Sri Lanka’s exports sector continues growth momentum in August.
The Morning: Earnings from merchandise exports increased by 10.24% year-on-year (YoY) to $ 1,213.7 million in August 2022, as per the data released by Sri Lanka Customs. This was mainly due to the increase in earnings from exports of apparel and textiles. Export Development Board (EDB) Chairman/Chief Executive Suresh D. de Mel congratulated the exporters for their great effort in increasing foreign exchange earnings for Sri Lanka during this critical period. He also thanked the staff of the EDB and other supporting agencies for their untiring support to facilitate exports under highly disruptive circumstances.
Major product sectors except coconut-based products, including apparel and textiles, tea, rubber-based products, electrical and electronic components, spices and concentrates, diamonds, gems and jewellery, food and beverages, seafood and ornamental fish recorded increased exports in August 2022. Exports of apparel and textiles increased by 15.03% YoY to $ 565.37 million in August 2022, with the increase driven by apparel. Export earnings from tea in August 2022, which made up 11% of merchandise exports, increased by 6.52% YoY to $ 124.41 million. This was mainly due to the higher export of tea packets (11.42%).
Export earnings from rubber and finished rubber products have increased by 8.11% YoY to $ 99.83 million in August 2022, with better performance in exports of pneumatic and retreated rubber tyres and tubes (24.03%). Export earnings from electrical and electronics components increased by 14.03% YoY to $ 41.86 million in August 2022, with strong performance in exports of insulated wires and cables (8.49%) and other electrical and electronic products (24.41%). Export earnings from seafood increased by 37.04% to $ 25.53 million in August 2022 compared to August 2021. Unlike the shrimp and lobster sub-segment, export earnings from frozen fish and fresh fish increased by 69.88% and 56.39%, respectively, in August 2022.
Further, export earnings from ornamental fish increased by 140.63% to $ 2.31 million in August 2022 compared to August 2021.
In addition, export earnings from spices and essential oils increased by 0.8% to $ 40.11 million in the month of August 2022 compared to the month of August 2021 due to the better performance in exports of cinnamon (24.84%) and essential oils (2.31%). On a monthly analysis, except for shell products, export earnings of kernel products and fibre products categorised under the coconut-based products decreased by 10.79% and 7.55%, respectively, in August 2022 compared to August 2021.
Strong export growth was recorded for the top 10 export markets in the period of January to August 2022. The single largest export destination, the US, recorded $ 2,308.75 million worth of exports in the period of January to August 2022 – a significant YoY increase of 21.19% in comparison to $ 1,905.02 million recorded in 2021.
Sri Lanka’s manufacturing and exports sectors have shown a steady growth and revenue despite challenging economic conditions in the country. Local businesses engaged in these sectors have also posted impressive growth rates and profits. The many trade agreements as well as trade concessions enjoyed by the country have also helped boost business/investment opportunities in Sri Lanka’s manufacturing and exports sectors. Given the growth and business potential in Sri Lanka’s manufacturing and exports sectors, foreign businesses/investors could confidently explore the growing opportunities in these sectors. Foreign businesses could also look at forming partnerships or joint ventures with local businesses engaged in the manufacturing and exports sectors in order to expand operations.
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