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Sri Lanka’s electrical equipment manufacturing slumps 27% despite modest export gains

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Sri Lanka’s electrical equipment manufacturing sector recorded a contraction of 27.4% in the second quarter of 2025 compared to the same period last year, the latest Index of Industrial Production released by the Department of Census and Statistics reveals.

The quarterly report noted a “remarkable decrease” in the volume of manufactured electrical equipment, signalling persistent challenges in the country’s industrial output despite some positive trends elsewhere.

The pharmaceutical manufacturing sector also saw a significant drop, with production of basic pharmaceutical products and preparations declining by 24.9% year-on-year.

However, overall manufacturing output grew by 4.3% during the quarter, buoyed by strong performance in specific industries, most notably coke and refined petroleum products, which surged by 19.6%.

Industrial production for June alone rose by 6.2% compared to June 2024, and was up 0.5% from May.

Meanwhile, Sri Lanka’s export earnings from electrical and electronic components for 2024 reached $39.6 million, reflecting a 13.24% year-on-year increase, according to data from the Export Development Board (EDB).

The rise was largely driven by higher exports of switches, boards and panels, which accounted for over half of sectoral export earnings.

Yet, the sector’s longer-term outlook remains uncertain. EDB figures also show that exports of electrical and electronic components fell by 17.9% in the first seven months of 2024, primarily due to weakened global demand for products such as transformers and insulated wires.

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