ECONOMYNEXT – Sri Lanka’s merchandise exports fell 4.94 percent to 1,180.39 million dollars in March 2026 from a year ago, with apparel, tea, and spice exports declining, data from the export promotion office showed. “While Sri Lanka’s export earnings experienced a temporary moderation in March 2026, reaching US$ 1,467.31 million, the overall performance for the first quarter reflects continued resilience and stability in the export sector,” Mangala Wijesinghe, Chairman and Chief Executive Officer of the Export Development Board (EDB), said. Earnings from apparel and textile export fell 11.22 percent to 440.32 million dollars, mainly driven by a 12.78 percent reduction in shipments to the US, EDB said.

Exports to the European Union saw a 2.01 percent contraction. Exports to the UK also declined 15.7 percent, contributing to the overall decrease in the sector’s performance. Tea exports fell 17.34 percent year-on-year to 114.75 million dollars in March 2026, due to weakened demand in key markets.

“Exports to Iraq, Russia, and the UAE declined significantly by 37.66 percent, 36.36 percent, and 92.64 percent, respectively, exerting substantial downward pressure on overall sector performance.” Export earnings from rubber and rubber-based products also dropped marginally by 0.64 percent year-on-year to 92.48 million dollars in March 2026, due to contractions in key product segments EDB said. Exports of spices and essential oils fell 14.56 percent to 35.97 million dollars during the period, again, due to weaker performance in key product categories. “Notably, pepper exports fell sharply by 55.12 percent, while cloves exports recorded a significant decline of 77.19percent, contributing to the overall downturn in the sector.” The United States, which accounts for about 22 percent of total merchandise exports, recorded a decline of 8.42 percent to 251.74 million dollars in March 2026 compared to the same period in 2025.

India continued to be the second-largest export destination, surpassing the United Kingdom, with exports rising 12.02 percent to 287.49 million dollars in March 2026. Exports to the United Kingdom fell by 5.84 to 235.73 million dollars compared with March 2025.(Colombo/Apr23/2026)