Sri Lanka’s exports sector bounces back after initial Covid 19 pandemic impact

Sri Lanka’s exports sector bounces back after initial Covid 19 pandemic impact

Sri Lanka’s Export Development Board (EDB) has reportedly noted that data for the month of June has confirmed that local exports are bouncing back after the initial impact of the COVID-19 pandemic. 

EDB Chairman Prabhash Subasinghe has been quoted in the local media as saying that earnings from merchandise exports have rebounded in June to US$ 906.02 million as per statistics of Sri Lanka Customs.

The bounce back has been attributed to Sri Lanka’s export sector progressively commencing actions following the relaxation of lockdown measures and the recovery of both domestic and global supply and demand chains to some extent.

“The bounce is certainly back in exports, which has now become the breadwinner for Sri Lanka’s favourable trade balance,” Subasinghe has been quoted as saying in the Daily FT.

“Exports have become a national priority, now more than ever, it is certainly impressive to see a strong V-shaped recovery in the export sector. Compared to the lowest point in April, exports are up 327%. 
I thank the entire export community for serving the national economic needs at our most vulnerable time, and we at the EDB stand ready to serve our export community,” he has noted.
Export earnings from Merchandise in June have reportedly increased by 50.4% compared with the value recorded in May.

Export earnings from Apparel and Textiles have increased 83.72% to US$ 402.04 million during the month of June compared with US$ 218.83 million recorded in May.

Export earnings from tea have increased as both values (6.14%) and volumes (4.52%) have increased in June compared with May. In addition, export earnings from tea have recorded a 1.55% increase in June in comparison to June 2019.
Reports further states that earnings from all major categories of coconut-based products have increased in June compared with June 2019 due to the improved performance in export of coconut oil, cocopeat and activated carbon.
In addition, export earnings from Rubber and Rubber finished products have increased by 34.58% to US$ 68.89 million during the month of June compared with May.

Export earnings from Spices and Essential Oils have increased significantly in June compared with May as the growth in cinnamon (81.7%), pepper (84.78%), nutmeg and mace (106.67%), and essential oils (22.75%). In parallel export earnings from Spices and Essential Oils have increased by 29.96% in June in comparison to June 2019.
Also, earnings from Seafood have increased by 13.7% to US$ 24.32 million in June in comparison to US$ 21.39 million recorded in June 2019 and also increased by 110.93% in June compared with May 2019 due to the better performance of export of frozen fish.

OSL take:

The resilience of Sri Lanka’s economy is evident with the bounce back to normalcy recorded by local export. The government of Sri Lanka has already introduced many incentives to encourage the development of Sri Lanka’s exports sector. The country’s exports manufacturing sector has become a hotspot for business/investment opportunities in Sri Lanka. Also, the many trade agreements as well as trade concessions enjoyed by the country will further boost Sri Lanka’s export manufacturing sector. Foreign businesses/investors could therefore explore business opportunities in Sri Lanka. 

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Article Code : VBS/AT/23072020/Z_1

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