Sri Lanka’s export sector continued its positive growth in 2026, with total exports surpassing the US$ 10 Bn milestone during the first seven months of the year. Combined merchandise and services exports are estimated to have reached US$ 10,487.80 Mn during January–July 2026, recording a 5.5 % year-on-year growth compared to the corresponding period in 2025.

Merchandise exports remained the primary contributor to overall export earnings, with cumulative earnings reaching US$ 8,188.32 Mn during January–July 2026. This represents a 5.05% increase compared to the corresponding period of the previous year, reflecting the continued resilience of Sri Lanka’s merchandise export sector amid evolving global market conditions.

Meanwhile, services exports continued to demonstrate strong growth, reaching an estimated US$ 2,299.48 Mn during the first seven months of 2026. This represents a 7.02% year-on-year increase, further strengthening the contribution of the services sector to Sri Lanka’s overall export earnings.

The continued expansion of both merchandise and services exports highlights the resilience and broad-based growth of Sri Lanka’s export sector, while reinforcing its increasingly important role in generating foreign exchange, supporting economic growth, and strengthening the country’s external sector performance.

According to provisional data released by Sri Lanka Customs, together with estimated export values for Gems & Jewellery and Petroleum Products, Sri Lanka's merchandise exports amounted to US$ 1,285.31 Mn in July 2026, representing a 1.3% year-on-year decrease compared to July 2025.

Meanwhile, the services export sector continued its positive growth momentum, generating an estimated US$ 351.92 Mn in July 2026, representing a 3.75% increase compared to the corresponding month of the previous year. The continued expansion of services exports highlights the sector’s growing contribution to Sri Lanka’s export earnings, foreign exchange generation, and overall economic resilience.

Consequently, Sri Lanka's total exports, comprising both merchandise and services, reached an estimated US$ 1,637.26 Mn in July 2026, recording an increase 2.63% year-on-year growth compared to July 2025.

Overall, Sri Lanka’s export performance during January–July 2026 demonstrates the continued resilience of the country’s external sector, with total exports surpassing the US$ 10 Bn milestone. The positive performance of both merchandise and services exports reflects continued progress towards developing a more diversified, competitive, and export-oriented economy, in line with Sri Lanka’s long-term economic development objectives.

The sustained expansion of services exports further underscores the increasing importance of Sri Lanka's knowledge-based economy. High-value service industries, including ICT/BPM, construction, financial services, and transport and logistics continue to play a pivotal role in diversifying the country's export basket, enhancing value addition, attracting foreign exchange earnings, and creating high-skilled employment opportunities.

Commenting on the export performance in July 2026, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board (EDB), stated:

“Crossing the US$ 10 Bn mark in total exports within the first seven months of 2026 is a significant achievement for Sri Lanka and a clear reflection of the resilience and determination of our export community. This performance demonstrates that, despite uncertainties in the global trading environment, Sri Lankan exporters continue to identify opportunities, adapt to changing market conditions and compete successfully in international markets.

Our priority now is to build on this momentum by strengthening the competitiveness of existing export sectors while accelerating the development of new products, services and markets. Greater value addition, innovation, technology adoption, market diversification and integration into global value chains will be essential to achieving sustainable export growth.

The EDB will continue to work closely with exporters, industry associations and government stakeholders to create an enabling environment for businesses to expand internationally and to support Sri Lanka’s ambition of becoming a more diversified, competitive and resilient export-oriented economy.”

Major Exports in July 2026

a) Products and Services with Positive Growth (Increases)

Rubber and Rubber-Based Products recorded a positive performance in July 2026, with export earnings increasing by 3.17% year-on-year to US$ 87.24 Mn, supported by improved performance across several key product segments. Notably, exports of Industrial and Surgical Rubber Gloves increased by 19.01%, making a significant contribution to the sector’s overall growth. Meanwhile, exports of Gaskets, Washers, Seals and other Hard Rubber Products increased substantially by 47.56% compared to July 2025, reflecting sustained international demand and the continued competitiveness of Sri Lanka’s rubber-based manufacturing sector.

Spices and Concentrates recorded particularly strong growth in July 2026, with export earnings increasing by 95.98% year-on-year to US$ 72.14 Mn. This significant expansion was primarily driven by a remarkable increase in Pepper exports, which grew by 450.32% compared to July 2025, making a substantial contribution to the sector’s overall performance.

Activated Carbon, a high-value value-added product derived from coconut shells, recorded a significant 26.72% year-on-year growth, reaching US$ 24.28 Mn in July 2026. This strong performance underscores the growing contribution of diversified, value-added coconut-based products to Sri Lanka’s export earnings and highlights the sector’s considerable potential for further value addition, product diversification, and expansion in global markets.

