Sri Lanka’s services exports recorded a modest but significant rise in October 2025, supported largely by the continued expansion of the ICT/BPM industry and strong performance in financial services, the Export Development Board (EDB) announced this week. Total services export earnings increased 0.67 percent year-on-year to 316.14 million US dollars, reflecting the increasing importance of knowledge-based sectors in the island’s external trade portfolio.
According to the EDB, the standout performer was the ICT and Business Process Management (BPM) sector, which posted a 26.71 percent surge, generating 154.50 million US dollars during the month. This sector now accounts for nearly half of Sri Lanka’s monthly services export earnings, reinforcing its status as one of the country’s most resilient, high-growth export pillars.
Industry analysts attribute the expansion to increased global demand for software development, fintech solutions, cloud support services, and remote back-office operations, areas in which Sri Lankan firms have developed competitive strengths. Many companies have broadened their offerings in digital engineering, AI-enabled services, and cybersecurity, helping attract new clients from Europe, North America, and Asia.
Financial services also contributed positively, marking a 47.60 percent increase to 3.81 million US dollars in October. Although still a relatively small share of total services exports, the sector is benefiting from growing regional demand for financial analytics, compliance services, and outsourced credit processing operations undertaken by Sri Lankan firms.
However, the overall performance was dampened by contractions in several traditional service categories. Transport and logistics, historically a major contributor, fell 13.44 percent to 144.50 million US dollars, reflecting reduced transshipment volumes, weaker regional freight movements, and lingering disruptions in shipping routes affecting the Indian Ocean region. The slowdown has raised concerns among port and logistics operators who are already grappling with increased competition from regional hubs.
The construction services segment recorded the steepest decline, plunging 40.98 percent to 13.33 million US dollars. Export-linked construction projects overseas have slowed amid global financing constraints and geopolitical uncertainty affecting foreign investment flows.
Despite these setbacks, Sri Lanka’s cumulative export earnings from goods and services reached 14.43 billion US dollars for the January–October period, an increase of 5.99 percent compared to last year. This marks the strongest performance recorded for the first ten months of any year in the country’s export history.
EDB Chairman Mangala Wijesinghe described the achievement as a milestone, noting that the resilience of service-sector exports demonstrates the country’s shifting economic landscape. “This is the highest-ever export figure recorded for the January–October period in Sri Lanka’s history,” Wijesinghe stated, emphasizing that future growth will increasingly depend on innovation-driven sectors such as ICT/BPM, professional services, and digital trade.
Economists note that while traditional service segments linked to physical trade remain vulnerable to global volatility, Sri Lanka’s digital-driven industries continue to provide stability and long-term growth potential. Strengthening talent development, expanding digital infrastructure, and improving export facilitation are now seen as key priorities to sustain momentum in the services sector.
