Sri Lanka records 8 per cent export growth in the first half of 2026, with merchandise and services both advancing – but sustaining the momentum will matter more than celebrating the milestone
Bismarck
COLOMBO, Monday – Sri Lanka earned an estimated US$9.01 billion from merchandise and services exports during the first six months of 2026, an increase of 8 per cent over the corresponding period last year and another encouraging indicator for an economy attempting to build a more durable post-crisis foreign-exchange base.
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Official figures released by the Export Development Board show merchandise exports reaching approximately US$7.07 billion between January and June, an increase of 8.95 per cent year-on-year, while estimated services exports rose 4.49 per cent to approximately US$1.94 billion.
June itself produced particularly strong merchandise numbers. Goods exports reached an estimated US$1.31 billion during the month, representing growth of 15.09 per cent compared with June 2025, while services exports were estimated at US$344.52 million, an increase of 3.75 per cent.
Combined exports for June therefore reached approximately US$1.66 billion, up 12.53 per cent yearon-year. Some of the movement beneath those headline figures is particularly noteworthy. During the first half of the year, electrical and electronic component exports recorded exceptionally strong year-on-year growth, while processed food and beverages, coconut-based products, rubber products and seafood also expanded.
The performance suggests that Sri Lanka’s export story is capable of becoming broader than its traditional dependence upon a relatively narrow group of established products.
The services number deserves attention for a different reason. At almost US$1.94 billion for six months, services already represent more than one-fifth of combined export earnings, reinforcing the growing importance of ICT/BPM, transport and logistics, construction and financial services to the country’s foreign-exchange earning capacity.
For a country which experienced the consequences of a catastrophic foreign-exchange shortage only four years ago, increasing recurring dollar earnings is not simply desirable economic growth. It is part of the protection required against another external-sector crisis.
Exports Cross $9 Billion…
There is nevertheless reason to resist becoming intoxicated by a single headline number. Export growth needs to be assessed against import expenditure, external debt-service requirements, remittances, tourism earnings and the movement of the rupee. More importantly, Sri Lanka must determine whether present growth represents a sustained expansion of productive capacity or simply a favourable period for existing exporters.
The challenge is therefore not merely to cross US$9 billion in six months but to establish how much further the export base can be expanded. New markets, highervalue manufacturing, technology services and value addition to agricultural production offer opportunities, but competitiveness, energy costs, taxation, logistics and the predictability of Government policy will determine whether businesses can exploit them.
Sri Lanka’s recovery cannot indefinitely depend upon controlling imports, attracting tourists or sending more citizens overseas to remit foreign currency. An economy that intends to prosper rather than merely remain solvent must ultimately sell substantially more goods and services to the rest of the world.
And, be that as it may, the first six months of 2026 have produced a number worth welcoming. The real test will be whether Sri Lanka can turn US$9 billion in half a year from a milestone into the new minimum.
