Sri Lanka records increase in merchandise exports and services in first quarter of 2019
Sri Lanka’s Deputy Minister for Development Strategies and International Trade Nalin Bandara has recently informed parliament that the country’s merchandise exports have increased by 5.7 percent while services have risen by 27.1 percent during the first quarter of 2019 when compared to the same period in 2018.
The Minister has reportedly mentioned each sector to showcase the positive direction in which they are headed. He has said: “We were able to report growth from US$ 7,584.4 million in 1Q 2018 to US$ 8,441.7 million in 1Q 2019. This is a positive growth that happens when the Government believes in an export economy.”
“If you look at the foreign earnings from 2015, the apparel sector stood at US$ 4,802 million. By 2018, this had increased to US$ 5,300 million, which is an increase of 9.63 percent. We were able to get the GSP+ under the current Government. The rubber-related industry grew by 2.68 percent, coconut-related products grew by 8.96 percent, the diamonds and jewellery industry by 18.35 percent, food and beverage 9.85 percent, fisheries exports 7.65 percent, ornamental fish 1 percent, fruit exports 39.46 percent, and cut flower exports 5.77 percent. We were able to increase trade exports stood at US$ 10,547 million in 2018 to US$ 11,890 million by 2019. The ICT has growth of 62.19 percent, construction 30 percent, financial services 63 percent, and transport sector 9.36 percent. So, the entire services sector reported a growth of 27.3 percent,” he has further stated.
According to Bandara, the Export Development Board (EDB) was the driving force behind the growth reported during the last four years.
“The EDB supports exporters in many ways. Exporter 2,000 is a new move launched to identify 2,000 new exporters by turning our entrepreneurs into direct exporters at the district level. At the moment, we have identified over 800 new exporters, where markets were identified for them and their exports were supported. Under the ‘One Village One Product’ programme, we have identified villages where necessary support was given to farmers and manufacturers to reach the export markets. Furthermore, the industry export sector has recorded a growth of 5.6 percent. If we look at the service export sector, we have been able to record a growth of 61.2 percent in ICT-related services in the first quarter of 2019,” he has added.
OSL take:
The increase in merchandise exports and growth recorded in the services sector in the first quarter of 2019 is a positive indication of the overall growth in Sri Lanka’s economy. The country’s progressive economic policies and the ease of doing business environment have helped foreign businesses/investors engage with local counterparts. Also, Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have given a further boost to Sri Lanka’s economy. All these are indicative of a strong economy with great growth potential, which would be very encouraging to foreign businesses/investors to explore opportunities in Sri Lanka.
| Article Code : | VBS/AT/13082019/Z_1 |