Sri Lanka’s total exports crossed the US$12 billion mark during the first eight months of 2026, giving the economy a larger flow of foreign-currency earnings.
The Export Development Board (EDB) estimates total exports at US$12.01 billion from January to August. This is a 4.26% increase from the US$11.52 billion recorded during the same period in 2025.
Both goods and services contributed to the increase. Merchandise exports rose 3.63% to US$9.41 billion. Services exports increased 6.59% to US$2.60 billion.
More Foreign Currency for the Economy
Export earnings bring foreign currency into the economy.
That money can help businesses pay for imported raw materials, machinery and other goods needed for production. It also adds to the foreign exchange available within the economy.
The increase in services exports is also important because it gives the country another source of foreign-currency earnings beyond goods exports.
The EDB said continued growth in services exports is helping diversify the country’s export earnings.
This matters because a wider export base can reduce the economy’s reliance on a smaller number of export sources.
What US$12 Billion Means for the External Sector
Higher export earnings can help improve the balance between money flowing into and out of the country.
Sri Lanka still imports more goods than it exports. Therefore, export income forms an important part of the foreign-currency flows used to meet the country’s external needs.
The IMF has reported that the external position has benefited from services trade and workers’ remittances, although risks remain from energy prices and other external shocks.
If export growth continues, it can provide additional foreign exchange to support external payments and help build stronger external buffers.
However, exports alone do not determine the country’s foreign exchange position. Import costs, debt payments, tourism earnings, remittances and other external flows also affect the overall balance.
Services Exports Add Another Growth Source
Services exports showed particularly strong growth in August.
The EDB estimates services exports at US$331.87 million for the month. That represents a 13.97% increase from August 2025.
Merchandise exports reached US$1.27 billion during the month. This was 1% lower than the same month last year.
Total exports for August still reached an estimated US$1.60 billion, up 1.77% year-on-year.
The stronger performance from services is important because services can generate foreign currency without relying on the shipment of physical goods.
The EDB said the January-August results show continued progress towards a more diversified and export-oriented economy.
For the wider economy, the key issue now is whether this export growth can continue and become a steady source of foreign-currency earnings.
A sustained increase would give businesses more export income while providing the economy with another source of foreign exchange.
Chamber Activity Import and Export
Last modified: September 23, 2026
