Sri Lanka's US$15.5B Exports Jan-Nov 2025: Sector-Wise Performance Review

Sri Lanka's export sector has demonstrated remarkable resilience and growth momentum in 2025, with total exports reaching US$15.5 billion during the January to November period^[1]. This comprehensive performance review reveals not just impressive headline numbers, but a diversified export economy adapting to global market conditions and capitalising on emerging opportunities across multiple sectors.

Overall Export Performance: A Strong Year for Sri Lanka

The export sector's trajectory during the first eleven months of 2025 tells a story of sustained economic recovery and strategic market positioning. Total exports, encompassing both merchandise and services, reached US$15,776.36 million, representing a solid 5.8% year-on-year growth compared to the same period in 2024^[1].

Breaking this down further, merchandise exports alone accounted for US$12,417.98 million with a 6.41% increase, whilst services exports contributed US$3,358.35 million with a more modest 3.62% growth^[1]. This distinction is important for understanding where Sri Lanka's export strength lies and where we might need to focus development efforts.

By December 2025, the full-year picture became even clearer. Total exports for the entire year exceeded expectations, reaching US$17.2 billion, with merchandise exports amounting to US$13.5 billion and representing a 6.32% increase for the full year^[3].

Merchandise Exports: The Backbone of Our Trade

Merchandise exports remain the cornerstone of Sri Lanka's export economy, and the 2025 performance demonstrates why this sector deserves our continued attention and investment.

Monthly Momentum

In November 2025 alone, merchandise exports grew by 5.95% year-on-year, reaching US$1,053.22 million^[1]. December maintained this momentum with merchandise exports recording a 5.88% increase to US$1,166.60 million^[3]. This consistency month-on-month suggests that the growth isn't simply a statistical anomaly, but reflects genuine improvements in our export competitiveness.

Key Export Sectors

Our merchandise exports are dominated by a few key sectors that drive the national economy:

• Textiles and garments account for approximately 52% of total exports, making this our most critical export sector^[5]
• Tea represents about 17% of total exports, though it faced significant headwinds in December 2025^[5]
• Gems and jewellery, petroleum products, spices, coconut products, rubber, and fish round out our diversified export portfolio^[5]

The Apparel Sector: Mixed Signals Amid Strong Fundamentals

Sri Lanka's apparel industry, our largest export earner, delivered a robust performance during 2025, though with some month-to-month volatility worth understanding.

Cumulative Performance

For the eleven-month period from January to November 2025, cumulative apparel exports reached US$4,571.99 million, marking a 5.42% increase compared to the same period in 2024^[4]. This growth reflects the sector's resilience in navigating challenging global retail conditions.

Market-Specific Performance

The apparel sector's performance varied significantly across our key export markets during November 2025:

• United States: US$152.32 million (up 5.79%)^[4]
• European Union (excluding UK): US$119.61 million (up 3.35%)^[4]
• United Kingdom: US$43.63 million (down 13.83%)^[4]
• Other markets: US$52.04 million (down 19.44%)^[4]

The strength in US and EU markets partially offset declines in UK and other markets, demonstrating the importance of geographical diversification in our export strategy.

Services Exports: Growing but Underperforming

Whilst merchandise exports have surged, our services sector—which includes tourism, IT services, and professional services—has grown more modestly. Services exports increased by 3.62% to US$3,358.35 million during January to November 2025^[1].

In November 2025 specifically, services exports were estimated at US$311.3 million, representing a 4.27% increase year-on-year^[2]. The Export Development Board has noted that this trend highlights the rising importance of Sri Lanka's knowledge-based economy and its growing contribution to national export earnings, though there's clearly room for acceleration in this sector.

Tea Exports: Facing Significant Headwinds

One sector that warrants particular attention is tea, traditionally one of our most valuable exports. In December 2025, tea exports experienced a concerning 19.59% decline, falling to US$105.82 million^[3].

The decline was driven by lower earnings from two key segments:

• Bulk tea: Down 23.57%^[3]
• Tea packets: Down 17.58%^[3]

This performance suggests that Sri Lankan tea producers and exporters face challenges in the global market, possibly related to increased competition, shifting consumer preferences, or supply-side constraints. For stakeholders in the tea industry, this signals the need for innovation in packaging, marketing, and product development to maintain competitiveness.

