Sri Lanka’s exports outpace Southeast Asian rivals
The Morning: Sri Lanka’s exports climbed faster than Southeast Asian export giants such as the Philippines and Indonesia in July, while remaining above the five-year average in Thailand, as lower US tariffs bring opportunities to the island nation.
According to Bloomberg, across developing nations in July, exports in Sri Lanka climbed at a faster pace than in June, were better than expected in the Philippines and Indonesia, and remained above the five-year average in Thailand.
Readings of manufacturing activity this week showed order books are growing from Thailand to Vietnam, demand is drawing down from inventories, and optimism remains among factory owners.
South Korean exports, an early barometer of regional trade, held up in August, and shipments in July from Sri Lanka and Thailand grew at double digits.
Bank of America upgraded its growth forecast for emerging Asia this year by 30 basis points to 4%, including Vietnam, long seen as most at risk from tariffs.
BofA economists cited a raft of trade deals, domestic growth, tech exports holding up, lower-than-expected average tariffs, and China’s growth as providing a boost.
“Compared to our mid-year outlook published in June, macro uncertainty seemed to have de-escalated,” they said in a research note.
The resilience suggests domestic factors are helping insulate Asian economies from US tariffs, from central bank easing to intra regional export demand and domestic growth.
Meanwhile, in the US, demand for goods has so far held up even after a summer of firms frontloading imports, suggesting President Donald Trump’s tariffs may not do as much damage to the region.
OSL take:
Sri Lanka’s exports industry is one of the steadily growing industries that is also a key revenue generator to the country. The many trade agreements and trade concessions enjoyed by Sri Lanka with many foreign countries have also helped boost the exports industry. Local authorities are engaged in conducting promotional campaigns in foreign markets while also working to further strengthen the existing trade ties and expand to finalize new trade ties to further boost the local exports industry. The fast-evolving requirements of the global consumer have also resulted in Sri Lanka’s export authorities urging local exporters to add more value to their products while also expanding their existing product portfolios. All these factors indicate an expansion in the business/investment opportunities in Sri Lanka’s export industry and related sectors. With local businesses in the export industry recording impressive profits and expanding operations overseas, the increasing business potential in the industry and related sectors ensure lucrative business ventures for foreign businesses/investors on the lookout for opportunities in the region. Sri Lanka also presents the ideal destination for foreign businesses in the manufacturing industry to set up bases to reach other markets in the region using the trade agreements enjoyed by Sri Lanka with them.
| Article Code : | VBS/AT/20250909/Z_3 |