Sri Lanka has recorded a significant boost in its export sector during the first quarter of 2025, with total exports – including both merchandise and services – amounting to US$ 4,212.13 million. This marks a robust 5.87% year-on-year (y-o-y) growth, underscoring the nation’s growing resilience and prominence in international trade.
March 2025 emerged as a standout month, with total exports climbing to US$ 1,507.90 million – a 6.24% increase compared to March 2024 and an 11.76% rise from February 2025. This surge has been driven by strong performances across several key export sectors.
“This positive export performance underscores Sri Lanka’s growing prominence in global trade and reflects the effectiveness of ongoing efforts to enhance the country’s export competitiveness and market access,” stated Mr Mangala Wijesinghe, Chairman and Chief Executive Officer of the Export Development Board (EDB). “Our exporters continue to demonstrate remarkable resilience and adaptability in global markets.”
Merchandise and Services Performance
Merchandise exports in March 2025 reached US$ 1,215.9 million, showing a y-o-y growth of 5.87%, based on provisional data from Sri Lanka Customs, including estimates for Gems & Jewellery and Petroleum Products. Meanwhile, services exports surged by an estimated 7.79%, totalling US$ 291.12 million.
For the full first quarter, merchandise exports rose by 4.61% to US$ 3,325.09 million, while services exports increased by 10.88% to US$ 887.04 million, reflecting the continued expansion of the country’s knowledge-based economy. Key service sectors include ICT/BPM, construction, financial services, and transport & logistics.
Export Highlights – March 2025
Positive Growth Sectors:
• Apparel & Textiles: Increased by 11.73% to US$ 495.95 million.
• Tea: Up 11.19% to US$ 138.83 million, driven by strong performance in Bulk Tea (+8.63%) and Tea Packets (+12.12%). Tea export volume rose 10.26%. Notable market growth included Iraq (+12.2%), Russia (+26.15%), and Iran (+155.11%).
• Coconut-Based Products: Rose by 27.24%. Kernel products surged (+49.66%) with standout growth in Coconut Oil (+76.63%), Milk Powder (+93.45%), Cream (+46.15%), and Liquid Milk (+41.93%). Shell products like Activated Carbon also saw a 16.17% rise.
• Spices & Essential Oils: Saw a staggering increase of 146.26% to US$ 42.11 million, led by Pepper (+942.86%), Cinnamon (+74.16%), and Cloves (+560.0%).
• Food & Beverages: Grew by 12.23% to US$ 55.5 million, supported by Processed Food exports (+40.48%).
• ICT/BPM Services: Estimated to rise by 2.54% to US$ 114.82 million.
• Transport & Logistics: Estimated increase of 23.69% to US$ 170.18 million.
Sectors with Declines:
• Rubber & Rubber Products: Fell by 5.0% to US$ 93.08 million, due to a drop in Pneumatic & Retreated Tyres and Tubes (-17.45%).
• Coconut Fibre Products: Marginal decline of 0.3% to US$ 18.72 million.
• Seafood: Dropped by 16.02% to US$ 16.98 million, impacted by declines in Fresh Fish (-48.63%) and Shrimps (-70.13%).
• Ornamental Fish: Decreased by 9.42% to US$ 1.73 million.
• Boat Building: Plunged by 82.35% to US$ 1.92 million.
• Electrical & Electronic Components: Dropped 4.96% to US$ 38.72 million, led by weak exports of Insulated Wires and Cables (-6.93%) and Printed Circuits (-66.67%).
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First Quarter 2025 Export Performance
Overall Growth:
• Apparel & Textiles: Up 11.09% to US$ 1,383.47 million, with notable growth in exports to the US (+18.07%) and UK (+16.65%).
• Tea: Increased by 4.56% to US$ 370.95 million, led by Tea Packets (+16.11%).
• Coconut Products: Rose by 26.44% to US$ 257.46 million, with across-the-board increases in all major categories.
• Spices & Essential Oils: Jumped 71.43% to US$ 119.04 million, led by Pepper (+235.01%), Cinnamon (+22.43%), and Cloves (+461.36%).
• Food & Beverages: Grew by 9.59% to US$ 138.44 million, led by Processed Food (+28.14%).
• ICT/BPM: Expected to rise by 10.8% to US$ 352.53 million.
• Logistics & Transport Services: Estimated increase of 24.71% to US$ 506.88 million.
Declining Sectors:
• Rubber & Rubber Products: Down 6.4% to US$ 251.27 million.
• Seafood: Dropped 24.51% to US$ 48.24 million, driven by poor Fresh Fish (-58.53%) and Shrimp (-75.98%) performance.
• Electrical & Electronic Components: Declined 8.07% to US$ 98.49 million, due to significant losses in Printed Circuits (-82.98%) and Insulated Wires (-16.69%).
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Performance in Major Markets
Among Sri Lanka’s top 10 export markets, the United States, United Kingdom, India, Germany, Netherlands, France, and China all recorded positive growth in both March 2025 and the first quarter.
• United States: The top destination (23% of exports) saw a 13.83% increase in March to US$ 274.89 million, and a 9.0% rise in Q1 to US$ 775.6 million.
• United Kingdom: Rose by 10.71% in March (US$ 98.06 million) and 4.74% in Q1 (US$ 250.34 million).
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Exports to FTA Partners – India & Pakistan
March 2025:
• Combined exports to India and Pakistan rose by 24.02% to US$ 95.89 million.
• Exports to India grew by 30.92%, driven by Petroleum Oil and Pepper.
• Exports to Pakistan declined by 40.27%, due to reduced demand for Electrical Products and Betel Leaves.
Q1 2025:
• Combined exports to India and Pakistan increased by 35.82% to US$ 272.49 million.
• Exports to India surged by 40.66%, supported by Petroleum Oil, Animal Feed, and Pepper.
• Exports to Pakistan fell by 12.77%, primarily due to a decline in Other Textile Articles.
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Regional Export Performance
Exports to the European Union – accounting for 24% of total exports – grew by 11.51% in March and 9.47% in Q1 2025.
Top five EU destinations for Q1 2025:
• Germany: US$ 181.53 Mn (+10.73%)
• Italy: US$ 152.8 Mn (-3.18%)
• Netherlands: US$ 113.2 Mn (+28.89%)
• France: US$ 65.13 Mn (+7.44%)
• Belgium: US$ 59.2 Mn (+6.82%)
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Sources: Export Development Board (EDB), Sri Lanka Customs, and the Central Bank of Sri Lanka (CBSL). Note: Export figures for Services, Gems & Jewellery, and Petroleum Products for March 2025 were estimated by the EDB.
