Export earnings exceed $ 9 billion in 1H
Daily FT: Sri Lanka’s export sector continued to demonstrate resilience and sustained growth, with the first six months’ total earnings surpassing $ 9.01 billion and reflecting a 7.96% year-on-year (YoY) growth despite global headwinds.
The latest data released by the Sri Lanka Export Development Board (EDB) showed that merchandise exports shipped in June were up 18.25% YoY to over $ 1.31 billion, whilst estimated services earnings in the month increased by 3.75% YoY to $ 344.52 million. June exports also registered a 7.37% month-on-month (MoM) increase compared to May 2026. Total earnings during June surpassed $ 1.65 billion, reflecting a 12.53% YoY growth.
Merchandise export earnings during January-June increased by 8.95% YoY to over $ 7.07 billion, whilst services exports during the same period were estimated to have surged by 4.49% to $ 1.93 billion.
Services exports include sectors such as ICT/BPM, construction, financial services, and transport and logistics.EDB Chairman Mangala Wijesinghe said: “Sri Lanka’s export performance during the first half of 2026 demonstrates the resilience and competitiveness of our exporters, with total exports surpassing the $ 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.”
He said 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,” Wijesinghe added.
As per the data shared by the EDB, the industrial sector showed a significant increase in performance.
Apparel and textiles remained the dominant contributor, but the sector saw a 6.07% YoY decrease between January and June, reaching over $ 2.44 billion.
Electrical and Electronic Components (EEC) exports surged by 123.48% YoY to $ 450.20 million, supported by strong performance in Electrical Transformers (36.99%), Insulated Wires and Cables (72.91%), and Switches, Boards and Panels (19.18).Agriculture exports also witnessed a remarkable growth during the first-half months.
Earnings from the rubber sector increased by 5.24% to $ 492.32 million during the first six months, largely driven by performance in Pneumatic and Re-treaded 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.
Seafood exports also grew by 17.61% to reach $ 122.51 million, supported by higher exports of Frozen Fish (7.6%) and Fresh Fish (50.06%). The growth reflects improved export volumes and strengthening demand in international markets.
However, tea exports, which comprised 12% of total merchandise exports, declined by 5.69% YoY to reach $ 700.80 million during the January-June 2026 period.
On the services side, the ICT/BPM and financial services sectors showed positive growth during the first six months, with increases of 17.66% YoY to $ 885.42 million and 28.32% YoY to $ 29.23 million, respectively.
The robust June figures build on the positive trajectory recorded in 2025. Sri Lanka’s total export earnings reached over $ 17.25 billion last year, marking a 5.6% YoY increase and achieving nearly 95% of the $ 18.2 billion export target.
For 2026, Sri Lanka has set an ambitious export revenue target of $ 20 billion, reflecting an anticipated YoY growth of 10-12%. Merchandise exports are expected to exceed $ 15.7 billion in 2026, while services exports are projected to rise to $ 4.3 billion.
Among Sri Lanka’s top 15 export markets are the US, India, UK, Italy, Germany, Netherlands, China, UAE, Australia, France, Türkiye, Canada, Belgium, Japan, and Mexico. India, China, Turkey, Japan, and Mexico recorded positive YoY growth in both June 2026 and cumulatively for the January-June period, reflecting emerging resilience across major international markets.
The US, Sri Lanka’s largest single export destination accounting for around 22% of total merchandise exports, recorded a marginal YoY decrease of 0.58% to $ 250.87 million in June 2026. Meanwhile, cumulative exports for January-June reflected a slight increase of 0.13%, reaching $ 1,436.85 million compared to the corresponding period in 2025, indicating stable but relatively subdued overall growth in exports to the US.
India strengthened its position as Sri Lanka’s second-largest export destination, surpassing the UK, with cumulative exports increasing by 36.16% to $ 688.47 million during January-June.OSL take:
Sri Lanka’s export sector is presenting expanding business/investment opportunities for foreign businesses/investors as the country’s export earnings continue to post steady growth despite an uncertain global trading environment. Strong performance in both merchandise and services exports reflects the resilience of Sri Lankan exporters and the growing competitiveness of key industries, including apparel, food and beverages, rubber-based products, information technology, business process outsourcing, spices, and value-added agricultural products. The sustained growth in export earnings is also encouraging fresh investments in manufacturing, export processing, logistics, warehousing, packaging, and supply chain services. The Sri Lankan government’s focus on export-led economic growth, trade facilitation, and investment promotion is further enhancing Sri Lanka’s appeal as a production and export base. Supported by its strategic location along major Indian Ocean shipping routes and improving macroeconomic stability, the country offers foreign businesses/investors access to regional and global markets through efficient logistics and a skilled workforce. As Sri Lanka continues to diversify its export basket and move towards higher-value products and services, business/investment opportunities are expanding for international manufacturers, technology providers, logistics operators, and strategic investors seeking long-term growth in one of South Asia’s emerging export hubs.
| Article Code : | VBS/AT/20260804Z_4 |