The Electrical and Electronic Components sector recorded an exceptional growth of 99.74% in July 2026, with export earnings to reach US$ 76.34 Mn, compared to the corresponding period of 2025. This remarkable performance was mainly supported by a significant rise in exports of Insulated Wires and Cables, which grew by 150.15% compared to July 2025, highlighting Sri Lanka’s expanding role in global supply chains. In addition, exports of Boilers, Piston Engines, Pumps, and Vacuum Pumps increased to US$ 5.87 Mn in July 2026, compared to US$ 0.21 Mn recorded in July 2025, marking a substantial increase driven by enhanced export performance and international demand.

On the services export front, ICT/BPM exports are estimated to have reached US$ 143.24 Mn in July 2026, maintaining a strong contribution to the country’s services export performance. The continued expansion of this knowledge-intensive sector reflects the resilience of Sri Lanka’s services economy and its growing importance in generating export earnings, while further strengthening Sri Lanka’s position as a competitive destination for technology-enabled services in global markets.

Products with Negative Growth (Decreases)

The Apparel and Textiles sector faced a challenging period in July 2026, with export earnings declining by 8.82% year-on-year to US$ 437.59 Mn. The decline was observed across major export destinations, with shipments to the United States, the United Kingdom, and the European Union decreasing by 6.28%, 5.73%, and 8.61%, respectively, compared to July 2025. This performance reflects continued challenges in the global apparel industry, including subdued consumer demand and evolving market conditions, which have affected export orders during the period.

Tea export earnings declined by 17.22% year-on-year to US$ 116.73 Mn in July 2026, mainly due to lower earnings from Tea Packets and Bulk Tea, which decreased by 10.14% and 26.96%, respectively. The decline was primarily attributable to weaker export performance in key markets, particularly the Middle East, where tea exports decreased by 47.93% compared to July 2025. Within the region, exports to the United Arab Emirates, Iran, Saudi Arabia, and Iraq recorded notable declines of 57.49%, 73.09%, 3.44%, and 78.54%, respectively, reflecting challenging market conditions affecting Sri Lanka’s tea exports.

Tea export earnings recorded a 17.22% year-on-year decline in July 2026, amounting to US$ 116.73 Mn, primarily due to lower earnings from both Tea Packets and Bulk Tea, which decreased by 10.14% and 26.96%, respectively. The decline was mainly attributable to subdued export performance in key markets, particularly the Middle East region, where tea exports fell by 47.93% compared to July 2025. Within this region, exports to the United Arab Emirates, Iran, Saudi Arabia, and Iraq experienced notable reductions of 57.49%, 73.09%, 3.44%, and 78.54%, respectively, reflecting the impact of challenging market conditions on Sri Lanka’s tea export performance.

The Coconut-based Products sector recorded a 9.89% year-on-year decline in export earnings to US$ 111.71 Mn in July 2026. Among the three major sub-categories, Coconut Kernel Products recorded the most significant decline of 27.19%. Within this category, export earnings from Coconut Oil and Liquid Coconut Milk decreased by 23.80% and 20.05%, respectively, contributing significantly to the sector’s overall decline.

Despite the positive performance recorded in exports of Coconut Fibre-based Products, Coco Peat, Fibre Pith, and Moulded Products declined by 6.02% to US$ 21.40 Mn in July 2026.

The Food and Beverages sector recorded a 4.66% year-on-year decline in export earnings to US$ 58.08 Mn in July 2026. Despite the decline, the sector continues to maintain a presence in international markets, reflecting the sustained demand for Sri Lankan food and beverage products.

Seafood exports recorded a significant 60.31% year-on-year decline, reaching US$ 15.58 Mn in July 2026. The negative performance was mainly driven by declines in key product categories, particularly Frozen Fish and Fresh Fish, which recorded decreases of 54.54% and 81.19%, respectively.

Similarly, Ornamental Fish exports recorded a substantial 86.54% year-on-year decline to US$ 0.65 million in July 2026, reflecting a significant contraction in export earnings compared to the corresponding month of the previous year.

Exports of Mineral and Mineral-based Products also recorded a 6.39% year-on-year decline in July 2026, reflecting weaker export performance within the sector.

Exports during the period of January – July 2026

Sri Lanka’s export performance remained positive during the January–July 2026 period, with total exports reaching an estimated US$ 10,487.80 Mn, reflecting a 5.48% year-on-year growth compared to the corresponding period of 2025. Merchandise exports increased by 5.05% to an estimated US$ 8,188.32 Mn, including estimated export values for Gems & Jewellery and Petroleum Products. Meanwhile, services exports recorded a stronger growth of 7.02%, reaching US$ 2,299.48 Mn.