Geographic Export Destinations: Where Our Products Go

Understanding where our exports go is crucial for developing targeted trade strategies and identifying growth opportunities.

Major Export Markets

Sri Lanka's primary export partners remain concentrated in developed markets^[5]:

• United States
• United Kingdom
• Germany
• Belgium
• Italy
• India

Growth in Regional Trade

India has emerged as an increasingly important export destination. During 2025, exports to India increased by 17.21%, reaching US$1,035.72 million, surpassing the United Kingdom as our second-largest export market^[3]. This growth in regional trade reflects the significance of the Free Trade Agreement with India and the potential for further expansion in South Asian markets.

Services Sector Opportunities

Whilst merchandise exports dominate our current export earnings, the services sector represents a significant growth frontier for Sri Lanka's economy. The modest 3.62% growth in services exports suggests untapped potential in areas such as:

• Information technology and business process outsourcing
• Tourism and hospitality services
• Professional and consulting services
• Financial services
• Creative and digital services

For entrepreneurs and businesses in Sri Lanka, the services sector offers opportunities for value creation with lower capital requirements compared to traditional manufacturing exports.

Frequently Asked Questions About Sri Lanka's Exports

What are Sri Lanka's top export products?

Sri Lanka's exports are dominated by textiles and garments (52% of total exports), followed by tea (17%), with additional significant contributions from gems and jewellery, petroleum products, spices, coconut products, rubber, and fish^[5].

Which countries buy the most from Sri Lanka?

The United States, United Kingdom, Germany, Belgium, and Italy are our primary export destinations^[5]. India has also become increasingly important, growing to our second-largest market in 2025 with 17.21% growth^[3].

How has the apparel sector performed in 2025?

The apparel sector achieved 5.42% growth during January to November 2025, reaching US$4.57 billion in exports^[4]. The US and EU markets showed strength, though the UK market declined by 13.83% in November^[4].

Why did tea exports decline in December 2025?

Tea exports fell 19.59% in December 2025, primarily due to reduced earnings from bulk tea (down 23.57%) and tea packets (down 17.58%)^[3]. This likely reflects global market pressures and increased competition.

Are services exports growing as fast as merchandise exports?

No. Services exports grew 3.62% during January to November 2025, compared to 6.41% for merchandise exports^[1]. This suggests the services sector has significant growth potential if properly developed and promoted.

What is the Free Trade Agreement with India contributing to our exports?

Exports to India increased by 17.21% in 2025, reaching US$1,035.72 million, making India our second-largest export destination^[3]. This demonstrates the positive impact of the FTA arrangement on bilateral trade.

Looking Forward: Strategic Implications for Sri Lanka

The 2025 export performance provides valuable insights for policymakers, business leaders, and entrepreneurs in Sri Lanka:

• Merchandise strength is sustainable: The consistent 5-6% growth across merchandise exports suggests our manufacturing sectors are competitive and adaptable.
• Services sector needs attention: The slower growth in services exports indicates an opportunity for targeted investment and development in knowledge-based industries.
• Tea sector requires intervention: The sharp December decline in tea exports signals the need for industry support, innovation, and market development strategies.
• Regional markets are growing: The strong performance with India and potential in South Asian markets suggest we should deepen regional trade relationships.
• Diversification matters: Our reliance on apparel and tea means that sector-specific challenges can significantly impact overall export performance.

Sri Lanka's export sector in 2025 demonstrates both the strengths of our manufacturing base and the opportunities for growth in services and emerging markets. As we move through 2026, sustained focus on quality, innovation, and market diversification will be essential for maintaining and accelerating export growth. For businesses looking to export, this is an encouraging time to invest in Sri Lankan products and services with confidence in our competitive positioning.

Sources & References

1. Sri Lanka exports up 5.8% Jan–Nov 2025: EDB — Newswire
2. Sri Lanka's total exports in 2025 surpass US$ 15.5 billion — Adaderana
3. Sri Lanka's Export Performance Exceeded US$ 17.2 Billion in 2025 — Sri Lanka Business
4. Sri Lanka's apparel sector records 5.42% growth for January-November 2025 — The Island
5. Sri Lanka Exports — Trading Economics