Sri Lanka’s merchandise exports remain at US$ 9.9 billion despite Covid 19 challenges in 2020
Sri Lanka’s export earnings in December 2020 had reportedly amounted to US$ 931.65 million, which were 13.75% higher than the earnings of November 2020 and 6.91% lower than December 2019. These have been revealed in Customs statistics.
The reduction recorded in the exports sector in October and November due to the Covid 19 outbreak in Sri Lanka, which has had a direct impact in the country’s manufacturing and export facilities, had also continued in December 2020.
However, amidst severe impacts of the Covid-19 pandemic, Sri Lanka’s merchandise exports have remained at US$ 9.9 billion in 2020, which is a great achievement from the revised forecast of US$ 9.5 billion.
Sri Lanka’s Export Development Board (EDB) Chairman Suresh De Mel has been quoted in Daily News saying, “Amidst the outbreak of Covid-19, a notable rebound of the export sector was recorded from mid- 2020 with the proactive measures introduced by the Government.”
According to the news report, the growth in exports was not only due to the effective prevention and control of the epidemic in Sri Lanka, but also the commitment of exporter community to support the national economy by bringing in the much-needed foreign currency at a crisis situation is commendable. When considering the top 10 export markets, other than the United States, United Kingdom and Germany, increases in exports were recorded in other markets. Exports to China and Turkey had increased 30.97% and 31.01% in December 2020.
Export earnings from tea which made up 12% of merchandise exports had increased by 6.78 % y-o-y to US$ 112.97 million in December 2020 compared to December 2019.
In addition, export earnings from Rubber and Rubber finished products have increased by 6.22 % y-o-y to US$ 79.52 million in December 2020 due to the better performance in exports of Pneumatic and Retreated Rubber Tyres and Tubes (6.34%) and Industrial and Surgical Gloves of Rubber (27.70%).
Earnings from all the major categories of Coconut based products had increased in December 2020 compared with December 2019. Export earnings from Spices and Essential Oils have increased by 57.61% to US$ 33.13 million in December 2020.
OSL take:
Sri Lanka’s exports sector is showing strong signs of rebounding following the impact of the global Covid 19 pandemic. In fact the country’s exports sector continued to operate during the pandemic lockdown last year enabling the sector to achieve its revised targets for the year. Sri Lanka’s exports sector is now back full force and fully geared to meet this year’s targets. In a bid to further boos the sector, the government of Sri Lanka has introduced many incentives to the stakeholders in the sector. Also, the many trade agreements as well as trade concessions enjoyed by the country will further help boost the country’s exports sector. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s exports sector.
| Article Code : | VBS/AT/20210126/Z_3 |