Logistics & Transport Services Exports: Sri Lanka's 3.22% Gain in 2025

Sri Lanka's logistics and transport services exports surged by an impressive 3.22% in 2025, powering the nation's service sector amid global trade recovery. This growth highlights our island's strategic position as a maritime hub, fuelling opportunities for local shipping firms and exporters.

Understanding Sri Lanka's Logistics Exports Boom

Our logistics and transport services have emerged as a cornerstone of Sri Lanka's export economy, contributing significantly to the record US$17.25 billion in total exports for 2025. While merchandise exports like apparel and tea dominate headlines, services exports—including transport and logistics—grew by 2.79% year-on-year, reaching US$3.67 billion. Within this, logistics and transport services posted a targeted 3.22% gain, driven by rising international trade flows and our ports' efficiency.

Colombo Port, handling over 7 million TEUs annually, remains our gateway to global markets. This sector's resilience stems from diversified services: freight forwarding, customs brokerage, and multimodal transport linking sea, air, and road networks. For locals in the shipping industry, this means steady demand from exporters shipping tea to the EU or garments to the US, our top market capturing 23% of merchandise flows.

Key Drivers Behind the 3.22% Growth

• Global Demand Recovery: Improving trade conditions lifted total exports by 5.6%, with logistics riding the wave of merchandise up 6.32% to US$13.58 billion.
• Free Trade Agreements: The Sri Lanka-Thailand FTA, eliminating duties on 80% of tariff lines, boosted containerised flows of electronics and foods, spiking logistics needs.
• Port Infrastructure Upgrades: Investments in Colombo and Hambantota enhanced capacity, supporting sea freight's 50.22% market share in 2025.
• Diaspora and E-commerce: International CEP services grew at a projected 5.35% CAGR into 2026, as cottage exporters fulfil micro-orders abroad.

How Logistics Fits into Our Export Landscape

Sri Lanka's freight and logistics market hit USD 7.78 billion in 2025, with freight transport claiming 64.12% share. Services exports, bolstered by ICT, BPM, and transport, underscore our shift to a knowledge-based economy. Chairman Mangala Wijesinghe of the Export Development Board (EDB) credits this to resilient production and market strategies, achieving 94.79% of the annual target.

For context, December 2025 saw total exports at US$1.49 billion (up 3.95%), though monthly services dipped 2.47%—yet annual logistics strength prevailed. Wholesale and retail trade led end-users at 33.52%, while manufacturing eyes 4.96% CAGR growth to 2031.

Breakdown of Services Export Growth

Sector	2025 Value (US$ Bn)	YoY Growth
Total Services Exports	3.67	2.79%
Logistics & Transport	Est. portion of services	3.22%
ICT/BPM	Key driver	Strong annual
Construction & Finance	Supporting	Expanded

This table illustrates logistics' pivotal role alongside peers. Air freight forwarding, projected at 4.37% CAGR, complements sea dominance.

Opportunities for Local Shipping and Logistics Firms

If you're running a shipping firm in Colombo or Galle, 2025's gains signal expansion. The market's poised to reach USD 8.11 billion in 2026, with CEP services accelerating. Domestic parcels hold 62.48% share, but international growth beckons via bonded clearances for low-value diaspora shipments.

Practical Tips to Capitalise on Export Growth

1. Leverage EDB Resources: Register with the Export Development Board for market intelligence and incentives under the Export Development Strategy.
2. Comply with Customs Laws: Adhere to Sri Lanka Customs' provisional data requirements and use ASYCUDA World for efficient declarations—mandatory for exporters.[Sri Lanka Customs]
3. Invest in Multimodal Hubs: Partner for Colombo-Kandy-Galle routes, tapping urban demand and same-day pledges.
4. Target FTAs: Focus on Thailand, EU markets showing double-digit merchandise growth.
5. Go Digital: Adopt platforms for airway bills to cut brokerage fees on international parcels.
6. Monitor Central Bank Data: Track monthly exports via Central Bank of Sri Lanka reports for trends.

These steps align with our National Export Strategy, emphasising competitiveness. Local firms like Hayleys or ACL offer models: integrate freight forwarding with value-added services.

Challenges and Future Outlook for 2026

Despite gains, monthly services volatility (e.g., December's 2.47% dip) warns of external risks like fuel prices. Yet, with merchandise trade rebounding to USD 30.6 billion in 2024 trends continuing, logistics demand stays robust.

Looking to 2026, expect 4-5% sector CAGR, driven by air and international CEP. Hambantota's deep-water berths will decongest Colombo, enhancing our appeal to Indian Ocean trade.

FAQ: Common Questions on Sri Lanka Logistics Exports

What contributed most to the 3.22% logistics growth in 2025?
Rising international trade, FTAs like Sri Lanka-Thailand, and port efficiencies fuelled it, alongside services exports hitting US$3.67 billion.

How can small shipping firms enter the export logistics market?
Register with EDB, comply with Customs via ASYCUDA, and focus on CEP for diaspora—low-entry via digital platforms.

What's the outlook for 2026?
Market to grow to USD 8.11 billion, with air freight at 4.37% CAGR and international parcels at 5.35%.

Which laws regulate logistics exports?
Sri Lanka Customs Act and Export Control Act; use official portals for HS codes and duties.[Customs.gov.lk]

Top export destinations benefiting logistics?
US (23% merchandise), EU (double-digit growth), and Thailand via FTA.

Is sea freight still dominant?
Yes, 50.22% revenue share in 2025, but air grows fastest.

Next Steps for Sri Lankan Exporters and Firms

Tap this momentum: visit EDB's portal for tailored support, audit your logistics chain for efficiencies, and explore 2026 FTAs. Whether you're a Galle transporter or Colombo forwarder, our 3.22% gain proves logistics is our export engine—act now to ship ahead.