Sri Lanka’s export sector has continued its upward trajectory in 2025, demonstrating resilience in the face of global market volatility, tighter competition, and uneven demand across major economies.
According to the latest figures released by the Export Development Board (EDB), total exports for the first 10 months of the year reached $14.43 billion, reflecting a 6% year-on-year (YoY) increase, even as some monthly indicators showed stagnation.
EDB Chairman and CEO Mangala Wijesinghe attributed the performance to stronger export competitiveness, market diversification, and the ability of local exporters to adapt quickly to global disruptions.
EDB Chairman and CEO Mangala Wijesinghe
“Our exporters have once again proved their resilience and adaptability,” he said, noting that Sri Lanka’s integration into global trade continues to strengthen despite global uncertainties.
Growth Driven by Key Sectors
In October alone, total export earnings amounted to $1.47 billion, marking a modest YoY rise of 0.16%, although month-on-month performance remained flat. Merchandise exports grew by only 0.2% YoY to $1.15 billion, supported by gains in gems and jewellery, coconut-based products, electrical and electronics, and food and beverages.
From January to October, merchandise exports reached $11.37 billion, an increase of 6.53% YoY.
Sri Lanka’s services sector continued to play a crucial role, generating $316 million in October and $3.06 billion during the first 10 months a 4.01% YoY rise. The ICT/BPM industry, construction, logistics, financial services and transport sectors recorded steady, broad-based growth, underscoring the shift towards a more knowledge-driven export economy.
Sectoral and Market Highlights
Apparel and textiles, the country’s largest merchandise export sector, recorded a robust 5.56% YoY growth, reaching $4.44 billion for the 10-month period. Agriculture exports also performed strongly: tea exports rose 8.72% YoY to $1.28 billion, while coconut-based exports surged by 43.83% to $1.03 billion, benefiting from higher demand in Europe and the Middle East.
On the services front, transport and logistics grew 6.07%, while ICT/BPM rose 9.25%, together generating a combined $2.9 billion in the first eight months.
Shifting Global Markets
The United States remained Sri Lanka’s largest export destination, accounting for 23% of merchandise exports. While October exports to the US slipped 0.46% to $246 million, cumulative exports for the year grew 2.68% to nearly $2.5 billion.
India emerged as Sri Lanka’s second-largest export destination during the January–October period, with exports rising 19.31% to $866.9 million, driven by petroleum oils, animal feed and vegetable fats. Exports to the EU, which account for 24% of Sri Lanka’s merchandise exports, rose by 14.43% in October and 12.56% over the 10-month period.
Confident Outlook
The EDB maintains confidence that Sri Lanka is on track to meet its $19 billion export target for 2025. Projections indicate merchandise exports will reach $14 billion, while services exports are expected to expand to $4.2 billion, aligning with the country’s five-year plan to boost export earnings to $36 billion by 2030.
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