figures build on the positive trajectory recorded in 2025. Sri Lanka’s total export earnings reached over $ 17.25 billion last year, marking a 5.6% YoY increase and achieving nearly 95% of the $ 18.2 billion export target. For 2026, Sri Lanka has set an ambitious export revenue target of $ 20 billion, reflecting 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.
“These projections form part of a broader roadmap to boost Sri Lanka’s export earnings to $ 36 billion by 2030, comprising $ 25 billion from merchandise exports and $ 11 billion from services. The strategy prioritises scaling up value-added exports, expanding market access and accelerating services-led growth alongside traditional goods exports,” he added.
The EDB noted that the merchandise exports growth was driven largely by improved demand across industrial and agricultural product categories. The agricultural exports saw a robust 17.47% surge in January 2026, reaching $ 389.94 million, whilst the industrial sector inched up by 5.94% to $ 687.73 million
Tea exports, accounting for 12.8% of total merchandise shipments, increased 8.11% YoY to $ 121.84 million, supported by higher earnings from bulk tea and tea packets. Volumes rose 6.9%, with strong demand from key markets including Turkey, Russia and Saudi Arabia.
Coconut-based exports delivered one of the strongest performances, with sector earnings rising 30.69% YoY. Within this category, coconut kernel products surged 43.32%, while coconut shell products expanded 46.87%, reflecting enhanced value addition and global demand. Exports of coconut oil, coconut milk powder, coconut cream and liquid coconut milk all recorded significant gains. Activated carbon, a major coconut shell product, climbed 39.51% to $ 20.34 million.
Rubber and rubber-based products increased 3.88% YoY to $ 77.97 million, supported by an 18.61% rise in pneumatic and retreated tyres and tubes. The food and beverages sector posted a notable 25.29% increase to $ 52.31 million, led by processed food exports.
Electrical and electronic components also registered a sharp 50.79% YoY rise to $ 42.93 million, driven largely by insulated wires and cables, while seafood exports surged 66.55% YoY to $ 29.43 million on the back of higher frozen and fresh fish shipments. Ornamental fish exports also rose strongly.
However, apparel and textiles—Sri Lanka’s largest merchandise export category, declined 2.82% YoY to $ 447.25 million. The drop was mainly due to reduced shipments to the US and the European Union (EU). Spices and essential oils fell 4.57% YoY, largely reflecting a sharp contraction in pepper exports to India. Diamonds, gems and jewellery also registered a decline.
The EDB noted that the standout performer in January was the services sector. ICT/BPM exports surged 60.21% YoY to $ 177.83 million, reinforcing the sector’s role as a key driver of high-value foreign exchange earnings. Transport and logistics brought in $ 172.83 million, while construction and financial services also recorded steady growth.
The strong expansion in services exports underscores Sri Lanka’s transition toward a more innovation-driven and knowledge-based economy, diversifying the export basket beyond traditional goods and generating higher-skilled employment. The services export sector, comprising ICT/BPM, Construction, Financial services, and Transport and Logistics.
Wijesinghe said Sri Lanka’s top export destinations delivered a mixed, but generally resilient performance at the start of the year.
Among Sri Lanka’s top 15 export markets were; the US, India, UK, Germany, Italy, Netherlands, China, UAE, France, Australia, Belgium, Canada, Mexico, Hong Kong, and Switzerland.
The US, accounting for around 22% of total merchandise exports, registered a marginal 0.9% YoY decline to $ 257.85 million. India emerged as the second-largest export destination, overtaking the UK, with exports surging 38.67% YoY to $ 113.57 million. Shipments to the UK rose 3.18% YoY.
Regionally, exports to the EU, which collectively account for around 22% of Sri Lanka’s merchandise exports grew 12.27% YoY, with strong gains in Germany, Italy, the Netherlands and Belgium, despite a slight dip in France.
Exports to Free Trade Agreement (FTA) partners India and Pakistan increased 38.26% YoY to $ 122.08 million, representing 10.5% of total merchandise exports. Growth was driven by petroleum oils, apparel, animal feed and electrical products to India, and betel leaves, textiles and coconut kernel products to Pakistan.
