Sri Lanka’ export earnings surpass $ 10 billion in nine months
The Morning: Earnings from the merchandise exports increased by 5.75% year-on-year (YoY) to $ 1,093.98 million in September 2022 as per the data released by the Sri Lanka Customs, recording an overall export earning of over $ 10 billion for the first nine months of this year (9M22).
According to the Export Development Board (EDB), this was mainly due to the increase in export earnings from apparel and textiles, tea, gems and jewellery, electrical and electronic components, and spices and essential oils.
Major product sectors except for coconut-based products include apparel and textiles, tea, electrical and electronic components, spices and concentrates, diamonds, gems, and jewellery, food and beverages, ornamental fish, and other export crops recorded increased exports in September 2022.
Exports of apparel and textiles increased by 5% YoY to $ 479.88 million in September 2022. The increase was driven by both apparel and textiles.
Export earnings from tea in September 2022 which made up 11% of merchandise exports, increased by 11.63% YoY to $ 117.82 million. This was mainly due to the higher export of bulk tea (11.95%) and tea packets (6.98%).
Export earnings from rubber and finished rubber products have decreased by 16.91% YoY to $ 82.19 million in September 2022, with poor performance in exports of pneumatic and retreated rubber tyres and tubes (-4.67%) and export of industrial and surgical gloves (-39.12%).
Export earnings from the electrical and electronics components increased by 42.13% YoY to $ 57.27 million in September 2022 with strong performance in exports of insulated wires and cables (42.13%) and other electrical and electronic products (45.56%).
Export earnings from ornamental fish increased by 37.6% to $ 1.72 million in September 2022 compared to September 2021.
In addition, export earnings from spices and essential oils increased by 9.29% to $ 40.84 million in the month of September 2022 compared to the month of September 2021 due to the better performance in the export of cinnamon (14.0%) and pepper (4.37%).
For the period of January-September 2022, merchandise exports increased by 11.83% to $ 9,996.19 million compared to the corresponding period of 2021. Major product sectors except for tea, rubber-based products and spices and concentrates; apparel and textiles, coconut based products, electrical and electronic components, gems and jewellery, food and beverages, and other export crops as shown in the table recorded increased exports.
Apparel and textile exports increased by 17.61% to $ 4,562.67 million during the period of January to September 2022 compared to the same period of 2021. Except made-up clothing accessories (-9.36%), yarn (-13.5%) and made-up textile articles (-2.94%); exports of other subcategories of apparel and textiles sector increased.
Sri Lanka’s exports sector has become one of the country’s key revenue generators. The sector has also shown a steady growth through the months even amidst challenging economic conditions in the country. The many trade agreements as well as trade concessions enjoyed by the country have also helped boost the local exports sector. Businesses engaged in the exports sector in Sri Lanka have also recorded impressive profits, indicating the growth and business potential in the industry. Given the growing business potential in the country’s exports sector, the government of Sri Lanka has also focused attention on further developing and promoting the sector by way of technical assistance as well as incentive schemes. With Sri Lanka working towards becoming an emerging business destination in the South Asian region and the expanding exports sector, foreign businesses/investors could explore the increasing opportunities in the country’s exports sector. Foreign businesses could also look at forming partnerships or joint ventures with local businesses engaged in the exports industry in order to expand operations locally and internationally.
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