According to reports, which cited data from the Export Development Board, Sri Lanka’s combined merchandise and services exports crossed the $10 billion mark during January–July, reaching an estimated $10.49 billion, up 5.48 per cent from the corresponding period last year.
However, the headline number masks an important divergence. While several emerging and higher-growth sectors are accelerating, the country’s flagship export category, apparel and textiles, seems to be showing signs of losing momentum.
Sri Lanka’s combined merchandise and services exports reached $10.49 billion in January–July 2026, up 5.48 per cent year-on-year.
Apparel and textiles fell 6.50 per cent to $2.88 billion, diverging from broader export growth.
July apparel and textile exports dropped 8.8 per cent to $437.59 million, with shipments declining across the United States, European Union and United Kingdom.
Combined merchandise and services exports reportedly rose 5.48 per cent year-on-year to an estimated $10.49 billion during the first seven months. Merchandise exports increased 5.05 per cent to $8.19 billion, while services grew faster, reportedly by 7.02 per cent to $2.30 billion.
Apparel and textiles, however, diverged from the broader growth in the export basket, reportedly falling 6.50 per cent to $2.88 billion.
The July numbers make the divergence sharper. Apparel and textile exports reportedly fell 8.8 per cent year-on-year to $437.59 million, with shipments declining across the US, European Union and UK.
This is particularly significant because these three markets remain central to Sri Lanka’s apparel trade. The weakness in apparel and textiles, together with declines in tea, seafood and coconut-based products, reportedly contributed to a 1.3 per cent contraction in overall merchandise exports in July.
Contrast that with the sectors gaining momentum. Electrical and electronic components reportedly surged 57.69 per cent during January–July, while food and beverages expanded 19.23 per cent and spices and concentrates 14.32 per cent. ICT/BPM exports reportedly climbed an impressive 14.54 per cent to $1.02 billion, reinforcing the growing role of services in Sri Lanka’s export basket.
Rubber and rubber-based products, meanwhile, also reportedly recorded growth of 4.92 per cent.
The broader picture is therefore more nuanced than the $10 billion headline suggests. Sri Lanka’s exports are growing, but the composition of that growth appears to be changing. Apparel remains the country’s largest merchandise export category and a cornerstone of the export economy, yet its recent contraction stands in clear contrast to the faster expansion of several smaller sectors and services.
That does not mean apparel is losing its fundamental importance. Rather, the figures suggest that its role in driving export growth may be changing. If the current trend persists, Sri Lanka’s future export performance could increasingly depend on a broader mix of industries. For apparel, the challenge will be to regain momentum as the wider export economy becomes more diversified.
Fibre2Fashion News Desk (DR)
