Sri Lanka’s exports, despite several negative economic factors, are moving in an upward direction according to the Central Bank.
Earnings from merchandise exports grew by 11.2 percent to US dollars 1,224 million in August 2022 compared to the corresponding period last year.
An increase in earnings was observed in industrial and agricultural exports, while a decline was recorded in mineral exports.
Cumulative export earnings during January-August 2022 increased by 12.6 percent to US dollars 8,902 million over the corresponding period last year. This growth was entirely driven by the improvements in industrial exports.
Earnings from the export of industrial goods increased in August 2022 by 12.6 percent, compared to August 2021.
Higher export earnings from garments contributed to a major share of this outcome (increase in earnings from garments exports contributed 70.6 percent of the growth in exports). Export of garments to all major markets, the USA, the EU, and the UK have improved.
Most of the other industrial export categories also showed an improved performance, particularly, gems, diamonds, and jewellery; animal fodder (mainly, wheat residue); machinery and mechanical appliances (mainly, mechanical appliances parts); and rubber products (mainly, rubber tyres).
Earnings from exports of petroleum products recorded a decline of 30.2 percent in August 2022 (y-o-y), due to lower volumes of bunker and aviation fuel supplied despite a notable increase in average export price. Base metals and articles; plastics and articles thereof; and printing industry products also declined to some extent.
Earnings from the export of agricultural goods increased by 6.2 percent in August 2022, compared to August 2021.
This was, mainly due to the increase in earnings from tea, seafood (mainly, fresh and frozen fish) and minor agricultural products (mainly, edible nuts; vegetable oil and oil seeds; and betel leaves), while export earnings from vegetables and spices increased marginally.
Export earnings from tea increased by 6.5 percent in August 2022 (y-o-y) mainly driven by high prices (increased by 18.9 percent) amid low volumes (declined by 10.4 percent).