Sri Lanka’s merchandise export performance up 18% in October

4 December 2024 02:18 am Views - 763

 

Sri Lanka’s merchandise export earnings in October 2024 climbed to US$ 1.097 billion, marking an 18.22 percent year-on-year increase, driven by higher earnings from key export categories, including apparel and textiles, tea, rubber-based products, coconut-based products, and spices and concentrates.


On a month-on-month basis, export earnings in October expanded 8.44 percent compared to September 2024. 
Along with the estimated service exports of US$ 323.17 million for October, which grew 19.75 percent year-on-year, total export earnings reached US$ 1,420.27 million. This is an 18.57 percent increase YoY.


Apparel and textile exports, the largest contributor to merchandise exports, improved 21.77 percent YoY to US$ 430.21 million in October. Exports to the United States and the United Kingdom surged by 23.28 percent and 23.26 percent.


Tea exports, which accounted for 12 percent of total merchandise exports, earned US$ 126.81 million in October, up 32.6 percent YoY. The growth in this sector was led by strong performance in tea packets (up 35.19 percent) and bulk tea (up 19.77 percent).


Rubber and rubber-based products also saw a positive trend. Earnings expanded 6.26 percent to US$ 84.69 million. According to data from the Export Development Board (EDB), industrial and surgical gloves drove this category with a 32.48 percent increase.


Coconut-based products recorded impressive growth, with export earnings increasing 29.27 percent. Positive variances were observed across coconut kernel products (up 34.35 percent), coconut fiber products (up 38.21 percent), and coconut shell products (up 3.65 percent).


It is noteworthy that spices and concentrates saw the highest growth rate among key categories, rising 56.88 percent YoY to US$ 51.3 million. Pepper exports surged 168.98 percent, while cinnamon exports increased 39.92 percent.


Processed food exports within the food and beverages category grew by a staggering 114.73 percent, contributing to 39.31 percent rise in overall food and beverage export earnings to US$ 51.35 million.


The ICT sector also performed well, with estimated exports increasing 42.48 percent year-on-year to US$ 145.94 million. Logistics and transport services exports rose 16.48 percent to US$ 156.16 million.


Despite the overall growth, certain sectors recorded declines. Electrical and electronic components fell 1.97 percent year-on-year to US$ 36.85 million, primarily due to reduced insulated wire and cable exports, which dropped 36.23 percent.


Seafood exports contracted 16.46 percent to US$ 16.95 million, with frozen fish, fresh fish, and shrimp exports all falling. Ornamental fish exports also dipped 20.24 percent to US$ 1.97 million, while other export crops, including arecanut, plummeted 54.84 percent.


From January to October 2024, cumulative merchandise exports grew 7.04 percent to US$ 10.607 billion. Services exports for the period are estimated at US$ 2.86 billion, a 7.73 percent increase. Accordingly, total exports during the ten months ended October amounted to US$ 13.468 billion, reflecting a 7.19 percent growth YoY.


The United States, Sri Lanka’s largest export destination, accounted for 23 percent of merchandise exports in October, with earnings increasing 19.62 percent year-on-year to US$ 247.33 million. Exports to the United Kingdom rose 26.92 percent to US$ 82.79 million.


Exports to India and Pakistan—which represented 8.4 percent of October’s merchandise exports—increased 25.91 percent to US$ 89.67 million, driven by a 151.46 percent surge in pepper exports to India.


Exports to the European Union (EU), which makes up 24 percent of Sri Lanka’s exports, rose 18.35 percent year-on-year in October. During the January-October period, EU exports edged up 1.17 percent, with mixed performances among top EU markets. Germany and the Netherlands recorded growth, while Italy and France 
saw declines.