Sri Lanka’s total exports, including both merchandise and services, reached US$ 1,401.78 million in February 2026, recording a 4.22% year-on-year increase, according to the Sri Lanka Export Development Board (EDB).
Merchandise exports grew modestly by 1.32% to US$ 1,066.88 million, based on provisional data from Sri Lanka Customs, while services exports showed strong momentum, rising 14.68% to US$ 334.9 million, highlighting the increasing contribution of the services sector to the country’s export earnings.
On a cumulative basis, total exports for January–February 2026 are estimated at US$ 2,896.31 million, reflecting a 7.56% increase compared to the same period last year.
Services Sector Drives Growth
The EDB noted that services exports continued to expand significantly, with sectors such as ICT/BPM, financial services, and transport & logistics contributing strongly. Cumulative services earnings for the first two months of 2026 grew by 15.95% to US$ 680.68 million, underlining the rising importance of Sri Lanka’s knowledge-based economy.
Key Export Performers
Several sectors recorded notable growth in February:
- Coconut-based products surged by 25.22%, driven by strong demand for coconut oil, coconut cream, and activated carbon.
- Food & Beverages exports rose sharply by 36.36%, supported by processed food exports.
- Electrical and electronic components recorded a remarkable 54.37% increase, reflecting higher demand for transformers and electronic equipment.
- Spices and essential oils grew by 3.98%, largely due to a 41.88% jump in cinnamon exports.
- Gems and jewellery exports increased by 11.51%.
Declines in Key Sectors
Despite the overall growth, several major export categories recorded declines:
- Tea exports fell by 3.71% to US$ 114.98 million, impacted by lower demand in key markets, particularly Russia.
- Apparel and textiles, Sri Lanka’s largest export sector, declined by 10.03%, mainly due to reduced demand from the United States and the European Union.
- Rubber and rubber-based products decreased by 5.66%.
- Seafood exports dropped significantly by 16.84%, driven by lower exports of frozen fish and shrimp.
Export Markets and Trade Trends
Among Sri Lanka’s major export destinations, emerging markets such as the United Arab Emirates, China, Australia, and Mexico recorded positive growth.
The United States, which accounts for around 22% of Sri Lanka’s exports, saw a marginal decline of 0.3% in February. Meanwhile, India strengthened its position as the second-largest export destination, with cumulative exports rising 16.21% during the first two months of the year.
Exports to European Union markets increased slightly in February but declined overall during the January–February period, reflecting mixed performance across key European economies.
Outlook
Commenting on the performance, EDB Chairman and CEO Mangala Wijesinghe said the February figures signal a positive trajectory toward achieving annual export targets, supported by improving global demand and ongoing export development initiatives.
He added that with stronger policy support, value addition, and market diversification, Sri Lanka is well-positioned to sustain export growth throughout 2026 despite global uncertainties, including geopolitical tensions and energy market volatility.
Overall, the latest data highlights the resilience of Sri Lanka’s export sector, with steady merchandise performance and accelerating growth in services continuing to support the country’s external sector.
