Sri Lanka’s merchandise exports grow by almost 10%
The Morning: The merchandise export performance in March 2024 amounted to $ 1,138.9 million, recording an increase of 9.77 % compared to March 2023. Furthermore, export performance in March 2024 increased by 7.51 % compared to the preceding month, February.
The value of services exports for the month of March was $ 275.1 million, increasing 8.39 % over the corresponding period of 2023. Subsequently, total exports for the month of March were recorded as $ 1.4 billion including merchandise and services exports.
Export earnings from apparel and textile increased by 6.66 % y-o-y to $ 443.9 million this March compared to March 2023.
Export earnings from tea which made up 12% of merchandise exports, increased by 13.35 % y-o-y to $ 124.86 million in March 2024 compared to March 2023. This increase is mainly due to the strong performance in the export of Bulk Tea and Tea packets, which increased by 23.31 % and 6.51% respectively.
Furthermore, the volume of tea exports increased by 18.2 % in March 2024 compared to March 2023. Additionally, Tea exports to Iraq, UAE, Russia and Saudi Arabia markets increased by 202.07 %, 102.46 % and 48.41% respectively.
Moreover, export earnings from Rubber and Rubber Finished products have increased by 7.45 % y-o-y to $ 97.98 million in March 2024, with the strong performance in exports of pneumatic and retreated rubber tyres and tubes (7.41 %) and industrial and surgical gloves of rubber (12.18%).
On monthly analysis, export earnings of coconut-based products increased by 32.2 % in March 2024 compared to March 2023. Moreover, export earnings of coconut kernel products, coconut fiber products and coconut shell products increased by 41.87%, 25.53 % and 21.06 % respectively in March 2024 compared to March 2023.
OSL take:
The growth in merchandise exports is indicative of the overall growth of Sri Lanka’s manufacturing and export sectors. These two sectors have shown great resilience and strength even amidst challenging economic conditions witnessed in the past few years. Sri Lanka’s many trade agreements and trade concessions enjoyed with other countries as well as the move to further expand trade ties with more countries have further expanded the local manufacturing and export sectors. The many promotional campaigns carried out in foreign markets including new markets while working on expanding Sri Lanka’s existing product portfolio have all seem to have paid off given the growth recorded in merchandise exports. Identifying the growth and business potential in Sri Lanka’s manufacturing and export sectors, the Sri Lankan government has also presented various incentive schemes to attract more foreign investments to these sectors. With Sri Lanka on the path to becoming a regional trading hub, the existing business/investment opportunities in the manufacturing and export sectors would see a two fold increase in the near future. Foreign businesses/investors that enter Sri Lanka’s manufacturing and export sectors would therefore be guaranteed of quick returns on investment.