Sri Lanka’s International Trade Ministry records increase in exports and FDIs in 2017
Sri Lanka’s International Trade Ministry has reportedly stated that exports and foreign direct investment (FDI) have shown a substantial increase this year when compared to last year.
The latest data released by the Export Development Board has noted that merchandise exports have grown by 10.3 percent during January to October 2017 when compared with the corresponding period last year.
It has been reported that merchandise export earnings recorded 9.5 billion US dollars for the eight months to October this year, compared to 8.6 billion dollars last year.
Estimates in the services exports sector suggest an overall growth of 5.9 percent during the first eight months of the year, bringing total exports to 12.5 billion dollars.
“Most notably, monthly export revenues breached 1 billion dollars on three occasions this year, a trend not seen in recent years,” the Minister has said.
“The EDB expects export earnings for the full year (Jan-Dec) to total 15 billion dollars.”
According to reports, within merchandise exports, fisheries exports have grown by a substantial 42 percent, agricultural exports by 18.5 percent, and industrial exports by 5.9 percent.
Strong performance is seen in several of the ‘priority sectors’ identified under the new National Export Strategy.
A news report on the Ministry data states that notably, electronics and electrical exports growing by 17.8 percent, spices growing by 34 percent, and boat building growing by over 370 percent.
Meanwhile, food and beverages exports have dipped by 13.3 percent.
By export destination, earnings from exports to the European Union have increased by 4.1 percent, and exports to USA have increased by 1.5 percent during January to October this year, compared to the same period last year.
Exports to the ASEAN region have grown substantially, by 45 percent, to 400 million dollars (compared to US$ 276 Million last year).
Exports to India have performed strongly, growing at 24 percent, from 456 million dollars to 566 million dollars during the period in review.
Meanwhile, exports to the UK have declined by 1.8 percent, largely on account of the depreciation of the GBP and the consumer market uncertainty due to Brexit.
According to the latest data released by the Board of Investment, foreign direct investment, has also picked up pace.
Data indicates a substantial uptick in FDI inflows to the country of 795.5 million dollars during January to September this year; 80 percent higher than the same period last year and already exceeding the full year 2016.
The BOI expects FDI for the full year 2017 to total 1.36 billion dollars.
The increase recorded in Sri Lankan exports as well as foreign direct investments to the country between a one year period indicates an overall buoyant growth of the economy. Given the latest data, the economy is poised to record further growth in many sectors including exports of spices as wells as boat building. Therefore, Sri Lanka would be the ideal destination for foreign investors to enter look at investing and starting up business operations in the country.
|Article Code :