Sri Lanka’s exports record 14.1 percent growth in October 2017
Official statistics have revealed that Sri Lanka’s exports have risen by 14.1 percent from a year earlier to US$ 976 million in October 2017.
According to report, the increase has been aided by strong demand from the US and higher prices for agricultural products, while slowing economic growth and credit have slowed import.
The Central Bank has said that apparel exports to the US have recorded an increase of 14.7 percent while exports to the EU was up 8.0 percent, with the help of the GSP+ facility.
There have also been strong demand rubber tyres.
Tea exports have reportedly risen 13.3 percent with the average tea export price up 13.3 percent and volumes up 11.3 percent. Seafood export had risen 145 percent to the EU market.
Earnings from coconut had fallen with lower production due to drought.
In October, the US, UK, India, Italy and Germany were the top markets for Sri Lanka’s exports.
In the first 10 months of the year, exports were up 8.8 percent to US$ 9,399.7 million.
Imports have grown only 0.2 percent to US$ 1,727.2 million in October from a year earlier with foreign reserve collections and slowing credit putting the brakes on economic activity.
Machinery and equipment imports have fallen to 12 percent to US$ 392.5 million. Intermediate goods imports have risen to 5.5 percent to US$ 948.4 million, with fuel imports down 6.6 percent to US$ 236.9 million.
Wheat and maize imports had increased up to 62.4 percent to US$ 31.1 million and fertilizer imports were up 95 percent to US$ 10.6 million.
According to report, the trade gap has narrowed to US$ 752 million in October 2017 from US$ 868 million last year.
Up to October imports were up 8.7 percent to US$ 16.99 billion and the trade gap was up 2.7 percent to US$ 2,924 million.
The increase in Sri Lanka’s export market when considered alongside the free trade agreements (FTAs) already reached and are in the process of being finalized gives a clear indication of the growth potential of the country’s exports sector. Investing in the manufacturing of goods targeting Sri Lanka’s export market would therefore yield impressive returns to investors.
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