Sri Lanka’s export sector has surpassed the US$ 12 Bn mark during the first eight months of 2026, with total exports reaching US$ 12.01 Bn, an increase of 4.26% compared with US$ 11.52 Bn recorded during the corresponding period of 2025.
According to a statement of the Export Development Board of Sri Lanka (EDB), the growth reflects continued momentum in Sri Lanka’s export performance, with both merchandise and services exports recording positive growth during the period.
Merchandise exports increased by 3.63% to US$ 9.41 Bn, while services exports recorded a stronger 6.59% growth, reaching US$ 2.60 Bn. The increasing contribution of services continues to strengthen the overall export base and supports the diversification of Sri Lanka’s export earnings.
The positive momentum was also reflected in the performance during August 2026, when total exports reached US$ 1.60 Bn, recording a year-on-year growth of 1.77%. Services exports showed particularly strong performance during the month, increasing by 13.97% to US$ 331.87 Mn, while merchandise exports amounted to US$ 1.27 Bn.
The achievement of the US$ 12 Bn milestone during the first eight months of the year marks another significant step in Sri Lanka’s efforts to expand and diversify its export base, strengthen its presence in international markets and increase the contribution of exports to the national economy.
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$ 1,269.49 Mn in August 2026, representing a 1.0% year-on-year decrease compared to August 2025.
Meanwhile, the services export sector continued its positive growth momentum, generating an estimated US$ 331.87 Mn in August 2026, representing a 13.97% increase compared to the corresponding month of the previous year. The continued expansion of services exports highlights the sector’s growing contribution to Sri Lanka’s export earnings, foreign exchange generation, and overall economic resilience.
Consequently, Sri Lanka’s total exports, comprising both merchandise and services, reached an estimated US$ 1,601.36 Mn in August 2026, recording an increase of 1.77 % year-on-year growth compared to August 2025.
Overall, Sri Lanka’s export performance during January–August 2026 demonstrates the continued resilience of the country’s external sector, with total exports surpassing the US$ 12 Bn milestone. The positive performance of both merchandise and services exports reflects continued progress towards developing a more diversified, competitive, and export-oriented economy, in line with Sri Lanka’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 August 2026, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board (EDB), Mangala Wijesinghe, stated: “Surpassing the US$ 12 Bn mark in total exports during the first eight months of 2026 is a significant milestone for Sri Lanka’s export sector and reflects the resilience, adaptability and continued efforts of our export community. The positive growth recorded in both merchandise and services exports, together with the particularly strong performance of services exports in August, demonstrates the increasing diversity and strength of Sri Lanka’s export base.
As we build on this momentum, our focus must remain on strengthening the competitiveness of our existing export sectors while accelerating the development of new products, services and markets. Greater value addition, innovation, technology adoption, market diversification and deeper integration into global value chains will be critical to sustaining export growth and creating greater value for the national economy.
The EDB will continue to work closely with exporters, industry associations and government stakeholders to address emerging challenges, improve the enabling environment for international trade and support businesses in expanding their global presence. With sustained collaboration and a strong focus on competitiveness and diversification, we remain committed to advancing Sri Lanka towards its long-term export ambitions and building a more resilient, competitive and export-oriented economy.”
Full statement :
Major Exports in August 2026
- Products and Services with Positive Growth (Increases)
Rubber and Rubber-Based Products recorded a positive performance in August 2026, with export earnings increasing by 9.24% year-on-year to US$ 94.98 Mn, supported by improved performance across several key product segments. Notably, exports of Industrial and Surgical Rubber Gloves increased by 10.71%, making a significant contribution to the sector’s overall growth. Meanwhile, exports of Gaskets, Washers, Seals and other Hard Rubber Products recorded a substantial 68.26% increase compared to August 2025, reflecting sustained international demand and the continued competitiveness of Sri Lanka’s rubber-based manufacturing sector.
Spices and Essential Oils recorded particularly strong growth in August 2026, with export earnings increasing by 82.08% year-on-year to US$ 75.29 Mn. This significant expansion was primarily driven by a remarkable 564.73% increase in Pepper exports compared to August 2025, which made a substantial contribution to the sector’s overall performance.
The Food and Beverages sector recorded a 25.62% year-on-year increase in export earnings, reaching US$ 57.32 Mn in August 2026. The positive performance was primarily driven by the Processed Food sub-category, which recorded a 38.96% increase, reaching US$ 25.18 Mn during the month. The sector continues to maintain a strong presence in international markets, reflecting sustained global demand for Sri Lankan food and beverage products.
