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Sri Lanka’s export earnings have produced a 10% growth to a new high of $ 1.05 billion in February from a year earlier, maintaining the growth momentum in merchandise shipments during the past nine months and in 2022, as per provisional statistics released by Sri Lanka Customs.
“This is the highest export figure recorded for the month of February since 2016,” the Export Development Board (EDB) Chairman Suresh de Mel told the Daily FT. He said Sri Lankans are strong in facing challenges, and the exporters have shouldered the task of placing the economy of the country on the right track with immense difficulties.
“A tribute to exporters for their commendable performance during unstable circumstances,” de Mel added.
The data also showed that the latest performance of last month is an increase of 5.8% compared to the pre-COVID era of February 2020, but slightly lower than the $ 1.06 billion achieved in January.
The estimated value of services exports for the month of February was $ 290 million, increasing 31.66% year-on-year (YoY). The services exports estimated by EDB consist of ICT/BPM, Construction, Financial Services and Transport and Logistics.
“Sri Lanka’s merchandise exports maintained the above $ 1 billion mark continuously from the beginning of this year, recording an increase of 9.91% to $ 1.05 billion in February compared to last year. This was also the ninth consecutive month of having over $ 1 billion in revenue. We hope the same trend will continue,” EDB Chief said.
Major exports in February
Apparel and textiles earrings increased by 12.04% YoY to $ 494.82 million in February with a strong performance in exports of Apparel (11.87%) and woven fabrics (31.04%) on a YoY basis, exports made-up textile articles declined by 0.26% in February in comparison to the same period a year earlier.
Rubber and rubber finished products have increased by 11.31% YoY to $ 93.17 million in February, with positive performance in exports of pneumatic and retreated rubber tyres and tubes (21.22%) and gaskets, washers, seals, etc. of hard rubber (9.51%).
However, the export of industrial and surgical gloves decreased by 7.55% YoY to $ 27.19 million in February.
Earnings from tea continue to plunge, though it consists of 12% of total merchandise exports. In February, tea exports decreased by 10.38% YoY to $ 100.86 million.
However, the latest performance is slightly higher than the $ 91.23 million recorded in January. Export of tea packets and bulk tea decreased by 17.22% and 2.7% respectively in YoY.
On monthly analysis, export earnings from coconut and coconut-based products increased by 12.45% YoY to 67.92 million in February. Exports of kernel products, fibre products, and shell products categorised under the coconut-based increased by 10.72%, 15.47%, and 11.71% respectively compared to a year earlier.
Export earnings from desiccated coconut, coconut milk powder, coconut cream and liquid coconut milk categorised under the coconut kernel products increased by 17.75%, 1.24%, 17.52%, and 16.28% respectively compared to the corresponding period in 2021.
Being the largest contributor to the coconut-based sector, coco peat, fibre pith and moulded products which are categorised under coconut fibre products, increased by 13.6% to $ 16.45 million compared to a year earlier. Earnings from activated carbon, which is categorised under coconut shell products increased by 13.71% YoY to $ 10.53 million.
Export earnings from the electrical and electronics components (ECC) increased by 16.92% YoY to $ 37.73 million in February with a strong performance in exports of insulated wires and cables (24.45%), switches, boards, and panels (13.28%), and electrical transformers (34.38%).
Seafood export earnings increased by 50.57% YoY to $ 21.17 million. This increase was mainly due to the increase in earnings from the export of frozen fish (48.25%), fish fresh fish (158.02%), and shrimps (33.61%), earnings from ornamental fish increased by 40.78% YoY to $ 1.45 million in February.
However, export earnings from spices and essential oils dropped by 18.59% YoY to $ 27.15 million due to the poor performance of cinnamon (-9.73%) and cloves (-63.41%). despite the decline in the sector, earnings from pepper increased by 16.6% in February compared to the corresponding period a year earlier.
