Sunday Jun 16, 2024
Sunday Jun 16, 2024
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Sri Lanka’s merchandise export earnings have reached a record high of $ 3.98 billion in the first four months of the year, whilst reflecting a 3.55% year-on-year (YoY) increase, provisional data released yesterday by the Export Development Board (EDB) revealed.
This surpasses the previous record of $ 3.95 billion set in the same period in 2019. The all time high $ 4.23 billion was recorded in 2022.
However, April merchandise export earnings declined by 4.10% YoY to $ 814 million, also showing a 29% drop compared to March 2024. Despite this, total exports for April saw a marginal YoY increase of 1.25% to $ 1.14 billion given the strong performance in services export earnings.
In April 2024, the estimated value of services exports was $ 300.41 million, showing a significant increase of 19.28% compared to the same month in 2023.
The strong performance in services export earnings, during the first four months which rose by 6.47% YoY to $ 1.04 billion, contributed significantly to the total export value.
As a result, total export earnings from January to April hit a high of $ 5.03 billion, marking a 4.14% YoY growth.
The EDB’s estimate of services exports includes sectors such as ICT/BPM, construction, financial services, transport and logistics.
Following is a summary of 2023 export performance issued by the EDB;
Major exports in April 2024
Products and services with positive growth (Increases)
Export earnings from tea which made up 12% of merchandise exports, increased by 2.22% YoY to $ 95.46 million in April2024 compared to April 2023. This increase is mainly due to the strong performance of export of Bulk Tea (increased by 12.08%).
Furthermore, volume of tea exports increased by 12.03% in April 2024 compared to April 2023. Additionally, tea exports to UAE, Iraq and Saudi Arabia markets increased by 61.25%, 57.11% and 40.23% respectively.
Moreover, export earnings from Rubber and Rubber Finished products have increased by 20.18% YoY to $ 66.58 million in April 2024, with the strong performance in exports of Pneumatic and Retreated Rubber Tyres and Tubes (36.09%).
On monthly analysis, export earnings of Coconut based products increased by 17.73% in April 2024 compared to April 2023. Moreover, export earnings of Coconut kernel products, Coconut fibre products and Coconut shell products increased by 26.31%, 10.55% and 9.98% respectively in April 2024 compared to April 2023.
Export earnings from Coconut Oil, Desiccated Coconut, Coconut Cream and Liquid Coconut Milk which are categorised under the Coconut kernel products increased by 18.2%, 45.85%, 46.79% and 35.92% respectively in April 2024 compared to April 2023.
Being the largest contributor to Coconut based sector, Coco Peat, Fibre Pith and Moulded products which are categorised under the Coconut fibre products, increased by 17.23% to $ 15.38 million in April 2024 in comparison to April 2023.
Earnings from Activated Carbon, which is categorised under the Coconut shell products increased by 10.3% to $ 11.35 million in April 2024 compared to April 2023.
Export earnings from Food and Beverages have increased by 7.55% YoY to $32.35 million in April 2024, with the positive performance in exports of processed food (18.25%).
Export earnings from Seafood increased by 7.76% to $26.79 million in April 2024 compared to April 2023.This increase was mainly due to the positive performance in export of frozen fish (11.08%) and Fresh fish (23.68%).
In parallel, export earnings from Ornamental fish increased by 30.66% to $ 2.77 million in April 2024 compared to April 2023.
Furthermore, the estimated value of ICT exports is expected to increase by 21.6% to $ 120.69 million in April 2024 when compared to April 2023. Also, the value of Transport and Logistics services exports is expected to increase by 24.94% in April 2024 compared to the corresponding period in the previous year.
b) Products and services with negative growth (Decreases)
Export earnings from Apparel and Textile decreased by 6.34% YoY to $ 321.06 million in April 2024 compared to April 2023.
Export earnings from Spices and Essential Oils decreased by 14.47% to $ 18.03 million in the month of April 2024 compared to month of April 2023 mainly due to the poor performance in export of Cinnamon (-15.99%) and Cloves (-52.22%). Clove exports to India decreased by nearly 100% in April 2024 compared to April 2023
Furthermore, the total export earnings from Diamonds, Gems and Jewellery decreased by 14.14% YoY to $ 21.68 million in April 2024. Export earnings from Diamonds experienced substantial decrease by 23.88% in April 2024.
Additionally, export earnings from the Electrical and Electronics Components decreased by 23.07% YoY to $ 30.78 million in April 2024 with poor performance in exports of Electrical Transformers (-26.11%) and Other Electrical and Electronic products (-21.61%).
Moreover, the estimated value of Constructions services exports is expected to decrease by 31.05% to $ 14.87 million April 2024 when compared to April 2023.
Exports during January – April 2024
a) Products and services with positive growth (Increases)
Earnings from export of Tea, Rubber products, Coconut products and Food and Beverages increased by 10.44%, 12.03%, 23.44% and 21.83% respectively during the period of January – April 2024 in comparison to the corresponding period of 2023.
