Tuesday Dec 24, 2024
Tuesday Dec 24, 2024
Tuesday, 24 December 2024 03:30 - - {{hitsCtrl.values.hits}}
The value of Sri Lanka’s export of goods and services crossed the $ 14 billion mark in the first 11 months of this year, reflecting an over 6% year-on-year (YoY) growth.
The Sri Lanka Export Development Board (EDB) revealed yesterday that total merchandise exports in the first 11 months were up 6.44% YoY to over $ 11.61 billion, while estimated total service earnings in the period increased by 7.39% YoY to $ 3.17 billion.
This propelled the overall export earnings from January to November to reach a high of $ 14.78 billion, marking a 6.44% YoY growth.
Merchandise export earnings in November however saw a 5.56% YoY decrease to $ 943.1 million, reflecting a 14.4% drop compared to October 2024.
This decrease is primarily attributed to reduced earnings from exports of rubber-based products, electrical and electronic components, food and beverage, as well as seafood.
In addition to the merchandise, the estimated value of services exports for November 2024 stood at $ 326.23 million, marking a 21% YoY increase over the corresponding period in 2023. The services exports include sectors such as ICT/BPM, construction, financial services, and transport and logistics.
Total exports for November 2024, including both merchandise and services, reached $ 1.26 billion, reflecting a mere 0.04% growth over the corresponding period of 2023.
The EDB originally forecasted a total revenue of $ 16.3 billion from merchandise and service exports in 2024. This includes $ 12.7 billion from merchandise exports and $ 3.6 billion from service exports.
Major exports in November 2024
a) Products and services with positive growth (increases)
Export earnings from Apparel and Textile increased by 0.54% YoY to $ 397.19 million in November 2024 compared to November 2023. Additionally, exports of Apparel and Textile to the US and UK increased by 1.4% and 4.6%, respectively, in November 2024 compared to November 2023.
Export earnings from Tea, which made up 12% of merchandise exports, increased by 4.72% YoY to $ 118.15 million in November 2024 compared to November 2023. This increase is mainly due to the positive performance in the export of Tea Packets (14.14%) and Bulk Tea (5.02%).
On a monthly analysis, export earnings of Coconut-based products increased by 13.08% in November 2024 compared to November 2023. Moreover, export earnings of Coconut kernel products, Coconut fibre products, and Coconut shell products increased by 12.37%, 11.73%, and 16.72%, respectively, in November 2024 compared to November 2023.
Moreover, export earnings from Coconut Oil, Desiccated Coconut, Coconut Milk Powder, and Liquid Coconut Milk, which are categorised under Coconut kernel products, increased by 8.18%, 20.64%, 24.8%, and 16.68%, respectively, in November 2024 compared to November 2023.
Being the largest contributor to the Coconut-based sector, export earnings from Coco Peat, Fibre Pith and Moulded products, which are categorised under Coconut fibre products, increased by 15.9% to $ 13.56 million in November 2024 in comparison to November 2023.
In addition, export of Activated Carbon, which is categorised under Coconut shell products, increased by 18.62% to $ 13.76 million in November 2024 in comparison to November 2023.
Export earnings from Spices and Concentrates increased by 33.17% to $ 41.27 million in the month of November 2024 compared to November 2023, mainly due to the strong performance in exports of Pepper (169.71%) and Cinnamon (15.96%).
Furthermore, the estimated value of ICT exports is expected to increase by 38.04% to $ 141.39 million in November 2024 when compared to November 2023. In addition, the estimated value of Logistics and Transport services is expected to increase by 21.09% to $ 162.34 million in November 2024 when compared to November 2023.
b) Products and services with negative growth (decreases)
Export earnings from Rubber and Rubber-finished products have decreased by 1.96% YoY to $ 77.2 million in November 2024, with a negative performance in exports of Pneumatic and Retreated Rubber Tyres and Tubes (-22.95%).
Export earnings from Electrical and Electronics Components decreased by 6.18% YoY to $ 35.08 million in November 2024, primarily due to a decline in export of Insulated Wires and Cables (-20.47%).
Export earnings from Food and Beverages have decreased by 8.29% YoY to $ 36.29 million in November 2024, with a negative performance in exports of Animal Feed (-22.81%) and Other Cereals (-30.73%).
Export earnings from Seafood decreased by 34.68% to $ 16.46 million in November 2024 compared to November 2023. This decrease was mainly due to the poor performance in export of Frozen Fish (-22.49%), Fresh Fish (-39.92%), and Shrimps (-72.22%).
Moreover, export earnings from Ornamental Fish decreased by 26.64% to $ 1.79 million in November 2024 compared to November 2023.
Exports during January-November 2024
a) Products and services with positive growth (increases)
Earnings from export of Apparel, Tea, Rubber products, Coconut products, Food and Beverages, and Spices and Concentrates increased by 4.03%, 8.8%, 8.25%, 19.86%,9.48%, and 13.18%, respectively, during the period of January to November 2024, in comparison to the corresponding period of 2023.
Earnings from the export of Apparel and Textile have increased by 4.03% to $ 4,604.16 million during the period of January to November 2024 compared to the same period in 2023. Additionally, exports of Apparel and Textile to the USA and UK increased by 4.03% and 6.09%, respectively, in the period of January to November 2024 compared to the corresponding period of 2023.
