Sri Lanka’s exports increased 13.71% y-o-y in January
The Morning: Sri Lanka’s export sector recorded a year-on-year growth of 13.71%, with total export earnings reaching $ 1,532.6 million in January, according to provisional data released by the Sri Lanka Customs.
Accordingly, in year-on-year terms, gems and jewellery and petroleum products recorded a growth of 10.66% ($ 1,165.02 million) and services export earnings increased significantly by 24.59% ($ 367.55 million) in January 2026, according to provisional data.
Sri Lanka Export Development Board (EDB) Chairperson and Chief Executive Officer Mangala Wijesinghe said: “Sri Lanka’s export earnings for January 2026 reached $1,532.6 million, reflecting a strong year-on-year growth of 13.71% and a promising start toward achieving our 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. We remain confident that, with focused policy support and market diversification efforts, Sri Lanka is well positioned to maintain this positive momentum throughout 2026.”
Tea exports, which accounted for 12.8% of total merchandise exports, increased by 8.11% to $ 121.84 million. In terms of volume, tea exports grew by 6.9%, in key markets such as Turkey (120.95%), Russia (8.84%), and Saudi Arabia (11.24%), stated the report.
Coconut-based products also recorded a strong performance, with export earnings increasing 30.69% year-on-year. Within this sector, earnings from coconut kernel products increased by 43.32%, while coconut shell products grew by 46.87%, reflecting strong global demand.
Export earnings from rubber and rubber-based products have increased by 3.88% year-on-year to $77.97 million in January 2026, driven by strong growth in pneumatic and re-treated rubber tyres and tubes, which increased by 18.61%.
However, the report showed export earnings from apparel and textiles decreased by 2.82% year-on-year, reaching $ 447.25 million in January 2026, compared to the same month in 2025. This decrease was primarily due to a 2.73% drop in exports to the United States and a 1.82% decline in shipments to the European Union (EU) region.
However, exports from Sri Lanka to the EU accounted for 22% of merchandise exports, which increased by 12.27% in January 2026 compared to the previous year. Spices and essential oils exports also declined by 4.57% to $37.21 million driven by a significant 54.38% reduction in pepper exports to India.
The United States, which remains Sri Lanka’s largest single export destination, accounted for approximately 22% of total merchandise exports, recording a marginal decline of 0.9% to $ 257.85 million in January 2026 compared with the same period in 2025.
Meanwhile, India surpassed the United Kingdom (UK), with exports expanding significantly by 38.67% to reach $ 113.57 million in January 2026, driven mainly by higher shipments of petroleum oils, apparel, animal feed and electrical and electronic products. Exports to India and Pakistan accounted for 10.5% of Sri Lanka’s total merchandise exports, increasing 38.26% year-on-year to $ 122.08 million.
OSL take:
Sri Lanka’s exports industry has recorded steady growth through the years and is one of the country’s key revenue generators. The industry has shown its strength and resilience to external and internal economic shocks through the years by continuing to grow even amidst an unprecedented economic crisis faced by Sri Lanka in 2022. The many trade agreements as well as trade concessions enjoyed by Sri Lanka with many foreign countries, the improving business conducive environment in the country and the incentives being offered for foreign businesses entering the export industry have encouraged many foreign businesses/investors to explore the expanding business/investment opportunities in Sri Lanka’s export industry as well as related sectors. Given the growth and profits recorded by businesses already engaged in the export industry, especially by foreign businesses that are engaged in the industry are testament to the increasing business potential of Sri Lanka’s export industry. Foreign businesses could also look at forming partnerships or joint ventures to enter Sri Lanka’s export industry and related sectors.
| Article Code : | VBS/AT/20260305/Z_2 |