Thursday Dec 12, 2024
Thursday Dec 12, 2024
Saturday, 25 September 2021 00:43 - - {{hitsCtrl.values.hits}}
 |
 |
 |
The export sector has sustained its resilience so far this year despite multiple challenges with end-August performance reflecting that the $ 12 billion target for the entirety of 2021 is likely.
According to the Sri Lanka Export Development Board (EDB), performance in the first eight months amounted to $ 7.88 billion, up 22.3% from the corresponding period of last year. End-August reflects achievement of 65.6% (as opposed to an ideal 66.6%) of the $ 12 billion target set for 2021.
August also marked the third consecutive month of $ 1 billion exports and more importantly a rebound in apparel shipments after a slump in July.
EDB said almost all the major product sectors – apparel and textiles (up 20.4% to $ 3.4 billion), tea (up 9.5% to $ 882.4 million), rubber-based products (up 40% to $ 709 million), coconut-based products (up 28% to 548 million), electronics and electronic components, spices and concentrates, seafood and ornamental fish, have improved their export performance. EDB estimates services exports which include ICT/BPM, construction, financial services and transport and logistics, are estimated to have grown by 33% to $ 2.18 billion in the first eight months of 2021.
EDB Chairman Suresh de Mel commended the exporters for the resilient performance and said it was remarkable to see another month of exports over a billion dollars despite the ongoing pandemic. He also said that going forward, the country needed to add more value to exports and explore niche markets, and diversify our product basket and markets.
Export earnings from rubber and rubber finished products increased by 39.9 % to $ 708.92 million in January-August 2021 due to the better performance of exports of industrial and surgical gloves of rubber (63.68%) and pneumatic and retreated rubber tyres and tubes (43.31%).
Earnings from all the major categories of coconut-based products increased due to the improved performance in export of coconut oil, desiccated coconut, coconut milk powder, liquid coconut milk, coconut cream, cocopeat, mattress fibre, and activated carbon.
Earnings from export of Electrical and Electronic Components (EEC) increased by 32.96% to $ 278.16 million in the first eight months of 2021 compared to the corresponding period of 2020.
Export of Insulated wires increased by 60.53% to $ 47.18 million. In addition, exports of other electrical and electronic products increased by 26.03% to $ 143.09 million.
Export earnings from spices and essential oils increased significantly by 45% to $ 283.4 million due to the better performance in all the subcategories; cinnamon, pepper, cloves, nutmeg, essential oils and oleoresins, etc.
The export sectors that showed positive growth at disaggregate level includes processed vegetables, fruits and juices, sugars, sugar confectionery and bakery products, processed food, frozen fish, fish fresh or chilled, shrimps and prawns, lobsters, crabs and other edible fish.
In August, exports rose by 14.4% to $ 1.08 billion from a year earlier, EDB said citing provisional data released by the Sri Lanka Customs.
Export earnings from the apparel sector rose by 12.13% to $ 491.5 million with strong performance in exports of apparel (12.84%) and woven fabrics (312.9%). On a year-on-year (YoY) basis, exports of made-up textile articles and yarn and other textile articles declined by 64.31% and 20.88%, respectively. Further, export earnings from the apparel sector rose 8.61% in August 2021 in comparison to July 2021.
Export earnings from tea in August which made up 12% of merchandise exports rose by 13.41% YoY to $ 116.78 million and export volume also increased by 16.1%. Export earnings from tea recorded a 1.43% increase in August 2021 in comparison to July 2021.
Export earnings from rubber and rubber finished products have increased by 27.31 % YoY to $ 92.34 million in August 2021 with strong performance in exports of pneumatic and retreated rubber tyres and tubes (33.02%) and industrial and surgical gloves (36.89%). However, exports of gaskets, washers, seals, etc., of hard rubber have declined by 44.48 % YoY to $ 4.93 million in August 2021.
Earnings from all the major categories of coconut-based products increased in August 2021 compared with August 2020. Earnings from desiccated coconut, liquid coconut milk and coconut cream categorised under the coconut kernel products increased by 42.82%, 13.8% and 72.94%, respectively. Being the largest contributor to the coconut-based sector, coco peat, fibre pith and moulded products which are categorised under the coconut fibre products increased by 28.55% to $ 17.38 million in August 2021. Earnings from activated carbon, which categorised under the coconut shell products decreased by 1.72%.
Export earnings from seafood increased by 19.65% to $ 165.48 million in August 2021 from a year ago. This increase was mainly due to the increase in earnings from export of fish fresh or chilled (29.44%), shrimps and prawns (125%), lobsters (50%), and crabs (27.27%).
Export earnings from electrical and electronic products (11.48%) and food and beverages (30.39%) recorded increases during the month of August 2021 compared with August 2020.
EDB said there was strong export growth recorded for the top 10 export markets in the period of January to August 2021. During the first eight months of 2021, exports to the United States of America, Sri Lanka’s single largest export destination, increased by 15.3 % to $ 1.9 billion. The better performance was led by an increase in exports of the apparel sector, rubber-based products (pneumatic and retreated rubber tyres and tubes, industrial and surgical gloves of rubber), motor vehicles parts, activated carbon, tea packets and cinnamon.
Exports to the United Kingdom as the second-largest trading partner recorded an increase of 9.43% to $ 604.54 million during the period of January to August. “This performance has resulted in the increased exports recorded in apparel sector and rubber-based products sectors (pneumatic and retreated rubber tyres and tubes, industrial and surgical gloves of rubber),” EDB added.
It said exports to Netherlands and Canada increased by over 50% led by better performance recorded in the apparel sector (79.47%) and liquid coconut milk (57.13%) and increased exports to China led by mineral sands, cocopeat and frozen fish.
On a region-wise comparison, exports to all other regions increased except CIS regions during the period of January to August 2021 compared with the corresponding period of the previous year.
Breakdown of exports to the top five EU markets which accounted for 80% of Sri Lanka’s total exports to the EU were Germany $ 481.41 million (up 29.74%), Italy $ 373.36 million (up 33.1%), the Netherlands $ 270.14 million (up 56.63%), Belgium $ 214.91 million (up 17.26%), and France $ 152.73 million (up 28.81%).
