Sunday Dec 22, 2024
Sunday Dec 22, 2024
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Sri Lanka’s merchandise exports have sustained the growth momentum in August increasing by 10.24% to over $ 1.2 billion, driving the first eight months› performance to exceed the $ 8 billion mark.
As per provisional data released by the EDB yesterday, in the first eight months of 2022, merchandise exports exceeded $ 8.85 billion, up by 12.04% year-on-year.
This was the third consecutive month Sri Lanka surpassed the $ 1 billion mark. In July exports amounted to $ 1.16 billion whilst in June the highest ever export of $ 1.248 billion was achieved. In May exports were $ 1.0.4 billion.
August merchandise exports grew by over 10% from a year earlier, mainly driven by apparel and textiles, which recorded the second all-time high figure, reaffirming the sheer resilience of the private sector-run industry. “I wish to congratulate all the exporters for their great effort to increase foreign exchange earnings for Sri Lanka during this critical period,” EDB Chairman and CEO Suresh de Mel said,
He also expressed his appreciation to the staff of the EDB and other supporting agencies for their untiring assistance to facilitate exports under highly disruptive circumstances.
EDB estimated services exports in the first eight months were $ 1.3 billion, up by 5.58% from a year earlier.
The services exports estimated by EDB consist of ICT/BPM, construction, financial services, and transport and logistics.
In 2021, Sri Lanka’s total exports recorded $ 15.12 billion, up by 23% from 2020 sustaining its resilience, despite an unprecedented economic crisis.
Last year’s performance comes second only to the $ 15.91 billion recorded in 2018. The Government is heavily banking on exports, as it became the only economic contributor generating a fixed inflow of much-needed foreign exchange amidst the ongoing crisis. The Government has assured more support to exporters to reach a $ 20 billion target this year.
Major exports in August 2022
Major product sectors except for coconut-based products; apparel and textiles, rubber-based products, electronic components (EEC), spices, and concentrates, diamonds, gems and jewellery, food and beverages, seafood and ornamental fish drove the increased export earnings in August.
Exports of apparel and textiles increased by 15.03% YoY to $ 565.37 million, up by 21.55% YoY in July 2022. The increase was driven by apparel.
Tea export earnings which made up 11% of merchandise exports, also increased by 6.52% YoY in August 2022 to $ 124.41 million. This was mainly due to the higher export of tea packets (11.42%).
Rubber and rubber finished products increased by 8.11% YoY to $ 99.84 million in August 2022, with better performance in exports of pneumatic and retreated rubber tyres and tubes (24.03%).
ECC earnings increased by 14.03% YoY to $ 41.86 million in August 2022 with a strong performance in exports of insulated wires and cables (8.49%) and other electrical and electronic products (24.41%).
Seafood exports increased by 37.04% to $ 25.53 million in August 2022 compared to a year earlier. Except for shrimp and lobsters, export earnings from frozen fish and fresh fish increased by 69.88% and 56.39% respectively in August 2022.
Export earnings from ornamental fish increased by 140.63% to $ 2.31 million in August 2022 compared to August 2021.
Spices and essential oils increased by 0.8% to $ 40.11 million in August compared to a year earlier due to the better performance in export of Connolly (24.84%) and essential oils (2.31%).
On monthly analysis, except shell products, export earnings of kernel products and fibre products categorised under the coconut-based products decreased by 10.79% and 7.55% respectively in August 2022 compared to a year earlier.
Major exports during first eight months
Key product sectors except for tea, rubber-based products, spices and concentrate; apparel and textiles, coconut-based products, EEC, gems and jewellery, food and beverage, and seafood, recorded increased exports.
Apparel and textile exports increased by 19.3% to over $ 4 billion during the first eight months compared to the same period a year earlier. Except for made-up clothing accessories (-9.8%), knitted fabrics (-1.02%), yarn (-15.61%), and textile floor coverings (-14.35%); exports of other sub-categories of the apparel and textile sector increased.
