India Becomes Sri Lanka’s Second-Largest Export Market
India has overtaken the United Kingdom to become Sri Lanka’s second-largest export destination during the January-April 2026 period, according to data released by the Sri Lanka Export Development Board.
Exports to India rose 8.9 percent to US$ 364.15 million during the four-month period, strengthening bilateral trade ties. However, shipments to India recorded a marginal 1.41 percent year-on-year decline in April 2026.
Sri Lanka’s total exports, including merchandise and services, stood at US$ 1.38 billion in April 2026, registering a 6 percent year-on-year growth. Merchandise exports increased 9.87 percent to US$ 1.06 billion, while services exports were estimated at US$ 317.16 million.
Cumulative exports for January-April 2026 reached US$ 5.78 billion, reflecting a 4.3 percent increase over the corresponding period last year.
Among key performers, coconut-based products posted strong growth, with export earnings rising 23.49 percent in April. Exports of activated carbon, a major value-added coconut shell product, surged 58.32 per cent to US$20.55 million.
Services exports also recorded positive momentum, led by the ICT and business process management sector, which generated US$ 146.09 million, while financial services exports more than doubled to US$ 6.82 million.
However, the country’s crucial apparel and textile sector witnessed a 4.88 percent decline in export earnings to US$ 346.67 million in April. The drop was attributed to lower shipments to major markets including the United States, European Union and the United Kingdom.
Tea exports also declined 6.82 percent to US$ 100.02 million, impacted by weaker demand from key markets such as Iraq, Saudi Arabia, Libya and the UAE.
The United States remained Sri Lanka’s largest export destination, accounting for nearly 22 per cent of total merchandise exports, with April shipments rising 3.15 percent to US$196.37 million, although cumulative exports to the market declined 2.09 percent during the January-April period.
