Improvements in key sectors push July merchandise exports up 6.6% year-on-year

• Merchandise and service exports total US$ 1.38bn in July
• Jan. - July cumulative exports total US$ 7.23 bn
• Exports to US, SL’s largest export destination, improve 5.2% YoY

Sri Lanka’s merchandise exports climbed 6.6 percent year-on-year in July 2024 to US$ 1.087 billion due to higher earnings from apparel and textiles, tea, coconut-based products, spices, and seafood. Exports also edged up 1 percent compared to June 2024, reflecting steady momentum.

Services exports for July were estimated at US$ 293.26 million, a 16.4 percent rise from the previous year. Combined, total exports, including both merchandise and services, reached US$ 1.38 billion, an 8.5 percent year-on-year increase.

For the first seven months of 2024, cumulative merchandise exports increased 4.9 percent year-on-year to US$ 7.23 billion. Services exports are projected to have risen 9.5 percent to US$ 1.91 billion, bringing total exports for the period to US$ 9.14 billion, a 5.9 percent increase compared to the same period in 2023.

In July, apparel and textile exports grew by 3.8 percent year-on-year to US$ 443.74 million, with shipments to the United States rising by 5.4 percent. Tea, which accounted for 12 percent of merchandise exports, saw earnings increase by 8.3 percent year-on-year to US$ 124.7 million, driven by higher sales of bulk tea and tea packets.
Coconut-based products experienced an 18.4 percent surge in export earnings, with significant growth across all major subcategories, including coconut oil, desiccated coconut, and coconut milk powder. Spices and concentrates saw a 63.1 percent jump to US$ 61.2 million, largely due to robust pepper exports, particularly to India, where shipments more than doubled.

Seafood exports rose 27.7 percent to US$ 22.03 million, supported by strong performances in frozen and fresh fish exports. 

Meanwhile, ICT services exports are estimated to have surged 25.9 percent to US$ 124.96 million, while logistics and transport services are expected to have grown by 11.2 percent to US$ 140.74 million.

Meanwhile, Rubber and rubber products exports fell 3.2 percent year-on-year to US$ 76.8 million, hindered by a 12.1 percent decline in pneumatic and retreated rubber tyres and tubes. Similarly, electrical and electronics components exports dropped 5.8 percent to US$ 38.44 million, weighed down by lower exports of transformers and switches.

Other export crops and flowers & foliage also saw declines, with earnings dropping 60 percent and 5.8 percent, respectively.

Over the first seven months of 2024, several sectors posted strong growth. Tea exports rose 8.1 percent year-on-year to US$ 811.71 million, driven by 16.7 percent increase in bulk tea exports. Rubber and rubber finished products exports grew 8.8 percent to US$ 575.65 million, buoyed by higher shipments of industrial and surgical gloves, and tyres.

Coconut and coconut-based products recorded an 18.1 percent increase in export earnings, reaching US$ 475.58 million, with notable growth in coconut oil, desiccated coconut, and activated carbon. Spices and concentrates exports rose 2.5 percent to US$ 222.03 million, led by a doubling of pepper exports.

However, apparel and textile exports declined 1.2 percent to US$ 2.85 billion, with textiles exports down 6.4 percent. Electrical and electronic components exports fell 17.9 percent to US$ 243.49 million, primarily due to weak transformer and insulated wire exports.

Among Sri Lanka’s top 10 export markets, the United States, United Kingdom, Germany, Netherlands, France, Canada, and China posted positive growth in both July and the cumulative period from January to July 2024.
The United States, Sri Lanka’s largest export destination, accounting for 23 percent of merchandise exports, saw exports rise 5.2 percent year-on-year to US$ 267.02 million in July 2024. For the January to July period, exports to the US increased 1.1 percent to US$ 1.64 billion. Exports to the UK also saw growth, rising 1.3 percent in July and 5.8 percent over the first seven months of the year.