27 June 2024 01:30 am Views - 213
Sri Lanka’s export performance continued to slow down with May recording a contraction in the earnings compared to previous years.
Provisional data released by the Export Development Board (EDB) yesterday showed that export performance contracted by 5.81 percent Year-on-Year (YoY) to US$960.2 million.
This is the second consecutive month Sri Lanka’s export sector missed to cross the US$ 1 million mark. While in January the export sector recorded earnings amounting to US$ 970 million, after two consecutive months of crossing the US$ 1 billion mark (February - US$ 1.059 billion, and March - US$1.148 billion), performance has witnessed a slowdown, data showed.
However, when compared with the April performance, earnings expanded 9.4 percent.
Accordingly, total exports for May 2024, including merchandise and services, were recorded at US$ 1,287.59 million.The estimated value of services exports for May 2024 was US$ 327.35 million, increasing 21.24 percent over the corresponding period of 2023.
The May performance brings the cumulative merchandise exports for the first five months of the year to US$ 5.01 billion, a 3.09 percent increase YoY.
Positive contribution to the export sector performance in May came from Rubber and Rubber finished products which grew 5.62 percent YoY to US$ 81.17 million in May 2024, with strong performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (4.46 percent) and Industrial & Surgical Gloves of Rubber (8.15 percent).
Export earnings of Coconut based products increased by 2.88 percent in May 2024 compared to May 2023 with earnings from desiccated coconut, coconut milk powder, coconut cream, and liquid coconut milk rising by 23.18 percent, 44.08 percent, 36.04 percent, and 6.02 percent.
Meanwhile, total export earnings from Diamonds, Gems & Jewellery increased by 2.39 percent y-o-y to US$ 32.19 million in May 2024. Export earnings from Diamonds experienced a substantial increase of 12.22 percent in May 2024.
Meanwhile, sectors that are considered key for the national economy were among those that witnessed dampened earnings.
Export earnings from tea, which made up 12 percent of merchandise exports, decreased by 1.1 percent y-o-y to US$ 115.04 million, due to poor performance in the export of all tea subcategories except Bulk Tea.
Export earnings from apparel & textile, decreased by 5.37 percent y-o-y to US$ 390.29 million in May 2024 compared to May 2023.
Further, earnings from spices and essential oils decreased by 6.05 percent to US$ 25.48 million in May 2024 compared to May 2023 mainly due to the poor performance in the export of Cinnamon (-36.18 percent) and Cloves (-52.61 percent). Clove exports to India decreased by nearly 100 percent in May 2024 compared to May 2023.
Meanwhile, among Sri Lanka’s top 10 export markets, only the UK showed positive growth in May 2024 and the cumulative period from January to May 2024, compared to the corresponding periods in 2023.
Exports to the United Kingdom increased by 8.98 percent to US$ 72.56 million in May 2024 compared to the corresponding month in 2023.
Furthermore, the United States of America, Sri Lanka’s single largest export destination, which absorbs 23 percent of Sri Lanka’s merchandise exports, decreased by 1.41 percent to US$ 222.62 million in May 2024 compared to May 2023.