Sri Lanka’s export sector has kicked off 2026 with the highest January earnings recorded in a decade, generating over USD 1.53 billion in January 2026, reflecting a solid 13.7% year-on-year (YoY) growth.
Merchandise exports increased by 10.6% YoY to USD 1.2 billion, while services exports climbed 25% to USD 367 million.
Agricultural exports surged 17.5% YoY to USD 390 million, driven primarily by strong performances in tea, coconut, and rubber. Industrial exports rose 6% to USD 688 million; however, apparel exports declined by 2.82% to USD 447 million. The United States, India, and the United Kingdom remained among Sri Lanka’s top three export markets.
The latest data released by the Sri Lanka Export Development Board (EDB) showed that total merchandise exports shipped during January increased by 10.66% YoY to over USD 1.16 billion, while estimated total services earnings during the month rose by 24.59% YoY to USD 367.55 million.
Addressing the media, EDB Chairman and CEO Mangala Wijesinghe described the January performance as a promising start toward achieving the country’s annual export targets. He added that Sri Lanka remains confident that, with focused policy support and continued market diversification efforts, the country is well positioned to sustain this positive momentum throughout 2026.
Wijesinghe noted that the robust January figures build on the positive trajectory recorded in 2025. Sri Lanka’s total export earnings reached over USD 17.25 billion in 2025, marking a 5.6% YoY increase and achieving nearly 95% of the USD 18.2 billion export target. For 2026, Sri Lanka has set an ambitious export revenue target of USD 20 billion, reflecting an anticipated YoY growth of 10–12%. Merchandise exports are expected to exceed USD 15.7 billion, while services exports are projected to rise to USD 4.3 billion.
He further asserted that these projections form part of a broader roadmap to boost Sri Lanka’s export earnings to USD 36 billion by 2030, comprising USD 25 billion from merchandise exports and USD 11 billion from services. The strategy prioritises scaling up value-added exports, expanding market access, and accelerating services-led growth alongside traditional goods exports.
According to the EDB, merchandise export growth in January 2026 was largely driven by improved demand across both industrial and agricultural product categories. Agricultural exports recorded a robust 17.47% YoY increase, reaching USD 389.94 million, while industrial exports rose by 5.94% to USD 687.73 million.
Tea exports accounted for 12.8% of total merchandise shipments, reflecting an 8.11% YoY increase to USD 121.84 million. This growth was supported by higher earnings from bulk tea and tea packets. Volumes increased by 6.9%, with strong demand from key markets including Turkey, Russia, and Saudi Arabia.
Coconut-based exports delivered one of the strongest performances, with sector earnings climbing 30.69% YoY. Within this category, coconut kernel products surged 43.32%, while coconut shell products grew by 46.87%, reflecting enhanced value addition and strong global demand. Exports of coconut oil, coconut milk powder, coconut cream, and liquid coconut milk all recorded significant gains. Activated carbon, a major coconut shell product, rose by 39.51% to USD 20.34 million.
Rubber and rubber-based products increased by 3.88% YoY to USD 77.97 million, supported by an 18.61% rise in pneumatic and retreaded tyres and tubes. The food and beverages sector posted a notable 25.29% increase, reaching USD 52.31 million, with food exports leading the sector.
Electrical and electronic components recorded a sharp 50.79% YoY increase to USD 42.93 million, driven mainly by insulated wires and cables.
Meanwhile, seafood exports surged by 66.55% YoY to USD 29.43 million, supported by higher shipments of frozen and fresh fish. Ornamental fish exports also recorded strong growth.
Sri Lanka’s largest merchandise export category—apparel and textiles—declined by 2.82% YoY to USD 447.25 million, primarily due to reduced shipments to the United States and the European Union. Spices and essential oils fell by 4.57% YoY, largely reflecting a contraction in pepper exports to India. Diamonds, gems, and jewellery also registered a decline.
