Despite mounting global uncertainties, Sri Lanka’s export sector has displayed strong resilience, posting a 7.14% year-on-year (YoY) growth in the first five months of 2025. Total exports—comprising both goods and services—reached over $6.93 billion between January and May, underscoring the sector’s steady recovery trajectory.
According to the Sri Lanka Export Development Board (EDB), May alone recorded exports exceeding $1.38 billion, marking a 6.35% YoY rise and a 7.3% increase over April 2025. Merchandise exports in May stood at $1.02 billion, up 1.7% YoY, while services exports reached $358.14 million, registering a notable 22.39% growth.
For the five-month period, merchandise exports totaled $5.34 billion—a 5.46% increase from 2024—while services exports grew by 13.2% to an estimated $1.58 billion. The services sector, including ICT/BPM, logistics, construction, and financial services, has played a vital role in driving earnings and creating high-value employment opportunities.
Apparel and textile exports rose by 9.2% YoY to $2.13 billion, while agricultural exports experienced a robust surge. Tea exports climbed 7.93% to $610.1 million, coconut-based products rose by 26.89% to $427.69 million, and spice and concentrate exports grew a staggering 57.76% to $173.64 million.
Transport and logistics led services exports with a 28.89% YoY increase to $859.01 million, followed by ICT/BPM, which recorded 4.1% growth to $602.59 million.
EDB Chairman and CEO Mangala Wijesinghe attributed the sector’s performance to ongoing efforts in market and product diversification. He noted notable export growth in key markets such as India, China, Japan, the Netherlands, Germany, and Africa.
“We’re on track to achieve our export revenue target of $19 billion for 2025, driven by both merchandise and services,” Wijesinghe stated. The country aims to grow merchandise exports from $12.7 billion in 2024 to $14 billion in 2025, and services from $3.5 billion to $4.2 billion. This aligns with a long-term plan to reach $36 billion in exports by 2030.
Among top destinations, the US remained the largest market, accounting for 23% of Sri Lanka’s merchandise exports. Although exports to the US fell by 2.67% in May 2025 to $261.67 million, the cumulative five-month figure rose 5.82% to $1.18 billion. The UK followed a similar pattern, with a 5.77% drop in May but a 3.85% increase over the five-month period.
Trade with FTA partners India and Pakistan showed mixed results. In May, combined exports to the two nations edged up by 0.79% to $80.81 million. While exports to India rose by 4.03%, driven by animal feed and areca nuts, exports to Pakistan fell sharply by 24.47% due to reduced demand for coconut-based items. However, over the five months, exports to India surged 31.41% YoY to $409.74 million, boosting the combined figure for both countries to $438.29 million—a 28.02% increase.
Exports to the European Union, which makes up 24% of Sri Lanka’s exports, also showed solid growth. Cumulative exports from January to May rose by 7.59%, led by strong performances in Germany (up 9.13%), the Netherlands (up 23.66%), and France (up 0.68%).With sustained momentum and strategic interventions, Sri Lanka’s export sector continues to strengthen its global presence and economic impact.
