Friday May 03, 2024
Friday May 03, 2024
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Earnings from merchandise exports in February was $ 983.7 million, marking a slight uptick of 0.17% year-on-year (YoY), while it also increased by 1.3% compared to January.
However, the merchandise shipments in the first two months were down 0.30% to $ 1.9 billion YoY, statistics from the Export Development Board (EDB) revealed.
In February, agricultural exports saw an increase by 11.82% YoY to $ 255.76 million, while industrial exports experienced a decline by 3.36% YoY to
$ 727.94 million.
Following is a summary of 2023 export performance issued by the EDB.
Key exports highlights in February 2024:
a) Products with positive growth (increases)
Export revenues from tea, constituting 12% of merchandise exports, surged by 22.16% year-on-year to $ 127.74 million in February 2024 compared to February 2023. This rise was primarily driven by robust performances in the export of bulk tea and tea packets, which increased by 52.31% and 2.56%, respectively. Additionally, the volume of tea exports saw a notable uptick of 20.27% in February 2024 compared to February 2023. Moreover, tea exports to UAE, Russia, Iraq, and Iran markets recorded significant increases of 91.02%, 36.21%, 31.84%, and 359.07%, respectively.
Furthermore, export revenues from rubber and rubber finished products saw a 15.87% year-on-year increase to $ 88.73 million in February 2024, propelled by strong performances in the exports of pneumatic and retreated rubber tyres and tubes (17.16%).
On a monthly basis, export revenues of coconut-based products grew by 25.17% in February 2024 compared to February 2023. Additionally, revenues from coconut kernel products, coconut fibre products, and coconut shell products increased by 20.27%, 44.28%, and 13.55%, respectively, in February 2024 compared to February 2023.
Notably, export revenues from desiccated coconut, coconut milk powder, coconut cream, and liquid coconut milk, categorised under coconut kernel products, recorded increases of 32.27%, 41.98%, 18.96%, and 36.36%, respectively, in February 2024 compared to February 2023. Coco peat, fibre pith and moulded products, the largest contributor to the Coconut-based sector, categorised under coconut fibre products, surged by 52.89% to $ 16.13 million in February 2024 compared to February 2023. Additionally, earnings from Activated Carbon, categorised under Coconut shell products, increased by 11.25% to $ 11.97 million in February 2024 compared to February 2023.
Export revenues from seafood increased by 3.5% to $ 20.69 million in February 2024 compared to February 2023. This growth was mainly driven by strong performances in the export of Fresh fish (3.36%) and Shrimps (47.26%).
Export revenues from Food & Beverages surged by 36.77% year-on-year to $ 43.0 million in February 2024, with positive performances in the exports of processed food (31.88%).
Furthermore, total export revenues from diamonds, gems and jewellery increased by 66.56% year-on-year to $ 37.61 million in February 2024. Except for jewellery (-49.14%), export revenues from diamonds and gems experienced substantial increases, by 110.66% and 40.55%, respectively, in February 2024.
b) Products with negative growth (decreases)
Export revenues from apparel and textile declined by 2.06% year-on-year to $ 421.31 million in February 2024 compared to February 2023. Similarly, export revenues from spices and essential oils decreased by 33.32% to $ 22.99 million in February 2024 compared to February 2023, mainly due to the poor performance in the export of Cloves (-85.82%). Clove exports to India plummeted by nearly 100% in February 2024 compared to February 2023. Furthermore, export revenues from Ornamental fish decreased by 18.0% to $ 1.64 million in February 2024 compared to February 2023. Additionally, export revenues from electrical and electronics components declined by 18.25% year-on-year to $ 35.16 million in February 2024, with poor performances in exports of insulated wires and cables (-2.1%), electrical transformers (-34.47%), and other electrical and electronic products (-31.11%). Export revenues from boat building plunged by 93.94% to $ 0.02 million in February 2024 compared to February 2023.
