Sri Lanka exports top US $ 17.2bn in 2025

Export earnings realise 94.79% of official target for year

• Total exports rose 5.6% YoY to an estimated US $ 17.25bn
• Merchandise exports increased 6.32% to US $ 13.58bn in 2025
• Apparel and textiles remained dominant contributor, with earnings rising 5.34% to US $ 4.91bn 
• Services exports expanded 2.79% to US $ 3.76bn
• Shipments to EU climbed 12.2% to US $ 1.59bn, while exports to US and UK reached US $ 1.96bn and US $ 688.5mn

Sri Lanka’s export earnings surpassed US $ 17.2 billion in 2025, extending the recovery in external trade as merchandise and services exports posted broad-based gains, according to the data compiled by Sri Lanka Customs and the Export Development Board (EDB). 

Total exports rose 5.6 percent year-on-year (YoY) to an estimated US $ 17.25 billion, reflecting the improving global demand conditions, a strong rebound in value-added agricultural exports and steady expansion in services linked to the country’s knowledge economy.

The outcome brought the export earnings to 94.79 percent of the official target for the year. 

EDB Chairman and Chief Executive Officer Mangala Wijesinghe said the performance highlighted the resilience and competitiveness of Sri Lanka’s export sector, supported by the recovery of key markets, sustained production capacity and the effective implementation of export development strategies.

Merchandise exports were the main growth engine, increasing 6.32 percent to US $ 13.58 billion in 2025. Apparel and textiles remained the dominant contributor, with earnings rising 5.34 percent to US $ 4.91 billion. 

Shipments to the European Union climbed 12.2 percent to US $ 1.59 billion, while exports to the United States and United Kingdom reached US $ 1.96 billion and US $ 688.5 million.

Tea export earnings rose 4.97 percent to US $ 1.51 billion for the year, largely supported by a 10.18 percent increase in packet tea exports, while coconut and coconut-based products emerged as the strongest performer. Earnings from the coconut sector surged 42.66 percent to US $ 1.23 billion, driven by sharp increases in coconut cream, oil and milk powder exports, reflecting both the strong global demand and higher levels of domestic value addition.

Food and beverage exports expanded 24.23 percent to US $ 583.9 million, supported by a 40.4 percent rise in processed food exports. The export earnings from electrical and electronic components increased 3.91 percent to US $ 438.5 million, aided by higher shipments of insulated wires and electrical transformers. Seafood exports rose 3.09 percent to US $ 240.2 million. 

Services exports expanded 2.79 percent to US $ 3.76 billion, with ICT/BPM exports growing an estimated 8.81 percent to US $ 1.64 billion. Logistics and transport services also posted a 3.22 percent increase to an estimated US $ 1.85 billion.

Meanwhile, the December data pointed to a continued, though uneven, momentum. Total exports in December 2025 rose 3.95 percent YoY to US $ 1.49 billion, with merchandise exports up 5.88 percent to US $ 1.17 billion. Apparel and textiles grew 5.26 percent to US $ 470.4 million, while coconut-based products recorded a sharp 27.24 percent increase, led by a strong growth in coconut oil, cream and liquid milk. 

Food and beverage exports rose 17.28 percent; seafood exports increased 16.09 percent and gem and jewellery earnings were estimated to have jumped more than 46 percent.

Services exports, however, declined 2.47 percent YoY in December to US $ 323.9 million, highlighting a short-term volatility despite the positive annual growth. ICT/BPM exports during the month were estimated to have increased 5.19 percent to US $ 169.8 million.

Several sectors faced pressure, particularly in December. Tea exports fell 19.59 percent YoY to US $ 105.8 million, due to the weaker bulk and packet tea earnings. Exports of spices and essential oils declined 6.23 percent, driven largely by a steep drop in pepper shipments to India, while electrical and electronic components and ornamental fish also recorded YoY declines.

On the market front, the United States remained Sri Lanka’s largest export destination, accounting for about 23 percent of merchandise exports, with shipments rising 3.06 percent to US $ 3.0 billion in 2025. India consolidated its position as the second-largest market, with exports increasing 17.21 percent to US $ 1.04 billion for the year, despite a decline in December. Exports to the United Kingdom grew 2.8 percent to US $ 929 million, while the shipments to the European Union as a bloc increased 13.41 percent, led by Germany, Italy and the Netherlands. Exports to free trade agreement partners India and Pakistan rose 15.68 percent in 2025 to US $ 1.11 billion, even as the December shipments declined, reflecting uneven regional demand.

The 2025 performance shows the gradual strengthening of Sri Lanka’s export base. However, it also highlights the persistent structural weaknesses, including concentration in a few products and markets. The performance thus far stresses the need for continued policy stability, deeper market diversification and a faster shift towards higher-value goods and services as the economy transitions from stabilisation to a more durable growth phase.