Sri Lanka’s export sector launched into 2026 with a robust start, showcasing a notable year-on-year growth of 13.71%, indicating a revitalized momentum in external trade performance. As per statistics released by Sri Lanka Customs, alongside estimated export figures for gems and jewellery, petroleum products, and services, total export earnings reached US$ 1,532.6 million. This promising performance reflects broad-based growth across key export sectors, improved global demand conditions, and sustained national efforts to enhance export competitiveness at the year’s outset.
Commenting on this achievement, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board (EDB), stated: “Sri Lanka’s export earnings for January 2026 reached US$ 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.”
In January 2026, merchandise exports experienced a year-on-year growth of 10.66%, reaching US$ 1,165.02 million, according to provisional data from Sri Lanka Customs, including estimated figures for gems and jewellery and petroleum products. This steady expansion reflects improved demand across key product categories and the strengthening performance of the industrial export sector.
Meanwhile, services export earnings for January 2026 are estimated to have increased significantly by 24.59%, reaching US$ 367.55 million. This strong growth underscores the rising importance of Sri Lanka’s knowledge-based economy and its expanding contribution to overall national export earnings. The services sector, comprising ICT/BPM, construction, financial services, and transport and logistics, continues to play a pivotal role in diversifying the country’s export basket while generating high-value employment opportunities nationwide, further reinforcing Sri Lanka’s transition toward a more innovation-driven and services-oriented economy.
Major Exports in January 2026
Products and Services with Positive Growth
Most export sectors recorded notable year-on-year increases in January 2026. Tea exports, accounting for 12.8% of total merchandise exports, rose by 8.11% to US$ 121.84 million, driven primarily by higher earnings from Bulk Tea (+9.72%) and Tea Packets (+2.3%). In terms of volume, tea exports grew by 6.9%. Key markets such as Turkey, Russia, and Saudi Arabia saw significant increases of 120.95%, 8.84%, and 11.24%, respectively.
Coconut-based products also recorded a strong performance, with export earnings increasing 30.69% year-on-year in January 2026. Within this sector, earnings from Coconut Kernel Products increased by 43.32%, while Coconut Shell Products grew by 46.87%, reflecting strong global demand and enhanced value addition. Notably, Coconut Oil exports rose by 76.2%, Coconut Milk Powder by 60.71%, Coconut Cream by 47.94%, and Liquid Coconut Milk by 23.09% compared to January 2025. Meanwhile, earnings from Activated Carbon, a key Coconut Shell product, increased by 39.51%, reaching US$ 20.34 million, underscoring the sector’s expanding contribution to Sri Lanka’s export earnings.
Export earnings from Rubber and Rubber-based products increased by 3.88% year-on-year to US$ 77.97 million in January 2026, driven by strong growth in Pneumatic & Retreated Rubber Tyres & Tubes, which increased by 18.61%.
The Food & Beverages sector recorded a significant 25.29% year-on-year increase, reaching US$ 52.31 million, with processed foods contributing the largest share of growth (+28.7%).
Electrical and electronics components showed remarkable growth, with earnings rising 50.79% to US$ 42.93 million, led by a 73.49% increase in exports of Insulated Wires and Cables.
Seafood exports surged 66.55% year-on-year to US$ 29.43 million, boosted by higher shipments of frozen fish (+37.64%) and fresh fish (+135.39%). Ornamental fish exports also recorded significant growth of 70.06% to US$ 2.67 million.
Meanwhile, exports across all major services sectors are estimated to record positive growth in January 2026 compared with January 2025: ICT/BPM (+60.21%, US$ 177.83 million), Construction (+5.48%, US$ 11.6 million), Financial Services (+5.71%, US$ 5.29 million), and Transport and Logistics (+2.88%, US$ 172.83 million). This performance underscores the continued expansion and resilience of Sri Lanka’s knowledge and services-driven economy, highlighting its growing contribution to national export earnings.
Products with Negative Growth
Export earnings from Apparel & Textiles decreased by 2.82% year-on-year, reaching US$ 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 EU region.
Spices and Essential Oils exports also declined by 4.57% to US$ 37.21 million during the same period, largely driven by a significant 54.38% reduction in Pepper exports to India.
The estimated export value of Diamonds, Gems & Jewellery is expected to decrease by 10.96%, reaching US$ 33.58 million in January 2026 compared to January 2025.
Sri Lanka’s Export Performance in Major Markets
Sri Lanka’s key export destinations demonstrated resilient performance at the start of 2026. Among the top ten markets, India, United Kingdom, Germany, Italy, the Netherlands, China, and Australia recorded positive year-on-year growth, reflecting steady demand recovery and strengthened trade engagement across both traditional and emerging markets.
The United States, which remains Sri Lanka’s largest single export destination and accounts for approximately 22% of total merchandise exports, recorded a marginal decline of 0.9% to US$ 257.85 million in January 2026 compared with the same period in 2025.
India continued to rank as Sri Lanka’s second-largest export destination, surpassing the United Kingdom, with exports expanding significantly by 38.67% to reach US$ 113.57 million in January 2026. Meanwhile, exports to the United Kingdom increased by 3.18%, reaching US$ 82.08 million compared with January 2025.
Exports to FTA Partners (India & Pakistan)
In January 2026, exports to India and Pakistan accounted for 10.5% of Sri Lanka’s total merchandise exports, increasing 38.26% year-on-year to US$ 122.08 million. Exports to India increased significantly by 38.67%, driven mainly by higher shipments of Petroleum Oils, Apparel, Animal Feed, and Electrical & Electronic Products. In parallel, exports to Pakistan increased by 32.97%, reflecting higher shipments of Betel Leaves, Textile, and Coconut Kernel Products.
Sri Lanka’s Export Performance in Regions
Exports to the European Union (EU), which account for 22% of Sri Lanka’s merchandise exports, increased during January 2026 by 12.27%. Exports to the top five EU markets were recorded as: Germany US$ 58.05 million (increased by 7.76%), Italy US$ 57.05 million (increased by 25.27%), Netherlands US$ 39.02 million (increased by 6.52%), France US$ 21.49 million (decreased by 3.02%), and Belgium US$ 21.11 million (increased by 7.48%) during January 2026 compared to the corresponding period in 2025.
Sources: Data was obtained from the Central Bank of Sri Lanka (CBSL) and Sri Lanka Customs. Export figures of Services, Gems & Jewellery, and Petroleum Products for January 2026 were estimated by the EDB.
