Sri Lanka’s export earnings pass $ 1.1 billion in August
The Morning: As per the provisional data released by the Sri Lanka Customs, the merchandise export performance in August 2024 amounted to $ 1,165.4 million, recording an increase of 4.18% compared to the month of August 2023.
This was mainly due to the increase in earnings from export of apparel and textiles, tea, rubber-based products, coconut-based products and spices and concentrates.
Notably, after a gap of two years, Apparel and Textiles exports surpassed the $ 500 million mark in August 2024. Furthermore, export performance in August 2024 increased by 3.1% compared to July 2024.
The estimated value of services exports for the month of August 2024 was $ 318.77 million, increasing 6.49% over the corresponding period of 2023.
Consequently, total exports for August 2024, including both merchandise and services, were recorded at $ 1,483.13 million, increasing 4.67% over the corresponding period of 2023.
Export earnings from apparel and textile increased by 17.51% year-on-year $ 511.13 million in August 2024 compared to August 2023. Additionally, exports of apparel and textile to the USA increased by 22.56% in August 2024 compared to August 2023.
Export earnings from tea, which made up 12% of merchandise exports, increased by 9.11% y-o-y to $ 130.54 million in August 2024 compared to August 2023. This increase is mainly due to the positive performance in the export of bulk tea (5.78%) and tea packets (11.43%).
Additionally, tea exports to Iraq and Iran markets increased by 13.35% and 114.41% respectively.
Export earnings from rubber and rubber finished products have increased by 29.48% y-o-y to $ 103.79 million in August 2024, with the positive performance in exports of pneumatic and retreated rubber tyres and tubes (20.52%) and industrial and surgical gloves (44.33%).
On monthly analysis, export earnings of coconut-based products increased by 38.3% in August 2024 compared to August 2023.
Moreover, export earnings of coconut kernel products, coconut fibre products and coconut shell products increased by 50.15%, 29.42% and 18.36% respectively in August 2024 compared to August 2023.
Moreover, export earnings from coconut oil, desiccated coconut, coconut milk powder, coconut cream and liquid coconut milk which are categorised under the coconut kernel products increased by 53.99%, 41.34%, 79.58%, 36.83% and 92.54% respectively in August 2024 compared to August 2023.
Being the largest contributor to the coconut-based sector, coco peat, fibre pith and moulded products which are categorised under the coconut fibre products, increased by 40.4% to $ 19.08 million in August 2024 in comparison to July 2023.
In addition, export of activated carbon, which is categorised under coconut shell products, increased by 27.93% to $ 13.74 million in August 2024 in comparison to August 2023.
Export earnings from spices and concentrates increased by 8.55% to $ 52.04 million in the month of August 2024 compared to the month of August 2023 mainly due to the strong performance in export of Pepper (31.56%).
Furthermore, the estimated value of ICT exports is expected to increase by 35.76% to $ 146.26 million in August 2024 when compared to August 2023.
In addition, the estimated value of logistics and transport services is expected to increase by 7.01% to $ 146.37 million respectively in August 2024 when compared to August 2023.
OSL take:
Sri Lanka’s exports sector has been on a growth path in the past few years, even amidst an economic crisis experienced by the country in the past few years. The many trade agreements and trade concessions enjoyed by Sri Lanka with many foreign countries have helped boost the local exports sector. With Sri Lanka working on further strengthening and expanding its trade ties to include more foreign countries, it would further benefit Sri Lanka’s exports sector, which is also on an expansion path. Local exports authorities have been carrying out promotional campaigns in foreign markets while encouraging local exporters to diversify and expand the country’s export product portfolio. The increase in the revenue generated by the local exports sector is indicative of the expansion in the sector while also witnessing the addition of new foreign markets. Understanding the growth and business potential in the sector, the Sri Lankan government has also introduced many incentive schemes to attract more foreign businesses/investors to the exports sector. Given all these positive developments, foreign businesses/investors could confidently explore the business/investment opportunities in Sri Lanka’s exports sector or could also look at forming collaborations with local businesses in order to expand operations.