By The Pulseline News Desk
Sri Lanka’s exports crossed the US$12 billion mark during the first eight months of 2026, with total exports reaching an estimated US$12.01 billion, as the services sector continued to expand its contribution to the country’s foreign exchange earnings.
According to the Export Development Board (EDB), total exports between January and August increased by 4.26% compared with the US$11.52 billion recorded during the corresponding period of 2025.
The growth was supported by both merchandise and services exports, although services continued to record the faster rate of expansion.
Merchandise exports increased by 3.63% to US$9.41 billion, while services exports grew by 6.59% to US$2.60 billion.
The figures point to a gradual broadening of Sri Lanka’s export base, with services accounting for an increasingly significant share of the country’s total export earnings.
Services exports gain momentum
The trend was particularly evident in August, when services exports increased by 13.97% year-on-year to US$331.87 million.
Merchandise exports, meanwhile, amounted to US$1.27 billion during the month.
According to provisional Sri Lanka Customs data, supplemented by estimated export values for gems and jewellery and petroleum products, merchandise exports totalled US$1.269 billion in August, representing a 1% decline compared with August 2025.
The stronger performance in services helped offset the decline in merchandise exports, resulting in total exports of approximately US$1.601 billion for the month, up 1.77% year-on-year.
The August figures underline the growing importance of services in supporting Sri Lanka’s external sector, particularly at a time when merchandise exporters continue to face changing conditions in international markets.
Knowledge economy emerging as key export driver
The EDB said the continued expansion of services exports highlights the growing role of Sri Lanka’s knowledge-based economy.
Industries such as ICT and BPM, construction, financial services, transport and logistics are increasingly contributing to export earnings while creating opportunities for higher-value employment.
The expansion of these sectors also provides Sri Lanka with an opportunity to reduce its dependence on traditional merchandise exports and increase value addition within the overall export basket.
For a country seeking to strengthen its foreign exchange position and reduce external vulnerabilities, the ability to generate export earnings through a wider range of goods and services remains increasingly important.
Focus shifts towards diversification and value addition
The EDB said the achievement of the US$12 billion milestone demonstrates continued resilience in Sri Lanka’s export sector and reflects efforts to strengthen the country’s position in international markets.
EDB Chairman and Chief Executive Officer Mangala Wijesinghe said the performance demonstrated the resilience and adaptability of Sri Lanka’s exporters.
He said the focus going forward should be on strengthening the competitiveness of existing export industries while developing new products, services and markets.
According to Wijesinghe, value addition, innovation, technology adoption, market diversification and deeper integration into global value chains will be important to sustaining export growth.
The EDB also said it would continue working with exporters, industry associations and government institutions to address emerging challenges and improve the environment for international trade.
A milestone, but not the destination
Crossing US$12 billion in exports during the first eight months represents another step in Sri Lanka’s efforts to build a more diversified export-oriented economy.
The figures also highlight a changing composition of export earnings, with services growing faster than merchandise exports and gaining greater importance in generating foreign exchange.
However, sustaining that momentum will depend on Sri Lanka’s ability to improve competitiveness, expand into new markets, increase productivity and move towards higher-value goods and services.
With both merchandise and services exports recording growth over the first eight months, the latest figures provide a positive indication of external-sector resilience while reinforcing the need for continued diversification if Sri Lanka is to meet its longer-term export ambitions.
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