Earnings from merchandise exports increased to US $ 924 million in May 2018 mainly driven by industrial exports, despite a reduction recorded in agricultural exports. Under industrial exports, earnings from textiles and garment exports increased significantly due to the higher demand from the EU and the USA while exports to nontraditional markets also increased moderately.

Export earnings from petroleum products increased significantly in May 2018 due to the combined effect of high exported volumes of bunker and aviation fuel together with increased export prices. Earnings from food, beverages and tobacco exports also increased notably during the month owing to the increase in manufactured tobacco and coconut related products. Further, earnings from all other main categories under industrial exports, except wood and paper products and leather, travel goods and footwear, contributed towards the increase in industrial exports in May 2018. However, earnings from agricultural exports declined in May 2018 due to poor performance in almost all categories except spice and seafood exports. Benefiting from the positive impact of the removal of the ban on fisheries exports to the EU and the restoration of GSP+ facility, earnings from seafood exports increased significantly during the month due to higher prices and volumes of seafood exported. In addition, export earnings from spices increased in May 2018 owing to the combined impact of higher prices and volumes of cinnamon and pepper exports.

However, export earnings from tea declined due to the reduction recorded in both volumes and prices of tea exported. Leading markets for merchandise exports of Sri Lanka in May 2018 were the USA, the UK, India, Germany and Italy accounting for about 49 % of total exports.