Sri Lanka's export sector continued to demonstrate resilience and sustained growth, with the country's total exports surpassing the US$ 9 billion milestone during the first half of 2026. Combined merchandise and services exports reached an estimated US$ 9,012.24 Mn during the January–June 2026 period, representing an 8% year-on-year increase compared to the corresponding period in 2025.

Further analysis indicates that cumulative merchandise export earnings for the period January to June 2026 amounted to US$ 7,073.31 Mn, reflecting an 8.95 % increase compared to the same period in 2025, highlighting steady performance across key export categories.

Meanwhile, services exports maintained their positive growth trajectory, reaching an estimated US$ 1,938.94 Mn during the January–June 2026 period, an increase of 4.49% compared to the corresponding period of the previous year. The continued expansion of services exports further reinforces the sector's growing contribution to Sri Lanka's overall export earnings and 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$ 1,314.10 Mn in June 2026, representing a robust 15.09% year-on-year increase compared to June 2025.

The services export sector also maintained its positive growth momentum, generating an estimated US$ 344.52 Mn in June 2026, reflecting a 3.75% increase over the corresponding month of the previous year. The continued expansion of services exports underscores the sector's growing contribution to Sri Lanka's export earnings, foreign exchange inflows, and overall economic resilience.

Consequently, Sri Lanka's total exports, comprising both merchandise and services, reached an estimated US$ 1,658.62 Mn in June 2026, recording an impressive 12.53% year-on-year growth compared to June 2025. This strong performance reflects broad-based growth across both merchandise and services export sectors, demonstrating the resilience, competitiveness, and adaptability of Sri Lankan exporters amid evolving global market conditions.

Overall, Sri Lanka's export performance during the first half of 2026 highlights the strength of the country's external sector, with total exports surpassing US$ 9 billion. The sustained growth achieved across merchandise and services exports reflects continued progress toward building a more diversified, competitive, and export-oriented economy, in line with the country'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 June 2026, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board (EDB), stated:

“Sri Lanka’s export performance during the first half of 2026 demonstrates the resilience and competitiveness of our exporters, with total exports surpassing the US$ 9 billion milestone. The continued growth recorded across both merchandise and services exports reflects the sector’s ability to adapt to evolving global market conditions while strengthening its contribution to economic recovery and foreign exchange earnings.

 

The EDB remains committed to working closely with exporters and all relevant stakeholders to strengthen Sri Lanka’s position in global markets through innovation, market diversification, value addition, and improved trade facilitation. The implementation of the National Export Development Plan (NEDP) 2026–2030 will provide a strategic framework to further enhance export competitiveness, promote integration into global value chains, expand opportunities for businesses, and support sustainable export-led economic growth."

Major Exports in June 2026

Products and Services with Positive Growth (Increases)

Export earnings from Rubber and Rubber-Based Products increased by 7.14% year-on-year to reach US$ 87.61 Mn in June 2026, supported by improved performance across key product segments. In particular, exports of Pneumatic and Retreated Rubber Tyres & Tubes and Industrial and Surgical Rubber Gloves recorded growth of 1.26% and 2.76%, respectively, contributing positively to the sector’s overall expansion. Meanwhile, exports of Gaskets, Washers, Seals, and other hard rubber products more than doubled in June 2026 compared to the corresponding month of 2025, reflecting strong international demand and enhanced competitiveness of Sri Lanka’s rubber-based manufacturing sector.

The Food & Beverages sector maintained its strong growth momentum, recording a 13.73% year-on-year increase to reach US$ 53.94 Mn in June 2026. This growth was primarily driven by processed food exports, which account for nearly half of the sector’s total export earnings and registered an impressive 18.90% growth compared to June 2025. The positive performance reflects the increasing global demand for Sri Lanka’s high-quality, value-added food products and the sector’s growing competitiveness in international markets.

Exports of Spices and Essential Oils recorded a strong performance in June 2026, increasing by 15.76% year-on-year to reach US$ 40.40 Mn. This growth was primarily driven by the significant increase in Pepper exports, which recorded a 32.76% year-on-year growth during the month, contributing substantially to the overall expansion of the sector.