Activated Carbon, a high-value, value-added product derived from coconut shells, recorded a 12.72% year-on-year increase, with export earnings reaching US$ 21.8 Mn in August 2026. This strong performance underscores the growing contribution of diversified, value-added coconut-based products to Sri Lanka’s export earnings, while highlighting the sector’s potential for further value addition, product diversification and expansion in global markets.
The Electrical and Electronic Components sector recorded significant growth of 56.31% in August 2026, with export earnings reaching US$ 62.4 Mn, compared to the corresponding month of 2025. This notable performance was mainly supported by a 30.83% increase in exports of Insulated Wires and Cables, highlighting Sri Lanka’s expanding participation in global value chains and supply networks.
Seafood exports recorded a 3.58% year-on-year increase, reaching US$ 19.09 Mn in August 2026. The positive performance was mainly driven by increases in key product categories, particularly Frozen Fish and Shrimps, which recorded increases of 17.02% and 92.0%, respectively.
Exports of Mineral and Mineral-based Products recorded a 15.32% year-on-year increase, reaching US$ 8.96 Mn in August 2026. This growth reflects a positive performance across the sector, supported by increased export earnings during the month.
On the services export front, ICT/BPM exports are estimated to have reached US$ 135.1 Mn in August 2026, continuing to make a strong contribution to the country’s overall services export performance. The continued expansion of this knowledge-intensive sector reflects the resilience of Sri Lanka’s services economy and its increasing importance as a source of export earnings, while further strengthening Sri Lanka’s position as a competitive destination for technology-enabled services in global markets.
Products with Negative Growth (Decreases)
The Apparel and Textiles sector faced a challenging period in August 2026, with export earnings declining by 8.4% year-on-year to US$ 464.27 Mn. The decline was observed across major export destinations, with shipments to the United States and the United Kingdom decreasing by 15.96%, and 11.79% respectively, compared to August 2025. This performance reflects continued challenges in the global apparel industry, including subdued consumer demand and evolving market conditions, which have affected export orders during the period.
Tea export earnings declined by 7.76% year-on-year to US$ 130.92 Mn in August 2026, mainly due to lower earnings from Bulk Tea, which decreased by 16.57%. The decline was primarily attributable to weaker export performance in key markets, particularly the Middle East, where tea exports decreased by 41.05% compared to August 2025. Within the region, exports to the United Arab Emirates, Iran, Saudi Arabia, and Iraq recorded notable declines of 72.22%, 76.2%, 13.68%, and 49.36%, respectively, reflecting challenging market conditions affecting Sri Lanka’s tea exports.
The Coconut-based Products sector recorded a 17.28% year-on-year decline in export earnings, reaching US$ 104.27 Mn in August 2026. Among the three major sub-categories, Coconut Kernel Products recorded the most significant decline, decreasing by 32.15%. Within this category, export earnings from Coconut Oil and Liquid Coconut Milk declined by 16.39% and 31.79%, respectively, contributing significantly to the sector’s overall decline.
Coconut Fibre-based Products also recorded a negative performance, with export earnings declining by 9.66% year-on-year. Meanwhile, exports of Coco Peat, Fibre Pith and Moulded Products decreased by 21.87%, reaching US$ 20.40 Mn in August 2026.
Ornamental Fish exports recorded a 10.3% year-on-year decline in export earnings, decreasing to US$ 1.48 Mn in August 2026. This reflects a notable contraction in export earnings compared with the corresponding month of the previous year.
Exports during the period of January – August 2026
Sri Lanka’s export performance remained positive during the January–August 2026 period, with total exports reaching an estimated US$ 12,006.64 Mn, reflecting a 4.26 % year-on-year growth compared to the corresponding period of 2025. Merchandise exports increased by 3.63 % to an estimated US$ 9,405.91 Mn, including estimated export values for Gems & Jewellery and Petroleum Products. Meanwhile, services exports recorded a stronger growth of 6.59 %, reaching US$ 2,600.73 Mn.
The continued growth in both merchandise and services exports demonstrates the resilience of Sri Lanka’s export sector amid evolving global market conditions. The sustained expansion of services exports, in particular, highlights their growing contribution to export diversification, foreign exchange earnings, and the overall strengthening of Sri Lanka’s external sector.
- Products & Services with Positive Growth (Increases)
Cumulative export earnings from several key sectors recorded strong growth during the first eight months of 2026, with Coconut-based Products, Rubber-based Products, Processed Food & Beverages, Spices and Concentrates, Electrical & Electronic Components recording year-on-year increases of 5.63%, 5.51%, 19.99%, 24.09%,and 57.49%, 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 by 5.63 % year-on-year to reach US$ 830.92 Mn during the period of Jan-August 2026, supported by Fibre-based Products (8.07%), and Shell-based Products (44.49%). The strong performance was driven by increased exports of products such as Coconut Oil (3.61%), Coconut Husk Chips (327.03%) and Activated Carbon (36.99%), reflecting sustained global demand and enhanced value addition within the sector.
