Sri Lanka’s export sector has demonstrated continued resilience and growth momentum, with total exports surpassing the US$ 7.3 billion during the first five months of 2026. The country’s combined merchandise and services exports reached an estimated US$ 7,393.39 million from January to May 2026, recording a 7.56% year-on-year growth compared to the corresponding period in 2025.
Further analysis indicates that cumulative merchandise export earnings for the period January to May 2026 amounted to US$ 5,758.44 million, reflecting a 7.63% increase compared to the same period in 2025, highlighting steady performance across key export categories.
Meanwhile, services exports continued their upward trajectory, recording an estimated 7.31% growth during the cumulative January–May period to reach US$ 1,634.95 million, further reinforcing the sector’s expanding contribution to Sri Lanka’s overall export earnings.
According to provisional data released by Sri Lanka Customs, supplemented by estimated figures for Gems & Jewellery and Petroleum Products, merchandise exports in May 2026 amounted to US$ 1,223.49 million, reflecting a significant 18.25% increase compared to May 2025.
The services export sector continued its positive contribution to Sri Lanka’s export earnings, generating an estimated US$ 347.15 million in May 2026, an increase of 18.67% compared to the same period last year. The continued expansion of services exports highlights the growing importance of this sector in strengthening Sri Lanka’s overall export performance and foreign exchange earnings.
In total, Sri Lanka’s exports for May 2026 reached US$ 1,570.64 million, recording an impressive 18.34% year-on-year growth compared to May 2025. The broad-based growth across merchandise and services sectors reflects the improving competitiveness and adaptability of Sri Lankan exporters amid evolving global market conditions.
The broad-based expansion across both merchandise and services sectors reflects the improving competitiveness and adaptability of Sri Lankan exporters amid evolving global market conditions. Overall performance during the first five months of 2026 underscores the resilience of Sri Lanka’s external sector and its steady progress towards sustainable export-led economic growth.
This continued expansion also highlights the growing importance of Sri Lanka’s knowledge-based economy. The services sector, encompassing ICT/BPM, construction, financial services, and transport and logistics, is playing an increasingly vital role in diversifying the export base, enhancing value addition, and generating high-skilled employment opportunities across the economy.
Commenting on the export performance in May 2026, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board (EDB), stated:
“Sri Lanka’s export sector has demonstrated strong resilience and sustained growth momentum in 2026, surpassing the US$ 7 billion milestone within the first five months of the year. The estimated export earnings of US$ 7,393.39 million, recording a 7.56% growth compared to the corresponding period in 2025, reflect the strength, adaptability, and determination of Sri Lankan exporters. The outstanding performance in May 2026, with total exports reaching US$ 1,570.64 million and achieving an 18.34% year-on-year growth, further highlights the positive trajectory of the country’s export sector, supported by the steady performance of both merchandise and services exports.
The launch of the National Export Development Plan (NEDP) 2026–2030 marks a significant milestone in Sri Lanka’s journey towards building a more competitive, diversified, and sustainable export economy. The continued growth in merchandise exports and the expanding contribution of services exports demonstrate the potential of Sri Lanka’s export ecosystem. Through the strategic implementation of the newly launched NEDP, strengthening market access, promoting innovation, and enhancing exporter capabilities, the EDB is committed to supporting Sri Lankan businesses in achieving higher export growth and advancing the country’s vision of becoming a globally competitive export hub.”
Major Exports in May 2026
a) Products & Services with Positive Growth (Increases)
Coconut-based products recorded a strong performance in April 2026, with export earnings increasing by 23.49 % year-on-year.
All major sub-sectors within the Coconut-based products sector recorded positive growth during April 2026. Exports of Coconut Kernel products, Coconut Fibre products, and Coconut Shell products increased by 7.29%, 27.24%, and 66.67%, respectively, reflecting strong global demand and increased value addition within the sector.
Among Coconut Kernel products, export earnings from Coconut Oil and Liquid Coconut Milk increased by 1.65% and 5.07%, respectively, compared to April 2025.
Within the Coconut Fibre products category, Coco Peat, Fibre Pith, and Moulded products, the largest contributors to the Coconut-based export sector, registered a notable growth of 11.63%, reaching US$ 18.62 million in April 2026. This performance further highlights the growing international demand for Sri Lanka’s value-added coconut fibre products.
Notably, Activated Carbon, one of the key value-added coconut shell-based export products, registered a significant increase of 58.32%, reaching US$ 20.55 million in April 2026. This highlights the growing contribution of high-value coconut-based products to Sri Lanka’s export earnings.
Export earnings from Rubber and Rubber-Based Products increased by 5.23% year-on-year to US$ 64.35 million in April 2026, supported by improved performance in several key product segments. Notably, exports of Industrial and Surgical Gloves of Rubber recorded a significant increase of 22.95%, contributing positively to the overall growth of the sector.
The Food & Beverages sector also demonstrated strong growth, recording a 45.17% year-on-year increase to reach US$ 63.18 million in April 2026. This expansion was largely driven by processed food exports, which account for nearly 50% of total Food & Beverages export earnings and recorded an impressive growth of 145.81%, reflecting rising international demand for Sri Lanka’s value-added food products.
