Imports up 13.5% in June

The Central Bank said on Friday that expenditure on imports in June 2015 increased by 13.5%, year-on-year, to $ 1,633 million. 

On a cumulative basis, expenditure on imports during the first six months of 2015 increased by 5.7%, year-on-year, to $ 9,501 million, mainly led by the import of consumer goods followed by the import of investment goods. 

During the first six months of 2015, the main import origination countries were India, China, Japan, the UAE and Singapore, which accounted for about 60% of total imports.

In June the growth was led by vehicle imports for personal usage categorised under consumer goods, which increased by 110.1% due to higher importation of motorcars and motorcycles and vehicle imports for business purposes categorised under investment goods, which increased by 238.6% due to higher importation of auto trishaws and other motor vehicles. 

Import expenditure on textiles and textile articles increased, reflecting potential higher export demand in coming months and increased local demand for garments. Meanwhile, import expenditure on fuel declined by 41.3%, year-on-year, to $ 242 million in June 2015, reflecting a 70.3% decline in expenditure on crude oil and a 23.6% drop in expenditure on refined petroleum products. 

Lower expenditure on fuel imports was mainly due to the significant decline in oil prices in international markets. Meanwhile, import expenditure on sugar declined by 54.7% mainly due to the decrease in the import price of sugar coupled with a lower import volume. 

Mineral product imports and rice imports also declined during the month. Rice imports, which recorded a significant growth since April 2014, contracted by 75.8% in June after the introduction of import duty and other taxes in place of the Special Commodity Levy (SCL) with effect from 6 May 2015 and the increase in domestic rice production.