India has solidified its position as Sri Lanka's second-largest export destination, surpassing the United Kingdom. From January to April 2026, Sri Lanka's exports to India increased by 8.9%, reaching USD 364.15 million. However, April 2026 saw a marginal year-on-year decline of 1.41% in exports to India.
Export Performance Overview
Sri Lanka's total exports, including merchandise and services, amounted to USD 1,380.93 million in April 2026, marking a 6% year-on-year growth. Notably, activated carbon, a key export product, surged by 58.32% to USD 20.55 million.
- Information and Communication Technology: USD 146.09 million
- Financial Services: Increased by 119.41% to USD 6.82 million
Sectoral Challenges
Despite the overall growth, the apparel and textiles sector faced challenges, with a 4.88% decline to USD 346.67 million in April 2026. This downturn was influenced by reduced shipments to major markets:
| Market | Decline (%) |
|---|---|
| United States | 2.71 |
| European Union | 9.21 |
| United Kingdom | 16.08 |
"This downturn was primarily driven by a 2.71 per cent reduction in shipments to the United States, alongside a 9.21 per cent contraction in exports to the European Union," the board noted.
Tea Export Decline
Tea exports also faced a setback, declining by 6.82% to USD 100.02 million. Significant decreases were observed in exports to Iraq, Saudi Arabia, Libya, and the UAE, with reductions of 48.62%, 6.68%, 55.42%, and 75.34% respectively.
US Market Performance
The United States remains Sri Lanka's largest export market, accounting for approximately 22% of total merchandise exports. In April 2026, exports to the US increased by 3.15% to USD 196.37 million.
Despite these gains, cumulative exports from January to April 2026 declined by 2.09% to USD 945.76 million compared to the same period in 2025.