Major exports during January - February
For the period January to February, merchandise exports increased by 11.66% YoY to $ 2.1 billion compared to the corresponding period of 2021. Major product sectors except for tea and spices and concentrates; apparel and textiles, rubber-based products, coconut-based products, ECC, food and beverages, seafood and ornamental fish recorded increased exports.
Apparel and textile exports increased by 19.96% to over $ 1 billion during the first two months compared to the same period a year earlier of apparel and woven fabrics expanded by 17.88% and 40.9%, while exports of made-up textile articles and yarn and other textile articles were down by 14.87% and 9.63%, respectively.
Export earnings from tea decreased by 10.04% YoY to $ 192.09 million compared to the corresponding period of 2021. Exports of all the subcategories of the tea sector except tea bags; tea packets (8.6%), bulk tea (11.44%), instant tea (20.7%) and green tea (24.66%) decreased YoY as well.
Export earnings from rubber and rubber finished products increased by 7.41% to $ 180.28 million during the first two months of the year, compared to the same period in 2021, attributed to higher exports of pneumatic and retreated rubber tyres and tubes (12.55%).
During the first two months of 2022, export earnings from coconut and coconut-based products increased by 18.87% to $ 136.2 million from the same period a year earlier. Earnings from all the major categories of coconut-based products increased during the first two months of 2022 compared to the corresponding period of 2021, due to the improved performance in the export of liquid coconut milk, coconut cream, coconut milk powder, cocopeat, mattress fibre, and activated carbon, coconut oil, and desiccated coconut.
Earnings from export of EEC increased by 14.78 % to $ 73.6 milling during the first two months of the year compared to the corresponding period of 2021. Export of insulated wires increased by 31.29% in the first two months of 2022 to $ 14.81 million compared with the same period a year earlier.
In addition, the export of electrical transformers, switches, boards and panels, and other electrical and electronic products increased by 50%, 12.72%, and 1.22 % respectively during the first two months of the year compared to the corresponding period of 2021.
Seafood earnings increased by 46.17% to $ 45.27 million in the period from January to February compared to the same period a year earlier, as a result of the better performance in all the subcategories; frozen fish (51.42%), fresh fish (135.44%) and prawns (33.2%).
Sri Lanka’s export performance in major markets
Strong export performance was recorded for the major export markets which accounted for 65% of total merchandise exports during the first two months of 2022, as well as in February.
Eight markets out of the top 10 markets were recorded positive performance except for Belgium and China.
During last month, exports to the US, Sri Lanka’s single largest export destination, increased by 22.66% to $ 295.25 million YoY.
The growth in performance was led by the increase in exports of apparel and textile of 19.22% and rubber-based products such as pneumatic and retreated rubber tyres and tubes and industrial and surgical gloves which accounted for 36.12%.
Exports to the UK, as the second-largest trading partner, recorded an increase of 2.32% to $ 81.72 million in February compared to the same period a year earlier. This performance has resulted in the increased exports recorded in apparel and textile and rubber-based products.
Exports to FTA partners
In February, exports to Free Trade Agreement (FTA) partners accounted for 7.2% of total merchandise exports, whilst recording an increase of 23.4% to $ 84.26 million.
Although exports to India increased by 27.52% YoY to $ 77.25 million in February, exports to Pakistan decreased by 8.96% YoY to $ 7.01 million. The upward exports to India were mainly supported by increased exports of animal feed (30%), pepper (14.74%), woven fabrics (27.64%), and apparel (14.93%) in February.
Sri Lanka’s export performance in regions
Exports to all regions except CIS countries increased during the first two months of 2022 and during February compared to the same period in 2021.
Exports to the European Union (EU) which comprised 20% of Sri Lanka’s exports during February increased by 4.83 % YoY to $ 241.68 million.
Breakdown of exports to the top five EU markets, which accounted for 80% of Sri Lanka’s total exports to the region was, Germany $ 60.7 million (increased by 2.46%), Italy $ 53.21 million (increased by 19.84%), the Netherlands $ 33.06 million (increased by 9.47%), Belgium $ 22.68 million (decreased by 21.82%) and France $ 19.52 million (increased by 14.96%).
