Sri Lanka’s tea, rubber exports raise June export earnings
The Morning: Merchandise export performance in June 2024 amounted to $ 1,031.2 million, recorded an increase of 2.58 % compared to the month of June 2023, driven by the increase in earnings from export of apparel and textiles, tea, rubber-based products, coconut-based products, food and beverages and spices and concentrates.
Furthermore, export performance in June 2024 increased by 1.97 % compared to May.
The estimated value of services exports for the month of June was $ 323.13 million, increasing 39.05 % over the corresponding period of 2023.
Consequently, total exports for June 2024, including both merchandise and services, were recorded at $ 1,354.32 million, increasing 9.42% over the corresponding period of 2023.
Export earnings from apparel and textile increased by 4.22% y-o-y to $ 446.54 million in June 2024 compared to June 2023. Additionally, exports of apparel and textile to the USA increased by 13.28 % in June 2024 compared to June 2023.
Export earnings from tea, which made up 12% of merchandise exports, increased by 9.18 % y-o-y to $ 121.76 million in June 2024 compared to June 2023. This increase is mainly due to the positive performance in the export of bulk tea (14.91%) and tea packets (4.13%).
Additionally, tea exports to Russia, UAE and Iran markets increased by 28.65 %, 42.73 % and 131.36 % respectively. Export earnings from Rubber and Rubber finished products have increased by 11.8 % y-o-y to $ 82.63 million in June 2024, with the strong performance in exports of pneumatic and retreated rubber tyres and tubes (3.78 %) and industrial and surgical gloves of rubber (28.2%).
OSL take:
Sri Lanka’s exports sector is one of the main revenue generators of the country and realizing this growth potential, the Sri Lankan government has also set out high targets for the country’s exports sector. The local export authorities have launched several programmes to further expand Sri Lanka’s exports sector. These initiatives include incentive schemes for foreign businesses/investors to increase their investments in the local exports sector, hold promotional campaigns in foreign markets and push local manufacturers to diversify and expand their product portfolios. All these activities have expanded the business/investment opportunities in Sri Lanka’s exports sector. With the overall economic expansion in the country and Sri Lanka’s target of becoming a regional hub, the business/investment opportunities in Sri Lanka, especially in the manufacturing and export sectors, present lucrative opportunities to foreign businesses/investors. The many trade agreements and trade concessions enjoyed by Sri Lanka have also boosted the opportunities in Sri Lanka’s exports sector.