Island nation posts strongest April exports despite shipping disruptions
Sri Lanka’s export sector has delivered its strongest April performance on record, generating more than $1.38 billion in earnings and signaling renewed momentum in the country’s economic recovery. The achievement, announced by the Export Development Board (EDB), reflects a 6% year-on-year increase largely powered by merchandise exports, even as services revenue weakened under mounting global uncertainty.
According to the latest trade data, merchandise exports climbed nearly 10% compared to April last year, crossing the $1.06 billion mark. In contrast, service sector earnings, including ICT, logistics, construction, and financial services, slipped by over 6% to approximately $317 million. Despite the annual gains, export performance in April also recorded a monthly slowdown compared with earlier momentum seen in January.
The first four months of 2026 nevertheless marked the highest cumulative export earnings ever recorded for that period, totaling over $5.78 billion. Merchandise exports accounted for more than $4.52 billion, while service exports added around $1.25 billion.
EDB Chairman and Chief Executive Mangala Wijesinghe described the figures as evidence of the sector’s resilience during a period of heightened geopolitical instability and economic uncertainty. He noted that exporters had continued to perform despite rising freight costs, insurance premiums, and logistical bottlenecks linked to tensions in the Middle East.
The apparel industry, Sri Lanka’s leading export earner, remained under pressure. Earnings from apparel and textile exports fell 7.4% during the January–April period to $1.61 billion. The decline was attributed mainly to weaker demand from major Western markets, particularly the United States, the European Union, and the United Kingdom, which together absorb more than half of Sri Lanka’s apparel shipments.
Tea exports also suffered, declining by more than 5.5% to $451 million. Industry officials linked the contraction to disruptions in Middle Eastern trade routes and increasing operational costs.
However, several agricultural and industrial sectors delivered strong growth. Coconut and coconut-based exports surged by over 21%, driven by rising international demand for products such as coconut oil, desiccated coconut, coconut cream, and activated carbon. The electrical and electronic components sector also recorded remarkable expansion, growing more than 43% due to increased exports of transformers, cables, and electrical panels.
Processed food exports rose sharply, while seafood shipments benefited from stronger international demand and higher export volumes. Frozen and fresh fish exports posted particularly strong gains.
On the services side, Sri Lanka’s ICT and business process management industry continued its upward trajectory, expanding by more than 22% during the first four months of the year. Financial services exports also recorded dramatic growth.
The Government has set an ambitious export target of $20 billion for 2026, expecting merchandise exports to exceed $15.7 billion while service exports approach $4.3 billion. Officials believe sustained market diversification and increased focus on value-added industries will be essential to reaching those goals.
Although traditional export markets such as the US and UK showed signs of weakening demand, emerging markets including China, India, Japan, Mexico, and several Middle Eastern and African economies demonstrated stronger growth potential, offering Sri Lanka new opportunities to reduce dependence on a handful of Western economies.