Sri Lanka’s February exports unhindered by economic crisis
The Morning: Sri Lanka’s merchandise exports appear to have been unhindered by the current economic crisis as it has increased by 9.91% to $ 1,046 million in February 2022 compared to February 2021, as per the data released by Sri Lanka Customs, as noted by the Export Development Board (EDB).
Further, it is a 5.8% increase when compared to February 2020.
EDB Chairman Suresh de Mel said: “Sri Lanka’s merchandise exports maintained the above $ 1 billion mark continuously from the beginning of this year, recording an increase of 9.91% to $ 1.05 billion in February 2022 compared to last year. This was also the ninth consecutive month of having over $ 1 billion revenue. We hope the same trend will continue.”
Export earnings from apparel and textile have increased by 12.04% year-on-year (YoY) to $ 494.82 million in February 2022 with strong performance in exports of apparel (11.87%) and woven fabrics (31.04%). On a YoY basis, exports of made-up textile articles declined by 0.26% in February 2022 in comparison to February 2021.
Export earnings from tea in February 2022, which made up 12% of merchandise exports, decreased by 10.38% YoY to $ 100.86 million. Export of tea packets and bulk tea decreased by 17.22% and 2.7%, respectively in February 2022 compared to February 2021.
Export earnings from rubber and rubber-finished products have increased by 11.31% YoY to $ 93.17 million in February 2022, with positive performance in exports of pneumatic and retreated rubber tyres and tubes (21.22%) and gaskets, washers, seals, etc. of hard rubber (9.51%). However, exports of industrial and surgical gloves decreased by 7.55% YoY to $ 27.19 million in February 2022.
On monthly analysis, export earnings of kernel products, fibre products, and shell products categorised under coconut-based products increased by 10.72%, 15.47%, and 11.71%, respectively in February 2022 compared to February 2021.
YoY, export earnings from desiccated coconut, coconut milk powder, coconut cream, and liquid coconut milk categorised under coconut kernel products increased by 17.75%, 1.24%, 17.52%, and 16.28%, respectively in February 2022.
Being the largest contributor to the coconut-based sector, coco peat, fibre pith, and moulded products which are categorised under the coconut fibre products, increased by 13.6% to $ 16.45 million in February 2022 in comparison to February 2021. Earnings from activated carbon, which is categorised under the coconut shell products, increased by 13.71% to $ 10.53 million in February 2022 compared to February 2021.
Export earnings from the electrical and electronics components increased by 16.92% YoY to $ 37.73 million in February 2022 with strong performance in exports of insulated wires and cables (24.45%), switches, boards and panels (13.28%), and electrical transformers (34.38%).
Export earnings from seafood increased by 50.57% to $ 21.17 million in February 2022 compared to February 2021. This increase was mainly due to the increase in earnings from exports of frozen fish (48.25%), fresh fish (158.02%), and shrimps (33.61%).
Further, export earnings from ornamental fish increased by 40.78% to $ 1.45 million in February 2022 compared to February 2021.
However, export earnings from spices and essential oils decreased by 18.59% to $ 27.15 million in the month of February 2022 compared to February 2021, due to the poor performance in cinnamon (-9.73%) and cloves (-63.41%). Despite the decline in the sector, earnings from pepper increased by 16.6% in February 2022 compared to February 2021.
OSL take:
Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is once again put to the test by a pandemic indused economic crisis. However, many key economic sectors have shown a steady growth despite the many challenges. The country’s exports sector has expressed confidence in continuing with its performance despite the ongoing challenges. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as concessions enjoyed by the country have all helped the country’s exports sector. Foreign businesses/investors could therefore explore the growing opportunities in Sri Lanka’s exports sector as well as look at the possibility of forming partnerships or joint ventures with local businesses to engage with foreign markets.
| Article Code : | VBS/AT/19042022/Z_4 |