Seafood exports recorded a notable 8.68% year-on-year growth in June 2026, reaching US$ 17.02 Mn. This positive performance was largely driven by increased exports of key product categories, particularly fresh fish and shrimps, which recorded significant growth of 78.26% and 86.90%, respectively. The strong performance in these segments reflects rising demand in international markets and the continued potential of Sri Lanka’s seafood sector to expand its global presence.

The Electrical and Electronic Components sector recorded exceptional growth in June 2026, with export earnings increasing more than four-fold to reach US$ 196.31 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 136.74% compared to June 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$ 151.81 Mn in June 2026, compared to US$ 0.29 Mn recorded in June 2025, marking a substantial increase driven by enhanced export performance and international demand.

Exports of Mineral and Mineral-Based Products recorded a 9.88% year-on-year growth in June 2026, supported by increased demand in international markets and improved export performance across key product categories.

Meanwhile, ornamental fish exports demonstrated strong growth momentum, increasing by 26.17% year-on-year to reach US$ 1.35 Mn in June 2026. This positive performance further contributes to the diversification of Sri Lanka’s export portfolio and highlights the potential of niche export sectors in generating foreign exchange earnings.

On the services export front, ICT/BPM exports are estimated to have maintained steady growth, reaching US$ 150.49 Mn in June 2026. The continued expansion of this knowledge-intensive sector underscores the resilience of Sri Lanka’s services economy and its growing contribution to overall export earnings, while strengthening the country’s position as an emerging destination for technology-enabled services in global markets.

Products with Negative Growth (Decreases)

The Apparel and Textiles sector faced a challenging period in June 2026, with export earnings declining by 11.74% year-on-year to US$ 408.75 Mn. The decline was observed across key export destinations, with shipments to the United States, the United Kingdom, and the European Union region recording year-on-year decreases of 3.31%, 29.23%, and 17.79%, respectively, compared to June 2025. The performance reflects the continued challenges faced by the global apparel industry, including subdued consumer demand and evolving market conditions, which have impacted export orders during the period.

Tea export earnings recorded a 10.58% year-on-year decline in June 2026, amounting to US$ 118.90 Mn, primarily due to lower earnings from both Tea Packets and Bulk Tea, which decreased by 12.77% and 4.84%, respectively. The decline was mainly attributable to subdued export performance in key markets, particularly the Middle East region, where tea exports fell by 44.89% compared to June 2025. Within this region, exports to the United Arab Emirates, Iran, Saudi Arabia, and Iraq experienced notable reductions of 82.46%, 36.34%, 11.16%, and 71.67%, respectively, reflecting the impact of challenging market conditions on Sri Lanka’s tea export performance.

The Coconut-based Products sector recorded a negative performance in June 2026, with export earnings decreasing by 8.48% to US$ 99.75 Mn compared to June 2025. Out of three major sub categories, Exports of Coconut Kernel products decreased 31.15%. Within the Coconut Kernel products category, export earnings from Coconut Oil and Liquid Coconut Milk decreased by 22.17% and 24.91%, respectively, compared to June 2025, contributing significantly to the sector’s poor performance.

In contrast, Coconut Fibre-based Products, including Coco Peat, Fibre Pith, and Moulded Products, recorded a notable growth of 6.59% to reach US$ 21.50 Mn in June 2026. The positive performance of these products highlights the increasing global demand for Sri Lanka’s environmentally sustainable and value-added coconut fibre-based solutions.

Similarly, Activated Carbon, a high-value product derived from coconut shells, recorded a significant growth of 50.44% to reach US$ 20.49 Mn in June 2026. The strong performance of these value-added product segments demonstrates the growing contribution of diversified coconut-based exports to Sri Lanka’s export earnings and highlights the sector’s potential for further expansion in global markets.

Exports during the period of January – June 2026

Cumulative export performance during the January–June 2026 period remained strong, with total exports reaching an estimated US$ 9,012.24 Mn, reflecting an 8% year-on-year growth compared to the corresponding period in 2025. Merchandise exports increased by 8.95% to reach an estimated US$ 7,073.31 Mn, including estimated export values for Gems & Jewellery and Petroleum Products, while services exports recorded a 4.49% growth to reach US$ 1,938.94 Mn. The sustained expansion across both merchandise and services sectors highlights the resilience of Sri Lanka’s export sector, while the continued growth of services exports reinforces their increasing role in diversifying export earnings and strengthening the country’s external sector performance.

