Home / TOP STORY/ Strong uptick in exports, FDI

Strong uptick in exports, FDI


Comments / {{hitsCtrl.values.hits}} Views / Friday, 8 December 2017 00:26


  • Jan-Oct merchandise exports up 10.3% 
  • Monthly exports top $ 1 b 3 times this year
  • FDI grows to $ 800 m in first nine months, exceeds 2016 total

 



As Sri Lanka’s pro-growth reforms gather pace, amidst an improving external economic environment, exports and Foreign Direct Investment (FDI) have shown substantial increases this year compared to last year.

According to the latest data released by the Export Development Board, merchandise exports have grown by 10.3% during January to October 2017, compared to the same period last year. 

Merchandise export earnings recorded $ 9.5 billion for the eight months to October this year, compared to $ 8.6 billion last year. Estimates in the services exports sector suggest an overall growth of 5.9% during the first eight months of the year, bringing total exports to $ 12.5 billion. 

Most notably, monthly export revenues breached $ 1 billion on three occasions this year, a trend not seen in recent years. The EDB expects export earnings for the full year (Jan-Dec) to total $ 15 billion. 

Within merchandise exports, fisheries exports have grown by a substantial 42%, agricultural exports by 18.5%, and industrial exports by 5.9%. Strong performance is seen in several of the ‘priority sectors’ identified under the new National Export Strategy; notably, electronics and electrical exports growing by 17.8%, spices growing by 34%, and boat building growing by over 370%.

 Meanwhile, food and beverages exports have dipped by 13.3%. By export destination, earnings from exports to the European Union have increased by 4.1%, and exports to USA have increased by 1.5% during January to October this year, compared to the same period last year. Exports to the ASEAN region have grown substantially, by 45%, to $ 400 million (compared to $ 276 million last year). 

Exports to India have performed strongly, growing at 24%, from $ 456 million to $ 566 million during the period in review. Meanwhile, exports to the UK have declined by 1.8%, largely on account of the depreciation of the GBP and the consumer market uncertainty due to Brexit. 

Foreign Direct Investment, too, has picked up pace. Data from the Board of Investment indicates a substantial uptick in FDI inflows to the country of $ 795.5 million during January to September this year; 80% higher than the same period last year and already exceeding the full year 2016. 

The BOI expects FDI for the full year 2017 to total $ 1.36 billion. The manufacturing and services sectors have seen the larger share of FDI inflows – of $ 397 m, while the infrastructure and utilities sectors received $ 352.5 m. 

FDI from China (including Hong Kong) is around 35% of FDI to date, while India is 16.4%, and Singapore is 9.3%. Others in the top 10 countries for FDI into Sri Lanka are Netherlands, United Kingdom, Japan, Malaysia, Sweden, and Australia. 

Several steps have been taken to streamline and strengthen the investment approvals and facilitation process over the past few months, and these measures have begun showing results.


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Greening China and BRI: Chinese legal framework for sustainable environment protection

Tuesday, 20 November 2018

The concept and scope of greening the belt and road The Greening BRI is to add the ‘greening’ notion along with the ‘BRI’. Building a ‘Greening BRI’ means adhering to the concept of green development, balanced development, harmony betwee


Political evil paralysing Parliament

Tuesday, 20 November 2018

Our politics has arrived at a point when we must insist on recognising the niceties of human nastiness. Organised horror in Parliament is either trivialised or ignored by most of mainstream media print and electronic. What unfolded in Parliament las


10 theses on Sri Lanka’s existential crisis: Roots, dynamics, dimensions

Tuesday, 20 November 2018

1.The crisis has deep national, social and psychological roots. Our island contains two consciousnesses or two types of consciousness, two competing states of mind. Contrary to myth, the periphery of our island has the longest uninterrupted colonial


Make toilets and safe sanitation services accessible to all

Tuesday, 20 November 2018

All people everywhere should have access to safe sanitation services, including hygienic toilets that are connected to quality sewage systems. For many people across the WHO South-East Asia Region, as across the world, access to these services never


Columnists More