Export earnings hit $ 1.38 b in February driven by services growth

• Merchandise exports in Feb. decline by 0.27% to $ 1.05 b; services up by 24.37% to $ 326.14 m
• Rubber-based products, electrical and electronic components, seafood, ornamental fish and diamonds, gems and jewellery attribute to reduced merchandise earnings 
• Apparel and textiles, coconut-based products, spices and concentrates, ICT/BPM and transport and logistics boost earnings in February 
• Jan.-Feb. export earnings up 7% YoY to $ 2.73 b
• India, Germany, Netherlands and China show positive growth during first two months

Sri Lanka’s total exports in February reached $ 1.38 billion, growing 5% year-on-year (YoY) driven by services exports, while merchandise exports saw a marginal drop during the month. 

The latest data released by the Sri Lanka Export Development Board (EDB) yesterday showed that merchandise exports declined by 0.27% YoY to $ 1.05 billion and the services sector surged by 24.37% YoY, bringing in $ 326.14 million. 

However, it noted that February exports registered a 2.58% month-on-month increase compared to January 2025.

The decrease in merchandise exports was primarily attributed to reduced earnings from rubber-based products, electrical and electronic components, seafood, ornamental fish, as well as diamonds, gems and jewellery. 



During the first two months of 2025, total exports were up 7% YoY to over $ 2.73 billion. Merchandise export earnings during January-February increased by 4% YoY to over $ 2.19 billion, whilst services exports during the same period were estimated to have surged by 17.20% to $ 621.14 million. Services exports include sectors such as ICT/BPM, construction, financial services, and transport and logistics.

As per the data shared by the EDB, apparel and textile exports saw a robust 11% YoY increase between January and February of 2025, reaching $ 887.52 million, whilst boat building exports saw a 4,600% growth despite a marginal value of $ 3.76 million in income during the first two months from industrial exports.

Agriculture exports witnessed a remarkable growth during the first two months. Tea exports, which comprised 12% of total merchandise exports, rose by merely 1% to $ 231.11 million, whilst coconut-based exports increased by 26% YoY to $ 156.77 million and spice and concentrates exports grew by 47% to $ 76.92 million. 

On the services side, ICT/BPM and transport and logistics showed positive growth during the first two months with 24.10% YoY to $ 255.89 million and 26% YoY to $ 338.47 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 Sri Lanka’s top 15 export markets, India, Germany, Netherlands and China have shown positive growth in both February and the cumulative period of January to February 2025 compared to the corresponding periods a year earlier.

The US, Sri Lanka’s single largest export destination, which absorbs 23% of the country’s merchandise exports, decreased by 3.63% to $ 240.53 million in February 2025 compared to February 2024. However, exports to the US from January to February 2024 increased by 6.52% YoY reaching $ 500.71 million.

Similarly, exports to the UK decreased by 12.3% YoY to $ 72.73 million in February 2025 compared to the corresponding month in 2024. However, on a cumulative basis, exports to the UK increased by 1.22% YoY to $ 152.28 million compared to January-February in 2024.

In terms of exports to FTA partners, in February 2025, exports to India and Pakistan constituted 6.5% of the total merchandise exports, experiencing a significant 44.08 % increase to reach $ 88.29 million, compared to February 2024. Further, exports to India registered an increase of 49.56% YoY while exports to Pakistan decreased by 10.77% in February compared to a year earlier.

The positive growth in exports to India was driven by higher shipments of petroleum oil, animal feed, and pepper whereas the decline in exports to Pakistan was primarily due to reduced demand for other textile articles.

During January to February 2025, exports to India and Pakistan accounted for 7.2% of total merchandise exports, an increase of 43.21% YoY to $ 176.59 million compared to the corresponding period of previous year. Exports to India and Pakistan increased by 46.69% and 6.46 % respectively during the cumulative period compared with the same time in 2024. 

Regionally, the European Union (EU) accounted for 24% of Sri Lanka’s exports, with earnings rising by 8.27% YoY to $ 454.97 million during the first two months of 2025. The top five markets among EU markets during the first two months include; Germany $ 110.01 million (up by 8.68 %), Italy $ 95.21 million (down by 5.29 %), Netherlands $ 70.09 million (up by 2.85 %), France $ 42.33 million (up by 8.52 %) and Belgium $ 38.1 million (up by 8.52 %).