August exports top US$ 1.6bn as apparel falters

• August earnings expand 2.6% YoY
• First eight months earnings grew 6.6% to US$ 11.55bn
• Sector wise performance show that Agriculture-based exports outperformed in August
• US retained its position as SL’s top buyer, accounting for nearly a quarter of total merchandise exports
• India overtook the United Kingdom to become the second-largest market

Sri Lanka’s exports maintained steady momentum in August 2025, with total earnings climbing 2.6 percent year-on-year (YoY) to US$ 1.61 billion, showing resilience across key sectors even as apparel shipments softened.

The cumulative figure for the first eight months of the year grew 6.6 percent to US$11.55 billion, according to data released by the Export Development Board (EDB). 

Merchandise exports contributed US$9.09 billion while services added US$2.46 billion, showing steady growth in ICT, logistics, construction and financial services.

Sector wise performance show that Agriculture-based exports outperformed in August with tea earnings expanding nearly 9 percent from a year earlier to US$141.9 million. The earnings were boosted by higher shipments to the UAE, Turkey, Russia and Iran. 

Coconut-based products surged 42 percent on stronger demand for kernel, fibre and shell categories, while seafood earnings rose 33 percent.

ICT/BPM services also continued to expand, with exports estimated at US$ 147 million in August.

Meanwhile, apparel and textiles, the country’s largest single export earner, slipped 0.8 percent to US$ 506.9 million. Rubber exports fell 16 percent amid weaker demand for tyres, while spices contracted 21 percent due to a sharp decline in pepper sales to India. Diamonds, gems and jewellery also recorded a drop.

Cumulative data for January to August showed apparel earnings up 6.8 percent to US$ 3.59 billion, tea up 8.9 percent to US$ 1.03 billion, and coconut-based products up by a striking 38 percent to US$ 786.6 million. Food and beverages exports also gained 22 percent, with processed foods making the strongest contribution.

In terms of markets, the United States retained its position as Sri Lanka’s top buyer, accounting for nearly a quarter of total merchandise exports. Shipments to the US edged up 1 percent in August and 3.8 percent over the January–August period to US$ 2 billion.

India overtook the United Kingdom to become the second-largest market, with exports rising 22 percent in the first eight months to US$ 705 million. The UK remained under pressure, with August exports down nearly 5 percent year-on-year.

“This encouraging growth highlights Sri Lanka’s increasing integration into global trade and the success of our continued efforts to strengthen export competitiveness while diversifying market opportunities. Our exporters have once again demonstrated remarkable resilience and adaptability in navigating evolving global challenges,” EDB Chairman Mangala Wijesinghe noted.

He added that while the EDB was encouraged by the latest numbers, the institution remained realistic about the challenges that lay ahead. 

“While we celebrate this progress, we remain mindful of the challenges ahead. With sustained efforts to enhance competitiveness and expand market opportunities, we are confident of reaching the export target set for 2025.”