Sri Lanka’s Q1 exports grow 5.87% reaching $ 4.21 billion
The Morning: Sri Lanka’s export sector showed a 5.87% increase compared to the same period last year, with total exports rising to $ 4.21 billion, according to data released by the Sri Lanka Export Development Board (EDB).
The momentum continued in March, with exports surging to $ 1.51 billion within the month, marking a 6.24% year-on-year (y-o-y) increase and an 11.76% month-on-month jump from February.
Merchandise exports climbed 4.61% y-o-y to $ 3.33 billion in Q1, while services exports saw an even stronger 10.88% rise, reaching $ 887.04 million.
“This performance underscores Sri Lanka’s growing competitiveness in global trade,” said EDB Chairperson and CEO Mangala Wijesinghe. “Our exporters have shown remarkable resilience and adaptability in challenging markets.”
Sri Lanka’s apparel and textile sector saw an 11.73% surge in March, reaching $ 495.95 million. The growth was largely fuelled by robust demand from the US (+18.07%) and the UK (+16.65%), reinforcing these markets as critical buyers of Sri Lankan garments. The sector’s resilience highlights the country’s ability to maintain competitiveness despite global economic fluctuations.
The tea industry, another vital export, recorded an 11.19% increase in March, generating $ 138.83 million in revenue. This uptick was driven by heightened demand from Iraq, Russia, and Iran, with exports to Iran skyrocketing by 155.11%.
Bulk tea and tea packets were key contributors, with volumes rising 10.26% y-o-y, signalling strong international demand for Sri Lanka’s signature commodity.
Meanwhile, coconut-based products experienced a remarkable 27.24% growth in March, with coconut oil exports alone surging 76.63%. Other high-performing subcategories included coconut milk powder (+93.45%) and coconut cream (+46.15%), demonstrating the sector’s expanding global footprint.
One of the most dramatic increases came from spices and essential oils, which soared by 146.26% in March, led by pepper (942.86%), cinnamon (74.16%), and cloves (560%). This exceptional performance underscores Sri Lanka’s growing dominance in the global spice trade.
The ICT/BPM (Information and Communication Technology/Business Process Management) sector also posted steady growth, expanding 10.8% in Q1 to $ 352.53 million. This reinforces Sri Lanka’s emergence as a knowledge-based economy, with increasing foreign investment in tech and outsourcing services.
OSL take:
Sri Lanka’s exports sector has recorded a steady growth while also serving as a key revenue generator to the country. The latest statistics reveal this growth as well as the monies generated through it. The country’s exports sector has shown great resilience even during the 2022 economic crisis by continuing to generate revenue to the country, which has now witnessed a steady growth. The many trade agreements as well as trade concessions enjoyed by Sri Lanka with many foreign countries and the incentive schemes presented by the Sri Lankan government have all served to boost the country’s exports sector. Also, the new foreign businesses/investors exploring opportunities in Sri Lanka’s exports sector while businesses already engaged in the sector engaged in local and overseas expansion programmes further indicate the growing business potential and opportunities in the sector. Given the advantage of Sri Lanka’s geographical positioning in the Indian Ocean, foreign businesses/investors could look at setting up bases in Sri Lanka to engage in trade with other counties in the region using the preferential treatments enjoyed by the country with many foreign countries including other countries in the South Asian region. With all these developments, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka’s exports sector while also looking at the possibility of further expanding operations through local and international expansions.
| Article Code : | VBS/AT/20250429/Z_2 |