The continued growth in both merchandise and services exports demonstrates the resilience of Sri Lanka’s export sector amid evolving global market conditions. The sustained expansion of services exports, in particular, highlights their growing contribution to export diversification, foreign exchange earnings, and the overall strengthening of Sri Lanka’s external sector.

a) Products & Services with Positive Growth (Increases)

Cumulative export earnings from several key sectors recorded strong growth during the first half of 2026, with Coconut-based Products, Rubber-based Products, Processed Food & Beverages, Spices and Concentrates, Electrical & Electronic Components recording year-on-year increases of 10%, 4.92%, 19.23%, 14.32%, and 57.69% respectively, compared to the corresponding period in 2025. The broad-based growth across these sectors highlights the resilience of Sri Lanka’s export industries, supported by rising demand for value-added products and improved competitiveness in international markets.

Export earnings from Coconut-based Products increased significantly by 10% year-on-year to reach US$ 726.64 Mn during the period of Jan-July 2026, supported by Fibre-based Products (11.25%), and Shell-based Products (47.83%). The strong performance was driven by increased exports of products such as Coconut Oil (7.08%), Desiccated Coconut (2.94%), Coco peat, Fiber pith & Moulded products (20.72%) and Activated Carbon (20.3%), reflecting sustained global demand and enhanced value addition within the sector.

The Rubber and Rubber-based Products sector generated export earnings of US$ 579.55 Mn during January–July 2026, recording a 4.92% year-on-year growth. The positive performance was primarily supported by increased exports of Pneumatic and Retreaded Rubber Tyres and Tubes and Industrial and Surgical Gloves, which grew by 4.11% and 3.32%, respectively. This continued growth reflects the resilience and competitiveness of Sri Lanka’s rubber-based manufacturing sector and its sustained presence in global markets.

Export earnings from the Food & Beverages sector increased by 19.23% year-on-year, reaching US$ 405.22 Mn during January–July 2026. The strong performance was largely driven by Processed Food exports, which recorded a notable 33.11% growth to reach US$ 189.44 Mn. This robust growth underscores the increasing international demand for Sri Lanka’s value-added food products and the sector’s potential for further expansion in global markets.

Meanwhile, export earnings from Spices and Concentrates increased by 14.32%, reaching US$ 280.49 Mn during January–July 2026. This growth was primarily supported by the strong performance of Cinnamon, with export earnings increasing by 29.75% during the period. The growth in Cinnamon exports was further supported by a significant increase in shipments to Mexico, which increased by 85.54%. The strong performance of key spice products highlights the continued global demand for Sri Lanka’s premium spice exports and the sector’s contribution to overall export growth.

Exports of Electrical and Electronic Components (EEC) recorded exceptional growth during January–July 2026, increasing by 57.69% year-on-year to reach US$ 377.91 Mn. The strong performance was supported by significant growth across several key product categories, including Electrical Transformers (32.28%), Insulated Wires and Cables (86.28%), and Switches, Boards and Panels (25.90%). In addition, exports of Telephone Sets and Audio/Video Equipment and Boilers, Piston Engines, Pumps and Vacuum Pumps increased substantially by 232.72% and 478.18%, respectively, during the period. The sector’s strong performance highlights the growing competitiveness and export potential of Sri Lanka’s electrical and electronic manufacturing industry.

Furthermore, ICT/BPM exports are estimated to have increased by 14.54%, reaching US$ 1,022.25 Mn during January–July 2026. This strong performance underscores the continued expansion of Sri Lanka’s digital and knowledge-based economy, while highlighting the sector’s growing contribution to the country’s overall export earnings and its increasing importance as a high-value, services-oriented export sector.

Products with Negative Growth (Decreases)

Export earnings from the Apparel and Textiles sector declined by 6.50% year-on-year, reaching US$ 2,879.69 Mn during January–July 2026, compared with the corresponding period in 2025. The contraction was primarily driven by subdued demand in key export markets, particularly the United States and the European Union, which together account for more than half of Sri Lanka’s apparel exports. During the period, exports to the United States, European Union, and United Kingdom declined by 2.99%, 8.42%, and 11.06%, respectively, contributing to the overall decline in sector performance amid challenging global market conditions.

Tea export earnings declined by 7.53% year-on-year, reaching US$ 817.53 Mn during January–July 2026. The decline was mainly attributable to weaker performance across key product categories, with Bulk Tea exports decreasing by 9.89% and Tea Packets declining by 7.01% compared with the corresponding period in 2025.

Seafood exports also recorded a decline of 3.73%, generating export earnings of US$ 138.08 Mn during the period. The contraction was mainly driven by lower exports of Frozen Fish, which declined by 6.50%, and Fresh Fish, which decreased by 1.79%. The decline highlights the continued challenges faced by Sri Lanka’s seafood export sector amid changing international market conditions and demand patterns.

Table 1 shows a comparative analysis of merchandise export performance for July 2025–2026, along with the cumulative figures for the January–July period.