Export earnings from Electrical and Electronic Components showed remarkable growth, increasing by 41.51% to US$ 43.50 million. This performance was supported by strong gains in Insulated Wires & Cables, Switches, Boards & Panels and Electrical Transformers, which grew by 45.75 %, 53.95% and 146.48%, respectively, compared to April 2025.
Exports of Spices and Essential Oils increased by 6.26% to US$ 25.45 million in April 2026, mainly driven by the strong performance of Cinnamon exports, which recorded a significant growth of 58.06% during the month.
Exports of Mineral and Mineral-Based Products increased by 6.79% in April 2026, reflecting improved demand in international markets.
Seafood exports recorded a significant year-on-year increase of 13.07%, reaching US$ 30.19 million in April 2026. This growth was mainly driven by the strong performance of key product categories, particularly frozen fish exports, which increased by 21.81% during the month.
Meanwhile, the Diamonds, Gems & Jewellery sector is estimated to have recorded a notable increase of 6.26%, reaching US$ 31.40 million in April 2026.
On the services front, ICT/BPM exports are estimated to have achieved steady growth, reaching US$ 146.09 million, while Financial Services exports expanded significantly by 119.41% to US$ 6.82 million. This continued upward momentum highlights the resilience and expanding role of Sri Lanka’s knowledge-based and services-driven economy, further strengthening its contribution to the country’s overall export performance.
b) Products with Negative Growth (Decreases)
Tea export earnings recorded a marginal decline of 1.12% year-on-year, reaching US$ 130.33 million in May 2026, mainly due to a slight reduction in earnings from Tea Packets, which declined by 1.32%. The decline was primarily attributed to lower export performance in key markets, particularly in the Middle East region, where exports decreased by 42.32%. Within this region, shipments to the United Arab Emirates, Iran, and Iraq recorded significant declines of 76.92%, 82.23%, and 61.43%, respectively. Despite these challenges, Sri Lanka’s tea sector continues to remain a key contributor to export earnings, supported by its strong global reputation and established market presence.
Exports of Spices and Essential Oils declined marginally by 2.51% to reach US$ 29.87 million in May 2026, primarily driven by the weak performance of Pepper exports, which recorded a significant contraction of 33.69% during the month.
Seafood exports also recorded a notable decline of 10.32% year-on-year, amounting to US$ 12.16 million in May 2026. The contraction was largely driven by reduced performance in key product categories, particularly frozen fish exports, which declined by 14.81%, reflecting weaker demand conditions in selected international markets.
Exports during the period of January – May 2026
Cumulative export performance during January–May 2026 remained positive, with total exports reaching US$ 7,393.39 million, reflecting a 7.56% year-on-year growth. Merchandise exports increased by 7.63% to an estimated US$ 5,758.44 million, supported by key sectors including Gems & Jewellery and Petroleum Products, while services exports grew by 7.31% to US$ 1,634.95 million. The steady expansion across both merchandise and services segments highlights broad-based resilience within the export sector. Overall, the performance underscores the strengthening contribution of services exports to Sri Lanka’s export earnings and the continued stability of the external sector.
a) Products & Services with Positive Growth (Increases)
Cumulative export earnings from key sectors recorded strong growth during the first five months of 2026, with Coconut-based products, Rubber-based products, Processed Food & Beverages, and Electrical & Electronic Components increasing by 20.45%, 4.84%, 26.63%, and 51.79% respectively compared to the corresponding period in 2025.
Export earnings from Coconut-based products increased significantly by 20.45% to US$ 515.17 million, supported by broad-based growth across all major categories, including Coconut Kernel products (15.29%), Fibre products (11.19%), and Shell products (49.89%). This performance was driven by strong demand for value-added products such as Coconut Oil (26.10%), Desiccated Coconut (30.47%), Coconut Cream (15.86%), Liquid Coconut Milk (12.5%), and Activated Carbon (45.53%), reflecting continued global demand and increased value addition within the sector.
The Rubber sector generated export earnings of US$ 404.7 million, reflecting a 4.84% increase, largely driven by improved performance in Pneumatic and Retreaded Rubber Tyres and Tubes, which recorded growth of 7.62%.
Export earnings from Food & Beverages increased by 26.63 % year-on-year to US$ 293.16 million during the period January to May 2026, supported by strong performance in processed food exports, which grew by 49.32 % to reach US$ 141.14 million.
Meanwhile, Electrical and Electronic Components (EEC) exports surged by 51.79% to US$ 253.88 million, supported by strong performance in Electrical Transformers (43.84%), Insulated Wires and Cables (58.08%), and Switches, Boards & Panels (21.64%).
Seafood exports also grew by 19.2% to US$ 105.49 million, driven by higher exports of frozen fish (13.3%) and fresh fish (46.69%), reflecting improved volumes and stronger international demand.
