Sri Lanka’s exports sector records US$ 1 billion for fourth consecutive month in September
Daily FT: Reaffirming its resilience, the export sector has achieved the fourth consecutive month of over US$ 1 billion performance in September.
Finance Ministry sources told the Daily FT that as per provisional data, exports in September amounted US$ 1.006 billion. The sector has been achieving over US$ 1 billion in monthly performance since June.
With the latest performance, the first nine months’ exports amounted to US$ 8.8 billion, up 19% from the corresponding period of last year.
Officials are confident exports in the remaining three months of 2021 will be well above US$ 1 billion, and if it turns out to be so, Sri Lanka would have achieved the set target of US$ 12 billion for exports this year. With services exports the total exports target is US$ 16 billion, and in the first eight months, services exports have grown by 33% to 2.18 billion.
Imports in September had reduced to US$ 1.48 billion, below the monthly average forecast of US$ 1.6-1.7 billion. Sources said import value would have reduced further if not for the highest cost of oil, COVID vaccinations and pharmaceutical imports.
The resultant trade deficit in September is estimated at $ 483 million, lowest for the month since 2017.
In July, imports were up 32% YOY to US$ 1.7 billion and the first seven months figure was up 31% to US$ 11.7 billion.
Sources said if imports continue to grow at a lesser pace, the trade deficit could be lowered to US$ 7.4 billion in 2021. Up to end-July, the deficit was US$ 4.9 billion as against US$ 3.4 billion last year.
OSL take:
Sri Lanka’s manufacturing and exports sectors have shown a steady growth momentum even amidst the challenges posed by the global Covid 19 pandemic. The country’s economy has shown great resilience to external and internal challenges through the years and is once again on the path to recovery after facing the pandemic challenges. All these are indicative of Sri Lanka’s economic growth and strength as well as the growing business potential in the island. The country’s emergence as a business destination in the South Asian region supported by strong trade ties have further boosted Sri Lanka’s exports sector. Foreign businesses/investors could therefore explore the growing opportunities in Sri Lanka’s exports sector.
| Article Code : | VBS/AT/08102021/Z_5 |