Sri Lanka’s exports record phenomenal increase by surpassing US$ 1 billion mark in July
Sri Lanka’s exports have surpassed the US$ 1 billion mark in July noting a phenomenal increase in the sector.
Export Development Board (EDB) Chairman Prabhash Subhasinghe has been quoted as saying in the media, “We have witnessed a phenomenal increase in exports in July 2020 with a new record for the year. Sri Lanka’s strategic location, its reliable manufacturing and export base and proactive and rapid action by the Sri Lankan Government to control Covid 19 have fulfilled our global customer’s needs. This is the reason for our remarkable recovery in exports, compared to when the crisis hit us. However, we need to be cautiously optimistic as we move towards year end due to the possible resurgence of Covid 19 in the US and European markets.”
Sri Lanka’s state owned Daily News states that as per Customs statistics, earnings from merchandise exports had recorded a double digit growth rate of 11.31% in July 2020 to US$ 1,090 million compared to July 2019.
Moreover, earnings from merchandise exports in July 2020 increased by 20.3 % compared with the value recorded in June 2020.
The report further states, being the largest single export destination, the United States of America has absorbed US$ 256.09 million worth of exports in July 2020 recording a 5.67% increase in comparison to US$ 242.36 million absorbed in June 2020 to June 2019 and the expansion was mainly due to higher demand for tea from Turkey and Russia.
Earnings from all the major categories of Coconut based products had increased in July 2020 compared with July 2019 and a notable performance in export of Coconut Oil, Cocopeat and Activated Carbon.
In addition, export earnings from rubber and rubber finished products have increased by 8.78% y-o-y to US$ 85.08 million in July 2020 with strong performance in exports of gaskets, washers, seals etc of hard rubber.
Export earnings from spices and essential oils have increased significantly in July 2020 compared with June 2019 with significant increase in cinnamon (63.6%) and pepper (46.3%).
Further export earnings from Spices and Essential Oils were increased by 30 % in July 2020 in comparison to June 2020.
Meanwhile, export earnings from electrical and electronic products (-1.47%), seafood (-9.42%) recorded a decline during the month of July 2020 compared with July 2019.
Earnings from exports of apparel & textiles and rubber and rubber-based products grew significantly during the month of July 2020 owing to higher demand for personal protective equipment (PPE).
PPE related exports have recorded US$ 115.1 million in July 2020.
Export earnings from Apparel and Textiles increased by16.16 % to US$ 467.04 million during the month of July 2020 compared with US$ 402.04 million recorded in June 2020.
Total export earnings from January to July 2020 was US$5,452.53 million compared to US$ 6,909.12 million recorded in a similar period of the previous year – a decline of 21.08 %.
OSL take:
The increase in revenue recorded by Sri Lanka’s export sector is indicative of the strength, resilience and growth potential in the sector. Sri Lanka’s geographical positioning in the Indian Ocean, ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country will further help boost the local exports market. Foreign businesses could explore business/investment opportunities in Sri Lanka’s exports sector.
| Article Code : | VBS/AT/20082020/Z_4 |