Sri Lanka’s total exports of goods records 7.4 percent growth in 2018
The Central Bank of Sri Lanka has recorded a 7.4% increase in the country’s total exports of goods in 2018 to US$ 11.9 billion. Also, imports have recorded a growth of 6% to US$ 22.2 billion.
However, the trade deficit has reportedly declined significantly in December 2018 YoY with a notable deceleration in import expenditure.
Exports have grown by 1.4% while imports fell by 15.3% in December 2018 YoY.
A news report in the English daily newspaper, the Daily FT has stated that reflecting the impact of policy measures implemented to discourage vehicle and nonessential consumer goods imports, the deficit in the trade account contracted significantly in December 2018, compared to the corresponding month of the previous year.
The terms of trade have improved by 5.5% YoY to 91.7 index points in December 2018 due to an increase of export prices and a decline in import prices. However, on a cumulative basis, the terms of trade broadly remained unchanged at 105.5 index points in 2018 compared to 2017, as both the import and export price indices increased at a similar rate.
Earnings from merchandise exports have reportedly increased marginally by 1.4% YoY to US$ 1,033 million in December 2018. This marginal growth was mainly due to the base effect as the month of December recorded the second highest export value in 2017.
According to reports, an increase in industrial exports contributed mainly to the growth of export earnings in December 2018, while agricultural and mineral exports declined.
Export earnings from industrial exports have increased in December 2018, mainly due to higher exports of textiles and garments.
Reports further noted that yhe higher demand for garments from USA and EU supported the increase in export earnings from this sub-sector.
Export earnings from food, beverages and tobacco, machinery and mechanical appliances, base metals and articles, chemical products, and transport equipment have also increased in 2018.
OSL take:
The growth recorded in Sri Lanka’s total exports of goods is a clear indication of the positive developments in the country’s exports sector. Sri Lanka’s geographical positioning in the Indian Ocean region and the many trade agreements as well as trade concessions that the island nation is party to have had a positive impact on the growth recorded by local exports. Given the developments in Sri Lanka’s exports sector, foreign businesses/investors could explore business/investment opportunities in the field of local exports.
| Article Code : | VBS/AT/15032019/Z_3 |