Monday Apr 29, 2024
Monday Apr 29, 2024
Wednesday, 25 October 2023 00:00 - - {{hitsCtrl.values.hits}}
Exports in September had dipped below the $ 1 billion mark to lowest in five months, provisional data released by the EDB revealed yesterday reinforcing private sector concerns on mounting challenges.
The Export Development Board said September performance was $ 951.5 million, down by 12% from a year ago. It is also lowest since April’s haul of $ 849 million.
September performance also missed the $ 1 billion monthly mark sustained between May and August.
August saw 2023’s highest export performance of $ 1.119 billion though down by 8.7% from a year ago. Merchandise exports crossed the $ 1 billion mark this year in March.
The EDB said the decline in merchandise exports was due to decreased demand for export products, particularly in sectors such as apparel and textiles, rubber and rubber-based products, and coconut and coconut-based products.
From January to September 2023, cumulative merchandise exports saw a substantial decline of 10.31% YoY to $ 8.96 billion compared to the corresponding period of 2022.
The estimated value of services exports for the period of January to September was $ 2.3 billion, registering an increase of 55.67% over the corresponding period of 2022. The services export estimated by EDB consists of ICT/BPM, construction, financial services and transport and logistics.
The EDB has set a forecast performance of $ 18.51 billion in merchandise and service exports in 2023. This comprises $ 15.93 billion from merchandise exports up from $ 13.01 billion achieved in 2022 and $ 2.58 billion from services exports.
Following are key highlights of September export performance.
Major exports in September
Export earnings from tea, which made up 12% of merchandise exports, increased by 1.82 % YoY to $ 119.96 million in September 2023 compared to September 2022. This expansion is mainly due to the strong performance in the export of tea packets, which increased by 15.81% to reach $ 58.08 million in September 2023.
In addition, export earnings from rubber and rubber finished products have increased by 0.86 % YoY to $ 82.89 million in September 2023, with a strong performance in exports of pneumatic and retreated rubber tyres and tubes (13.77 %).
Export earnings from food and beverages have increased by 7.42% YoY to $ 30.54 million in September 2023, with a strong performance in exports of cereal products (37.68%).
Export earnings from Seafood increased by 51.33 % to $ 25.65 million in September 2023 compared to September 2022. This increase was mainly due to the strong performance in the export of frozen fish (51.96%) and Fresh fish (125%).
Moreover, export earnings from Ornamental fish increased by 47.09% to $ 2.53 million in September 2023 compared to September 2022.
Furthermore, the estimated value of ICT exports is expected to increase by 60.26% to $ 147.69 million in September 2023 when compared to September 2022. Also, the value of transport and logistics services exports is expected to increase by 113.60% in September 2023 compared to the corresponding period in the previous year.
Export earnings from apparel and textiles have decreased by 24.6% YoY to $ 361.82 million in September 2023 compared to September 2022.
On monthly analysis, export earnings of Coconut-based products decreased by 2.37% in September 2023 compared to September 2022. Moreover, export earnings of Coconut fibre products and Coconut shell products decreased by 0.06% and 26.45% respectively in September 2023 compared to September 2022.
Earnings from Activated Carbon, which is categorised under the Coconut shell products decreased by 27.71% to $ 10.88 million in September 2023 compared to September 2022.
In addition, export earnings from the Electrical and Electronics Components (EEC) decreased by 9.46% YoY to $ 38.87 million in September 2023 with poor performance in exports of Electrical Transformers (-20.95 %).
Export earnings from Spices and Essential Oils decreased by 6.93% to $ 47.94 million in September 2023 compared to September 2022. This decrease was primarily driven by a significant decrease in the export of Cinnamon by 28.32%.
Major exports during January-September
Earnings from the export of tea, spices and concentrates, gems and jewellery electronics and EEC increased by 5.67%, 9.97 % 4.24% and 6.27% respectively from January to September 2023 compared with the corresponding period of 2022.
Earnings from export of tea increased YoY by 5.67% to $ 990.31 million from January to September 2023. This increase was mainly due to the strong performance in the export of tea packets (13.96%).
In addition, export earnings from Spices and Essential Oils increased YoY by 9.97% to $ 302.68 million from January to September 2023. This increase was due to the strong performance in exports of pepper (23.16%), cloves (202.85%) and nutmeg and mace (32.31%).
