Opportunity Sri Lanka | » Sri Lanka’s September exports up 4.1% to $ 1.01 billion
Sri Lanka’s September exports up 4.1% to $ 1.01 billion

Sri Lanka’s September exports up 4.1% to $ 1.01 billion

Daily FT: September exports grew 4.1% year-on-year (YoY), surpassing the $ 1 billion mark, while the trade deficit rose on higher imports, the Central Bank said.
Despite the mixed performance, releasing the external sector report, the Central Bank pointed out reflecting continuous investor confidence, the financial account of the Balance of Payments (BOP) continued to strengthen during the month with higher foreign inflows to the Colombo Stock Exchange (CSE) and the government securities market. Subsequently, the overall balance recorded a surplus of $ 2.28 billion by end September 2024.
Earnings from merchandise exports increased to $ 1,012 million in September 2024. Industrial exports led to this increase while agricultural and mineral exports declined.
The growth in industrial goods exports in September 2024 YoY was primarily driven by higher export earnings from textiles and garments (mainly garments), as well as petroleum products, although these exports declined compared to August 2024. Earnings from gems, diamonds and jewellery, and machinery and mechanical appliances declined.
Earnings from exports of agricultural goods declined mainly due to lower earnings resulting from lower export volumes of seafood, minor agricultural products, and tea, despite a rise in earnings from spices. Earnings from mineral exports also declined in September 2024.
The export volume index improved by 10.3%, while the unit value index declined by 5.6%, implying that the increase in export earnings in September 2024 compared to September 2023 can be attributed to higher export volumes.

OSL take:
Sri Lanka’s exports sector has shown a steady growth in the past few years, even amidst challenging economic conditions, resulting in the expansion of business/investment opportunities in key economic sectors in the country. Sri Lanka’s strategic positioning in the Indian Ocean and the strong trade ties enjoyed by the country with many foreign countries have helped boost the local exports sector. However, the move to further strengthen and expand Sri Lanka’s trade ties with more foreign nations have increased the growth and business potential of the country’s exports industry. All these developments indicate that Sri Lanka’s exports industry is one of the key sectors for foreign businesses/investors to explore business/investment opportunities in the country that guarantees quick returns on investment. Foreign businesses could also look at forming partnerships or joint ventures with local businesses in the exports industry to further expand operations locally and internationally.

Share this:

Article Code : VBS/AT/20241018/Z_2

    For More Info and Help






    Leave a Comment