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$ 6 b export gap and weak performance strains external stability: ADB
Sri Lanka’s export sector is operating well below potential, with an estimated $ 6 billion in unrealised export capacity, as weak trade performance continues to strain the country’s external position and weigh on currency stability. This is according to a recent Asian Development Bank brief notes that if this untapped potential were fully realised, Sri Lanka’s exports could increase by 47%, providing a critical buffer as external debt repayments are set to accelerate from 2028. The ADB said Sri Lanka’s need to purchase foreign currency to service these obligations is expected to exert pressure on the rupee, while the Central Bank’s capacity to defend the currency remains constrained by limited reserves. As of December 2025, usable reserves covered only around three months of goods imports. Sri Lanka’s export growth has lagged behind regional peers, with nominal exports rising by just 16% between 2015 and 2024, compared with stronger gains in economies such as Cambodia, India and Pakistan. This underperformance, combined with a broad-based rise in imports following the post-war construction boom, has widened the trade deficit and strained the current account, contributing to currency depreciation. At a sectoral level, the ADB identifies apparel as the largest source of unrealised export opportunity at $ 1.9 billion, followed by tea, and spices and nuts. Beyond earnings, exports are seen as a driver of productivity and higher wages, with exporting firms typically adopting advanced technologies and paying more than non-exporters. This pattern is evident in Sri Lanka’s apparel sector and, more prominently, in the IT and business process management industry, which continues to offer higher-paying jobs for young graduates. However, the country’s export base remains narrow. Textiles and garments, tea and rubber products have accounted for around two-thirds of merchandise exports over the past decade, with the United States, the European Union and the United Kingdom absorbing an average of 56% of exports. This concentration leaves Sri Lanka vulnerable to external demand shocks. In 2020, exports fell by 16% amid the collapse in global garment demand during the COVID-19 pandemic, compared with a 2% contraction across the rest of developing Asia. The ADB noted that strengthening exports is central to maintaining macroeconomic stability, particularly as foreign exchange requirements rise. Expanding export earnings, alongside tourism receipts and remittances, will be e...
ADB Fact-Finding Mission Visits EDB to Review Progress of National ...
The Sri Lanka Export Development Board (EDB), in collaboration with the Asian Development Bank (ADB), is making significant progress in the formulation of the National Export Development Plan (NEDP) for the period 2026–2030. This strategic initiative is designed to position Sri Lanka on a path of sustained export-led economic growth, aligned with the Government’s national vision of “A Thriving Nation – A Beautiful Life.” As part of this collaborative effort, the ADB fact-finding mission under the Trade, Investment, and Industry Development Policy-Based Lending (PBL) Program (Subprogram 1) visiting Sri Lanka from 27th to 30th April 2026. Accordingly, a key meeting was held on 27th April 2026 at the EDB premises, where the ADB delegation met with the Chairman & Chief Executive Officer, and the senior management of the EDB. The ADB team was led by Ms. Kanupriya Gupta, Senior Public Sector Economist and Mission Leader, along with other officials. The mission reviewed the current status of the NEDP and discussed the way forward for its effective implementation. During the discussions, both parties focused on several key areas, including: Reviewing the status of Cabinet approval and the official launch of the NEDP Identifying technical assistance required from ADB for the implementation phase under Subprogram 2 Agreeing on immediate next steps to ensure smooth rollout of the NEDP ADB’s engagement in this initiative falls under its Policy-Based Lending (PBL) program, implemented in close collaboration with the Ministry of Industry and Entrepreneurship Development. The program is intended to support Sri Lanka’s policy reforms and institutional strengthening, with a focus on improving trade competitiveness and diversifying export markets. Both parties deliberated on key components of the NEDP implementation framework. These include the establishment of a high-level NEDP Steering Committee, the creation and operationalization of a dedicated Project Management Unit (PMU), and the development of a robust monitoring and reporting system to track progress and outcomes effectively. The ADB fact-finding mission marks an important milestone in strengthening the partnership between Sri Lanka and ADB, while ensuring that the NEDP is implemented in a structured, results-oriented, and sustainable manner. The successful execution of the NEDP is expected to play a vital role in enhancing Sri Lanka’s export performance and driving long-term economic growth.
Sri Lanka's Export Performance Remains Steady with Strong Q1 2026 Growth
Commenting on this achievement, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board (EDB), stated: "While Sri Lanka's export earnings experienced a temporary moderation in March 2026, reaching US$ 1,467.31 million, the overall performance for the first quarter reflects continued resilience and ...
Sri Lanka services exports fall 6.26-pct in March 2026
Sri Lanka's services exports in March 2026 dropped by 6.26 percent to 286.92 million dollars, the island's Export Development Board said.