Exports during the period of January – February 2024
a) Products and Services with positive growth (increases)
Revenue from the export of tea, rubber products, coconut products, and food and beverages increased by 12.63%, 11.81%, 21.21%, and 20.53%, respectively, during the period of January – February 2024 compared to the corresponding period of 2023. Revenue from the export of tea increased year-on-year by 12.63% to $ 229.92 million in the period of January to February 2024. This increase was mainly due to the strong performance in the export of bulk tea (30.0%). In addition, export revenue from rubber and rubber finished products increased by 11.81% to $ 170.46 million in January – February 2024 compared to the same period in 2023, attributed to increased exports of industrial and surgical gloves of rubber (11.14%) and pneumatic and retreated rubber tyres and tubes (17.38%). Export revenue of coconut and coconut-based products increased by 25.17% to $ 124.51 million during January – February 2024 compared to the last year. Revenue from all the major categories of coconut-based products increased in the period of January – February 2024 compared with the corresponding period of 2023 due to the strong performance in the export of coconut oil (13.09%), desiccated coconut (33.68%), coconut milk powder (34.5%), coconut cream (27.04%), liquid coconut milk (25.91%), cocopeat (26.81%), and activated carbon (11.25%). Further, export revenue from seafood increased by 6.74% to $ 43.69 million during the period of January to February 2024 compared to year 2023 due to the strong performance in fresh fish (18.47%), shrimps (46.13%), and crabs (17.37%).
b) Products with negative growth (decreases)
Revenue from the export of apparel and textile decreased by 6.08% to $ 801.42 million during the period of January to February 2024 compared to the same period in 2023. Furthermore, revenue from the export of apparel declined by 5.14%, and export of textiles declined by 15.85% in January to February 2024. Additionally, export earnings from spices and essential oils decreased year-on-year by 24.15% to $ 52.32 million in the period of January to February 2024. This decrease was attributed to the poor performance in exports of cloves (90.21%). Meanwhile, earnings from the export of Electrical and Electronic Components (EEC) decreased by 18.32% to $ 66.4 million in the period of January to February 2024 compared to the corresponding period of 2023. This decrease was due to the poor performance in exports of other electrical and electronic products (33.84%).
Export performance in major markets
Among the top 15 export markets of Sri Lanka, the UK, Germany, Netherlands, and France have shown positive growth in both February 2024 and the cumulative period of January to February 2024 compared to the corresponding periods in 2023. The United States of America, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, increased by 8.02% to $ 249.6 million in February 2024 compared to February 2023. However, exports to America in the cumulative period of January to February 2024 decreased by 3.24% to $ 470.07 million compared to the corresponding periods in 2023. Additionally, exports to the United Kingdom increased by 20.49% to $ 82.93 million in February 2024 compared to the corresponding month in 2023. Meanwhile, exports to the United Kingdom increased by 2.87% to $ 150.45 million in the cumulative period of January to February 2024 compared to the corresponding period in 2023.
Exports to FTA partners (India and Pakistan):
a) February 2024
In February 2024, exports to India and Pakistan, constituting 6.5% of total merchandise exports, experienced a notable 18.18% decrease, reaching $ 61.28 million compared to February 2023. Specifically, exports to India decreased by 20.56%, whereas exports to Pakistan increased by 17.02% in February 2024 compared to February 2023. India’s negative performance was driven by lower exports of cloves (-96.79%) and petroleum oil (-92.7%), while Pakistan’s positive performance was led by increased exports of other textile articles.
b) January - December 2023
From January to December 2023, exports to India and Pakistan, accounting for 7.2% of total merchandise exports, decreased by 3.21% to $ 904.39 million compared to the corresponding period of the previous year. Exports to India and Pakistan decreased by 2.95% and 6.06%, respectively, during the same period compared to 2022. India’s negative export performance was driven by lower exports of Animal feed (12.92%), while Pakistan’s negative performance was led by decreased exports of sheet rubber and other articles of stones.
Export performance in regions
Exports to the European Union (EU), constituting 24% of Sri Lanka’s exports during both February 2024 and the cumulative period of January to February 2024, saw respective increases of 5.64% and 1.26%.
Exports to the top five EU markets were as follows: Germany recorded $ 102.01 million (up by 3.45%), Italy recorded $ 100.53 million (up by 0.25%), Netherlands recorded $ 55.64 million (up by 2.85%), France recorded $ 38.63 million (up by 9.68%), and Belgium recorded $ 35.11 million (down by 6.02%) during the cumulative period of January to February 2024 compared to the corresponding period in 2023.
