Sri Lanka has demonstrated remarkable resilience and growth in its export sector during the first quarter of 2025, with total exports reaching US$ 4,212.13 Mn, reflecting a robust 5.87% growth compared to the same period last year.
March 2025 proved particularly successful with total exports, including both merchandise and services, reaching US$ 1,507.90 Mn. This represents an impressive 6.24% year-on-year growth compared to March 2024 and a substantial 11.76% month-on-month increase from February 2025.
"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," said Mr. Mangala Wijesinghe, Chairman & Chief Executive Officer, Export Development Board. "Our exporters continue to demonstrate remarkable resilience and adaptability in global markets."
The merchandise export sector showed strong performance with a 5.87% year-on-year growth in March 2025, reaching US$ 1,215.9 Mn according to provisional data from Sri Lanka Customs, including estimated figures for Gems & Jewellery and Petroleum Products.
Services exports have been a particular bright spot, with an estimated growth of 7.79% in March 2025, reaching US$ 291.12 million compared to the same period in 2024. For the entire first quarter, services exports are estimated to have increased by 10.88% to US$ 887.04 million, highlighting the growing importance of Sri Lanka's knowledge-based economy.
The services export sector, comprising ICT/BPM, Construction, Financial services, and Transport & Logistics, continues to diversify Sri Lanka's export portfolio and create high-value employment opportunities across the island.
Overall merchandise exports for January to March 2025 are estimated at US$ 3,325.09 Mn, marking a healthy 4.61% increase compared to the first quarter of 2024.
Major Exports in March 2025
a) Products & Services with Positive Growth (Increases)
Export earnings from Apparel & Textile increased by 11.73 % y-o-y to US $ 495.95 Mn in March 2025 compared to March 2024.
Export earnings from tea which made up 12% of merchandise exports, increased by 11.19 % y-o-y to US$ 138.83 Mn in March 2025 compared to March 2024. This decrease is mainly due to the strong performance in the export of Bulk Tea (8.63 %) and Tea Packets (12.12%).
In addition, the volume of tea exports increased by 10.26% in March 2025 compared to the same month in 2024. Notably, tea exports to Iraq, Russia, and Iran recorded significant increases of 12.2%, 26.15%, and 155.11%, respectively.
On monthly analysis, export earnings of Coconut based products recorded a significant increase of 27.24 % in March 2025 compared to March 2024. Notably, earnings from Coconut kernel products and coconut shell products increased by 49.66% and 12.06%, respectively.
Export earnings from Coconut Oil, Coconut Milk powder, Coconut Cream and Liquid Coconut Milk which are categorized under the Coconut kernel products increased by 76.63 %, 93.45 %, 46.15 % and 41.93 % respectively in March 2025 compared to March 2024.
Earnings from Activated Carbon, which is categorized under the Coconut shell products increased by 16.17 % to US$ 17.17 Mn in March 2025 compared to March 2024.
Similarly, export earnings from Spices and Essential Oils increased by 146.26 % to US$ 42.11 Mn in the month of March 2025 compared to month of March 2024 mainly due to the strong performance in export of Pepper (942.86 %), Cinnamon (74.16 %) and Cloves (560.0 %).
Export earnings from Food & Beverages have increased by 12.23 % y-o-y to US$ 55.5 Million in March 2025, with the positive performance in exports of Processed Food (40.48%).
Furthermore, the estimated value of ICT/ BPM exports is expected to increase by 2.54 % to US$ 114.82 Mn in March 2025 when compared to March 2024. In addition, the estimated value of Logistics & transport services is expected to increase by 23.69 % to US$ 170.18 Mn in March 2025 when compared to March 2024.
b) Products & Services with Negative Growth (Decreases)
Export earnings from Rubber and Rubber Finished products have decreased by 5.0 % y-o-y to US$ 93.08 Mn in March 2025, with the poor performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (-17.45 %).
Coconut fiber product exports recorded a marginal decline of 0.3% in March 2025 compared to the same month in 2024. As the largest contributor to the Coconut-based products sector, exports of Coco Peat, Fiber Pith, and Moulded products classified under Coconut fiber products decreased by 2.5%, totaling US$ 18.72 Mn in March 2025.
Export earnings from Seafood decreased by 16.02 % to US$ 16.98 Mn in March 2025 compared to March 2024. This decrease was mainly due to the negative performance in export of Fresh fish (-48.63 %) and Shrimps (-70.13 %).
Furthermore, export earnings from Ornamental fish decreased by 9.42 % to US1.73 Mn in March 2025 compared to March 2024.
Meanwhile, export earnings from the Boat Building sector declined by 82.35%, amounting to US$ 1.92 Mn in March 2025 compared to March 2024.
Additionally, export earnings from the Electrical & Electronics Components decreased by 4.96 % y-o-y to US$ 38.72 Mn in March 2025 with notable declines in the exports Insulated Wires and Cables (-6.93 %) and Printed Circuits (-66.67%).
Exports during the period of January – March 2025
Cumulative total exports, including both merchandise and services, were estimated at US$ 4,212.13 Mn for the period January to March 2025, making a notable 5.87% growth compared to the same period in 2024.
Merchandise exports during the first quarter of 2025 are estimated to increase by 4.61%, reaching US$ 3,325.09 Mn, based on data from Sri Lanka Customs along with the estimated figures for Gems & Jewellery and Petroleum Products.
