Sri Lanka’s exports sector benefited by surge in Covid 19 in India
Sri Lanka’s local media reports state that export orders the country has been receiving from foreign countries have witnessed marginal growth in the past month, which is believed to be due to unprecedented economic disruptions India has been facing during that period due to its deadly second wave.
Sri Lanka’s Minister of Trade Dr. Bandula Gunawardana has told The Morning that there has been a growth in the number of orders Sri Lanka has been receiving and has added that this could be possibly due to India’s second wave.
The orders which were supposed to be initially given to India must be shifting towards Sri Lanka due to India’s current pandemic situation, he has stated.
Dr. Gunawardana has further noted that the UK and the US have been Sri Lanka’s main exporters for a considerable period. Accordingly, demand is mostly for herbal products, as well as many other Sri Lankan products.
According to the Central Bank of Sri Lanka (CBSL), Sri Lanka Customs, and EDB statistics for the period of January to March 2021, monthly exports have witnessed gradual growth.
The EDB has set up an export target of US$ 16 billion for the year 2021 upon considering the possible adverse effects of the coronavirus.
Earnings from merchandise exports in February 2021 had declined by 3.7% to US$ 952 million, compared to February 2020. Export earnings have exhibited a recovery towards pre-pandemic levels since the peak of the second wave of Covid-19 in Sri Lanka, reaching levels close to those recorded in the same month of 2020 (US$ 989 million) and 2019 (US$ 981 million).
OSL take:
The surge in Covid 19 in neighbouring India has resulted in Sri Lanka seeing an increase in the number of export orders received by it. Sri Lanka’s manufacturing and exports sectors continued operations even during the Covid 19 lockdown last year as well as the travel restrictions imposed this year. The continuous operations have resulted in Sri Lanka’s exports sector receiving an increase number of orders. The country’s exports sector has also benefited by the many trade agreements as well as trade concessions enjoyed by the country as well as it’s strategic geographical positioning in the Indian ocean. Business/investment opportunities in Sri Lanka’s exports sector would therefore offer viable opportunities for foreign businesses/investors.
| Article Code : | VBS/AT/20210520/Z_7 |