Sri Lanka’s export earnings surpass $ 1.3 billion
The Morning: Sri Lanka’s export sector demonstrated steady growth in February, with total exports, including both merchandise and services, reaching $ 1,382.53 million, marking a 4.62% year-on-year (y-o-y) increase compared to February 2024.
Additionally, exports recorded a 2.58% month-on-month growth compared to January.
Provisional data from Sri Lanka Customs and estimated figures for Gems and Jewellery and Petroleum Products indicate that merchandise exports for February were valued at $ 1,056.39 million.
Meanwhile, services exports for February were estimated at $ 326.14 million, reflecting a significant 24.37% increase over the corresponding period in 2024.
Cumulative total exports, including both merchandise and services, were estimated at $ 2,730.33 million for the period of January-February, marking a notable 6.65% growth compared to the same period in 2024.
Merchandise exports during the first two months of 2025 are estimated to have increased by 3.9%, reaching $ 2,109.19 million, while services exports are expected to increase by 17.2% to $ 621.14 million.
Key export sectors in February such as apparel and textile saw export earnings increase by 1.42% y-o-y to $ 427.28 million in February.
Earnings of coconut-based products rose by 20.93% month-on-month, with coconut kernel products, coconut fibre products, and coconut shell products increasing by 22.72%, 28.23%, and 4.67%, respectively.
Spices and essential oil’s earnings surged by 64.98% to $ 37.93 million, driven by strong performances in pepper (243.13%), cinnamon (19.32%), and cloves (309.56%).
Boat Building export earnings reached $ 3.68 million, reflecting a remarkable growth of 18,300% compared to February 2024.
ICT exports are estimated to increase by 32.14% to $ 141.89 million, while logistics and transport services are estimated to grow by 34.91% to $ 170.47 million.
Products and services that saw negative growth included tea, with export earnings decreased by 6.52% y-o-y to $ 119.41 million, primarily due to a decline in bulk tea exports (-22.96%). Rubber and rubber-based products’ earnings fell by 6.33% to $ 83.11 million, driven by poor performance in pneumatic and retreated rubber tyres and tubes (-21.38%).
Cumulative total exports, including both merchandise and services, were estimated at $ 2,730.33 million for the period of January-February, marking a 6.65% growth compared to the same period in 2024.
OSL take:
Sri Lanka’s export industry has become a key revenue generator to the country given the steady growth being recorded by the industry. The many trade agreements and concessions enjoyed by Sri Lanka with many foreign countries as well as the incentive schemes offered by the Sri Lankan government to encourage businesses to enter the export industry have added to the boost in the industry. The growth, profits and expansion of local businesses engaged in the export industry as well as the growth of collaborations between foreign and local businesses are indicative of the lucrative nature of the industry. Local export authorities are also continuing with promotional campaigns in overseas markets while encouraging local exporters to add value and diversify their existing export product portfolio to meet the fast-evolving demands of the foreign markets. With the local export industry showing signs of a continuous growth, foreign businesses/investors could confidently explore the growing business/investment opportunities in the industry.
| Article Code : | VBS/AT/20250327/Z_2 |