Exports in 1Q grow by 6% to surpass $ 4 b mark

• Merchandise exports up 4.61% YoY to $ 3.3 b, services by 11% to $ 887 m
• Performance in March reaches over $ 1.5 b, up 6.24% YoY
• March merchandise exports up 6% YoY to $ 1.2 b; services by 8% to $ 291 m
• Apparel and textiles, coconut-based products, spices and concentrates, ICT/BPM and transport and logistics boost earnings in Q1
• EDB Chief Mangala Wijesinghe says export growth highlights rising global trade presence and success of efforts to boost competitiveness and market access

Sri Lanka’s export sector continues to show strong recovery and resilience, with performance in the first quarter of 2025 reaching over $ 4.2 billion—a 5.87% increase compared to the same period last year. 

The latest figures, released by the Sri Lanka Export Development Board (EDB), underscore a steady upward trajectory in both merchandise and services exports, reflecting growing competitiveness in global markets. March 2025 marked a particularly notable month, with total exports climbing to over $ 1.5 billion, registering a significant 6.24% year-on-year (YoY) increase over March 2024 and an 11.76% rise compared to February 2025, underscoring a strong momentum in the country’s export performance.

“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. Our exporters continue to demonstrate remarkable resilience and adaptability in global markets,” EDB Chairman and CEO Mangala Wijesinghe said. 

Merchandise exports for March 2025 reached over $ 1.2 billion—a 5.87% YoY increase, including estimated earnings from key sectors such as gems and jewellery and petroleum products. 

Merchandise exports during the first three months of 2025 amounted to over $ 3.3 billion, reflecting a 4.61% growth compared to the same period last year.

Services exports in March 2025 are estimated at $ 291.12 million, up 7.79% YoY. 

During the first quarter, services exports reached an estimated $ 887.04 million—a robust 10.88% increase over the same period in 2024.

The services sector, which includes ICT/BPM, construction, financial services, and transport and logistics, has not only bolstered export earnings but also contributed to the creation of high-value employment opportunities across the country.

As per the data shared by the EDB, apparel and textile exports saw a robust 11% YoY increase between January and March of 2025, reaching over $ 1.3 billion. 

Agriculture exports witnessed a remarkable growth during the first quarter. Tea exports, which comprised 12% of total merchandise exports, rose by 5% YoY to $ 370.95 million, whilst coconut-based exports increased by 26.44% YoY to 257.46 million, and spice and concentrates exports grew by 71.43% to $ 119.04 million. 

On the services side, transport and logistics, as well as ICT/BPM, showed positive growth during the first three months with 25% YoY to $ 506.88 million and 11% YoY to $ 352.53 million, respectively.

Sri Lanka has set an ambitious export revenue target of $ 19 billion for 2025, aiming for steady growth in both merchandise and services exports. 

Merchandise exports are projected to climb 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 by the end of the year. 

These targets also align with a broader five-year strategy to boost total export earnings to $ 36 billion by 2030, with $ 25 billion from shipment of goods and $ 11 billion from services exports. 

Among the top 10 export markets of Sri Lanka, United States, United Kingdom, India, Germany, Netherlands, France, and China have shown positive growth in both March 2025 and the cumulative period of January to March 2025, compared to the corresponding periods in 2024.

The US—Sri Lanka’s single largest export market which absorbs 23% of merchandise exports, increased by 13.83 % to $ 274.89 million in March 2025 compared to the same period a year earlier. However, exports to the US over the cumulative period from January to March 2025 increased by 9.0 %, reaching $ 775.6 million.

Similarly, exports to the UK increased by 10.71% YoY to $ 98.06 million in March 2025. Meanwhile, exports to the UK increased by 4.74% to $ 250.34 million in the cumulative period of January to March 2025, compared to the corresponding period in 2024.

In terms of exports to Free Trade Agreement (FTA) partners, in March 2025, exports to India and Pakistan accounted for 6.5% of total merchandise exports, increasing significantly by 24.02% to reach $ 95.89 million compared to March 2024.

Exports to India increased notably by 30.92%, while exports to Pakistan declined by 40.27% during the same period. The growth in exports to India was mainly driven by higher shipments of petroleum oil and pepper, whereas the decrease in exports to Pakistan was primarily due to reduced demand for other electrical and electronic products and betel leaves.

During the first quarter of 2025, India and Pakistan accounted for 7.2% of total merchandise exports, increasing by 35.82% to reach $ 272.49 million compared to the same period in the previous year.

Exports to India increased significantly by 40.66%, while exports to Pakistan declined by 12.77% over the cumulative period. The strong export growth to India was driven by higher shipments of petroleum oil, animal feed, and pepper. In addition, the decline in exports to Pakistan was primarily due to reduced exports of other textile articles.

Regionally, exports to the European Union (EU), which accounts for 24% of Sri Lanka’s exports, during March 2025 and the cumulative period of January to March 2025 increased respectively by 11.51 % and 9.47%.

Exports to the top five EU markets were registered as; Germany $ 181.53 million (up by 10.73%), Italy $ 152.8 million (down by 3.18%), Netherlands $ 113.2 million (up by 28.89%), France $ 65.13 million (up by 7.44%), and Belgium $ 59.2 million (up by 6.82%) during the cumulative period of January to March 2025, in comparison to the corresponding period in 2024.