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, Electrical & Electronic Components, and Seafood recording year-on-year increases of 14.59%, 5.24%, 24.45%, 123.48%, and 17.61%, 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 14.59% year-on-year to reach US$ 614.93 Mn during the first half of 2026, supported by broad-based growth across all major product categories, including Coconut Kernel-based Products (4.57%), Fibre-based Products (12.45%), and Shell-based Products (50.74%). The strong performance was driven by increased exports of products such as Coconut Oil (15.19%), Desiccated Coconut (12.81%), Liquid Coconut Milk (4.33%), and Activated Carbon (44.59%), reflecting sustained global demand and enhanced value addition within the sector.

The Rubber and Rubber-based Products sector generated export earnings of US$ 492.32 Mn, recording a 5.24% year-on-year growth, mainly supported by improved performance in Pneumatic and Retreaded Rubber Tyres and Tubes, which increased by 6.49% during the period. The positive performance reflects the continued competitiveness of Sri Lanka’s rubber-based manufacturing sector in global markets.

Export earnings from the Food & Beverages sector increased by 24.45% year-on-year to reach US$ 347.13 Mn during January–June 2026, primarily driven by the strong performance of processed food exports, which grew by 44.07% to reach US$ 164.61 Mn. This growth highlights the rising international demand for Sri Lanka’s value-added food products.

Meanwhile, exports of Electrical and Electronic Components (EEC) recorded exceptional growth, increasing by 123.48% to reach US$ 450.20 Mn during the first half of 2026. This performance was supported by significant growth in key product categories, including Electrical Transformers (36.99%), Insulated Wires and Cables (72.91%), and Switches, Boards and Panels (19.18%). In addition, exports of Boilers, Piston Engines, Pumps and Vacuum Pumps increased substantially, reaching US$ 171.39 Mn during January–June 2026.

Seafood exports also recorded a positive performance, increasing by 17.61% to reach US$ 122.51 Mn, supported by higher exports of Frozen Fish (7.60%) and Fresh Fish (50.06%). The growth reflects improved export volumes and strengthening demand in international markets.

Furthermore, ICT/BPM exports are estimated to have increased by 17.63% to reach US$ 885.42 Mn during the period, underscoring the continued expansion of Sri Lanka’s digital and knowledge-based economy and its growing contribution to overall export earnings.

Products with Negative Growth (Decreases)

Export earnings from the Apparel and Textiles sector declined by 6.07% year-on-year to reach US$ 2,442.09 Mn during the January–June 2026 period compared to the corresponding period in 2025. The decline was primarily driven by subdued demand conditions in key export markets, particularly the United States and the European Union, which together account for more than 50% of Sri Lanka’s apparel exports. During the period, exports to the United States, European Union, and United Kingdom recorded declines of 2.35%, 8.38%, and 11.87%, respectively, contributing to the overall contraction in sector performance amid challenging global market conditions.

Tea export earnings recorded a 5.69% year-on-year decline to reach US$ 700.80 Mn during the January–June 2026 period. The reduction was mainly attributed to weaker performance in key product categories, with Bulk Tea exports declining by 6.60% and Tea Packet exports decreasing by 6.43% compared to the corresponding period in 2025.

Meanwhile, export earnings from Spices and Essential Oils recorded a marginal decline of 0.10% to reach US$ 208.32 Mn during January–June 2026. The slight contraction was primarily driven by a significant decline in Pepper exports, which decreased by 31.34% during the period. The decline in Pepper exports was further impacted by reduced shipments to India, which recorded a 37.30% decrease, contributing to the overall decline in this product segment.

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

Sri Lanka’s Export Performance in Major Markets

Among the top fifteen export markets, several key destinations including the India, China, Turkey, Japan, and Mexico recorded positive year-on-year growth in both June 2026 and cumulatively for the January–June period, reflecting emerging resilience across major international markets.

