Wednesday May 27, 2026
Wednesday May 27, 2026
Tuesday, 26 May 2026 05:25 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
Sri Lanka’s export sector posted its highest-ever April performance, with total earnings surpassing $ 1.38 billion and reflecting a 6% year-on-year (YoY) growth driven by strong merchandise exports, despite a decline in services income.
The latest data released by the Sri Lanka Export Development Board (EDB) showed that merchandise exports shipped in April were up 9.87% YoY to over $ 1.06 billion, though estimated service earnings in the month decreased by 6.13% YoY to $ 317.16 million. However, April exports registered a 9.87% month-on-month (MoM) decline compared to January 2026.
Cumulative exports during the first four months of 2026 rose 4.3% YoY to over $ 5.78 billion, also marking the highest recorded level for the period.
Merchandise export earnings during January-February increased by 4.8% YoY to over $ 4.52 billion, whilst services exports during the same period were estimated to have surged by 2.34% to $ 1.25 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 April outcome as a resilient way towards achieving the country’s annual export targets, whilst commending exporters for navigating external shocks and yet contributing to economic development.
“Sri Lanka’s record performance in April and during the first four months demonstrates the sector’s ability to navigate evolving global market conditions and its resilience,” he said.
Wijesinghe told the Daily FT that the 10% monthly export growth forecast has been revised down slightly to above 8% based on current external factors.
“We remain confident that, with focused policy support and market diversification efforts, the country will be able to maintain this positive momentum despite global headwinds,” he said.
He attributed the decline in April tea and apparel exports to tensions in the Middle East and its direct impact on shipping costs, insurance costs, logistic constraints, and operational costs, all recording sharp increases.
The EDB noted that the merchandise exports growth in April was driven largely by improved demand across the agricultural and industrial product categories, while services lagged.
As per the data shared by the EDB, apparel and textiles remained the dominant contributor, but the sector saw a 7.4% YoY decrease between January and April of 2026, reaching $ 1.61 billion. The contraction was largely influenced by reduced demand in key markets, such as exports to the US and the European Union (EU), which together account for over 50% of total market share. Exports to the US declined by 5.65%, while shipments to the EU and the UK decreased by 7.71% and 9.71%, respectively, contributing to the overall decrease in the sector.
Agriculture exports witnessed a remarkable growth during the first four months. Export earnings from Coconut and Coconut-based products rose significantly by 21.38% YoY to $ 406.28 million during January-April 2026 compared to the same period last year. This performance was supported by growth across all major coconut product categories, including Coconut Kernel products (17.96 %), Fibre products (5.78%), and Shell products (55.85 %). The sector’s strong performance was primarily driven by increased export earnings from Coconut Oil (26.09 %), Desiccated Coconut (38.8 %), Coconut Cream (24.48 %), Liquid Coconut Milk (10.94 %), and Activated Carbon (49.38%), reflecting sustained global demand and continued value addition within the industry.
Earnings from Rubber and Rubber Finished Products registered a marginal increase of 0.25%, reaching $ 313.22 million during the first four months of 2026 compared to the corresponding period in 2025. The overall performance of the sector was supported by growth in exports of Pneumatic and Re-treaded Rubber Tyres and Tubes, which increased by 3.47% during the period.
However, Tea exports, which comprised 12% of total merchandise exports, declined by 5.58% YoY to $ 451.58 million during the first four months due to geopolitical tensions in the Middle East.
Food and Beverages export earnings also increased by 30.62% YoY to $ 237.70 million during the first four months, supported by the strong performance in Processed Food exports, which grew by 59.55 % to reach $ 117.46 million.
Earnings from the export of Electrical and Electronic Components (EEC) increased by 43.55% YoY to $ 185.54 million during the first four months. This increase was due to the strong performance in exports of Electrical Transformers (+59.25%), Insulated Wires and Cables (+38.20%), and Switches, Boards and Panels (+29.45%).
Seafood export earnings too increased significantly by 24.52% to $ 93.34 million during the period January-April 2026 compared to the corresponding period in 2025. This growth was driven by strong performance across key product categories, particularly Frozen Fish and Fresh Fish exports, which increased by 18.77% and 50.45%, respectively, reflecting improved export volumes and stronger international demand.
On the services side, ICT/BPM and financial services showed positive growth during the first four months, with increases of 22.63% YoY to $ 581.7 million and 82.27% YoY to $ 32.24 million, respectively.
The robust April 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 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.
“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,” Wijesinghe added.
Among Sri Lanka’s top 15 export markets, China, France, Australia, Mexico, and Japan recorded positive YoY growth in both April 2026 and cumulatively for the January-April period, indicating emerging resilience across key international markets.
The US, the largest single export destination accounting for around 22% of total merchandise exports, recorded a marginal decline of 3.15% YoY to $ 196.37 million in April, with cumulative exports for the first four months also marginally down by 2.09% to $ 945.76 million compared to the same period in 2025. India consolidated its position as Sri Lanka’s second-largest export destination, surpassing the UK, with exports growing by 8.9% to $ 364.15 million during January-April, despite a dip of 1.41% to $ 76.66 million in April 2026. Exports to the UK declined by 15.18% to $ 62.40 million over the same period, while the first four months’ figure also fell by 7.96% to $ 298.13 million, reflecting weaker performance in this key European market.
EDB to launch National Export Development Plan on 16 June
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| EDB Chairman Mangala Wijesinghe |
Export Development Board (EDB) Chairman Mangala Wijesinghe yesterday confirmed that the upcoming National Export Development Plan (NEDP) will be launched on 16 June.
Addressing the media, he said the framework aims to drive sustained export growth, enhance global competitiveness, and diversify both products and markets.
Developed in collaboration with industry stakeholders, Government agencies, and international partners, including the Asian Development Bank (ADB), the NEDP outlines a roadmap to achieve over 10% annual export growth, which Wijesinghe said is essential to meeting Sri Lanka’s broader export expansion targets.
The strategy will continue to strengthen traditional export pillars such as apparel, tea, rubber, and coconut-based products, while also prioritising new high-potential sectors capable of moving the country further up the global value chain.
Among the priority sectors identified under the NEDP are automotive components, electrical and electronic products, mineral-based industries, processed food and beverages, spices, and gems and jewellery.
“These sectors have strong global demand and offer significant opportunities for Sri Lanka to move up the value chain,” Wijesinghe said.
A key pillar of the NEDP is market diversification, aimed at reducing Sri Lanka’s heavy dependence on a few export destinations. “At present, about 25% of Sri Lanka’s exports are directed to the US, while 23% are shipped to the EU, making the economy vulnerable to external shocks affecting these markets,” he added.
Wijesinghe noted that expanding exports to emerging markets such as Africa, Asia, and the Middle East will be critical to strengthening resilience in Sri Lanka’s export sector.
“Last year, we recorded export growth of over 46% to Africa and over 25% to the Middle East, which clearly demonstrates the potential in these regions,” he said.
The NEDP also highlights the importance of leveraging existing trade agreements to accelerate export expansion. Sri Lanka currently benefits from preferential market access through frameworks such as the South Asian Free Trade Area (SAFTA), the Asia-Pacific Trade Agreement (APTA), and bilateral Free Trade Agreements with India and Pakistan, as well as duty-free access to the EU under the Generalised Scheme of Preferences Plus (GSP+).
In addition, he said the UK has recently extended preferential trade access, allowing many Sri Lankan products to enter the UK market at zero tariffs, further strengthening export opportunities for local industries.