The Rubber and Rubber-based Products sector generated export earnings of US$ 674.54 Mn during January–August 2026, recording a 5.51% year-on-year growth. The positive performance was primarily supported by increased exports of Pneumatic and Retreaded Rubber Tyres and Tubes and Industrial and Surgical Gloves, which grew by 4.15% and 4.36%, respectively. This continued growth reflects the resilience and competitiveness of Sri Lanka’s rubber-based manufacturing sector and its sustained presence in global markets.
Export earnings from the Food & Beverages sector increased by 19.99% year-on-year, reaching US$ 462.52 Mn during January–August 2026. The strong performance was largely driven by Processed Food exports, which recorded a notable 33.76% growth to reach US$ 214.61 Mn. This robust growth underscores the increasing international demand for Sri Lanka’s value-added food products and the sector’s potential for further expansion in global markets.
Meanwhile, export earnings from Spices and Essential Oils increased by 24.09%, reaching US$ 355.78 Mn during January–August 2026. This strong performance was primarily driven by Pepper and Cinnamon, with export earnings increasing by 49.27% and 24.47%, respectively, during the period. The growth in Pepper exports was mainly supported by a 56.21% increase in exports to India, while Cinnamon exports benefited from a significant 68.47% increase in shipments to Mexico. The strong performance of these key spice products highlights the continued international demand for Sri Lanka’s premium spices and their important contribution to overall export growth.
Exports of Electrical and Electronic Components (EEC) recorded exceptional growth during January–August 2026, increasing by 57.49% year-on-year to reach US$ 440.31 Mn. The strong performance was supported by significant growth across several key product categories, including Electrical Transformers (32.24%), Insulated Wires and Cables (76.8%), and Switches, Boards and Panels (28.94%). In addition, exports of Telephone Sets and Audio/Video Equipment and Boilers, Piston Engines, Pumps and Vacuum Pumps increased substantially by 273.03% and 497.24%, respectively, during the period. The sector’s strong performance highlights the growing competitiveness and export potential of Sri Lanka’s electrical and electronic manufacturing industry.
Furthermore, ICT/BPM exports are estimated to have increased by 9.76%, reaching US$ 1,145.3 Mn during January–August 2026. This strong performance underscores the continued expansion of Sri Lanka’s digital and knowledge-based economy, while highlighting the sector’s growing contribution to the country’s overall export earnings and its increasing importance as a high-value, services-oriented export sector.
Products with Negative Growth (Decreases)
Export earnings from the Apparel and Textiles sector declined by 6.76% year-on-year, reaching US$ 3,344.0 Mn during January–August 2026, compared with the corresponding period in 2025. The contraction was primarily driven by subdued demand in key export markets, particularly the United States and the European Union, which together account for more than half of Sri Lanka’s apparel exports. During the period, exports to the United States, European Union, and United Kingdom declined by 5.09%, 6.94%, and 11.15%, respectively, contributing to the overall decline in sector performance amid challenging global market conditions.
Tea export earnings declined by 7.56% year-on-year, reaching US$ 948.45 Mn during January–August 2026. The decline was mainly attributable to weaker performance across key product categories, with Bulk Tea exports decreasing by 10.86% and Tea Packets declining by 6.07% compared with the corresponding period in 2025.
Seafood exports also recorded a decline of 2.89%, generating export earnings of US$ 157.19 Mn during the period. The contraction was mainly driven by lower exports of Frozen Fish, which declined by 4.05%, and Fresh Fish, which decreased by 5.51%. The decline highlights the continued challenges faced by Sri Lanka’s seafood export sector amid changing international market conditions and demand patterns.
Table 1 shows a comparative analysis of merchandise export performance for August 2025–2026, along with the cumulative figures for the January–August period.
Table 1: Comparison of Product-wise Merchandise Export Performance
Sri Lanka’s Export Performance in Major Markets
Among the top fifteen export destinations, several key markets, including India, China, Turkey, Belgium, and Mexico, recorded positive year-on-year growth both in August 2026 and cumulatively during January–August 2026. This positive performance across multiple key markets reflects continued export growth and stronger market opportunities in these destinations.
The United States, Sri Lanka’s largest single export destination, accounting for approximately 20.7% of total merchandise exports, recorded a 13.43% year-on-year decline in export earnings to US$ 263.24 Mn in August 2026. Cumulative exports to the US during January – August 2026 also declined by 2.09%, reaching US$ 1,971.15 Mn, compared with the corresponding period in 2025. Despite these declines, the United States continued to be Sri Lanka’s leading export destination, maintaining its significant share in the country’s overall merchandise exports.