The United States, Sri Lanka’s largest single export destination accounting for approximately 22% of total merchandise exports, recorded a marginal year-on-year decrease of 0.58% to US$ 250.87 Mn in June 2026. Meanwhile, cumulative exports for January–June 2026 reflected a slight increase of 0.13%, reaching US$ 1,436.85 Mn compared to the corresponding period in 2025, indicating stable but relatively subdued overall growth in exports to the United States.

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–June 2026. In June 2026, exports to India recorded robust year-on-year growth of 156.73%, reaching US$ 246.15 Mn. In contrast, exports to the United Kingdom experienced a significant year-on-year decline of 28.49% to US$ 65.53 Mn in June 2026, while cumulative exports declined by 10.23% to US$ 434.44 million during the January–June period compared to the corresponding period in 2025.

The United Arab Emirates, one of Sri Lanka’s key export destinations, recorded a significant decrease of 26.71% in export earnings in June 2026, reflecting a decline in monthly trade performance amid regional geopolitical uncertainties and disruptions to trade conditions. Meanwhile, cumulative exports to the UAE during January–June 2026 also declined by 9.92% compared to the corresponding period in 2025. This variation reflects fluctuations in market conditions, regional geopolitical uncertainties, and evolving demand patterns affecting trade performance.

Turkey recorded exceptional growth of 74.37% in June 2026, reaching US$ 26.94 million, while cumulative exports during January–June 2026 also recorded a significant year-on-year increase of 98.36%, reaching US$ 123.20 Mn. The substantial growth reflects strengthened bilateral trade engagement, improved market penetration, and growing demand for Sri Lankan products in the Turkish market.

Notably, exports of Tea to Turkey recorded exceptional growth of 108.99% in June 2026, while cumulative tea exports during the January–June period increased significantly by 139.16% year-on-year. This remarkable growth highlights the strong upward trend in demand for Sri Lankan tea in the Turkish market and reflects enhanced market opportunities for this key export commodity.

China, one of Sri Lanka’s key export markets, recorded a positive export performance during January–June 2026, with cumulative exports increasing by 19.56% year-on-year to reach US$ 159.22 Mn. In June 2026, exports to China also recorded a year-on-year growth of 15.69%, reaching US$ 23.81 Mn. The growth reflects the continued strengthening of trade relations and improved market opportunities for Sri Lankan products in the Chinese market.

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

Exports to FTA Partners (India & Pakistan)

June 2026

Exports to India and Pakistan collectively accounted for 8.74% of Sri Lanka’s total merchandise exports in June 2026, with earnings reaching US$ 255.07 Mn, representing a significant year-on-year growth of 153.45%.

Exports to India increased significantly by 156.73% to US$ 246.15 Mn, primarily driven by higher demand for base metal products. Meanwhile, exports to Pakistan also recorded strong growth of 87.39%, reaching US$ 8.92 million, supported by increased shipments of betel leaves, other articles of stone and petroleum oils.

January – June 2026

During the cumulative period January–June 2026, exports to India recorded a notable growth of 36.16%, reaching US$ 688.47 Mn, primarily driven by increased exports of boilers, piston engines, pumps & vacuum pumps, petroleum oils, animal feed, and base metal products.

Meanwhile, exports to Pakistan also demonstrated strong growth of 42.87%, reaching US$ 47.59 Mn, supported by improved export performance in other textile articles, betel leaves, desiccated coconut, and other articles of stone.

Sri Lanka’s Export Performance in Regions

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

Exports to the European Union, which account for 25.5% of Sri Lanka’s total merchandise exports, recorded a decline of 14.85% in June 2026 compared to the corresponding month of 2025. However, during the cumulative period from January to June 2026, exports to the EU increased by 2.49% year-on-year, indicating a marginal improvement in overall export performance to the region.

Exports to the top five EU markets were recoded as; Italy US$ 337.2 million (increased by 6.58%), Germany US$ 328.51 million (decreased by 5.64%), Netherlands US$ 204.64 million (decreased by 7.68%), France US$ 130.62 million (decreased by 1.03%) and Belgium US$ 120.36 million (increased by 4.72%) during the cumulative period of January to June 2026 in comparison to the corresponding period in 2025.

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 June 2026 were estimated by the EDB.