Sri Lanka’s total exports in February 2025 reached $1.38 billion, reflecting a 5% year-on-year (YoY) increase, driven largely by the services sector, while merchandise exports saw a slight decline.
Data from the Sri Lanka Export Development Board (EDB) showed that merchandise exports fell by 0.27% YoY to $1.05 billion, whereas services exports surged by 24.37% YoY to $326.14 million. Compared to January 2025, February’s exports marked a 2.58% month-on-month rise.
The decline in merchandise exports was attributed to reduced earnings from rubber-based products, electrical and electronic components, seafood, ornamental fish, and diamonds, gems, and jewelry.
However, overall exports in the first two months of 2025 rose by 7% YoY to over $2.73 billion, with merchandise exports increasing by 4% YoY to over $2.19 billion and services exports surging by 17.2% to $621.14 million. Key service sectors included ICT/BPM, construction, financial services, and transport and logistics.
Sectoral Performance
Apparel and textile exports performed well, recording an 11% YoY increase to $887.52 million between January and February 2025. Boat building exports saw a dramatic 4,600% growth, though contributing only $3.76 million.
Agricultural exports also showed strong performance: tea exports, accounting for 12% of total merchandise exports, grew by 1% to $231.11 million; coconut-based exports rose by 26% to $156.77 million; and spice and concentrate exports increased by 47% to $76.92 million.
On the services front, ICT/BPM exports grew by 24.1% YoY to $255.89 million, while transport and logistics exports increased by 26% YoY to $338.47 million.
Export Targets and Market Performance
Sri Lanka has set an ambitious $19 billion export revenue target for 2025, aiming to grow both merchandise and services exports. Merchandise exports are projected to increase from $12.7 billion in 2024 to $14 billion in 2025, while services exports are expected to rise from $3.5 billion to $4.2 billion. The long-term strategy aims for total export earnings of $36 billion by 2030, with $25 billion from goods and $11 billion from services.
Among Sri Lanka’s top 15 export markets, India, Germany, the Netherlands, and China exhibited positive growth in February and cumulatively for the first two months of 2025. The U.S., Sri Lanka’s largest export destination, accounted for 23% of merchandise exports but saw a 3.63% decline in February 2025 to $240.53 million.
However, cumulative exports to the U.S. rose by 6.52% YoY to $500.71 million. Exports to the UK dropped 12.3% YoY in February but showed a slight 1.22% YoY growth cumulatively.
Exports to FTA Partners and the EU
Exports to India and Pakistan accounted for 6.5% of total merchandise exports in February 2025, with a 44.08% YoY increase to $88.29 million. Exports to India surged by 49.56%, driven by petroleum oil, animal feed, and pepper, while exports to Pakistan fell by 10.77%. Cumulatively, exports to both countries rose by 43.21% YoY to $176.59 million.
The European Union (EU) accounted for 24% of Sri Lanka’s exports, generating $454.97 million in the first two months of 2025, an 8.27% YoY increase. Germany led EU markets with $110.01 million (up 8.68%), followed by Italy ($95.21 million, down 5.29%), the Netherlands ($70.09 million, up 2.85%), France ($42.33 million, up 8.52%), and Belgium ($38.1 million, up 8.52%).
Overall, Sri Lanka’s export sector demonstrated resilience in early 2025, with strong service sector growth compensating for the slight dip in merchandise export
