Democratic Socialist Republic of Sri Lanka
South Asia · island nation in the Indian Ocean
- Capital
- Sri Jayawardenepura Kotte (legislative); Colombo (executive and commercial)
- Largest city
- Colombo
- Languages
- Sinhala and Tamil (official); English (link language)
- Demonym
- Sri Lankan
- Government
- Unitary semi-presidential republic
- President
- Anura Kumara Dissanayake (since 23 September 2024)
- Currency
- Sri Lankan rupee (LKR · Rs)
- Area
- 65,610 km²
- WTO member
- Yes — since 1995
- Trade agreements
- Free trade agreements with India, Pakistan and Singapore; SAFTA; APTA
Sri Lanka's Geography & People
Sri Lanka is an island nation in the Indian Ocean, off the south-eastern tip of India. Colombo is its largest city and main port, and a transhipment hub for South Asian shipping.
Its economy has been recovering since the 2022 currency and debt crisis.
Sri Lanka's Economy
Apparel is Sri Lanka's largest export, followed by tea, coconut products and rubber goods. Tourism and remittances from Sri Lankans working abroad are major sources of foreign exchange.
The country depends on imported fuel, and the Middle East conflict that began in February 2026 raised its fuel import bill sharply (CBSL).
Sri Lanka's Trade Policy
Sri Lanka has free trade agreements with India, Pakistan and Singapore and belongs to the South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement (APTA). It exports duty-free to the UK on about 92% of product lines under the UK's Developing Countries Trading Scheme.
It has been a WTO member since 1995.
Sri Lanka's Trade Position
The goods trade deficit widened in 2026 as imports, especially fuel and vehicles, grew much faster than exports (CBSL). The current account has been in deficit since April 2026.
Services exports, led by ICT and business process services, continue to grow, helping offset weaker apparel and tea earnings (EDB).
Sri Lanka's Top Trading Partners
Goods · 2025 · Central Bank of Sri LankaChina overtook India as Sri Lanka's largest trading partner in 2025, by about $40 million, as vehicle imports resumed. Two-way trade with China was $5.46 billion and with India $5.42 billion (Central Bank of Sri Lanka).
| # | Partner | Total trade | Sri Lanka's balance |
|---|---|---|---|
| 1 | 🇨🇳 China | $5.46B | −$4.9B |
| 2 | 🇮🇳 India | $5.42B | Deficit (widened) |
Full-year 2025, from the Central Bank of Sri Lanka's Annual Economic Review 2025. The deficit with China widened from $4.1B in 2024 and is Sri Lanka's largest with any partner; the deficit with India also widened, mainly on motor vehicle imports. On the export side, the United States, India and the United Kingdom are the largest markets (see the Exports tab).
India–Sri Lanka Free Trade Agreement
The India–Sri Lanka Free Trade Agreement has been in force since 1 March 2000, giving duty-free or reduced-tariff access on many goods in both directions. In 2026, India overtook the United Kingdom as Sri Lanka's second-largest export market (EDB). Check trade obstacles for your product →
Other Country Profiles
Import Summary
Sri Lanka's Top Import Sources
Goods · 2024 · Central Bank of Sri LankaChina and India together supply over 40% of Sri Lanka's imports. In 2024, the latest year with a published value ranking, China supplied $4,366 million (23.2%) and India $3,870 million (20.5%), followed by the UAE and Singapore.
| # | Country | Imports | Share | Change in share |
|---|---|---|---|---|
| 1 | 🇨🇳 China | $4,366M | 23.2% | ▲ 5.2 pts |
| 2 | 🇮🇳 India | $3,870M | 20.5% | ▲ 1.8 pts |
| 3 | 🇦🇪 United Arab Emirates | $1,489M | 7.9% | ▼ 3.1 pts |
| 4 | 🇸🇬 Singapore | $1,300M | 6.9% | ▲ 1.7 pts |
| 5 | 🇲🇾 Malaysia | $660M | 3.5% | ▼ 1.4 pts |
2024 figures from Sri Lanka's official statistics, as compiled in the Swiss State Secretariat for Economic Affairs (SECO) Economic Report on Sri Lanka 2025. For 2025, the Central Bank reports China, India and the UAE as the three largest sources; imports from China were about $5.2B, calculated from total trade of $5.46B and a deficit of $4.9B.
