Export sector sustains resilience

• First half performance up 27% to $ 5.5 b; June shipments up 9% to $ 978 m

Sri Lanka’s export has sector sustained its resilience despite the pandemic and other challenges posting robust growth year-on-year in June and in the first half of 2021. 

The Export Development Board (EDB) said yesterday, as per the latest statistics released by Sri Lanka Customs, that the export sector performance has been able to maintain its upward trend in June 2021 with exports increasing by 9.41 % to $ 978.2 million compared to June 2020. This upward trend was evident year-on-year for the last four months.

Sri Lanka’s merchandise exports in the first half of 2021 was $ 5,561.72 million, an increase of 27.49% over $ 4,362.34 million in the first half of 2020. 

“Our appreciation goes to the exporters who are contributing their maximum to the economy, despite the severe third wave of COVID-19, amidst many restrictions and obstacles. The results are due to the sector specific interventions of all stakeholders and the Government, along with the commitment of our exporters,” EDB Chairman Suresh de Mel said.

The EDB said that in June 2021 exports of rubber-based products, electrical and electronic components, spices and concentrates, and gems and jewellery recorded double-digit growth compared with the month of June 2020. In addition, on year-on-year basis exports of apparel, tea and coconut-based products increased by 3.01%, 7.81% and 8.61% respectively. 

Major exports in June 2021

Apparel, valued at $ 414.14 million and constituted 42.3% of total merchandise exports increased by 3.01% from June 2020.

Tea exports recorded value of $ 123.91 million which constitutes 12.7 % of total merchandise exports increased by 7.81% from June 2020.

Rubber-based products, $ 95.5 Million, 9.8% of total merchandise exports improved by 38.63%.

Coconut products, $ 70.61 million, 7.2% of total merchandise exports increased by 8.61%. 

Electronics and electronic components, $ 37.67 million, 4.8% of total merchandise exports increased by 21.28%. Spices and concentrates, $ 35.66 million, 3.6% of total merchandise exports increased by 12.46%.

Major exports in January-June 2021

For the period of January to June 2021, merchandise exports increased by 27.49% to $ 5,561.72 million compared to the same period of 2020, following increased exports of rubber-based products, electronics and electronic components, and spices and concentrates, as shown in the table below.

Export earnings from rubber and rubber-finished products increased by 48.91 % to $ 519.96 million in Jan-June 2021 due to the better performance of exports of industrial and surgical gloves of rubber (78.49%), and pneumatic and retreated rubber tyres and tubes (50.43%).

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

Meanwhile earnings from export of electrical and electronic components (EEC) increased by 40.15% to $ 201.95 million in the period of January to June 2021 compared to the corresponding period of 2020. Export of insulated wires increased by 62.74 % during the period of January to June 2021 to $ 34.16 million compared with the corresponding period of previous year. In addition, export of other electrical and electronic products increased by 41.11 % during the period of January to June 2021 to $ 108.16 million compared with the corresponding period of previous year.

Export earnings from spices and essential oils increased significantly in the period of January to June 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 United States of America recorded $ 1,355.14 million worth of exports in the period of January to June 2021 – a significant year-on-year increase of 18.1 % in comparison to $ 1,147.45 million recorded in 2020. 

Exports to United Kingdom as the second largest trading partner recorded an increase of 22.84% to $ 444.18 million during the period of January to June 2021 compared with the corresponding period of the previous year. 

Further, exports to Netherlands increased YoY by 42.58 % in June 2021 with cumulative increases of 75.56 % during the period of January to June 2021. Growth of the Netherlands is due to the export of apparel and liquid coconut milk, and industrial and surgical gloves of rubber.

On a region wise comparison exports to all other regions increased except African countries and CIS regions during the period of January to June 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 & logistics show exports of $ 1,587.75 million for the period of January to June 2021 compared to $ 1,323.93 million recorded in the corresponding period of 2020. Estimated service exports increased by 19.92 % in the first half of 2021 compared to the corresponding period of 2020.