Sri Lanka’s merchandise exports see a surge in July
The Morning: As per the provisional data released by the Sri Lanka Customs, the merchandise export performance in July 2024 amounted to $ 1,087.6 million, recording an increase of 6.58% compared to the month of July 2023.
This was mainly due to the increase in earnings from export of apparel and textiles, tea, coconut-based products, spices and concentrates and seafood.
Furthermore, export performance in July 2024 increased by 0.98% compared to June 2024.
The estimated value of services exports for the month of July 2024 was $ 293.26 million, increasing 16.44% over the corresponding period of 2023.
Consequently, total exports for July 2024, including both merchandise and services, were recorded at $ 1,380.84 million, increasing 8.53% over the corresponding period of 2023.
Export earnings from apparel and textile increased by 3.8 % y-o-y (year-on-year) to $ 443.74 million in July 2024 compared to July 2023.
Among Sri Lanka’s top 10 export markets, USA, UK, Germany, Netherlands, France, Canada and China markets showed positive growth in the month of July 2024 and the cumulative period from January to July 2024, compared to the corresponding periods in 2023.
Furthermore, the US, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, increased by 5.21% to $ 267.02 million in July 2024 compared to July 2023.
In parallel, exports to the US from January to July 2024 increased by 1.12% to $ 1,638.78 million compared to the corresponding periods in 2023.
Exports to the UK increased by 1.33% to $ 74.4 million in July 2024 compared to the corresponding month in 2023.
Meanwhile, exports to the United Kingdom increased by 5.77% to $ 527.01 million from January to July 2024 compared to the corresponding period in 2023.
OSL take:
Sri Lanka’s manufacturing and export sectors have shown continuous growth even during the economic crisis faced by the country in the past few years. The two sectors are now on a steady growth and expansion path supported by the strong trade ties enjoyed by Sri Lanka with other countries. Sri Lanka’s ongoing work to further strengthen and expand the country’s trade ties with new trade agreements with more foreign countries will further boost the country’s manufacturing and export sectors. While local export authorities are engaged in many promotional campaigns in overseas markets to expand market opportunities for local exports, the Sri Lankan government has also presented a host of incentive schemes to attract foreign businesses/investors to the manufacturing and export sectors. Local manufacturers are also being encouraged to diversify and further expand their product portfolios to capture more foreign markets. The growth and profits recorded by local businesses engaged in the manufacturing and export sectors are further indicative of the lucrative nature of businesses in these sectors. Foreign businesses/investors could confidently explore the expanding opportunities in Sri Lanka’s manufacturing and export sectors given the growth and business potential in these sectors. Given the growing interest in Sri Lanka’s manufacturing and export sectors among foreign businesses/investors, local businesses engaged in these sectors could explore the possibilities of forming partnerships or joint ventures with foreign businesses looking for opportunities in Sri Lanka.