Exports, imports suffer M-o-M dip in November

Both exports and imports suffered a dip month-on-month (M-o-M) in November, though enjoying growth year-on-year (YoY) and cumulative wise, as per latest external trade data released by the Central Bank of Sri Lanka (CBSL) this week. 

Earnings from merchandise exports amounted to $ 994 million as against $ 1.15 billion in October. The dip YoY was marginal at 0.5% and was attributed to a reduction in mineral and industrial exports, despite an increase in agricultural exports. Export value in the first 11 months was $ 11.67 billion, up from $ 10.9 billion in the corresponding period of 2023.

On the other hand, imports in November amounted to $ 1.49 billion, down from $ 1.7 billion in October. However, YoY, imports value rose by 7.7% supported by the significantly low base recorded in November 2023.

Cumulative import value in the first 11 months of 2024 was $ 16.9 billion, up from $ 15.3 billion in the corresponding period of 2023.

The terms of trade, i.e., the ratio of export prices to import prices, deteriorated by 1.9% in November 2024 from a year ago as the decline in export prices outpaced the decline in import prices.

The export volume index improved by 2.5%, while the unit value index declined by 2.9%, indicating that the reduction in export earnings in November 2024 compared to November 2023 was primarily due to lower export prices.

The import volume index increased by 8.9% while the unit value index declined by 1%, implying that the increase in import expenditure in November 2024 compared to November 2023 was driven by higher volumes.

The CBSL said the deficit in the merchandise trade account widened to $ 502 million in November 2024 compared to $ 390 million recorded in November 2023, resulting from an increase in import expenditure and a marginal decline in export earnings. In October, the deficit was $ 544 million. The cumulative deficit in 11 months of 2024 widened to $ 5.24 billion as against $ 4.4 billion a year ago. By the end of October, the deficit was $ 4.74 billion.

Detailing export performance in November, the CBSL said earnings from exports of industrial goods declined marginally by 0.3% to $ 763 million in November 2024, primarily due to reductions in transport equipment, gems, diamonds and jewellery, as well as machinery and mechanical appliances. However, a notable increase was observed in petroleum product exports (by 27% to $ 70 million), driven by higher export volumes, while textiles and garments exports recorded broadly a similar level of exports. Earnings from agricultural exports increased by 6% to $ 228 million, mainly due to higher volumes of spices, alongside increased exports of tea and coconut-based products. Earnings from mineral exports recorded a 91% decline to $ 1.5 million.

In terms of imports, consumer goods rose 20.5% YoY to $ 319.6 million in November 2024, due to higher spending on both food items (primarily edible oils) and non-food items (primarily home appliances and clothing and accessories). Expenditure on intermediate goods imports increased by 6% to $ 920 million, primarily due to higher imports of textiles and textile articles, with wheat, rubber, and articles thereof, food preparations, and vehicle and machinery parts also recording moderate increases. Expenditure on investment goods recorded a marginal increase of 0.3% to $ 256 million, driven by higher imports of transport equipment compared to the previous year.