Earnings from export of Tea increased YoY by 10.44% to $ 450.23 million in the period of January to April 2024. This increase was mainly due to the strong performance in export of Bulk Tea (24.07%).
In addition, export earnings from Rubber and Rubber finished products increased by 12.03% to $ 335.0 million in January – April 2024 compared to the same period in 2023 attributed to increased exports of Industrial and Surgical Gloves of Rubber (8.0%) and Pneumatic and Retreated Rubber Tyres and Tubes (17.39%).
Export earnings of Coconut and Coconut based products increased by 23.44% to $ 264.4 million during January – April 2024 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January – April 2024 compared with the corresponding period of 2023 due to the strong performance in export of Coconut Oil (21.94%), Desiccated Coconut (37.48%), Coconut Milk Powder (36.2%), Coconut Cream (44.15%), Liquid Coconut Milk (30.91%), Cocopeat (27.15%) and Activated Carbon (20.35%).
Export earnings from Food and Beverages have increased by 21.83% YoY to $ 158.72 million in the period of January to April 2024, with the positive performance in exports of Processed food (63.73%).
Furthermore, the estimated value of ICT exports is expected to increase by 1.82% to $ 405.89 million during the period of January to April 2024 when compared to the corresponding period of 2023. Also, the value of Transport and Logistics services exports is expected to increase by 15.54% to $ 558.89 million during the period of January to April 2024 when compared to the corresponding period of 2023.
Products and services with negative growth (Decreases)
Earnings from export of Apparel and Textile have decreased by 2.84% to $ 1,566.39 million during the period of January to April 2024 compared to the same period in 2023. Further, earnings from export of Apparel declined by 2.11% and export of Textiles declined by 10.38% in January to April2024.
In addition, export earnings from Spices and Essential Oils decreased YoY by 28.66% to $ 87.48 million in the period of January to April 2024. This decrease was due to the poor performance in exports of Cloves (-85.27%).
Meanwhile, earnings from export of Electrical and Electronic Components (EEC) decreased by 17.31% to $137.93 million in the period of January to April 2024 compared to the corresponding period of 2023. This decrease was due to the poor performance in exports of Insulated wires (-7.99%) and Other Electrical and Electronic Products (-28.05%).
Further, export earnings from Seafood decreased by 0.9% to $ 90.68 million during the period of January to April 2024 compared to year 2023 due to the poor performance in Frozen Fish (-8.8%).
Export performance in major markets
Among the top 10 export markets of Sri Lanka, UK, Italy, Germany, Netherlands, France and China have shown positive growth in both April 2024 and the cumulative period of January to April 2024 compared to the corresponding periods in 2023.
United States of America, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, decreased by 5.09% to $ 183.37 million in April 2024 compared to April 2023. In parallel, exports to America in the cumulative period of January to April 2024 decreased by 2.18% to $ 894.94 million compared to the corresponding periods in 2023.
Additionally, exports to the United Kingdom increased by 7.65% to $ 66.14 million in April 2024 compared to the corresponding month in 2023. Meanwhile, exports to the United Kingdom increased by 6.8% to $ 305.16 million in cumulative period of January to April 2024 compared to the corresponding period in 2023.
Exports to FTA partners
a) April 2024
In April 2024, exports to India and Pakistan constituted 7.5% of the total merchandise exports, experienced a notable 2.9% decrease to reach $ 61.54 million, compared to April 2023. Further, exports to India recorded decrease of 3.31% where as exports to Pakistan increased by 2.67% in April 2024 compared to April 2023.
The negative performance of India was driven by lower exports of Animal Feed, while Pakistan’s positive performance was led by increased exports of Other textile articles and other Electrical and Electronic Products.
b) January – April 2024
Exports to India and Pakistan accounted for 6.6% of total merchandise exports decreased by 8.67% to $ 262.17 million during the period of January to April 2024 compared to the corresponding period of previous year.
Exports to India decreased by 10.49% during the period of January to April 2024 when compared with the corresponding period in 2023 while exports to Pakistan increased by 16.16% YoY in the same period.
The negative export performance of India was driven by lower export of Animal feed (-11.51%), while Pakistan’s positive performance was led by increased exports of other textile articles, other Electrical and Electronic Products and Desiccated coconut
Export performance in regions
Exports to the European Union (EU) which accounts for 24% of Sri Lanka’s exports, in April and the cumulative period of January to April 2024, increased respectively by 7.36% and 3.58%.
Exports to the top five EU markets were recorded as; Germany $ 205.01 million (up by 5.83%), Italy $ 198.59 million (up by 0.63%), Netherlands $ 114.08 million (up by 7.32%), France $ 84.94 million (up by 6.41%) and Belgium $ 72.06 million (down by 0.81%) during the cumulative period of January to April 2024 in comparison to the corresponding period in 2023.
