Sri Lanka’s merchandise exports fell 4.94 percent year-on-year to $1,180.39 million in March 2026 as apparel, tea and spice earnings declined, data from the Export Promotion Office showed.
Total export earnings including services reached $1,467.31 million for the month. The chairman and chief executive of the Export Development Board (EDB), Mangala Wijesinghe, described the result as “a temporary moderation”, adding that “the overall performance for the first quarter reflects continued resilience and stability in the export sector.”
Apparel. Earnings from apparel and textiles fell 11.22 percent to $440.32 million, driven mainly by a 12.78 percent drop in shipments to the United States. Exports to the European Union contracted 2.01 percent and to the United Kingdom 15.7 percent.
Tea. Tea exports fell 17.34 percent year-on-year to $114.75 million, hit by weaker demand in key markets. Earnings from Iraq, Russia and the UAE declined 37.66 percent, 36.36 percent and 92.64 percent respectively, the EDB said.
Rubber and spices. Rubber-based products dropped marginally by 0.64 percent to $92.48 million. Spice and essential oil earnings fell 14.56 percent to $35.97 million, with pepper exports down 55.12 percent and cloves 77.19 percent.
By market. The United States — which accounts for about 22 percent of total merchandise exports — took $251.74 million in March, down 8.42 percent. India surpassed the United Kingdom as the second-largest destination, with exports to India rising 12.02 percent to $287.49 million. UK-bound exports fell 5.84 percent to $235.73 million.
The March slowdown comes as Sri Lankan exporters adjust to the US tariff environment and weaker European demand, while shipping costs remain pressured by the Iran–Hormuz crisis.
Source: EconomyNext.
