India emerges as Sri Lanka's second-largest export destination

India has surpassed the UK to become Sri Lanka's second-largest export market, with exports to India increasing by 8.9% to USD 364.15 million in January-April 2026.

India has surpassed the UK to emerge as Sri Lanka's second-largest export market in January-April this year, the Export Development Board said here today.

The US remains the island country's largest export market.

''India has consolidated its position as Sri Lanka's second-largest export destination, surpassing the United Kingdom, with exports increasing by 8.9 per cent to USD 364.15 million during January-April 2026. However, exports to India recorded a marginal year-on-year decline of 1.41 per cent in April 2026,'' the board said.

Sri Lanka's total exports, comprising merchandise and services, reached USD 1,380.93 million in April 2026, recording a year-on-year growth of 6 per cent.

Merchandise exports in April 2026 increased 9.87 per cent to USD 1,063.77 million, while earnings from services exports were estimated at USD 317.16 million in April 2026.

On a cumulative basis, the total export for the January-April 2026 period is estimated at USD 5,784.38 million, reflecting a growth of 4.3 per cent over the corresponding period in 2025.

On the merchandise side, Coconut-based products recorded a strong performance in April 2026, with export earnings surging by 23.49 per cent year-on-year.

Activated carbon, one of the key value-added coconut shell-based export products, registered a 58.32 per cent jump, reaching USD 20.55 million in April 2026.

On the services front, information and communication technology and business process management exports reached USD 146.09 million, while financial services exports expanded significantly by 119.41 per cent to USD 6.82 million.

On the negative side, however, is the decline of earnings from apparel and textiles by 4.88 per cent year-on-year to USD 346.67 million in April 2026.

''This downturn was primarily driven by a 2.71 per cent reduction in shipments to the United States, alongside a 9.21 per cent contraction in exports to the European Union. Exports to the United Kingdom also recorded a notable decline of 16.08 per cent, further contributing to the overall decrease in the sector's performance,'' according to the board.

Tea exports declined by 6.82 per cent to USD 100.02 million in April 2026. Notably, exports to Iraq, Saudi Arabia, Libya and the UAE declined significantly by 48.62 per cent, 6.68 per cent, 55.42 per cent and 75.34 per cent, respectively, exerting substantial downward pressure on overall sector performance.

The US, accounting for approximately 22 per cent of Sri Lanka's total merchandise exports, recorded a year-on-year increase of 3.15 per cent to USD 196.37 million in April 2026.

However, cumulative exports for the period January to April 2026 declined by 2.09 per cent to USD 945.76 million compared to the corresponding period in 2025.