Tuesday Apr 30, 2024
Tuesday Apr 30, 2024
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Agriculture has helped to increase exports in November on a month-on-month basis though the performance is lower in comparison to a year ago.
Releasing provisional Customs data, the Sri Lanka Export Development Board (SLEDB) said yesterday merchandise exports increased by 4.4% to $ 968.8 million in November 2023 compared to October 2023 but 2.67 % lower from a year ago.
Export earnings from tea that made up 12% of merchandise exports, increased by 6.78 % y-o-y to $ 112.82 million in November 2023 compared to November 2022. This increase is mainly due to the strong performance in the export of tea packets, tea bags and instant tea, that increased by 11.82%, 89.23% and 176.17% respectively in November 2023 compared to November 2022.
In addition, export earnings from rubber and rubber finished products have increased by 12.87 % y-o-y to $ 78.74 million in November 2023, with the strong performance in exports of pneumatic and retreated rubber tyres and tubes (28.32 %).
On monthly analysis, export earnings of coconut based products increased by 21.05 % in November 2023 compared to November 2022. Moreover, export earnings of coconut kernel products, coconut fibre products and coconut shell products increased by 26.14%, 23.64 % and 6.21 % respectively in November 2023 as compared to November 2022.
Export earnings from coconut oil, desiccated coconut and liquid coconut milk categorised under the coconut kernel products decreased by 47.61 %, 7.99 % and 50.91 % respectively in November 2023 as compared to November 2022.
Being the largest contributor to the coconut based sector, coco peat, fibre pith and moulded products categorised under the coconut fibre products, decreased by 39.78 % to $ 11.7 million in November 2023 as compared to November 2022.
Earnings from activated carbon, categorised under the coconut shell products decreased by 8.61 % to $ 11.6 million in November 2023 as compared to November 2022.
Export earnings from seafood increased by 10.48 % to $ 25.2 million in November 2023 as compared to November 2022. This increase was mainly due to the strong performance in export of fresh fish (82.35 %) and shrimp (98.99 %).
Moreover, export earnings from ornamental fish increased by 9.42 % to $ 2.44 million in November 2023 compared to November 2022.
The estimated value of ICT exports is expected to increase by 96 % to $ 166.01 million in November 2023 compared to November 2022. Also, the value of transport and logistics services exports is expected to increase by 54.7 % in November 2023 compared to the corresponding period in the previous year.
Export earnings from apparel and textile have decreased by 11.94 % y-o-y to $ 395.05 million in November 2023 compared to November 2022.
Export earnings from food and beverages have decreased by 3.34 % y-o-y to $ 43.75 million in November 2023, with the negative performance in exports of alcoholic beverages (-37.61 %).
In addition, export earnings from the electrical and electronics components decreased by 6.55 % y-o-y to $ 37.39 million in November 2023 with poor performance in exports of switches, boards and panels (-14.74%) and electrical transformers (-54.88 %).
Export earnings from spices and essential oils decreased by 13.52 % to $ 30.99 million in November 2023 as compared to November 2022. This decrease was primarily driven by a significant decrease in the export of cinnamon 21.52 %.
In the first 11 months cumulative merchandise exports were down by 9.64% to $ 10.87 billion.
Earnings from export of tea, spices and concentrates, gems and jewellery, electronics and electronic components and food and beverages increased by 4.11 %, 8.09 %, 0.34 %, 2.49 % and 1.85 % respectively during the period January – November 2023 compared with the corresponding period in 2022.
Earnings from export of tea increased y-o-y by 4.11 % to $ 1,198.77 million in the period January to November 2023. This increase was mainly due to the strong performance in export of tea packets (12.23%).
In addition, export earnings from spices and essential oils increased y-o-y by 8.09 % to $ 366.37 million in the period January to November 2023. This increase was due to the strong performance in exports of pepper (19.18 %), cloves (188.25 %), nutmeg and mace (13.29 %).
Earnings from export of electrical and electronic components (EEC) increased by 2.49 % to $ 451.68 million in the period January to November 2023 as compared to the corresponding period in 2022. This increase was due to the strong performance in exports of printed circuits (58.75 %), switches, boards and panels (4.82 %) and boilers/ piston engines/ pumps and vacuum pumps (719.87 %) in the period January to November 2023 as compared to the corresponding period in 2022.
