Sri Lanka’s Economic Revival – A Story of Resilience and Growth Sri Lanka is doing great. – By Dr Harold Gunatillake
Image Source : instagram.com
Despite previous financial difficulties, the country is currently experiencing a significant economic resurgence. According to the most recent Central Bank Monetary Policy report, Sri Lanka’s economy is recovering and growing, with no inflation reported.
Export Earnings Surge
One of the most encouraging signs is the surge in export earnings. From January to September 2025, Sri Lanka’s exports approached $13 billion, reflecting resilience and renewed global demand.
In September 2025 alone, exports rose by 12.33% compared to the same month last year. Merchandise exports grew by 15.02%, reaching $1.16 billion, while cumulative merchandise exports for the first nine months hit $10.24 billion, marking a 7.59% year-over- year growth.
Top Export Destinations
Among the top 10 export destinations, India, Germany, Italy, the Netherlands, UAE, Canada, France, and China all recorded year- on-year growth in September and across the January–September period.
The United States remains Sri Lanka’s largest export partner, accounting for 23% of merchandise exports. While exports to the
U.S. dipped by 2.84% in September, they grew by 3.04% over the nine months, totalling $2.25 billion — primarily driven by apparel.
With a 30% tariff in place, exporters are now being encouraged to expand their presence in the UK market.
Ceylon Tea continues to shine globally, fetching around $4 per kilogram, one of the highest prices in international markets.
India has overtaken the UK as Sri Lanka’s second-largest export destination. Exports to India surged by 31.7% in September to $87.33 million and by 23.09% over the January–September period to $2.25 billion, as confirmed by the EDB.
Top Export Destinations
Among the top 10 export destinations, India, Germany, Italy, the Netherlands, UAE, Canada, France, and China all recorded year- on-year growth in September and across the January–September period.
The United States remains Sri Lanka’s largest export partner, accounting for 23% of merchandise exports. While exports to the
U.S. dipped by 2.84% in September, they grew by 3.04% over the nine months, totalling $2.25 billion — primarily driven by apparel.
With a 30% tariff in place, exporters are now being encouraged to expand their presence in the UK market.
Ceylon Tea continues to shine globally, fetching around $4 per kilogram, one of the highest prices in international markets.
India has overtaken the UK as Sri Lanka’s second-largest export destination. Exports to India surged by 31.7% in September to $87.33 million and by 23.09% over the January–September period to $2.25 billion, as confirmed by the EDB.
Cannabis Cultivation for Export
A new topic gaining attention is the potential cultivation of cannabis for export. Discussions are ongoing, and this could open up a novel revenue stream for the country.
Tourism Boom
Tourism is experiencing significant growth. By mid-October 2025, Sri Lanka had welcomed over 1.8 million visitors, with India identified as the leading source market, followed by the United Kingdom, Russia, and Germany. September recorded the highest number of arrivals to date, indicating robust momentum throughout the year.
What is the projected growth scenario for tourism in Sri Lanka by the year 2025?
Building on this momentum, the Sri Lanka Tourism Development Authority (SLTDA) estimates that the country is well-positioned to surpass the total arrivals recorded in 2024. Although previous projections by the SLTDA forecast 2.6 million international arrivals for the entire year of 2025, the current growth trajectory indicates a total of 2.45 million travellers.
Personal Highlight: Elephant Lake, Habarana
Last weekend, I had the pleasure of visiting Elephant Lake in Habarana, located in the North Central Province. This serene resort, operated by the Oakray group of hotels, is genuinely one of Sri Lanka’s finest. I’m excited to share a video preview of this beautiful destination — a must-visit for anyone exploring the island.
