Sri Lanka’s exports top US $ 9bn in first half

Electronics surge offsets apparel weakness

• Merchandise exports increased 8.95% to US $ 7.07bn and services exports grew 4.49% to US $ 1.94bn
• June alone recorded a stronger performance, with total exports climbing 12.53% YoY to US $ 1.66bn
• While US remained Sri Lanka’s largest export destination, with earnings of US $ 1.44bn, exports were broadly flat during 6-month period 
• India strengthened its position as 2nd-largest export market after exports jumped 36.16% to US $ 688.5mn

Sri Lanka’s exports surpassed the US $ 9 billion mark in the first six months of 2026, driven by broad-based growth in merchandise and services exports, although the weakness in the country’s largest export earners, apparel and tea, continued to weigh on the overall performance.

Combined merchandise and services exports rose 8 percent year-on-year (YoY) to an estimated US $ 9.01 billion during January-June, with merchandise exports increasing 8.95 percent to US $ 7.07 billion and services exports rising 4.49 percent to US $ 1.94 billion, according to the Export Development Board (EDB).

June alone recorded a stronger performance, with total exports climbing 12.53 percent YoY to US $ 1.66 billion, supported by a 15.09 percent jump in merchandise exports and a 3.75 percent increase in services exports.

The figures suggest Sri Lanka’s export recovery remains intact, despite the continued weakness in the global demand for key traditional exports.

“The continued growth recorded across both merchandise and services exports reflects the sector’s ability to adapt to the evolving global market conditions while strengthening its contribution to economic recovery and foreign exchange earnings,” EDB Chairman and Chief Executive Officer Mangala Wijesinghe said in a commentary.

A standout performer during the first half was the electrical and electronic components sector, the export earnings of which more than doubled, surging 123.48 percent to US $ 450.2 million. ICT and business process management exports also grew 17.63 percent to US $ 885.4 million, highlighting the increasing contribution of knowledge-based exports. Coconut-based products rose 14.59 percent, processed food and beverages increased 24.45 percent, while seafood exports gained 17.61 percent.

However, apparel and textile exports fell 6.07 percent during the January-June period to US $ 2.44 billion, as the demand softened in the United States and European Union, Sri Lanka’s two largest apparel markets. Tea export earnings declined 5.69 percent to US $ 700.8 million, reflecting weaker bulk tea and tea packet shipments.

While the United States remained Sri Lanka’s largest export destination, with earnings of US $ 1.44 billion, exports were broadly flat during the six-month period. India strengthened its position as the second-largest export market after exports jumped 36.16 percent to US $ 688.5 million, overtaking the United Kingdom, where exports fell 10.23 percent. Exports to China rose 19.56 percent, while shipments to Turkey nearly doubled.

Exports to the European Union, which accounts for about a quarter of Sri Lanka’s merchandise exports, increased 2.49 percent during the first half, despite a sharp decline in June, suggesting the demand in the bloc remains uneven.

The latest figures indicate Sri Lanka’s export basket is becoming more diversified, with high-value manufacturing and knowledge-based services increasingly offsetting the weakness in the traditional sectors such as apparel and tea. Nevertheless, the continued decline in the country’s two largest merchandise export industries underscores the need to revive competitiveness in core markets while accelerating the shift toward higher value-added exports.