Meanwhile, earnings from export of EEC increased by 6.27% to $ 376.69 million from January to September 2023 compared to the corresponding period of 2022. Under the EEC sector, earnings from the export of printed circuits, boilers/piston engines/pumps, vacuum pumps and other electrical and electronic products increased by 54.46%, 761.82% and 7.60% respectively from January to September 2023 compared to the corresponding period of 2022.
The value of ICT exports is estimated to increase by 38.42% to $ 1.18 billion in the first nine months of 2023 compared to the corresponding period of 2022. In addition, Construction, Financial and Transport and logistics services exports are estimated to increase by 787.86%, 66.53% and 105.99% respectively from January to September 2023 compared with the corresponding period of 2022.
Earnings from export of apparel and textiles fell by 19.4% to $ 3.67 billion from January to September, compared to the same period of 2022. From January to September 2023, earnings from apparel exports fell by 20.67%, while earnings from textile exports fell by 4.28%.
In addition, export earnings from rubber and rubber finished products decreased by 12.15% to $ 692.16 million in January – September 2023 compared with the same period of 2022 attributed to lower exports of industrial and surgical gloves of rubber (-26.29%) and pneumatic and retreated rubber tyres and tubes (-5.51%).
For January to September 2023, export earnings from coconut and coconut-based products decreased by 16.85% to $ 530.99 million from the same period last year.
Earnings from all the major categories of Coconut based products decreased from January to September 2023 compared with the corresponding period of 2022 due to the poor performance in the export of Coconut Oil (-18.55 %), desiccated coconut (-29.0%), coconut milk powder (-6.22 %), coconut cream (-13.68 %), liquid coconut milk (-10.39%), cocopeat (-13.83%) and activated carbon (-18.18%).
Further, export earnings from Seafood decreased by 6.02 % to $ 192.96 million from January to September 2023 compared to the year 2022 due to the poor performance in frozen fish (-5.25 %), fresh fish (-1.63 %) and shrimps (-34.7%).
Export performance in major markets
Among the top 10 export markets, India has shown a strong performance in both the month of September 2023 and the period of January to September 2023 when compared to the corresponding periods in the previous year. Furthermore, Italy, UAE and France have shown significant performance from January to September 2023 compared to the corresponding period in the previous year.
Exports to the US, Sri Lanka’s single largest export destination, decreased 26.28% to $ 202.1 million in September 2023 compared to September 2022. Further, exports to the US decreased by 19.67% to $ 2.07 billion from January to September 2023 compared to the same period in 2022.
Exports to FTA partners
Exports to Free Trade Agreement (FTA) partners accounted for 6.5% of total merchandise exports and have increased by 12.73% to $ 87.22 million in September 2023 compared to September 2022.
In September 2023 compared to September 2022, exports to India rose by 11.33%, and exports to Pakistan rose by 30%.
A strong performance was recorded in India led by increased exports of pepper (94.25%) and areca nut (26.12%) and a better performance was recorded in Pakistan led by increased exports of sheet rubber and other textile articles.
During the first nine months, exports to FTA partners accounted for 7.2% of total merchandise exports and increased by 2.05% to $ 714.88 million compared with the corresponding period of the previous year.
Exports to Pakistan increased by 1.32% and to India by 2.11% from January to September, compared to the same period in 2022. Increased exports to India led by the good export performance of cloves (442.46%) and other textile articles (76.74%) and increased exports to Pakistan led by the export of other textile articles (87.56%).
Export performance in regions
Exports to the European Union (EU), which accounted for 21% of Sri Lanka’s total exports in September 2023, fell by 12.93% YoY to $ 215.25 million. January to September 2023, exports to the EU fell 10.81% YoY to $ 2.04 billion compared to the same period the previous year.
During the period of January to September 2023, breakdown of exports to the top five EU markets which accounted for 78% of Sri Lanka’s total exports to the EU were; Germany $ 438.41 million (down by 22.81%), Italy $ 507.32 million (up by 6.3%), Netherlands $ 246.44 million (down by 19.18%), Belgium $ 169.98 million (down by 29.24%) and France $ 248.33 million (up by 24.24%).
