According to data from the Export Development Board (EDB), Sri Lanka’s merchandise exports experienced a slight decline of 1 percent, totaling $1,269.49 million in August 2026 compared to the same month last year. This downturn was primarily influenced by reductions in key sectors such as apparel, tea, and coconut products.
EDB Chairman Mangala Wijesinghe emphasized the importance of enhancing the competitiveness of existing export sectors while simultaneously pursuing the development of new products, services, and markets. He highlighted that increasing value addition, fostering innovation, adopting advanced technologies, diversifying markets, and integrating more deeply into global value chains are vital for sustaining export growth and enhancing the overall value to the national economy.
The apparel and textile sector saw a notable decline in export revenues, dropping 8.4 percent year-on-year to $464.27 million in August 2026. This reduction was evident across major export markets, particularly with shipments to the United States, which fell by 13.43 percent compared to August 2025.
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Similarly, tea export revenues fell by 7.76 percent year-on-year, reaching $130.92 million in August 2026. The coconut product sector also faced challenges, with earnings declining by 17.28 percent to $104.27 million during the same period. Furthermore, exports of diamonds, gemstones, and jewelry experienced a stark decrease of 25.05 percent, totaling $30.53 million in August 2026.
From January to August 2026, total merchandise export earnings amounted to $12.01 billion, reflecting a 4.26 percent increase compared to the corresponding period in 2025. However, exports to the United States saw a significant decline of 13.43 percent, amounting to $263.24 million in August 2026.
In contrast, India remained the second-largest destination for Sri Lankan exports, with a remarkable increase of 32.80 percent, reaching $107.26 million in August 2026. On the other hand, exports to the United Kingdom experienced a decrease of 7.65 percent, totaling $76.08 million, despite Sri Lanka benefiting from preferential access under the UK’s Developing Countries Trading Scheme (DCTS), which allows duty-free entry for approximately 92 percent of product lines.
(Colombo/Sep25/2026)
