Sri Lanka’s exports surpassed US $ 5.7 billion in the first four months of 2026, with the growth in services, electronics, processed foods and coconut-based products helping offset the continued weakness in apparel and tea exports, amid the softer global demand conditions.Total exports, including merchandise and services, rose 4.3 percent year-on-year (YoY) to US $ 5.78 billion in the January-April period, while April exports increased 6 percent from a year earlier to US $ 1.38 billion, according to the provisional data released by the Export Development Board. Merchandise exports for the four-month period rose 4.8 percent to US $ 4.52 billion, while services exports were estimated at US $ 1.26 billion.
The latest figures point to a widening divergence within Sri Lanka’s export basket, with the traditional export earners continuing to weaken while the higher-value and non-traditional sectors record a stronger growth.Apparel and textile exports, which remain Sri Lanka’s largest merchandise export category, fell 7.4 percent YoY to US $ 1.62 billion during the January-April period.
The decline was driven by a weaker demand from the US, European Union (EU) and UK, which together account for more than half of Sri Lanka’s apparel exports. Shipments to the US fell 5.65 percent, while exports to the EU and UK declined 7.71 percent and 9.71 percent, respectively.Tea exports also remained under pressure, with earnings falling 5.58 percent YoY to US $ 451.58 million in the first four months of the year, due to the lower bulk tea and tea packet exports. In April alone, tea export earnings fell 6.82 percent, with sharp declines in shipments to Iraq, Libya, Saudi Arabia and the UAE weighing on the sector.
In contrast, electrical and electronic component exports rose 43.55 percent YoY to US $ 185.54 million during the January-April period, supported by the growth in electrical transformers, insulated wires and cables and switches and panels. Processed food and beverage exports increased 30.62 percent to US $ 237.7 million, while coconut-based exports rose 21.38 percent to US $ 406.28 million.Seafood exports also recorded a strong growth, increasing 24.52 percent to US $ 93.34 million, driven by higher frozen and fresh fish exports. ICT exports were estimated at US $ 581.7 million for the four-month period, up 22.63 percent from a year earlier, underscoring the increasing contribution of services and knowledge-based exports to Sri Lanka’s external earnings.Among the export destinations, the United States remained Sri Lanka’s largest market, accounting for around 22 percent of merchandise exports, although cumulative exports to the market declined 2.09 percent to US $ 945.76 million. India strengthened its position as Sri Lanka’s second-largest export destination, overtaking the UK, with exports rising 8.9 percent to US $ 364.15 million during the January-April period.Exports to the UAE declined 16.24 percent in the four months through April, while exports to the Middle Eastern markets, excluding Cyprus and Egypt, fell 19.31 percent, reflecting weaker regional demand and geopolitical disruptions affecting trade flows.
