Export growth hits 2026 high in May with US$ 1.57bn in earnings

• Merchandise exports increased 18.25% to US$ 1.22bn
• Services exports grew 18.67% to US$ 347.15mn
• ICT/BPM exports estimated at US$ 158.21mn during the month
• Cumulative export earnings for the first five months of 2026 totalled US$ 7.39bn, up 7.56% YoY

Exports recorded the strongest monthly growth so far this year in May, with total exports, including merchandise and services, expanding 18.34 percent from a year earlier to US$ 1.57 billion.

The increase was driven by broad-based gains across manufacturing, value-added agricultural products and services exports, according to the Export Development Board (EDB). 

Merchandise exports increased 18.25 percent to US$ 1.22 billion, while services exports grew 18.67 percent to US$ 347.15 million.

Sri Lanka is looking to strengthen foreign exchange earnings and sustain economic recovery through export-led growth. Just this month, the government launched the National Export Development Plan (NEDP) 2026-2030 targeting US$ 36 billion in annual exports by the end of the decade.

The May performance was attributed to strong growth in electrical and electronic components, which surged 79.77 percent, rubber-based products, which rose 24.31 percent and coconut-based exports which gained 17.13 percent. Food and beverage exports also increased 12.02 percent, reflecting growing demand for Sri Lanka’s value-added products in international markets.

The services sector continued to emerge as a key growth driver, with ICT/BPM exports estimated at US$ 158.21 million during the month.

“The outstanding performance in May 2026, with total exports reaching US$ 1,570.64 million and achieving an 18.34 percent 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,” EDB Chairman and Chief Executive Officer Mangala Wijesinghe said in a commentary that followed the release of the May export performance.

The strong May performance pushed cumulative export earnings for the first five months of 2026 to US$ 7.39 billion, up 7.56 percent from a year earlier. Merchandise exports rose 7.63 percent to US$ 5.76 billion while services exports increased 7.31 percent to US$ 1.63 billion.

While non-traditional sectors continued to expand, apparel and tea, the country’s two largest merchandise export earners, remained under pressure. 

Apparel and textile exports fell 4.84 percent during January-May to US$ 2.03 billion, weighed down by weaker demand from the United States, European Union and United Kingdom. Tea export earnings declined 4.62 percent to US$ 581.91 million amid softer shipments to key markets.

Meanwhile, electrical and electronic component exports jumped 51.79 percent during the first five months of the year, food and beverage exports rose 26.63 percent, coconut-based products increased 20.45 percent and ICT exports expanded 21.74 percent, underscoring a gradual shift towards a more diversified export base.

According to Wijesinghe, the estimated export earnings recorded in the first five months of the year, compared to the corresponding period in 2025, reflect the strength, adaptability, and determination of Sri Lankan exporters.