The value of ICT exports is estimated to increase by 47.91 % to $ 1,520 million in the period January to November 2023 compared to the corresponding period in 2022. In addition, construction, financial and transport and logistics services exports are estimated to increase by 788.1 %, 73.72 % and 93.92 % respectively in the period January to November 2023 compared with the corresponding period in 2022.
Earnings from export of apparel and textile decreased by 18.84 % to $ 4,425.74 million during the period January to November 2023 compared to the same period in 2022. Further, earnings from export of apparel declined by 20 % and export of textiles declined by 4.84 % from January to November 2023.
In addition, export earnings from rubber and rubber finished products decreased by 9.89 % to $ 850.61 million in January – November 2023 compared with the same period in 2022, that was attributed to lower exports of industrial and surgical gloves of rubber (-25 %) and pneumatic and retreated rubber tyres and tubes (-2.6 %).
For the period January to November 2023, export earnings from coconut and coconut based products decreased by 14.37 % to $ 652.7 million for the same period last year. Earnings from all major categories of coconut based products decreased in the period January – November 2023 compared with the corresponding period in 2022 due to the poor performance in export of coconut oil (-12.29 %), desiccated coconut (-23.3 %), coconut milk powder (-4.93 %), coconut cream (-5.02 %), liquid coconut milk (-3.91 %), coco peat (-14.81 %) and activated carbon (-16.96 %).
Further, export earnings from seafood decreased by 3.73 % to $ 238.43 million during the period January to November 2023 compared to year 2022 due to poor performance in frozen fish (-4.69 %), shrimps (-25.06 %) and crabs (-19.6 %).
Export performance in major markets
Among the top 10 export markets, Italy and France have shown a strong performance in both the month of November 2023 and the period January to November 2023 when compared to the corresponding periods in the previous year. Furthermore, UAE has shown significant performance during the period January to November 2023 compared to the corresponding period in the previous year.
Exports to the United States of America, Sri Lanka’s single largest export destination, decreased 7.27 % to $ 223.26 million in November 2023 compared to November 2022. Further, exports to the United States decreased by 18.24 % to $ 2,504.82 million in the period January to November 2023 compared to the same period in 2022.
Exports to FTA partners
In November 2023, exports to Free Trade Agreement (FTA) partners constituted 6.5% of the total merchandise exports, experiencing a notable 14.45 % decrease to reach $ 60.35 million compared to November 2022. Specifically, both exports to India and Pakistan recorded decreases of 13.89 % and 19.78 %, respectively, during the month of November 2023 compared to November 2022.
The negative performance of India was driven by lower exports of animal feed (-38.62%) and petroleum oil (-42.15%), while Pakistan’s negative performance was led by decreased exports of betel leaves.
Exports to Free Trade Agreement (FTA) partners accounted for 7.2% of total merchandise exports decreased by 1.88 % to $ 846.45 million during the period January to November 2023 compared with the corresponding period the previous year.
Exports to India and Pakistan decreased by 1.76 % and 3.22 % respectively during the period January to November 2023 compared to the corresponding period in 2022.
The negative export performance of India was driven by lower export of animal feed (8.67 %), while Pakistan’s negative performance was led by decreased export of sheet rubber and other articles of stones.
Sri Lanka’s Export Performance in Regions
Exports to the European Union (EU) that comprised 21% of Sri Lanka’s exports during the month of November 2023 decreased by 0.02 % y-o-y to $ 228.31 million. Further, exports to the EU decreased by 11.2 % y-o-y to $ 2,485.88 million during the period January to November 2023 compared to the corresponding period the previous year.
During the period January to November 2023, the breakdown of exports to the top five EU markets that accounted for 78 % of Sri Lanka’s total exports to the EU were: Italy $ 632.04 million (increased by 7.16 %), Germany $ 529.8 million (decreased by 22.63 %), the Netherlands $ 306.46 million (decreased by 20.95 %), France $ 285.45 million (increased by 18.09 %) and Belgium $ 205.24 million (decreased by 213.42 %).
