Apparel slump tests Sri Lanka’s US $ 12bn export run
Sri Lanka’s exports crossed US $ 12 billion in the first eight months of 2026, although the declining apparel and tea earnings showed that the growth remained uneven across two of the country’s biggest export industries. Total exports rose 4.26 percent from a year earlier to an estimated US $ 12.01 billion, the provisional data released by the Export Development Board (EDB) showed yesterday. Merchandise exports increased 3.63 percent to US $ 9.41 billion, while services exports grew 6.59 percent to US $ 2.60 billion. The overall gain came despite a 6.76 percent fall in apparel and textile earnings to US $ 3.34 billion. Exports from the sector declined to all three of its major markets: the United States, European Union and United Kingdom. Tea earnings fell 7.56 percent to US $ 948.45 million, with bulk tea and tea packets both recording declines. Growth elsewhere helped offset those losses. Electrical and electronic component exports surged 57.49 percent to US $ 440.31 million over the eight months. Spices and essential oils rose 24.09 percent to US $ 355.78 million, while food and beverage exports increased 19.99 percent to US $ 462.52 million. The EDB estimated that ICT and business process management exports grew 9.76 percent to US $ 1.15 billion. August merchandise exports fell one percent from a year earlier to US $ 1.27 billion, while the estimated services exports rose 13.97 percent to US $ 331.87 million. That lifted total exports for the month by 1.77 percent to US $ 1.60 billion. Apparel earnings fell 8.4 percent to US $ 464.27 million in August, with the shipments to the United States down 15.96 percent and those to the United Kingdom down 11.79 percent. Tea earnings declined 7.76 percent to US $ 130.92 million. Exports to the Middle East, a key tea market, fell 41.05 percent, according to the EDB. Sri Lanka’s largest single merchandise export market, the United States, recorded a 13.43 percent drop in purchases to US $ 263.24 million in August. Exports to the United States were down 2.09 percent at US $ 1.97 billion for January to August.
India, meanwhile, moved ahead of the UK as Sri Lanka’s second-largest export destination, with purchases rising 10.15 percent to US $ 776.62 million over the eight months. EDB Chairman and Chief Executive Officer Mangala Wijesinghe said sustaining the export growth would require stronger competitiveness and a broader range of products and markets. “Greater value addition, innovation, technology adoption, market diversification and deeper integration into global value chains will be critical to sustaining export growth,” he said.
