Sri Lankan government records an increase in merchandise exports to US$ 924 million in May 2018
The government of Sri Lanka has reportedly recorded an increase in earnings from merchandise exports to US$ 924 million in May 2018 mainly driven by industrial exports, despite a reduction recorded in agricultural exports.
According to a local media report, under industrial exports, earnings from textiles and garment exports increased significantly due to the higher demand from the EU and the USA while exports to nontraditional markets also increased moderately.
Export earnings from petroleum products has reportedly recorded a significant increase in May 2018 due to the combined effect of high export volumes of bunker and aviation fuel together with increased export prices.
Earnings from food, beverages and tobacco exports have also increased notably during the month owing to the increase in manufactured tobacco and coconut related products.
Further, earnings from all other main categories under industrial exports, except wood and paper products and leather, travel goods and footwear, contributed towards the increase in industrial exports in May 2018, the report stated.
However, earnings from agricultural exports have reportedly declined in May 2018 due to poor performance in almost all categories except spice and seafood exports.
Benefiting from the positive impact of the removal of the ban on fisheries exports to the EU and the restoration of GSP+ facility, earnings from seafood exports have also increased significantly during the month due to higher prices and volumes of seafood exported.
The report also stated that export earnings from spices had increased in May 2018 owing to the combined impact of higher prices and volumes of cinnamon and pepper exports.
OSL take:
The increase in merchandise export revenue earnings in May 2018 is an indication of the growth and development in Sri Lanka’s export sector. Export revenue earnings of Sri Lanka has been on a continuous rise and the Export Development Board (EDB) is on an aggressive export promotion campaign looking at introducing new products to the export market while expanding the overseas export markets. The trade concessions from the EU and US to Sri Lanka and the many FTAs possessed by the country would further increase Sri Lanka’s export earnings in the future. Hence, exploring opportunities in Sri Lanka’s export market would benefit foreign businesses/investors looking at entering Sri Lanka.
| Article Code : | VBS/AT/20180726/Z_4 |