Exports dip continues but 11-month haul stays up

Friday, 17 January 2020 00:30 - - {{hitsCtrl.values.hits}}

Sri Lanka’s export earnings in the first 11 months of 2019 rose by 1.7% to $10.7 billion from a year earlier, the Export Development Board (EDB) said yesterday.

However, the total merchandise exports recorded for the month of November 2019 was down by 3% or $30 million to $950 million.

The latest external sector performance data released by the Central Bank showed that earnings from merchandise exports declined marginally by 0.2% (year-on-year) to $977 million in October. Exports have been declining year on year since July 2019 though in some months marginally.

According to the provisional data for November, the Apparel and Textiles sector contributed 47% of the total value of merchandise exports and remained the largest contributor to total exports followed by Tea (11%), Rubber and Rubber-Based products (7.5%), Coconut and Coconut-Based products and Engineering products (5%), while shares of all other sectors recorded less than 5% during the period under review.

The EDB pointed out that Apparel, with $5.07 billion, and Tea with $1.24 billion, were the only two sectors that recorded over $1 billion worth of exports, maintaining its usual pattern.

Export earnings from other sectors: Rubber and Rubber-Based products $815 million, Coconut and Coconut-Based products $570 million, Engineering products $ 550 million, Petroleum products $ 311 million, Food and Beverage $ 333 million, Spices and Essential Oils $ 292 million, Gems and Jewellery including diamond $288 million and Fish and Fisheries products $252 million.

The US was Sri Lanka’s top export market with $2.86 billion, which has shown a continuous growth for the past six years recording a 26% market share. Main exports to USA from January to November 2019 were apparel ($2.12 billion), rubber finished products ($ 250 million), coconut shell and kernel products ($85 million), edible fish products ($33 million), electrical and electronic products ($31 million) and nails and screws ($29 million).

Other top markets for Sri Lanka’s merchandise exports for the period under review include: the UK $925 million, India $703 million, Germany $594 million, Italy $490 million, Belgium $323 million, Netherlands $270 million, Japan $263 million, UAE $256 million and Canada $220 million.

Sri Lanka saw a growth in exports to the United Kingdom (3%), Germany (7%), Netherlands (18%), Japan (27%), and Canada (16%), while there was a drop in exports to India (-0.5%), Italy (-7.6%), Belgium (-1.5%) and UAE (-2.3%).

The main products exported to the UK, Canada and Germany include apparel and apparel related items, rubber finished products and electrical and electronic products and coconut kernel products.

Products such as apparel, tea, manufactures products, beverages, fruits and vegetables were the top products exported to the UAE. Sri Lanka also exported apparel, tea (bulk) and edible fish products worth $209 million during the first 11 months of 2019.