In addition, ICT exports are estimated to have increased by 21.74% to US$ 751.53 million during the period, highlighting the continued expansion of Sri Lanka’s digital and knowledge-based economy and its growing contribution to overall export earnings.
b) Products with Negative Growth (Decreases)
Export earnings from Apparel & Textiles declined by 4.84% to US$ 2,033.39 million during January–May 2026 compared to 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 50% of the sector’s total exports. During the period, exports to the United States decreased by 2.13%, while shipments to the European Union and the United Kingdom declined by 6.25% and 7.95%, respectively, contributing to the overall downturn in the sector.
Tea export earnings also recorded a decline of 4.62% year-on-year, reaching US$ 581.91 million during the same period. This reduction was mainly attributed to weaker performance in key product categories, with Bulk Tea exports falling by 6.97% and Tea Packet exports decreasing by 5.04% compared to the corresponding period in 2025.
In addition, export earnings from Spices and Essential Oils declined by 3.28% to US$ 167.95 million during January–May 2026. This decrease was largely driven by the sharp contraction in Pepper exports, which fell by 45.56%, significantly affecting overall sector performance. Notably, Pepper exports to India declined by 52.58% during the period, further contributing to the downturn in this segment.
Table 1 shows a comparative analysis of merchandise export performance for May 2025–2026, along with the cumulative figures for the January–May period.
Sri Lanka’s Export Performance in Major Markets
Among the top fifteen export markets, several key destinations including the USA, India, Italy, China, Australia, Belgium, Turkey, Japan, and Mexico recorded positive year-on-year growth in both May 2026 and cumulatively for the January–May period, reflecting emerging resilience across major international markets.
The United States, Sri Lanka’s largest single export destination accounting for approximately 22% of total merchandise exports, recorded a strong year-on-year increase of 10.87% to US$ 240.23 million in May 2026. Meanwhile, cumulative exports for January–May 2026 reflected a marginal increase of 0.28%, reaching US$ 1,185.99 million compared to the corresponding period in 2025, indicating stable but relatively subdued overall growth in exports to the US market.
India strengthened its position as Sri Lanka’s second-largest export destination, surpassing the United Kingdom, with cumulative exports increasing by 7.95% to US$ 442.33 million during January–May 2026. In May 2026, exports to India also recorded a positive year-on-year growth of 3.78%. In contrast, exports to the United Kingdom increased modestly by 3.51% to US$ 70.77 million in May 2026, while cumulative exports declined by 5.96% over the January–May period compared to 2025.
The United Arab Emirates (UAE), one of Sri Lanka’s key export destinations, recorded a notable increase of 35.54% in export earnings in May 2026, reflecting a positive recovery in monthly trade performance. Meanwhile, cumulative exports to the UAE during January–May 2026 declined by 6.27% compared to the corresponding period in 2025. This variation reflects short-term fluctuations in export patterns, influenced by evolving regional market conditions and broader external factors affecting trade flows in the Gulf region.
Turkey recorded exceptional growth of 187.56% in May 2026, reaching US$ 30.74 million, while cumulative exports for January–May 2026 also increased significantly by 106.28% year-on-year, reflecting a strong expansion in bilateral trade performance.
Notably, exports of Tea to Turkey surged by 235.35% in May 2026, while cumulative tea exports for the January–May period increased by 150.17%, highlighting a sharp upward trend in demand for Sri Lankan tea in this market.
Table 2 shows a comparative analysis of merchandise export performance across the top 15 export markets for May 2025–2026, along with the cumulative figures for the January– May period.
Exports to FTA Partners (India & Pakistan)
a) May 2026
Exports to India and Pakistan collectively accounted for 8.74% of Sri Lanka’s total merchandise exports in May 2026, amounting to US$ 85.07 million, reflecting a year-on-year growth of 5.27%.
Exports to India increased by 3.78% to US$ 78.18 million, mainly driven by higher demand for base metal products. In parallel, exports to Pakistan grew significantly by 25.73% to US$ 6.89 million, supported by increased shipments of other articles of stone and desiccated coconut.
b) January – May 2026
During the cumulative period January–May 2026, exports to India recorded a notable increase of 7.95%, reaching US$ 442.33 million, primarily driven by higher exports of petroleum oils, animal feed, and base metal products.
Meanwhile, exports to Pakistan grew strongly by 35.45% to US$ 38.67 million, supported by improved performance in other textile articles, betel leaves, desiccated coconut, and other articles of stone.
Sri Lanka’s Export Performance in Regions
Table 3 shows the comparison of region wise exports for May 2025 – 2026, along with the cumulative figures for the January–May period.
Exports to the European Union (EU), which represent 25.5% of Sri Lanka’s total merchandise exports, increased by 6.62 % in May 2026. Similarly, during the cumulative period from January to May 2026, increased by 13.36 %.
Exports to the top five EU markets were recoded as; Italy US$ 282.9 Mn (increased by 10.18 %), Germany US$ 274.98 Mn (decreased by 1.2 %), Netherlands US$ 174.67 Mn (decreased by 2.56 %), France US$ 108.89 Mn (increased by 1.09 %) and Belgium US$ 100.83 Mn (increased by 7.49 %) during the cumulative period of January to May 2026 in comparison 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 May 2026 were estimated by the EDB
Policy & Strategic Planning Division - 24.06.2026
