Sri Lanka exports rise to $1.4 Billion in February on services surge

2026-03-26 - 10:14

(Photo credit: SLPA Facebook Page) Sri Lanka’s total exports reached US$ 1,401.78 million in February 2026, marking a 4.22% year-on-year increase, driven by strong growth in services exports. Sri Lanka recorded steady export growth in February 2026, with total exports including merchandise and services reaching US$ 1,401.78 million, according to the Sri Lanka Export Development Board. Merchandise exports for the month rose by 1.32% to US$ 1,066.88 million, based on provisional data from Sri Lanka Customs along with estimated figures for gems, jewellery, and petroleum products. Meanwhile, services exports showed strong momentum, increasing by 14.68% year-on-year to an estimated US$ 334.9 million. On a cumulative basis, total exports for January to February 2026 reached US$ 2,896.31 million, reflecting a notable 7.56% growth compared to the same period in 2025. Merchandise exports during this period grew by 5.22% to US$ 2,215.63 million, while services exports expanded significantly by 15.95% to US$ 680.68 million. The EDB highlighted that the continued expansion in export earnings demonstrates the resilience of Sri Lanka’s external sector, supported by stable merchandise performance and rapid growth in services. Commenting on the performance, Mangala Wijesinghe said the results signal a positive trajectory toward achieving annual export targets. He noted that the growth reflects improved competitiveness, gradual recovery in key global markets, sustained industrial capacity, and targeted export development efforts. He further emphasized that with stronger policy support, increased value addition, and market diversification, Sri Lanka is well positioned to sustain this momentum throughout 2026 despite global geopolitical tensions and energy market volatility. The EDB also pointed out the rising importance of the services sector particularly ICT/BPM, construction, financial services, and transport and logistics in driving export growth. This shift highlights the country’s transition toward a knowledge-based economy while creating high-value employment opportunities. Among export destinations, the United Arab Emirates, China, Australia, and Mexico recorded positive year-on-year growth both in February and cumulatively for the first two months of 2026. However, the United States, Sri Lanka’s largest export market accounting for around 22% of merchandise exports, saw a slight decline of 0.3% in February to US$ 239.8 million. Cumulative exports to the U.S. also edged down by 0.61% to US$ 497.65 million. India strengthened its position as Sri Lanka’s second-largest export destination, surpassing the United Kingdom, with cumulative exports rising by 16.21% to US$ 192.01 million despite a temporary dip in February. In contrast, exports to the United Kingdom declined by 1.86% to US$ 149.44 million. Exports to the European Union, which accounts for 24% of Sri Lanka’s merchandise exports, increased by 2.86% in February. However, cumulative exports to the EU fell by 6.42% during the January–February period. Among the top EU markets, Italy recorded the highest growth at 10.17%, followed by Belgium at 1.5%. Meanwhile, Germany, the Netherlands, and France experienced declines of 5.93%, 4.67%, and 4.39% respectively. Overall, the latest data reflects a stable and evolving export landscape, with strong contributions from services and emerging markets helping to offset weaknesses in traditional destinations.