Exports kick off 2025 with January figure rising to six-year high

• Merchandise exports up 3.51% to $ 1 b; services by 38% to $ 329.37 m
• Agricultural exports surge 14.87% YoY to $ 258.93 m
• Industrial exports inch up 0.08% to $ 754.89 m
• US, India, UK among top three markets 

Sri Lanka’s export of goods and services hit the ground running in 2025, raking in over $ 1.33 billion in January, reflecting a solid 10.3% year-on-year (YoY) growth. 

This milestone also marks the highest export earnings for January in six years, signalling strong momentum for the country’s external trade performance. 

The latest data released by the Sri Lanka Export Development Board (EDB) showed that total merchandise exports shipped in January were up 3.51% YoY to over $ 1 billion, while estimated total service earnings in the month increased by 38% YoY to $ 329.37 million. 

“This remarkable growth reflects the resilience, innovation, and competitiveness of Sri Lankan industries, paving the way for sustained economic success,” the EDB said.

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

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. 

The EDB noted that agricultural exports saw a robust 14.87% surge in January 2025, reaching $ 258.93 million compared to the same month last year. The industrial sector, however, inched up by a mere 0.08% to $ 754.89 million, with apparel and textiles – the country’s top export category – leading the charge with a sharp 21.1% increase to $ 460.2 million, though shipments to key markets – the US, UK, and EU – declined. 

Tea exports, which comprised 12% of total merchandise exports, rose by 2.63% to $ 112.7 million, driven by a 29.83% surge in packaged tea sales. The sector also saw strong demand from Iraq (43.58%), Saudi Arabia (13.8%), and the UAE (414%).

Coconut-based products experienced a 12.04% YoY increase, with coconut kernel products and coconut fibre products growing by 19.92% and 42.68%, respectively. Notably, coconut oil exports jumped 32.35%, while coconut cream surged 50.69%. The coconut fibre sector, led by Coco Peat and Fibre Pith, expanded 59.62% to $ 16.84 million. Meanwhile, activated carbon exports – classified under coconut shell products – rose 13.2% to $ 14.58 million.

Spices and essential oils exports jumped 32.94% to $ 38.99 million, fuelled by a 106.12% surge in pepper exports, particularly to India, and a 649.21% spike in cloves, with Saudi Arabia emerging as a key market. 

Food and beverage exports climbed 23.27%, driven by processed food exports (+29%).

The diamonds, gems, and jewellery sector saw a 28.23% increase to $ 42.29 million, with gems (45.87%) and jewellery (59.38%) posting strong growth. Notably, gem exports to the US grew by 30.72%, while diamond exports to Switzerland and Israel rose 34.4% and 26.82%, respectively.

Despite overall growth in January 2025, declines were seen across key sectors including rubber, electronics, and seafood. 

The rubber and rubber-based products fell 8.15% to $ 75.06 million, with pneumatic and retreaded rubber tires & tubes declining 33.71%, particularly in the US market (-31.7%). Similarly, electrical and electronic components exports dropped 8.9%, mainly due to a 28.09% decline in insulated wires and cables.

The seafood sector suffered a 23.24% decline to $ 17.67 million, with fresh fish exports plunging 60.81% and shrimp exports nosediving 76.59%. Ornamental fish exports also declined by 28.96% to $ 1.57 million.

Among Sri Lanka’s top 15 export markets, the US, India, UK, Germany, Netherlands, France, China, Belgium, Switzerland, Iraq, and Saudi Arabia showed positive growth in January 2025.

The US remained the largest export destination, accounting for 23% of total exports, with shipments increasing 18.01% to $ 260.18 million. 

India emerged as the second-largest market, with exports soaring 43.86% to $ 81.9 million, while exports to the UK increased by 17.82% to $ 79.55 million in January 2025 compared to the corresponding month in 2024.

In terms of exports to FTA partners, in January 2025, exports to India and Pakistan constituted 8.8% of the total merchandise exports, experiencing a significant 42.35% growth, reaching $ 88.3 million, compared to January 2024. 

The increase in exports to India was driven by higher exports of pepper (117.5 %) and positive performance of Pakistan was driven by increased exports of other base metal products and articles of stones.

Regionally, the European Union (EU) accounted for 24% of Sri Lanka’s exports, with earnings rising 16.34% YoY to $ 227.24 million. Among EU markets, Germany $ 53.87 million (up by 9.18%), Netherlands $ 36.63 million (up by 40.78%), France $ 22.16 million (up by 29.14%) and Belgium $ 19.64 million (up by 24.94%) showed strong growth, while Italy $ 43.54 million experienced a decline (- 8.13 %).