Exports hit record of $ 1.1 b in July

• Marks second month of over $ 1 b figure in 2021; first seven months performance up 22% to $ 6.6 b

Sri Lanka’s exports have surpassed the $ 1 billion mark in July, second time in 2021 whilst first seven months performance reflected a robust 22% increase as per provisional data of Customs released by the Export Development Board. 

Sri Lanka last topped the $ 1 billion mark in exports in March 2021.

EDB said exports of $ 1,099.41 million in July 2021 was the highest ever monthly achievement, which showed an increase of 1.33% over $ 1,085 million in July 2020 and an increase of 12.39% over $ 978.2 million in July 2019.

In the first seven months of 2021, merchandise exports increased by 22.17% to $ 6,661.13 million compared to the corresponding period of 2020, following increased exports of Apparel and Textiles, Rubber-based products, Coconut-based products, Electronics and Electronic Components, Spices and Concentrates, Seafood and Ornamental Fish.

“Sri Lanka’s exports show a remarkable rise despite the current pandemic situation across the World, thanks to the utmost courage, determination and continuous improvements shown by our exporters in sustaining export business during the pandemic,” EDB Chairman Suresh de Mel said. 

In July export earnings from Rubber and Rubber-finished products have increased by 13.6% y-o-y to $ 96.65 million in July 2021 with strong performance in exports of pneumatic and retreated rubber tyres and tubes and industrial and surgical gloves. However, exports of gaskets, washers, seals, etc., of hard rubber have declined by 42.78% y-o-y to $ 6.26 million in July 2021.

Export earnings from Spices and Essential Oils have increased by 11.47% y-o-y in July 2021 with significant increases in cinnamon (11.09%), pepper (7.37%), cloves (21.11%), essential oils (11.57%) and oleoresin (45.45%). Further, export earnings from Spices and Essential Oils increased by 28.88% in July 2021 in comparison to June 2021.

Meanwhile, export earnings from Electrical and Electronic Products (22.7%) and Seafood (119.05%) recorded increases during the month of July 2021 compared with July 2020.

Except coconut fibre products, earnings from coconut kernel and shell products increased in July 2021 compared with July 2020 and there is a notable performance in export of coconut cream and activated carbon.

Although earnings from the Apparel and Textile sector decreased by 3.1% y-o-y to $ 452.55 million in July 2021, earnings from apparel and woven fabrics under the Apparel and Textiles sector have increased by 2.76% and 69.43%, respectively, in July 2021 compared with July 2020. Further, export earnings from apparel increased by 9.27% in July 2021 in comparison to June 2021.

However, Export earnings from made-up textile articles and other textile articles gained high export revenues last year have decreased by 72.64% and 26.34%, respectively, in July 2021 in comparison to July 2020.

Export earnings from Tea in July 2021 which made up 12% of merchandise exports decreased by 12.06% y-o-y to $ 115.13 million and export volume also decreased by 8.92% in July 2021 compared to July 2020. Moreover, export earnings from Tea recorded a 7.09% decrease in July 2021 in comparison to June 2021.

During January-July 2021, export earnings from Rubber and Rubber-Finished products increased by 41.98% to $ 616.59 million in January-July 2021 due to the better performance of exports of industrial and surgical gloves of rubber (68.64%) and pneumatic and retreated rubber tyres and tubes (44.96%).

Earnings from all the major categories of Coconut-based products increased due to the improved performance in exports of coconut oil, desiccated coconut, coconut milk powder, liquid coconut milk, coconut cream, cocopeat, mattress fibre and activated carbon.

Meanwhile, earnings from exports of Electrical and Electronic Components (EEC) increased by 36.99% to $ 241.45 million in the period of January to July 2021 compared to the corresponding period of 2020. Export of Insulated wires increased by 62.15% in during the period of January to July 2021 to $ 40.7 million compared with the corresponding period of previous year. 

In addition, export of other Electrical and Electronic Products increased by 31.09% during the period of January to July 2021 to $ 125.72 million compared with the corresponding period of previous year.

Export earnings from Spices and Essential Oils increased significantly in the period of January to July 2021 compared to year 2020 due to the better performance in all the subcategories; cinnamon, pepper, cloves, nutmeg, essential oils and oleoresins, etc.

Sri Lanka’s export performance in major markets 

Strong Export Growth recorded for top 10 export markets in the period of January to June 2021. The single largest export destination of the US recorded $ 1,631.36 million worth of exports in the period of January to July 2021– a significant year on year increase of 16.23% in comparison to $ 1,403.54 million recorded in 2020.

Exports to the UK as the second-largest trading partner recorded an increase of 13.79% to $ 525.35 million during the period of January to July 2021 compared with the corresponding period of previous year.

In a region-wise comparison, exports to all other regions increased except ASEAN Countries and CIS regions during the period of January to July 2021 compared with the corresponding period of the previous year.

Export of services 

The services exports estimated by EDB, which includes ICT/BPM, Construction, Financial Services and Transport and Logistics, recorded $ 1,885.88 million during the period of January to July 2021 compared to $ 1,482.41 million recorded in the corresponding period of 2020. Estimated service exports increased by 27.22% during the period of January to July 2021 compared to the corresponding period of 2020.