Merchandise exports fall 17.31% in 1Q

Wednesday, 29 April 2020 05:00 - - {{hitsCtrl.values.hits}}

Steepest fall in March of 42% with earnings shrinking from $ 1.12 b to $ 645 m
Total earnings for 1Q at $ 2.58 b
Jan. earnings were $ 961 m and Feb. $ 969 m
Apparel and textile fall by 41% in March to $ 312 m, tea by 50% to $ 62 m
Rubber fell by 35% to $ 55 m, coconut exports by 38% to $ 38 m, fish by 53% to $ 13 m

By Charumini de Silva

Sri Lanka’s merchandise exports fell by 17.31% to $2.58 billion in the first quarter of 2020, with March predictably suffering the worst decline of 42% due to the rapid expansion of COVID-19 globally impacting vital value chains and suffocating consumer demand.

As per latest provisional data from the Export Development Board (EDB), March marked the steepest fall in merchandise exports by 41.93% to $645.98 million compared to $1.12 billion from a year earlier. In January the merchandise exports was $961 million and in February it amounted to $969.30 million.

In view of serious impact from COVID-19, the EDB recently lowered export earnings forecast for 2020 to $10.75 billion a decline of 42% from earlier projection.

In March, apparel and textile exports fell by 41.23% to $ 312.10 million and tea exports amounted to $62.52 million down 50.33% from a year earlier.

“The export figure for March was predictable with the lockdown in Sri Lanka and elsewhere. We see a strong recovery over a short- to medium-term time period with markets opening up around the world,” EDB Chairman Prabash Subasinghe told the Daily FT.

Rubber and finished rubber products exports fell by 35.02% to $55.80 million. The coconut exports fell by 38.35% to $38.24 million in March.

Fish and fisheries products fell by 53.71% to $13.47 million compared to $29.68 million from a year earlier.

The export earnings from diamonds, gems and jewellery suffered a sharp plunge of 77.55% to $7.02 million compared to $31.27 million from the corresponding period of last year.

Spices, essential oils and oleoresins fell by 46.14% to $13.05 million, fruits, nuts and vegetables fell by 43.59% to $4.05 million, cut flowers and foliage fell by 27.32% to $1.41 million, food, feed and beverages fell by 14.31% to $29.45 million and tobacco exports fell by 61.71% to $4.66 million during the Q1 from a year earlier.

In addition, leather exports fell by 63.82% to $0.72 million, engineering products fell by 48.85% to $27.76 million, wood and wooden products fell by 51.26% to $2.52 million, paper and paper products fell by 57.74% to $4.23 million, chemicals and plastic products fell by 45.71% to $7.46 million, non-metallic mineral products fell by 65.67% to $3.22 million, base metal products fell by 62.46% to $6.69 million, other manufactures fell by 32.45% to $12.53 million and miscellaneous products fell by 31.57% to $2.71 million during the Q1 under review from the corresponding period of last year.

The exports earnings sectors that recorded a positive growth are petroleum product exports and other export crops. The petroleum products up by 16.10% to $28.20 million and other export crops up by 210% to $6.20 million from the corresponding period of last year.