Sri Lanka's stock market closed higher on Monday while merchandise exports fell in July, though customs revenue continued to exceed targets for the eighth consecutive month.
The Colombo Stock Exchange closed trading on Monday with modest gains, with the All Share Price Index rising 0.11 percent to 21,338.84 points and the S&P SL20 index advancing 0.22 percent to 6,018.37 points. Capital goods led market turnover at 300.64 million rupees out of total trading volume of 1.014 billion rupees. Notable gainers included Browns Investments, Carson Cumberbatch, and Windforce, while Vallibel One and Hatton National Bank declined.
Merchandise exports presented a less optimistic picture, declining 1.3 percent to 1.285 billion dollars in July 2026 compared to the previous year. Apparel and textile exports fell 8.82 percent to 437.59 million dollars, with significant declines across major markets including the United States, United Kingdom, and European Union. Tea exports experienced a sharper contraction of 17.22 percent to 116.73 million dollars, with particularly severe drops in Middle Eastern markets. Export Development Board Chairman Mangala Wijesinghe attributed these declines to geopolitical tensions affecting demand, expressing confidence that conditions would improve within three to four months.
Despite short-term export weakness, Sri Lanka's customs authority demonstrated continued fiscal momentum, exceeding its August revenue target of 190.3 billion rupees by collecting 199.6 billion rupees in the first 27 days of the month. This marked the eighth consecutive month of target achievement. Year-to-date, customs had collected 1.832 trillion rupees, representing 83 percent of the annual target. Revenue growth has been driven by stronger import enforcement, improved valuation practices, and rebounding import volumes as the economy stabilizes following the 2022 crisis.
Meanwhile, the rupee strengthened to 327.68/75 against the US dollar, while bond yields remained largely steady across the market.