India Overtakes UK to Become Sri Lanka’s Second-Largest Export Destination in 2026

India became the  second-largest export destination for Sri Lanka, and overtakes the United Kingdom in the January-April 2026 period. This improvement shows the strengthening economic ties between the two neighboring countries and also highlights the growing importance in the South Asian trade. While the United States continue to remain the Sri-Lanka’s largest export market.

India Overtakes UK in Sri Lanka’s Export Rankings

According to the Sri Lanka’s Export Development Board, exports to India reached USD 364.15 million between January and April 2026 and registered the 8.9 per cent increase compared to the same period last year.

This growth helped the India move ahead of the United Kingdom and secure the second position among the Sri Lanka’s largest export destinations.

However, the April alone saw a marginal year on year decline of 1.41 per cent in exports to India and showing some short-term fluctuations despite the broader positive trend.

Still, the larger picture remains clear as India is becoming an increasingly important trade partner for Sri Lanka.

Sri Lanka’s Overall Exports Continue to Grow

Sri Lanka’s total exports includes the both merchandise and services, stood at the USD 1.38 billion in April 2026, recording a 6 per cent annual growth.

Merchandise exports has reached at the USD 1.06 billion, up 9.87 per cent

Services exports also estimated at the USD 317.16 million.

For the period of January-April 2026 period, Sri Lanka’s cumulative exports has reached USD 5.78 billion and shows the 4.3 per cent rise over the same period in 2025.

Products Driving Sri Lanka’s Export Growth

There are several sectors which had performed strongly in 2026.

One of the biggest gainers was the Sri Lanka’s coconut export segment.

The export earnings from the coconut-based products rose by 23.49 per cent in April.

A standout performer was the activated carbon, a high-value product made from coconut shells.

Its exports jumped by an impressive 58.32 per cent and it reached to the USD 20.55 million.

Sri Lanka’s services sector also posted encouraging growth in the Services sector.

ICT and Business Process Management exports have reached at the USD 146.09 million.

Financial services exports has also urged by 119.41 per cent to USD 6.82 million.

Key Sectors Facing Pressure

Not every sector has been performed well.

Apparel Exports Decline

Sri Lanka’s important apparel and textile sector witness the exports decline by 4.88 per cent, falling to USD 346.67 million in April.

The slowdown was mainly due to weaker shipments to the,

• United States
• European Union
• United Kingdom

Exports to the UK has alone dropped by 16.08 per cent.

Tea Exports Also Fall

Tea, which is one of the Sri Lanka’s most iconic exports, also faced pressure.

Tea export earnings dropped by the 6.82 per cent to USD 100.02 million.

Major declines were reported in exports to the,

• Iraq
• Saudi Arabia
• Libya
• UAE