Trade: Exports record 5.2% y-o-y decline

Sri Lanka’s total exports, including both merchandise and services, reached $ 1,467.31 million in March 2026, reflecting a year-on-year decline of 5.2% compared to March 2025. However, on a month-on-month basis, exports increased by 9.0% compared to February this year ($ 1,346.2 million), indicating a recovery in export momentum during the month.

According to provisional data from Sri Lanka Customs, along with estimated figures for Gems and Jewellery and Petroleum Products, merchandise exports for March decreased by 4.94% to $ 1,180.39 million.

Earnings from services exports were estimated at $ 286.92 million in March this year. While this represents a moderate decline of 6.26% compared to March 2025, the services sector continues to demonstrate its growing importance to Sri Lanka’s export portfolio.

On a cumulative basis, total exports for the period from January to March 2026 are estimated at $ 4,308.11 million, recording a growth of 1.59 % over the corresponding period in 2025.

Overall, the positive performance recorded during the first quarter underscores the resilience of Sri Lanka’s external sector. Despite the temporary setback in March, sustained export earnings supported by stable merchandise trade and the increasing contribution of services signal a steady recovery trajectory for 2026.

Commenting on this achievement, Sri Lanka Export Development Board (EDB) Chairperson and Chief Executive Officer Mangala Wijesinghe stated: “While Sri Lanka’s export earnings experienced a temporary moderation in March 2026, reaching $ 1,467.31 million, the overall performance for the first quarter reflects continued resilience and stability in the export sector. The cumulative growth recorded during January to March 2026 demonstrates the sector’s ability to navigate evolving global market conditions. This is supported by sustained demand in key export categories, the gradual strengthening of services exports, and ongoing export promotion and market diversification efforts. Looking ahead, a series of key policy decisions to be taken by the Export Development Council of Ministers (EDCM) will further strengthen the export ecosystem. These include measures to enhance trade facilitation, streamline regulatory processes, support market diversification, and improve access to finance for exporters. With these strategic interventions, alongside the continued implementation of the National Export Development Plan, Sri Lanka is well-positioned to sustain export growth momentum and achieve its annual export targets in 2026.”

Further analysis indicates that cumulative merchandise export earnings amounted to $ 3,387.0 million during January-March 2026, reflecting a 1.18 % increase compared to the corresponding period in 2025.

Meanwhile, services exports maintained a strong upward trajectory, recording an estimated 3.13% growth during the same period, reaching $ 921.11 million.

This robust expansion highlights the increasing importance of Sri Lanka’s knowledge-based economy and its growing contribution to national export earnings. The services sector,comprising ICT/BPM, Construction, Financial Services, and Transport and Logistics, continues to play a pivotal role in diversifying the country’s export base while generating high-value employment opportunities across the economy.