India strengthened its position as Sri Lanka’s second-largest export destination, surpassing the United Kingdom, with cumulative exports increasing by 10.15% to US$ 776.62 Mn during January–August 2026. Exports to India also recorded robust year-on-year growth of 32.8% in August 2026, reaching US$ 107.26 Mn. In contrast, exports to the United Kingdom declined by 7.65% year-on-year to US$ 76.08 Mn in August 2026, while cumulative exports during January–August 2026 recorded a 10.04% decline, reaching US$ 582.66 Mn. India’s stronger export performance further consolidated its position as Sri Lanka’s second-largest export destination during the period.
The United Arab Emirates (UAE) recorded a 32.09% year-on-year decline in export earnings in August 2026, reaching US$ 21.63 Mn. Cumulative exports to the UAE during January–August 2026 also recorded a 9.13% decline compared with the corresponding period in 2025, reaching US$ 198.40 Mn. Despite the temporary decline in export earnings, the UAE continued to remain an important destination for Sri Lankan exports over the period.
Turkey recorded exceptional export growth of 141.20% in August 2026, with export earnings reaching US$ 34.66 Mn. Cumulative exports during January–August 2026 also increased substantially by 99.95% year-on-year, reaching US$ 187.53 Mn. This strong performance reflects improved market penetration, and growing demand for Sri Lankan products in the Turkey.
Notably, Tea exports to Turkey recorded exceptional growth of 165.48% in August 2026, while cumulative tea exports during January–August 2026 increased by 136.33% year-on-year. This remarkable growth highlights the rapidly expanding demand for Sri Lankan tea in the Turkish market and points to significant opportunities for further market development and export expansion.
China also recorded strong export growth of 29.08% in August 2026, with export earnings reaching US$ 26.19 Mn. Cumulative exports to China during January–August 2026 also increased substantially by 17.39% year-on-year, reaching US$ 208.92 Mn. The strong performance was supported by notable growth in key export products, particularly activated carbon, which recorded increases of 59.9% in August 2026 and 81.25% during January–August 2026, compared with the corresponding periods in 2025.
Table 2 shows a comparative analysis of merchandise export performance across the top 15 export markets for August 2025 & 2026, along with the cumulative figures for the January – August period of 2025 & 2026.
Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations
Exports to FTA Partners (India & Pakistan)
- August 2026
Exports to India and Pakistan collectively accounted for 9.02% of Sri Lanka’s total merchandise exports in August 2026, with export earnings reaching US$ 114.57 Mn, representing a 30.13% year-on-year increase.
Exports to India increased by 32.8%, reaching US$ 107.26 Mn, primarily driven by higher exports of pepper and animal feed. Meanwhile, exports to Pakistan recorded a marginal growth of 0.55%, reaching US$ 7.31 Mn.
- January – August 2026
During January–August 2026, export earnings to India increased by 10.15% year-on-year, reaching US$ 776.62 Mn. This growth was primarily driven by increased exports of boilers, piston engines, pumps and vacuum pumps; coconut shell charcoal; animal feed; and base metal products.
Exports to Pakistan also recorded strong growth of 26.16%, reaching US$ 62.80 Mn during the period. This positive performance was supported by increased exports of other textile articles, desiccated coconut, and other articles of stone, indicating increased demand for Sri Lankan products in the Pakistani market.
Sri Lanka’s Export Performance in Regions
Table 3 shows the comparison of region wise exports for August 2025 & 2026, along with the cumulative figures for the January–August period of 2025 & 2026.
Table 3: Comparison of Region wise Merchandise Export Performance
Exports to the European Union (EU), which accounted for approximately 22.2% of Sri Lanka’s total merchandise exports, recorded a marginal increase of 0.1% year-on-year in August 2026 compared with the corresponding month of 2025. However, cumulative exports to the EU during January-August 2026 recorded a marginal decline of 0.42% year-on-year. The relatively modest changes in both monthly and cumulative export earnings indicate a broadly stable export performance in the EU market during the period.
Among the top five EU export markets, Italy remained the leading destination, with export earnings reaching US$ 451.12 Mn, reflecting a 0.89% increase during January-August 2026 compared with the corresponding period in 2025. Exports to Germany amounted to US$ 450.03 Mn, recording a 5.76% decline, while exports to the Netherlands decreased by 5.72% to US$ 287.75 Mn. Exports to France also declined by 7.49%, reaching US$ 174.01 Mn. In contrast, exports to Belgium increased by 2.83%, reaching US$ 170.26 Mn during January-August 2026. (Newswire)
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