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Sri Lanka’s exports hit US$ 10 billion mark in first seven months of 2025

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Sri Lanka’s total export earnings in the first seven months of 2025 have soared to nearly US$ 10 billion, according to the Central Bank of Sri Lanka (CBSL and Sri Lanka Customs metrics.

Total exports including both merchandise and services reached US$ 9,992.53 million between January and July 2025, the CBSL noted.

This marks a robust 7.79% increase compared to the same period last year, reinforcing the country’s strategic gains in global trade.

Industry experts attribute this strong performance to proactive policy measures, enhanced market diversification efforts, and competitive improvements across key export sectors.

Accordingly, with five months still remaining in the year, the country appears on track to surpass the US$ 17 billion export target set for 2025, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Export Development Board (EDB) stated.

In July 2025, merchandise exports grew by 15.37 % year-on-year, reaching US$ 1,304.0 million, according to provisional data of Sri Lanka Customs including the estimates for Gems & Jewellery and Petroleum Products.

For the period January to July 2025, merchandise exports totaled US$ 7,799.82 million, reflecting a 7.22 % increase compared to the same period in 2024.

Meanwhile, services exports have emerged as a key driver of overall export growth.

In July 2025, earnings from services exports were estimated to be US$ 337.11 million.

Over the first seven months of the year, services exports are estimated to have increased by 9.86 %, totaling US$ 2,192.71 million.

The services export sector, comprising ICT/BPM, Construction, Financial services, and Transport & Logistics, continues to diversify Sri Lanka’s export portfolio and create high-value employment opportunities across the island.

Furthermore, the estimated value of ICT/ BPM exports is expected to increase by 7.23 % to US$ 897.49 million during the period of January to July 2025 when compared to the corresponding period of 2024.
 
In addition, the estimated value of Logistics & transport services is expected to increase by 21.24 % to US$ 1,195.25 million during the period of January to July 2025 when compared to the corresponding period of 2024, according to the latest figures issued by the CBSL.

Economy

Sri Lanka’s first passenger drone arrives ahead of maiden flight

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Sri Lanka’s first passenger transport drone has arrived in the country, with its maiden flight scheduled to take place at Colombo Port City by the end of October, the Civil Aviation Authority of Sri Lanka (CAASL) has announced.

The drone can carry two passengers and has a flight duration of approximately 30 minutes.

Sri Lanka became the first country to adopt the Global Fast Track Programme launched by Chinese technology company EHang to accelerate the introduction of pilotless electric vertical take-off and landing (eVTOL) aircraft in international markets.

Colombo Port City has been designated as the initial operational zone for the project, which aims to introduce passenger transport services using the aircraft, subject to the necessary regulatory and safety approvals.

Potential routes under consideration include scenic flights over Sigiriya and Pidurangala, as well as passenger transfers between Bandaranaike International Airport in Katunayake and hotels in Colombo.

The initiative is also expected to explore other applications, including tourism and maritime logistics.

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Economy

Sri Lankan scientist helps uncover oldest fast radio burst from 10 billion years ago

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Sri Lankan scientist Themiya Nanayakkara has been part of an international team of researchers that discovered the oldest fast radio burst ever recorded, originating from a galaxy approximately 10 billion years ago.

The groundbreaking discovery, published in the scientific journal Science, could help astronomers better understand the evolution of the universe and the vast network of matter known as the cosmic web.

The research team, led by University of Sydney astrophysicist Dr. Manisha Caleb, included Nanayakkara, who was identified as a co-author of the study.

The mysterious burst, named FRB 20240304B, was first recorded in 2024 by the MeerKAT radio telescope in South Africa.

Scientists subsequently used NASA’s James Webb Space Telescope to trace the signal to a small, actively star-forming galaxy that existed just three billion years after the Big Bang.

Fast radio bursts are extremely powerful flashes of radio waves lasting only a few milliseconds. Despite their brief duration, they can release as much energy as the Sun produces over several days.

Researchers believe these bursts may originate from highly magnetized neutron stars known as magnetars, although their precise origins remain uncertain.

Speaking to Australia’s ABC News, Dr. Caleb described the discovery as extraordinary, noting that the signal began its journey billions of years before the Sun and solar system existed.

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Economy

Sri Lanka aims to reduce VAT rates within next 2–3 years

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President Anura Kumara Dissanayake says the government aims to reduce Value Added Tax (VAT) rates over the next two to three years as part of efforts to provide financial relief to the public.

Speaking at a ceremony to present appointment letters to 1,540 new Grama Niladhari officers at Temple Trees on Thursday (Oct. 8), the President said the government was working towards reducing the tax burden on citizens while managing rising public expenditure.

“Our objective is to provide relief to the people by reducing Value Added Tax (VAT) rates over the next two to three years,” he said.

The President also stressed the need to remove taxes on essential educational materials, saying children should not have to bear a tax burden when purchasing books.

“If a child has to pay a tax when purchasing a book to read, we should remove that tax,” he said.

However, the President acknowledged that reducing taxes would require careful management of government expenditure, particularly as the administration implements salary increases for public sector employees.

He said the government’s decision to increase public sector basic salaries in three stages would result in an additional expenditure of Rs. 330 billion by 2027.

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