Thursday Dec 12, 2024
Thursday Dec 12, 2024
Wednesday, 19 February 2020 02:40 - - {{hitsCtrl.values.hits}}
Sri Lanka’s merchandise and service exports have marginally increased by 1.4% to $16.14 billion last year, prompting the Government to attribute it to a series of development efforts and assure further support.
Releasing the latest data, the Export Development Board (EDB) yesterday confirmed that merchandise and service exports falling short by $2.36 billion from the original target.
Accordingly, the total value of merchandise exports for 2019 was $11.94 billion, showing a mere increase of $50 million, compared to $11.89 billion recorded a year earlier.
The total service exports in 2019 was $4.2 billion, which includes ICT/BPM, Construction, Financial Services and Transport Services.
Despite missing the $18.5 billion original target, EDB Chairman Prabhash Subasinghe said last year’s performance was still noteworthy, considering the global and local challenges.
In an analysis of the major sub sector contribution to the total exports last year, EDB said only two sectors – apparel and tea – had contributed significantly to the total export target, surpassing the billion figure. The apparel sector recorded a total of $5.6 billion, while contribution from tea was $1.3 billion in 2019.
Other sectors that contributed notably to total exports for 2019 includes rubber and rubber-based products with $890 million, coconut and coconut-based products with $614 million and engineering products with $589 million which includes electrical and electronic and machinery products and boat building sectors .
The contribution from the top 10 product sectors to total exports is over 90%, whilst all other subsectors accounted to around 10% in terms of value.
The EDB also said that during the past four years from 2016 to 2019, export growth rate of the sectors had recorded an upward trend. The analysis also showed an equal number was on a declining trend with a negative growth rate.
The sectors that recorded positive growth rate in 2019 were apparel, coconut-based products, diamonds, gems and jewellery, ornamental fish, vegetables, fruits and cut flowers and foliage. The sectors that showed a downward trend were in the exports of tea and spices. The US was the top export market in 2019 with $3.1 billion which is 26% of the merchandise exports followed by the United Kingdom with $998 million, India with $759 million, Italy with $531 million and Belgium with $352 million.
According to the EDB, both the US and German markets have shown continuous growth over the past five years. Apparel was the key export to the US, whilst the key exports to Germany were apparel and solid tyres.
However, exports of apparel to the UK, pepper to Italy and copper wire to India have declined in 2019, the data showed.
Although wellness tourism was to be accounted for service exports from last year, Daily FT learns that it was not included in the released statement.