Sri Lanka's Top Imported Products
Jan–Jul 2026 · CBSLLATEST| # | Product | Imports | Share | Change |
|---|---|---|---|---|
| 1 | Fuel | $3,622M | 24.7% | ▲ 59.9% |
| 2 | Motor vehicles (personal and commercial) | $1,495M | 10.2% | — |
The Central Bank reports these two import lines in US dollars in its monthly release; its fuller breakdown by end use (consumer, intermediate and investment goods) is published in rupees only. No year-earlier comparison is given for vehicles. Change versus January–July 2025.
Sri Lanka's Import Trend
Goods · US$| Period | Goods Imports | Change vs a year earlier |
|---|---|---|
| Jan–Jul 2026 | $14,643M | ▲ 25.8% |
| Jan–Jul 2025 | $11,644M | — |
Provisional. Source: Central Bank of Sri Lanka, External Sector Performance, July 2026 (31 August 2026).
India is one of Sri Lanka's two largest suppliers
India and China have long been Sri Lanka's two largest sources of imports. Indian exporters can use tariff concessions under the India–Sri Lanka FTA. Check import duty for your product →
Export Summary
Sri Lanka's Top Export Markets
Goods · Jan–Jul 2026 · EDBLATEST| # | Country | Exports | Share |
|---|---|---|---|
| 1 | 🇺🇸 United States | $1,708M | |
| 2 | 🇮🇳 India | $688M | |
| 3 | 🇬🇧 United Kingdom | $434M |
Only the top three are shown because the EDB's full ranking of 15 markets was published as an image. Exports to the US fell 1.1% and to the UK 10.2%, while exports to India rose 36.2%. The same EDB release gives a second figure for India, $669.4M, in its free-trade-agreement section. Shares are of EDB merchandise exports ($8,188M).
Sri Lanka's Top Exported Products
Jan–Jul 2026 · EDB sectorsLATEST| # | Product | Exports | Share | Change |
|---|---|---|---|---|
| 1 | Apparel & textiles | $2,880M | 35.2% | ▼ 6.5% |
| 2 | Tea | $818M | 10.0% | ▼ 7.5% |
| 3 | Coconut-based products | $727M | 8.9% | ▲ 10.0% |
| 4 | Rubber & rubber-based products | $580M | 7.1% | ▲ 4.9% |
| 5 | Food & beverages | $405M | 4.9% | ▲ 19.2% |
| 6 | Electrical & electronic components | $378M | 4.6% | ▲ 57.7% |
| 7 | Spices & concentrates | $280M | 3.4% | ▲ 14.3% |
| 8 | Seafood | $138M | 1.7% | ▼ 3.7% |
Export Development Board sector groups; change versus January–July 2025. Shares are of EDB merchandise exports ($8,188M, including estimated gems, jewellery and petroleum exports). Gems and jewellery are not shown because their January–July value was not published.
Sri Lanka's Export Trend
Goods · US$| Period | Goods Exports | Change vs a year earlier |
|---|---|---|
| Jan–Jul 2026 | $8,137M | ▲ 4.4% |
| Jan–Jul 2025 | $7,794M | — |
Provisional. Central Bank figures, which differ slightly from EDB totals. Source: CBSL, External Sector Performance, July 2026.
Sri Lanka's Exports to Top EU Markets
Jan–Jul 2026 · EDB| Country | Exports | Change |
|---|---|---|
| 🇮🇹 Italy | $391.0M | ▲ 2.9% |
| 🇩🇪 Germany | $388.7M | ▼ 7.6% |
| 🇳🇱 Netherlands | $248.0M | ▼ 6.6% |
| 🇫🇷 France | $151.9M | ▼ 5.5% |
| 🇧🇪 Belgium | $142.3M | ▲ 2.2% |
The EU is a major market for Sri Lankan apparel, so the EDB reports its top EU destinations separately. Source: Export Development Board.
What Sri Lanka sells to India
Growth in Sri Lanka's exports to India in 2026 has been driven by boilers, engines and pumps, petroleum oils, animal feed and base metal products (EDB). Check trade obstacles →