Sri Lanka’s export sector began 2026 on a strong note, recording a 13.71% year-on-year growth, with total export earnings reaching US$ 1,532.6 million, according to the Sri Lanka Export Development Board (EDB).
The figures, compiled using data from Sri Lanka Customs along with estimated exports for gems and jewellery, petroleum products and services, point to broad-based growth across key sectors and improving global demand conditions.
Commenting on the performance, Mangala Wijesinghe, Chairman and Chief Executive Officer of the EDB, said January’s results mark a promising start toward achieving Sri Lanka’s annual export targets.
He noted that the growth reflects the resilience and rising competitiveness of the export sector, supported by recovering international markets, sustained industrial capacity and ongoing strategic export development initiatives.
Merchandise and Services Exports
Provisional data shows that merchandise exports grew by 10.66% year-on-year to US$ 1,165.02 million in January 2026.
Meanwhile, services exports surged by 24.59% to an estimated US$ 367.55 million, driven mainly by ICT/BPM, construction, financial services, and transport and logistics. Officials said the services sector continues to play a critical role in diversifying Sri Lanka’s export base while generating high-value employment.
Key Products Showing Growth
Several major export categories recorded strong gains in January 2026:
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Tea exports rose by 8.11% to US$ 121.84 million, supported by higher earnings from bulk tea and tea packets. Key markets such as Turkey, Russia and Saudi Arabia showed notable increases.
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Coconut-based products expanded by 30.69%, led by sharp growth in coconut kernel and shell products, including coconut oil, coconut milk powder and activated carbon.
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Rubber and rubber-based products increased by 3.88%, supported by higher tyre exports.
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Food and beverages climbed 25.29%, largely due to processed foods.
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Electrical and electronic components jumped 50.79%, driven by insulated wires and cables.
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Seafood exports surged 66.55%, with strong growth in frozen and fresh fish, while ornamental fish exports also rose sharply.
All major services categories recorded positive growth, with ICT/BPM exports increasing by over 60%.
Sectors Under Pressure
Not all sectors performed positively. Apparel and textiles declined by 2.82%, mainly due to reduced shipments to the United States and the EU.
Exports of spices and essential oils fell 4.57%, largely because of lower pepper exports to India.
Gems and jewellery earnings are estimated to have dropped by 10.96% year-on-year.
Performance in Major Markets
Among Sri Lanka’s top export destinations, India, the United Kingdom, Germany, Italy, the Netherlands, China and Australia all recorded year-on-year growth.
The United States, Sri Lanka’s largest single export market, posted a marginal decline of 0.9% to US$ 257.85 million.
India overtook the UK as Sri Lanka’s second-largest export destination, with exports rising 38.67% to US$ 113.57 million, while exports to the UK grew 3.18% to **US$ 82.08 million.
Exports to free trade agreement partners India and Pakistan together accounted for 10.5% of total merchandise exports, increasing 38.26% year-on-year.
European Union Markets
Exports to the European Union, which accounts for about 22% of Sri Lanka’s merchandise exports, rose by 12.27% in January. Growth was recorded in key EU markets including Germany, Italy, the Netherlands and Belgium, though exports to France declined slightly.
