• US $ 1bn earning mark crossed for fifth time in 2021
• Jan.-Oct. 2021 export earnings reach US $ 12.6bn
• 80% of export target for year fulfilled
• Strong performance led by apparel sector

Sri Lanka’s sector recorded an all-time high earning for any October in the country’s export history, with October 2021 fetching a revenue of US $ 1.16 billion.

The improved performance in October also marks the export sector crossing the US $ 1 billion revenue mark for the fifth time in 2021.

The data released by Sri Lanka Customs showed that in October, the merchandise exports witnessed a year-on-year (YoY) growth of 35.9 percent, which has led the industry to fulfil 80 percent of the total revenue target set by the Export Development Board (EDB) for 2021.

The EDB aims to reach US $ 15.72 billion in export revenue for the year 2021, of which US $ 12.14 billion is expected from merchandise exports and US $ 3.58 billion from services exports. The October performance brings the total earnings for the year to US $ 12.6 billion. 

“This is the highest-ever merchandise export figure in any October in our history. Opening up of Western markets together with the sustained production in Sri Lanka can be attributed to this increase,” said EDB Chairman Suresh de Mel in a statement to the media that shared the export sector performance for the month. The October performance was led by the apparel and textile sector that saw exports expand by 42.8 percent YoY, reaching US $ 509 million. A strong performance was observed in the exports of apparel (43.4 percent), woven fabrics (86.6 percent) and made-up textile articles (116.3 percent). However, exports of yarn and other textile articles declined by 26.4 percent YoY. 

Earnings from rubber and rubber finished products increased by 14.5 percent YoY to US $ 91.9 million, with a strong performance in exports of industrial and surgical gloves (6.5 percent) and pneumatic and retreated rubber tyres and tubes (32.9 percent). 

Kernel, fibre and shell products categorised under the coconut-based products witnessed a YoY revenue growth of 29.2 percent, 20.6 percent and 19.0 percent. Export earnings from desiccated coconut, coconut milk powder, coconut cream and liquid coconut milk, categorised under the coconut kernel products, increased by 73.9 percent, 13.2 percent, 54.2 percent and 23 percent. A dip was witnessed in earnings from the export of coconut oil, which decreased by 13.9 percent.

Electrical and electronics components contributed a total of US $ 38.4 million to the total export revenue fetched in October, with a strong performance in exports of insulated wires and cables (69.1 percent), switches, boards and panels (59.8 percent) and electronic transformers (199.2 percent).

The seafood sector saw earnings increase by 57 percent YoY, fetching a total of US $ 24.5 million. The growth was attributed to the increase in earnings from the export of frozen fish, shrimps and prawns, fish fresh or chilled and other edible fish.

The growing boat building sector recorded a revenue of US $ 33.7 million in October 2021, with the increased earnings of exports to Iraq. Meanwhile, the cumulative analysis of the export earnings for the January to October 2021 period shows that merchandise exports increased by 21.2 percent to US $ 10.05 billion when compared with the corresponding period in 2020.

For the first 10 months of the year, an increase in exports was observed in almost all the major product sectors: apparel and textiles, tea, rubber-based products, coconut-based products, electronics and electronic components, spices and concentrates, food and beverages, seafood and ornamental fish, when compared with the same period in 2020.

While the biggest increase on a cumulative basis was observed in the apparel and textile sector (20.9 percent amounting to US $ 4.38 billion), export earnings from tea grew up 6.2 percent to US $ 1.09 billion during the period of January to October 2021 compared with the corresponding period of 2020.

Rubber and rubber finished products fetched a total earning of US $ 896.9 for the January to October 2021 period, a 34.4 percent YoY increase.

For the same period, export earnings from spices and essential oils increased by 36.3 percent to US $ 365.7 million when compared with the same period in 2020. Improved performance was observed in all the sub-categories: cinnamon (13.8 percent), pepper (132.2 percent), cloves (152.6 percent), nutmeg and mace (15.4 percent) and Oleoresins (66.1 percent).

The top three markets for Sri Lanka exports for the first 10 months of 2021 were the United States, accounting for US $ 2.46 billion total exports, United Kingdom (UK) accounting for US $ 768 million and India, accounting for US $ 498.8 million of the revenue fetched thus far.

Furthermore, exports to free trade agreement (FTA) partners for the January to October period accounted for 7.2 percent of total merchandise exports, a YoY increase of 28.8 percent to US $ 720.3 million.

Exports to the European Union (EU), which comprised 24 percent of Sri Lanka’s exports during the period of January to October 2021, increased by 28.5 percent YoY to US $ 2.39 billion.