Among the top fifteen export destinations, several key markets, including India, Turkey, Japan, and Mexico, recorded positive year-on-year growth both in July 2026 and cumulatively during January–July 2026. This broad-based performance indicates growing resilience and expanding market opportunities across several important international destinations.

The United States, Sri Lanka’s largest single export destination, accounting for approximately 22% of total merchandise exports, recorded a marginal 0.58% year-on-year decline in export earnings to US$ 250.87 Mn in July 2026. Cumulative exports during January–July 2026 also declined marginally by 1.10%, reaching US$ 1,707.91 Mn compared with the corresponding period in 2025. Despite the slight contraction, the US market remained relatively stable and continued to be the leading destination for Sri Lankan merchandise exports.

India strengthened its position as Sri Lanka’s second-largest export destination, surpassing the United Kingdom, with cumulative exports increasing by 36.16% to US$ 688.47 Mn during January–July 2026. Exports to India also recorded robust year-on-year growth of 9.12% in July 2026, reaching US$ 129.51 Mn. In contrast, exports to the United Kingdom declined by 11.34% year-on-year to US$ 72.14 Mn in July 2026, while cumulative exports decreased by 10.23% to US$ 434.44 Mn during January–July 2026.

The United Arab Emirates (UAE) recorded a significant 18.19% increase in export earnings in July 2026, reflecting improved monthly export performance despite regional geopolitical uncertainties and disruptions to trade conditions. However, cumulative exports to the UAE during January–July 2026 declined by 5.21% compared with the corresponding period in 2025. The contrasting monthly and cumulative performance reflects fluctuations in market conditions, regional uncertainties, and evolving demand patterns.

Turkey recorded exceptional export growth of 71.40% in July 2026, with export earnings reaching US$ 29.67 Mn. Cumulative exports during January–July 2026 also increased substantially by 92.48% year-on-year, reaching US$ 152.87 Mn. This strong performance reflects deepening bilateral trade engagement, improved market penetration, and growing demand for Sri Lankan products in the Turkey.

Notably, Tea exports to Turkey recorded exceptional growth of 101.59% in July 2026, while cumulative tea exports during January–July 2026 increased by 130.37% year-on-year. This remarkable growth highlights the rapidly expanding demand for Sri Lankan tea in the Turkish market and points to significant opportunities for further market development and export expansion.

Table 2 shows a comparative analysis of merchandise export performance across the top 15 export markets for July 2025 & 2026, along with the cumulative figures for the January – July period of 2025 & 2026.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations

Exports to FTA Partners (India & Pakistan)

a) July 2026

Exports to India and Pakistan collectively accounted for 8.74% of Sri Lanka’s total merchandise exports in July 2026, with export earnings reaching US$ 137.41 Mn, representing a 7.44% year-on-year increase.

Exports to India increased by 9.12%, reaching US$ 129.51 Mn, primarily driven by higher exports of base metal products. Meanwhile, exports to Pakistan recorded a stronger growth of 14.13%, reaching US$ 7.90 Mn, supported by increased shipments of betel leaves, other articles of stone, and petroleum oils.

b)January – July 2026

During January–July 2026, export earnings to India increased by 7.22% year-on-year, reaching US$ 669.36 Mn. The growth was primarily driven by increased exports of boilers, piston engines, pumps and vacuum pumps; petroleum oils; animal feed; and base metal products.

Exports to Pakistan also recorded strong growth of 30.53%, reaching US$ 55.49 Mn during the period. This positive performance was supported by increased exports of other textile articles, betel leaves, desiccated coconut, and other articles of stone, reflecting growing demand for Sri Lankan products in the Pakistani market.

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region wise exports for July 2025 & 2026, along with the cumulative figures for the January–July period of 2025 & 2026.

Exports to the European Union (EU), which accounted for approximately 25.5% of Sri Lanka’s total merchandise exports, declined by 14.59% year-on-year in July 2026 compared with the corresponding month of 2025. However, cumulative exports to the EU during January–July 2026 recorded only a marginal 0.50% year-on-year decline, indicating a relatively stable overall export performance to the region despite challenging market conditions.

Among the top five EU export markets, Italy remained the leading destination, with export earnings reaching US$ 391.00 Mn, reflecting a 2.93% increase compared with the corresponding period in 2025. Exports to Germany amounted to US$ 388.73 Mn, declining by 7.60%, while exports to the Netherlands decreased by 6.62% to US$ 247.99 Mn. Exports to France also declined by 5.49% to US$ 151.86 Mn. In contrast, exports to Belgium increased by 2.17%, reaching US$ 142.32 Mn during January–July 2026.

Sources:

Data were obtained from the Central Bank of Sri Lanka (CBSL) and Sri Lanka Customs.

Export figures of Services, Gems & Jewellery, and Petroleum Products for July 2026 were estimated by the EDB.