Rubber and rubber finished products slightly decreased by 0.46% to $ 705.7 million in the first eight months of 2022 compared to the same period a year earlier attributed to lower exports of industrial and surgical gloves (-15.79%). However, exports of pneumatic and retreated rubber tyres and tubes increased. The tubes increased by 9.42% during the period during the first eight months compared with the same period of 2021.
ECC increased by 11.87 % to $ 311.17 million in the first eight months of 2022 compared to the corresponding period of 2021. The export of insulated wires increased by 15.83% during the first eight months to $ 54.65 million compared to the same period a year earlier. In addition, the export of printed circuits, switches, boards and panels, electronic transformers, and other electrical and electronic products increased by 40.65%, 3.89%, 10.89%, and 11.77 % respectively during the first eight months compared to the same period earlier.
Seafood earnings increased by 13.83% to $ 188.36 million in the period from January to August 2022 compared same period a year earlier due to the better performance in all the subcategories except for lobsters, frozen fish (4.37%), fresh fish (31.47%) and prawns (47.75%).
In addition, earnings from the export of ornamental fish increased by 9.76% to $ 13.83 million during the first eight months.
Export earnings from coconut and coconut-based products expanded by 6.37% to $ 572.71 million. Earnings from all the major categories of coconut-based products increased during the first eight months compared to the corresponding period of 2021 due to the improved performance in the export of liquid coconut milk, coconut milk, cocopeat, brooms and brushes, mattress fibre, activated carbon, coconut oil, and desiccated coconut.
However, export earnings from tea decreased by 7.16% to $ 819.31 million during the first eight months compared to the corresponding period of 2021. Exports of all the subcategories of the tea sector except tea bags; tea packets (-7.04%), bulk tea (-7.16%,), instant tea (-24.56%), and green tea (-31.15%) decreased during the period from January to August 2022 compared to the same period of 2021.
Earnings from spices and essential oils also decreased by 17.3% to $ 234.39 million in the first eight months compared to the same period of 2021 due to the poor performance in all the sub-categories; cinnamon (-3.88%), pepper (-19.29%), cloves (-58.41%), nutmeg and mace (-17.95%), cardamom (-56.52%) and essential oils (-25.53%).
Sri Lanka’s export performance in major markets
Strong export performance was recorded for the top 10 export markets during the eight months. In July 2022, exports to the US — Sri Lanka’s single largest export destination, increased to $ 320.31 million YoY up by 17.05%, whilst the cumulative exports to the US were over $ 2.3 billion – a significant YoY increase of 21.19% compared to $ 1.9 billion recorded for the same period of 2021.
Exports to the UK, as the second largest trading partner, recorded an increase to $ 682.56 million YoY, up by 13%.
Exports to FTA partners
Exports to Free Trade Agreement (FTA) partners during the first eight months accounted for 7.2% of total merchandise exports, increasing by 10.11 % to $ 623.17 million.
Although exports to India increased by 12.77% YoY to $ 570.46 million, exports to Pakistan fell by 12.28% to $ 60.08 million during the first eight months compared to the corresponding period of 2021.
Increased exports to India are mainly supported by increased exports of animal feed (16.42%), areca nuts (67.28%), woven fabrics (96.17%), and wood pulp (35.39%) from January - August 2022.
Sri Lanka’s export performance in regions
On a region-wise comparison exports to all regions except ASEAN and CIS countries increased from January to August 2022 compared with the corresponding period of 2021.
Sri Lanka’s exports to all regions except for CIS countries increased from January to August 2022 compared to the corresponding period of 2021. During the first eight months of 2022, the breakdown of exports to the top five EU markets which accounted for 80% of Sri Lanka’s total exports to the EU were ; Germany $ 514.75 million (up by 6.93%), Italy $ 414.26 million (up by 10.95%), Netherlands $ 274.28 million (up by 1.53%), Belgium $ 215.49 million (down by 0.27 %), and France $ 177.78 million (up by 16.4%).
