Robust Export Performance Signals Positive Outlook for 2026
Sri Lanka’s export sector began 2026 on a strong momentum, recording a robust year-on-year growth of 13.71%, signaling renewed momentum in external trade performance. According to statistics released by Sri Lanka Customs, together with estimated export figures for gems and jewellery, petroleum products, and services, total export earnings reached US$ 1,532.6 Mn. The encouraging performance reflects broad-based growth across key export sectors, improving global demand conditions, and sustained national efforts to enhance export competitiveness at the outset of the year.
Commenting on this achievement, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board (EDB), stated:
“Sri Lanka’s export earnings for January 2026 reached US$ 1,532.6 Mn, reflecting a strong year-on-year growth of 13.71% and a promising start toward achieving our annual export targets. This performance highlights the resilience and growing competitiveness of the country’s export sector, supported by the gradual recovery of key international markets, sustained industrial capacity, and the continued implementation of strategic export development initiatives. We remain confident that, with focused policy support and market diversification efforts, Sri Lanka is well positioned to maintain this positive momentum throughout 2026.”
In January 2026, merchandise exports recorded a year-on-year growth of 10.66 %, reaching US$ 1,165.02 Mn, according to provisional data released by Sri Lanka Customs, including estimated figures for gems and jewellery and petroleum products. This steady expansion reflects improved demand across key product categories and the strengthening performance of the industrial export sector.
Meanwhile, services export earnings for January 2026 are estimated to have increased significantly by 24.59%, reaching US$ 367.55 million. This strong growth highlights the rising importance of Sri Lanka’s knowledge-based economy and its expanding contribution to overall national export earnings.
The services sector, comprising ICT/BPM, construction, financial services, and transport and logistics, continues to play a pivotal role in diversifying the country’s export basket while generating high value employment opportunities nationwide, further reinforcing Sri Lanka’s transition toward a more innovation driven and services-oriented economy.
Major Exports in January 2026
a) Products & Services with Positive Growth (Increases)
Most export sectors recorded notable year-on-year increases in January 2026. Tea exports, which accounted for 12.8 % of total merchandise exports, increased by 8.11% to US$ 121.84 Mn, driven primarily by higher earnings from Bulk Tea (+ 9.72%) and Tea Packets (+ 2.3%). In terms of volume, tea exports grew by 6.9 %. Key markets such as Turkey, Russia, and Saudi Arabia recorded significant increases of 120.95 %, 8.84 %, and 11.24 %, respectively.
Coconut-based products also recorded a strong performance, with export earnings increasing 30.69 % year-on-year in January 2026. Within this sector, earnings from Coconut Kernel Products increased by 43.32%, while Coconut Shell Products grew by 46.87%, reflecting strong global demand and enhanced value addition.
Among Coconut Kernel Products, January 2026 exports showed substantial gains: Coconut Oil (+76.2%), Coconut Milk Powder (+60.71%), Coconut Cream (+47.94%), and Liquid Coconut Milk (+23.09%) compared to January 2025. Meanwhile, earnings from Activated Carbon, a key Coconut Shell product, increased by 39.51 %, reaching US$ 20.34 Mn, underscoring the sector’s expanding contribution to Sri Lanka’s export earnings.
Export earnings from Rubber and Rubber based products have increased by 3.88 % y-o-y to US$ 77.97 Mn in January 2026, driven by strong growth in Pneumatic & Retreated Rubber Tyres & Tubes, which increased by 18.61%.
The Food & Beverages sector recorded a significant 25.29% year-on-year increase, reaching US$ 52.31 Mn, with processed foods contributing the largest share of growth (+28.7%).
Electrical and electronics components showed remarkable growth, with earnings rising 50.79% to US$ 42.93 Mn, led by a 73.49% increase in exports of Insulated Wires and Cables.
Seafood exports surged 66.55% year-on-year to US$ 29.43 Mn, boosted by higher shipments of frozen fish (+37.64%) and fresh fish (+135.39%). Ornamental fish exports also recorded a significant growth of 70.06% to US$ 2.67 Mn.
Meanwhile, exports across all major services sectors are estimated to record positive growth in January 2026 compared with January 2025: ICT/BPM (+60.21%, US$ 177.83 Mn), Construction (+5.48%, US$ 11.6 Mn), Financial Services (+5.71%, US$ 5.29 Mn), and Transport and Logistics (+2.88%, US$ 172.83 Mn). This performance underscores the continued expansion and resilience of Sri Lanka’s knowledge and services driven economy, highlighting its growing contribution to national export earnings.
b) Products with Negative Growth (Decreases)
Export earnings from Apparel & Textiles decreased by 2.82 % y-o-y, reaching US$ 447.25 Mn in January 2026, compared to the same month in 2025. This decrease was primarily due to a 2.73% drop in exports to the United States and a 1.82% decline in shipments to the EU region.
Spices and Essential Oils exports also declined by 4.57 % to US$ 37.21 Mn during the same period, largely driven by a significant 54.38% reduction in Pepper exports to India.
The estimated export value of Diamonds, Gems & Jewellery is expected to decrease by 10.96 %, reaching US$ 33.58 Mn in January 2026 compared to January 2025.
Table 1 shows a comparative analysis of merchandise export performance for the month of January across the years 2024, 2025, and 2026.
