Sri Lanka’s export sector commenced 2026 on a strong footing, recording a year-on-year growth of 13.71% in January, according to the Sri Lanka Export Development Board (EDB).
Total export earnings for January 2026 reached US$ 1,532.6 million, based on statistics released by Sri Lanka Customs together with estimated export figures for gems and jewellery, petroleum products and services.
The EDB said the performance reflected broad-based growth across key export sectors, improving global demand conditions, and sustained national efforts to enhance export competitiveness at the outset of the year.
Chairman and Chief Executive Officer of the EDB Mangala Wijesinghe said export earnings of US$ 1,532.6 million marked a promising start towards achieving annual export targets.
“This performance highlights the resilience and growing competitiveness of the country’s export sector, supported by the gradual recovery of key international markets, sustained industrial capacity, and the continued implementation of strategic export development initiatives,” he said, expressing confidence that the positive momentum would continue throughout 2026 with focused policy support and market diversification efforts.
Merchandise exports in January 2026 grew 10.66% year-on-year to US$ 1,165.02 million, according to provisional data from Sri Lanka Customs, including estimated figures for gems and jewellery and petroleum products.
Services export earnings are estimated to have increased by 24.59% to US$ 367.55 million. The services sector, comprising ICT/BPM, construction, financial services, and transport and logistics, continues to play a significant role in diversifying the export basket and generating high value employment opportunities, the EDB stated.
Sector performance
Among merchandise exports, tea — accounting for 12.8% of total merchandise exports — increased 8.11% to US$ 121.84 million, with higher earnings from bulk tea and tea packets. Export volumes rose 6.9%, with notable increases in shipments to Turkey, Russia and Saudi Arabia.
Coconut-based products recorded a 30.69% year-on-year increase. Earnings from coconut kernel products rose 43.32%, while coconut shell products grew 46.87%. Within coconut kernel products, coconut oil, coconut milk powder, coconut cream and liquid coconut milk posted substantial gains. Activated carbon exports increased 39.51% to US$ 20.34 million.
Rubber and rubber-based product exports rose 3.88% to US$ 77.97 million, supported by growth in pneumatic and retreated rubber tyres and tubes.
The food and beverages sector grew 25.29% to US$ 52.31 million, driven largely by processed foods.
Electrical and electronic components exports increased 50.79% to US$ 42.93 million, led by insulated wires and cables. Seafood exports rose 66.55% to US$ 29.43 million, with higher shipments of frozen and fresh fish. Ornamental fish exports increased 70.06% to US$ 2.67 million.
All major services sectors are estimated to have recorded positive growth compared to January 2025. ICT/BPM grew 60.21% to US$ 177.83 million, construction 5.48% to US$ 11.6 million, financial services 5.71% to US$ 5.29 million, and transport and logistics 2.88% to US$ 172.83 million.
However, apparel and textiles exports declined 2.82% to US$ 447.25 million, primarily due to reduced exports to the United States and the European Union. Spices and essential oils exports fell 4.57% to US$ 37.21 million, largely owing to a sharp decline in pepper exports to India. Diamonds, gems and jewellery exports are estimated to have decreased 10.96% to US$ 33.58 million.
Performance in key markets
The United States remained Sri Lanka’s largest single export destination, accounting for approximately 22% of total merchandise exports, though exports to the US declined marginally by 0.9% to US$ 257.85 million.
India ranked as the second-largest export destination, with exports expanding 38.67% to US$ 113.57 million, surpassing the United Kingdom. Exports to the United Kingdom increased 3.18% to US$ 82.08 million.
Exports to India and Pakistan together accounted for 10.5% of total merchandise exports, increasing 38.26% year-on-year to US$ 122.08 million. Exports to India were driven by higher shipments of petroleum oils, apparel, animal feed and electrical and electronic products, while exports to Pakistan grew due to increased shipments of betel leaves, textiles and coconut kernel products.
Exports to the European Union, which accounts for 22% of Sri Lanka’s merchandise exports, increased 12.27% in January 2026.
Among the top five EU markets, exports to Germany rose 7.76% to US$ 58.05 million, Italy 25.27% to US$ 57.05 million, the Netherlands 6.52% to US$ 39.02 million and Belgium 7.48% to US$ 21.11 million, while exports to France declined 3.02% to US$ 21.49 million, the EDB added.
