Friday Nov 15, 2024
Friday Nov 15, 2024
Wednesday, 26 October 2022 00:00 - - {{hitsCtrl.values.hits}}
Reaffirming its resilience, the export sector has notched the fourth consecutive month of over $ 1 billion performance in September, propelling the third quarter performance to exceed the $ 10 billion mark.
As per provisional data released by the Export Development Board yesterday, merchandise exports have sustained the growth momentum in September increasing by 5.75% to over $ 1.1 billion, whilst the first nine months haul was up 11.83% to just over $ 10 billion compared to the corresponding
period of 2021.
September merchandise exports grew by over 5.8% from a year earlier, mainly driven by apparel and textiles, tea, gems and jewellery, electrical and electronic components (EEC) and spices and essential oils. EDB estimated services exports in the first nine months were $ 1.5 billion, up by 3.8% 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.
Except for coconut-based products, major product sectors such as 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.
Major Exports in September
Major product sectors except coconut based products; apparel and textiles, tea, EEC, spices and concentrates diamonds, gems and jewellery, food and beverages, ornamental fish and other export crops, drove the increased export earnings in September 2022.
Exports of apparel and textiles increased by 5% YoY to $ 479.88 million and the better performance was driven by apparel exports.
Tea exports earnings, which made up 11% of merchandise exports, increased by 11.63% YoY to $ 117.82 million in September. This was mainly due to the higher export of bulk tea (11.95%) and tea packets (6.98%).
Export earnings from EEC increased by 42.13% YoY to $ 57.27 million in September 2022 with strong performance in exports of insulated wires and cables (42.13%) and other electrical and electronic products (45.56%).
Ornamental fish export earnings increased by 37.6% to $ 1.72 million in September compared to the same period a year earlier.
Export earnings from spices and essential oils increased by 9.29% to $ 40.84 million in September 2022 compared to September 2021 due to the better performance in export of cinnamon (14.0%) and pepper (4.37%).
However, export earnings from rubber and rubber finished products decreased by 16.91% YoY to $ 82.19 million in September 2022, given the poor performance in exports of pneumatic and retreated rubber tyres and tubes (-4.67%) and export of industrial and surgical gloves (-39.12%).
Export earnings from seafood decreased by 25% to $ 16.95 million in September compared to the same period a year earlier. Except for shrimps and lobsters, export earnings from frozen fish and crabs increased by 2.68% and 94.03% respectively in September 2022.
On monthly analysis, except shell products export earnings of kernel products and fibre products categorised under the coconut based products decreased by 11.95% and 11.62% respectively in September2022 compared to September 2021.
Major exports during first nine months
Major product sectors except tea, rubber-based products and spices and concentrates; apparel and textiles, coconut-based products, EEC, gems and jewellery, food and beverages and other export crops, recorded increased exports.
Apparel and textile exports increased by 17.61% to $ 4.56 billion during the first nine months compared to the same period a year earlier. Except made-up clothing accessories (-9.36%), yarn (-13.5%) and made-up textile articles (-2.94%); exports of other subcategories of apparel and textiles sector increased.
Export earnings from rubber and rubber finished products decreased by 2.18% to $ 787.87 million in the first nine months of 2022 compared to the same period a year earlier attributed to lower exports of industrial and surgical gloves (-20.87%). However, exports of pneumatic and retreaded rubber tyres and tubes increased by 7.26% during the period of January to September 2022 compared with the same period of 2021.
EEC increased by 16.08% to $ 488.67 million in the first nine months compared to the corresponding period of 2021.
The export of insulated wires increased by 18.55% during the first nine months to $ 62.25 million compared to the corresponding period of previous year. In addition, export of printed circuits, switches/ boards and panels, electrical transformers and other electrical and electronic products increased by 43.43%, 6.04%, 10.32% and 15.16 % respectively during the period of January to September 2022 compared to the same period of a year earlier.
Seafood earnings increased by 9.17% to $ 205.31 million in the period from January to September 2022 compared same period a year earlier due to the better performance in all the sub categories except lobsters; frozen fish (4.24%), fresh fish (23.34%) and prawns (18.18%).
In addition, earnings from export of ornamental fish increased by 12.27% to $ 15.55 million during the first nine months of 2022 compared to the corresponding period a year earlier.
Export earnings from coconut and coconut-based products expanded by 4.9 % to $ 638.58 million. Earnings from all the major categories of coconut-based products increased during the first nine months compared to the corresponding period of 2021 due to the improved performance in export of liquid coconut milk, cocopeat, brooms and brushes, mattress fibre, activated carbon, coconut oil and desiccated coconut.
However, export earnings from tea decreased by 5.27% to $ 937.14 million during the first nine months compared to the corresponding period of 2021. Exports of all the sub categories of tea sector except tea bags; tea packets (-5.87%), bulk tea (-5.15 %), instant tea (-17.37%) and green tea (-48.96%) decreased during the period from January to September 2022 compared to the same period of 2021.
Earnings from spices and essential oils also decreased by by 14.21% to $ 275.24 million in the first nine months compared to the same period of 2021 due to the poor performance in all the sub categories; Cinnamon (-1.28%), pepper (-17.0%), cloves (-57.46%), nutmeg & mace (-9.72%), cardamom (-64.29%) and essential oils (-27.52%).
Sri Lanka’s Export Performance in Major Markets
Strong Export Growth recorded for top 15 export markets from the period of January to September 2022.
In September 2022, exports to the US — Sri Lanka’s single largest export destination, increased to $ 274.16 million YoY up by 1.38%, whilst the cumulative exports to the US were over $ 2.58 billion – a significant YoY increase of 18.73% compared to $ 2.17 billion recorded for the same period of 2021.
Exports to the UK, as the second largest trading partner, recorded an increase to $ 758.93 million YoY, up by 11.68%.
Exports to FTA Partners
Exports to Free Trade Agreement (FTA) partners during the first nine months accounted for 7.2% of total merchandise exports, increasing by 10.25% to $ 700.53 million.
Although exports to India increased by 13.24% YoY to $ 642.03 million, exports to Pakistan fell by 14.59% to $ 58.5 million during the first nine months compared to the corresponding period of 2021.
Growth in Exports to India was mainly supported by increased exports of animal feed (14.69%), areca nuts (69.85%), woven fabrics (77.45%), and wood pulp (33.85%) %) from January - September 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.
The EU accounted for 22.93 % of Sri Lanka’s merchandise exports. On a region wise comparison exports to all regions except CIS countries increased during the period from January to September 2022 compared with the corresponding period of 2021.
During the period of January to September 2022, breakdown of exports to the top five EU markets which accounted for 78 % of Sri Lanka’s total exports to the EU were; Germany $ 567.93 million (up by 4.22 %), Italy $ 477.24 million (up by 13.98 %), Netherlands $ 304.93 million (down by 0.35 %), Belgium $ 240.22 million (down by 1.19 %) and France $ 199.88 million (up by 15.2 %).
