29 June 2023 12:00 am Views - 186
The sluggish performance of Sri Lanka’s merchandise exports continued for the fifth straight month in May, as Sri Lanka’s main industrial export, apparel and textile products, dipped amid the slowdown in demand from the key markets.
In May 2023, merchandise exports contracted by 5.59 percent to US $ 989.7 million compared to May 2022. However, export revenue expanded by 16.6 percent, from US $ 814.1 million recorded in April 2023.
“The declining trend in merchandise exports further continues, due to the negative trends shown in major export products, specially in apparel and textiles and coconut and coconut-based products,” the Export Development Board said.
Accordingly, the cumulative exports for the January to May 2023 period contracted by 8.29 percent year-on-year (YoY) to US $ 4.83 billion.
Apparel and textile exports fell 14.55 percent YoY to US $ 412.43 million in May. Since September 2022, apparel export earnings have been on a downward trend on a YoY basis.
Tea exports, which accounted for 12 percent of total merchandise exports, grew 24.16 percent YoY to US $ 116.33 million.
Earnings from export of tea packets increased by 25.76 percent YoY to US $ 56.58 million. Export earnings from rubber and rubber finished products showed a marginal increase of 0.20 percent YoY to US $ 76.84 million.
Export earnings from spices and essential oils grew by 26.24 percent YoY to US $ 27.13 million. Cinnamon exports particularly showed a 27.20 percent YoY increase to US $ 14.87 million.
Improved performance was also seen in electrical and electronics component exports. Export revenue from this segment rose 5 percent YoY to US $ 43.90 million. Contributing to the performance were export of insulated wire (4.50 percent) and other electrical and electronic products (1.7 percent).
Further, export of seafood rose 36.54 percent YoY to US $ 22.98 million, mainly due to the strong performance in export of frozen fish (20.7 percent), fresh fish (2.86 percent) and shrimps (76.21 percent). Export earnings from ornamental fish increased by 85.04 percent to US $ 2.35 million in May 2023 compared to May 2022.
Export earnings of kernel products, fibre products and shell products, categorised under coconut-based, decreased by 3.70 percent, 9.59 percent and 4.23 percent YoY.
Being the largest contributor to the coconut-based sector, coco peat, fibre pith and moulded products, which are categorised under coconut fibre products, decreased by 9.81 percent to US $ 15.45 million in May 2023 in comparison to May 2022.
Further, earnings from activated carbon, which is categorised under coconut shell products, fell 4.23 percent YoY to US $ 14.05 million.
In terms of markets, exports to Italy, France and the UAE registered positive performances during the month of May 2023.
Exports to the United States of America, Sri Lanka’s single largest export destination, decreased 15.25 percent to US $ 225.8 million. Exports to the United Kingdom and India, Sri Lanka’s second and third largest export destinations, contracted by 14.88 percent and 5.34 percent.
Exports to Sri Lanka’s free trade agreement partners, accounting for 6.5 percent of total merchandise exports, decreased by 2.64 percent YoY to US $ 86.07 million in May 2023.
Region wise, exports to the European Union (EU), which accounted for 21 percent of Sri Lanka’s exports during the month of May 2023, increased by 1.28 percent YoY to US $ 236.98 million. But on a cumulative basis, exports decreased by 9.98 percent YoY to US $ 1.07 billion for the first five months of the year.