Meanwhile, the estimated value of services exports is expected to increase by 10.88 % to US$ 887.04 Mn compared to the corresponding period in 2024.
a) Products & Services with Positive Growth (Increases)
Earnings from export of Apparel, Tea, Coconut products, Spices & Concentrates and Food & Beverages increased by 11.09 %, 4.56 %, 26.44 %, 71.43 % and 9.59 % respectively during the period of first quarter of 2025 in comparison to the corresponding period of 2024.
Earnings from export of Apparel & Textile have increased by 11.09 % to US$ 1,383.47 Mn during the period of January to March 2025 compared to the same period in 2024. Notably, exports to the United States and United Kingdom increased by 18.07 % and 16.65%, amounting to US$ 175.5 Mn and US$ 78.04 Mn respectively.
Earnings from export of Tea increased y-o-y by 4.56 % to US$ 370.95 Mn in the period of January to March 2025. This increase was mainly due to the strong performance in export of Tea Packets (16.11 %).
Export earnings of Coconut & Coconut based products increased by 26.44 % to US$ 257.46 Mn during the first quarter of 2025 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of first quarter of 2025 compared with the corresponding period of 2024 due to the strong performance in export of Coconut Oil (58.29 %), Desiccated Coconut (9.96 %), Coconut Milk Powder (84.04 %), Coconut Cream (49.95 %), Liquid Coconut Milk (22.75 %), Cocopeat (25.61 %) and Activated Carbon (12.59 %).
In addition, export earnings from Spices and Essential Oils increased y-o-y by 71.43 % to US$ 119.04 Mn in the period of first quarter of 2025. This increase was due to the strong performance in exports of Pepper (235.01 %), Cinnamon (22.43 %) & Cloves (461.36 %).
Export earnings from Food & Beverages have increased by 9.59 % y-o-y to US$ 138.44 Million in the first quarter of 2025, with the positive performance in exports of Processed food (28.14 %).
Furthermore, the estimated value of ICT/ BPM exports is expected to increase by 10.8 % to US$ 352.53 Mn during the first quarter of 2025 when compared to the corresponding period of 2024.
In addition, the estimated value of Logistics & transport services is expected to increase by 24.71 % to US$ 506.88 Mn during the first quarter of 2025 when compared to the corresponding period of 2024.
b) Products & Services with Negative Growth (Decreases)
Export earnings from Rubber & Rubber finished products decreased by 6.4 % to US$ 251.27 Mn in the first quarter of 2025 compared to the same period in 2024 attributed to decreased exports of Pneumatic & Retreated Rubber Tyres & Tubes (-23.72 %).
Further, export earnings from Seafood decreased by 24.51 % to US$ 48.24 Mn during the first quarter of 2025 compared to year 2024 due to the negative performance in Fresh Fish (-58.53 %) and Shrimps (-75.98 %).
Meanwhile earnings from export of Electrical and Electronic Components (EEC) decreased by 8.07 % to US$ 98.49 Mn in the first quarter of 2025 compared to the corresponding period of 2024. This decrease was due to the poor performance in exports of Insulated Wires and Cables (-16.69 %), Printed Circuits (-82.98 %), Switches, Boards & Panels (-6.07 %).
Table 1 shows the comparison of Merchandise export performance during the month of March 2025 and the first quarter of 2025 compared to 2024.
Sri Lanka’s Export Performance in Major Markets
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.
United States, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, increased by 13.83 % to US$ 274.89 Mn in March 2025 compared to March 2024. However, exports to United States over the cumulative period from January to March 2025 increased by 9.0 %, reaching US$ 775.6 Mn.
Similarly, exports to the United Kingdom increased by 10.71 % to US$ 98.06 Mn in March 2025 compared to the corresponding month in 2024. Meanwhile, exports to the United Kingdom increased by 4.74 % to US$ 250.34 Mn in cumulative period of January to March 2025 compared to the corresponding period in 2024.
Table 2 shows the comparison of Merchandise export performance of top 15 export markets during the month of March 2025 and the period of January to March 2025 compared to 2024.
Exports to FTA Partners (India & Pakistan)
a) March 2025
In March 2025, exports to India and Pakistan accounted for 6.5% of total merchandise exports, increased significantly by 24.02% to reach US$ 95.89 Mn 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 & Electronic products and Betel Leaves.
b) January - March 2025
Exports to India and Pakistan accounted for 7.2% of total merchandise exports during the period from January to March 2025, increasing by 35.82% to reach US$ 272.49 Mn 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.
Sri Lanka’s Export Performance in Regions
Table 3 shows the comparison of region wise exports during the month of March 2025 and the period of January to March 2025 compared to 2024.
Exports to the European Union (EU) which accounts for 24% of Sri Lanka’s exports during both March 2024 and the cumulative period of January to March 2024 increased respectively by 11.51 % and 9.47 %.
Exports to the top five EU markets were recoded as; Germany US$ 181.53 Mn (increased by 10.73 %), Italy US$ 152.8 Mn (decreased by 3.18 %), Netherlands US$ 113.2 Mn (increased by 28.89 %), France US$ 65.13 Mn. (increased by 7.44 %) and Belgium US$ 59.2 Mn (increased by 6.82 %) during the cumulative period of January to March 2025 in comparison to the corresponding period in 2024.
Sources: Data was obtained from the Central Bank of Sri Lanka (CBSL) and Sri Lanka Customs.
Export figures of Services, Gems & Jewellery, and Petroleum Products for March 2025 were estimated by the EDB
Policy & Strategic Planning Division - 23.04.2025
