Sri Lanka’s exports soar to record $ 1.2 billion in June, pushes $ 6.41 billion in the 1H of 2022.
Daily FT: The country’s merchandise exports have soared by 20% to $ 1.21 billion in June, whilst pushing to $ 6.41 billion in the first half of 2022, appearing to be the sole silver lining for Sri Lanka to avert partly a direr foreign exchange crisis.
Previously, the highest for the month was recorded seven months ago with $ 1.16 billion in October 2021.
As per provisional data released by the Export Development Board (EDB), in the first half of 2022, merchandise exports exceeded the $ 6 billion mark, up by 12.4% year-on-year.
June merchandise exports grew by 20% from a year earlier, driven by apparel and textiles, rubber-based and coconut-based products, food and beverages as well as seafood, proving the private sector›s resilience and becoming the only economic contributor generating a fixed inflow of much needed foreign exchange.
EDB estimated services exports in the first half were at $ 1.34 billion, up by 45.72% from a year earlier. The services exports estimated by EDB consist of ICT/BPM, construction, financial services, and transport and logistics.
In 2021, Sri Lanka’s total exports recorded $ 15.12 billion, up by 23% from 2020 sustaining its resilience, despite an unprecedented economic crisis. Last year’s performance comes second only to the $ 15.91 billion recorded in 2018.
The Government is banking on exports, the only hope that can pull Sri Lanka out of the vicious cycle of the current account and put it back on a sound economic growth path. The Government has assured more support to exporters to reach a $ 20 billion target this year.
Product sectors except for spices and concentrates, tea, and rubber-based products; major export items like apparel and textiles, coconut-based products, EEC components and food and beverages, seafood, and ornamental fish drove the increased export earnings in May.
Exports of apparel and textiles increased to $ 482.7 million, up by 30.1% YoY in April 2022. The increase was driven by both apparel and textiles. The increase was driven by both Apparel and Textiles. Export earnings from Rubber and Rubber Finished products have increased by 7.18% YoY to $ 102.36 million in June 2022, with good performance in exports of Pneumatic and Retreated Rubber Tyres and Tubes (15.2%).
On monthly analysis, export earnings of kernel products, fibre products, and shell products categorised under the Coconut-based products increased by 30.15%, 1.63%, and 21.3% respectively, in June 2022 compared to June 2021. Export earnings from Seafood increased by 130.75% to $ 36.39 million in June 2022 compared to June 2021. The expansion was contributed mainly by higher exports of Frozen fish (89.3%), Fresh fish (219.18%), and shrimp (219.25%).
Further, export earnings from Ornamental fish increased by 297.4% to $ 3.06 million in June 2022 compared to the same period last year.
Export earnings from the Electrical and Electronics Components increased by 5.71 % YoY to $ 39.82 million in June 2022 with a strong performance in exports of Insulated Wires and Cables (14.5%) and Switches, Boards, and Panels (23.55%).
Sri Lanka’s manufacturing and exports sectors continue to record a growth momentum as well as post profits despite facing many challenges through the past few years, especially in the past few months. The revenue posted by the exports sector so far this year is a clear indication of the growth and business potential in Sri Lanka’s exports sector. The many trade agreements as well as trade concessions enjoyed by the country have also helped boost the earnings of the country’s exports sector. In a bid to further support and expand the country’s exports portfolio, local authorities are looking at reviewing and further strengthening the existing trade agreements while also looking at new trade agreements that could help gain access to for local products in new markets. Given the profits recorded by local businesses engaged in exports and the growing business potential in Sri Lanka’s exports sector, foreign businesses/investors could explore the growing opportunities in the country’s exports sector. Foreign businesses/investors could also look at forming partnerships or joint ventures with local businesses to expand operations.
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