Earnings from the export of Tea increased YoY by 8.8% to $ 1,304.26 million in the period of January to November 2024. This increase was mainly due to the strong performance in the export of Bulk Tea (12.01%) and Tea Packets (7.18%).
In addition, export earnings from Rubber and Rubber-finished products increased by 8.25% to $ 920.81 million in January-November 2024 compared to the same period in 2023, attributed to increased exports of Industrial and Surgical Gloves of Rubber (21.74%) and Pneumatic and Retreated Rubber Tyres and Tubes (3.3%).
Export earnings of Coconut and Coconut-based products increased by 19.86% to $ 782.32 million during January-November 2024 compared to the previous year. Earnings from all the major categories of Coconut-based products increased in the period of January-November 2024 compared with the corresponding period of 2023 due to the strong performance in the export of Coconut Oil (21.09%), Desiccated Coconut (38.73%), Coconut Milk Powder (39.35%), Coconut Cream (28.97%), Liquid Coconut Milk (28.08%), Coco Peat (20.41%), and Activated Carbon (15.9%).
In addition, export earnings from Spices and Concentrates increased YoY by 13.18% to $ 414.67 million in the period of January to November 2024. This increase was mainly driven by the strong performance in exports of Pepper (83.57%). Pepper exports to India increased 83.72% in the first 11 months of 2024 compared to the corresponding period of the previous year.
Export earnings from Food and Beverages have increased by 9.48% YoY to $ 436.56 million in the period of January to November 2024, with a positive performance in the exports of Processed Food (36.7%).
Furthermore, the estimated value of ICT exports is expected to increase by 18.28% to $ 1,325.79 million during the period of January to November 2024 when compared to the corresponding period of 2023.
In addition, the estimated value of Logistics and transport services is expected to increase by 10.11% to $ 1,600.27 million during the period of January to November 2024 when compared to the corresponding period of 2023.
b) Products and services with negative growth (decreases)
Meanwhile, earnings from exports of Electrical and Electronic Components decreased by 15.34% to $ 382.39 million in the period of January to November 2024 compared to the corresponding period of 2023. This decline was primarily driven by poor performance in exports of Switches, Boards and Panels (-18.92%), Insulated Wires (-14.35%) and Other Electrical and Electronic Products (-18.66%).
Further, export earnings from Seafood decreased by 10.76% to $ 212.78 million during the period of January to November 2024 compared to 2023 due to poor export performance of Frozen Fish (-9.72%) and Shrimps (-34.62%).
Export earnings from Ornamental Fish decreased by 7.68% to $ 22.48 million in the first 11 months of 2024 compared to the same period of 2023.
Export performance in major markets
Among Sri Lanka’s top 10 export markets, the US, UK, India, Netherlands, and Canada markets showed positive growth in the month of November 2024 and the cumulative period from January to November 2024, compared to the corresponding period in 2023.
Furthermore, the US, Sri Lanka’s single largest export destination which absorbs 23% of Sri Lanka’s merchandise exports, increased by 1.75% to $ 227.17 million in November 2024 compared to November 2023. In parallel, exports to the US in the cumulative period of January to November 2024 increased by 6.19% to $ 2.65 billion compared to the corresponding periods in 2023.
Exports to the UK increased by 5.96% to $ 68.6 million in November 2024 compared to the corresponding month in 2023. Meanwhile, exports to the UK increased by 7.81% to $ 834.27 million in the cumulative period of January to November 2024 compared to the corresponding period in 2023.
Exports to FTA partners
a) November 2024
In November 2024, exports to India and Pakistan accounted for 8.4% of total merchandise exports, experiencing an increase of 25% to $ 75.35 million compared to November 2023. Exports to India increased by 27.44% while exports to Pakistan decreased by 2.89% in November 2024 compared to November 2023.
The positive performance of India was driven by higher exports of Petroleum Oils (415.23%) and Pepper (146.33%).
b) January-November 2024
Exports to India and Pakistan accounted for 6.8% of total merchandise exports, increasing by 2.4% to $ 866.74 million during the period of January to November 2024, compared to the corresponding period of the previous year.
Exports to India increased by 2.69% while exports to Pakistan decreased by 0.82% during the period of January to November 2024 when compared with the corresponding period in 2023.
The positive export performance of India was driven by higher exports of Pepper (83.52%). Meanwhile, decreased exports to Pakistan were led by decreased exports of Betel Leaves (-35.64%)
Export performance in regions
Exports to the European Union (EU), which accounts for 24% of Sri Lanka’s exports, decreased by 6.53% YoY in November 2024. However, exports to the EU increased by 0.46% during the first 11 months of 2024.
Exports to the top five EU markets were recorded as; Germany at $ 568.29 million (up by 7.27%), Italy at $ 550.82 million (down by 12.85%), Netherlands at $ 354.05 million (up by 15.53%), France at $ 242.49 million (down 15.05 %) and Belgium at $ 216.99 million (up by 5.73%) from January to November 2024, in comparison to the corresponding period in 2023.
