Sri Lanka’s exports sector records growth momentum in May
Sri Lanka’s exports sector has reportedly managed to maintain its growth momentum amidst the Covid 19 pandemic by recording a continuous growth in May despite challenges.
According to statistics of Sri Lanka’s Export Development Board (EDB), performance in May has amounted to US$ 884 million, which is an increase of 51% from a year earlier (US$ 586.7 million) when the country was undergoing the first Covid 19 wave lockdown.
According to reports, the May 2021 performance is also significant in comparison to previous months’ shipments worth US$ 818 million, which is the highest ever value for a month of April as per the Central Bank of Sri Lanka (CBSL) announcement last week on external trade.
A five-month analysis suggests exports have bounced back in May on a month-on-month comparison after dipping in Sinhala Tamil New Year holidays-filled April, local media reports have stated.
May export performance has reportedly boosted the first five months export figure to US$ 4.6 billion, up 33% from US$ 3.5 billion achieved in the corresponding period of last year.
The EDB has reportedly stated that the first five months saw increased exports of apparel, rubber-based products, electronics and electronic components, spices and concentrates.
“We are happy to see that export levels are reaching fast to the pre-COVID levels despite the continuous multiple challenges faced by our exporters with intermittent travel restrictions and local area isolations,” EDB Chairman Suresh de Mel has been quoted as saying.
“Maximum efforts are needed to secure the export orders in hand while attracting new orders to the country. It is the responsibility of all authorities to facilitate exporters in every possible way to keep them operating,” de Mel has added.
The Sri Lankan government has set a US$ 12 billion target for merchandised exports in 2021 and by May, 40% of it has been achieved.
In 2020, exports had amounted to US$ 10 billion, down by 16% in 2019.
According to the EDB, in May, all the products had recorded positive growth except vegetables and other export crops.
Strong export growth had been recorded for almost all products during the first five months except petroleum products, vegetables and other export crops. Exports of rubber-based products, coconut products and spices and concentrates had recorded the highest export value thus far.
Apparel exports in May were valued at US$ 370.87 million and constituted 45% of total merchandise exports, which is an increase of 69.48% from May 2020.
The US has remained the single largest export destination with US$ 1.1 billion worth of exports during the first five months, recording a significant year-on-year increase of 25.26% in comparison to US$ 905.1 million recorded in 2020.
OSL take:
Sri Lanka’s manufacturing and exports sectors have shown a continuous growth momentum despite challenges posed by the global Covid 19 pandemic. The two sectors have become key revenue generators for the country by continuing to operate even amdist the Covid 19 lockdown and travel restrictions. The many trade agreements as well as trade concessions enjoyed by the country have helped further support the local manufacturing exports sectors. With Sri Lanka fast becoming a business hub in the South Asian region and the growing business potential together with the many trade agreements as well as trade concessions enjoyed by the country have expanded business/investment opportunities in Sri Lanka’s manufacturing and exports sectors. Foreign businesses/investors could therefore confidently explore opportunities in these sectors.
| Article Code : | VBS/AT/20210625/Z_1 |