Exports dip 5.2% in March despite quarterly growth

Sri Lanka’s total exports, including merchandise and services, were valued at $1,467.31 million in March 2026, marking a 5.2% year-on-year decline compared to the same month in 2025. However, exports rebounded on a month-on-month basis, rising 9.0% from $1,346.2 million recorded in February, signaling a recovery in momentum.

According to provisional data from Sri Lanka Customs, along with estimated figures for gems and jewellery and petroleum products, merchandise exports fell 4.94% to $1,180.39 million in March.

Earnings from services exports were estimated at $286.92 million, reflecting a 6.26% decline from a year earlier. Despite the dip, the services sector continued to strengthen its role within the country’s export mix.

Cumulative exports for the January–March 2026 period reached an estimated $4,308.11 million, registering a 1.59% increase over the same period in 2025.

The overall first-quarter performance highlights the resilience of Sri Lanka’s external sector, with steady export earnings supported by stable merchandise trade and the growing contribution from services, despite a temporary slowdown in March.

Commenting on the outlook, Sri Lanka Export Development Board (EDB) Chairperson and CEO Mangala Wijesinghe said the sector’s performance reflects its ability to adapt to changing global market conditions. He noted that sustained demand in key export categories, improving services exports, and ongoing market diversification efforts have supported growth.

He added that upcoming policy measures by the Export Development Council of Ministers are expected to further strengthen the export ecosystem, including initiatives to improve trade facilitation, streamline regulations, expand market access, and enhance financing options for exporters.

Further data showed cumulative merchandise exports for the first quarter totaled $3,387.0 million, up 1.18% year-on-year, while services exports grew 3.13% to $921.11 million.

The continued expansion of services—particularly in ICT/BPM, construction, financial services, and transport and logistics—underscores the rising importance of Sri Lanka’s knowledge-based economy and its contribution to export diversification and employment generation.