By:Staff Writer
August 26, Colombo (LNW): Sri Lanka’s export sector is experiencing a strong resurgence in 2025, with total export earnings from January to July nearing the US$10 billion mark, according to recent data released by the Central Bank of Sri Lanka (CBSL) and Sri Lanka Customs. This milestone marks a 7.79% increase year-on-year and signals a potential breakthrough in the country’s trade performance after years of economic challenges.
Between January and July 2025, total export earnings reached US$9.99 billion, comprising both merchandise and services exports. With five months remaining in the year, experts are optimistic that Sri Lanka will surpass its annual export target of US$17 billion. Mangala Wijesinghe, Chairman and CEO of the Export Development Board (EDB), stated that current momentum could see the country exceeding its set goals, provided current trends hold steady.
Merchandise exports have been particularly strong, totaling US$7.8 billion during the first seven months—a 7.22% rise compared to the same period in 2024. The month of July alone recorded US$1.3 billion in merchandise exports, showing a notable 15.37% year-on-year growth. Key contributors include the textile and apparel sector, gems and jewellery, and petroleum products.
Services exports, often overshadowed by physical goods, have emerged as a significant growth driver. Between January and July 2025, services exports surged to US$2.19 billion—a 9.86% increase from the previous year. Within this sector, ICT and BPM services accounted for US$897.5 million, up 7.23%, while transport and logistics services rose sharply by 21.24% to reach US$1.19 billion.
The services sector’s expansion is not only helping diversify Sri Lanka’s export basket but also providing high-value job opportunities, particularly in urban tech hubs. The growing emphasis on non-traditional exports reflects a deliberate shift towards modern, service-oriented economic structures.
Industry analysts credit the growth to improved competitiveness, wider market access, and targeted government incentives implemented over the past few years. However, there is cautious optimism about the future trajectory. Since the new government took office in September 2024, its long-term trade and economic policies remain largely undefined. While current export performance is encouraging, sustaining this momentum will depend on the clarity, consistency, and effectiveness of the government’s future strategies.
Investors and exporters are now watching closely for policy directions in areas such as trade agreements, regulatory reforms, tax structures, and investment incentives. Without clear signals, the sector’s growth could face headwinds, particularly amidst global economic uncertainties.
