1H merchandise exports top US$ 6 bn

• 1H merchandise exports up 3.87% YoY
•  June export earnings expand 2.58% YoY due to improved performance in the apparel, tea, and rubber segments
•  Total export earnings record US$ 1.35 bn in June, and US$ 7.77 bn in 1H

 Sri Lanka’s merchandise export performance for the first half of the year (1H24) totalled US$ 6.098 billion, a 3.87 percent growth Year-on-Year (YoY) when compared with the corresponding period in 2023.

For the January - July period, the monthly merchandise exports showed positive variances when compared with the performance in 2023. Besides January and April, all other months saw export earnings above US$ 1 billion. 

Sri Lanka’s merchandise exports in June expanded  marginally from the previous month, and from the corresponding period in the previous year to US$ 1.031 billion, data from the Export Development Board (EDB) showed.

The provisional data released showed that the  June merchandise export performance recorded 2.58 percent growth YoY and 1.97 percent growth from May 2024. 

“The increase is due to improved earnings fetched by apparel & textiles, tea, rubber-based products, coconut-based products, food & Beverages and spices & concentrates,” the EDB said in its monthly exports update.

The estimated value of services exports for the month of June 2024 was US$ 323.13 million, increasing 39.05 percent over the corresponding period of 2023. 

Accordingly, the total exports for June (both merchandise and services) have expanded by 9.42 percent YoY to US$ 1.354 billion, while for 1H24 earnings recorded US$ 7.77 billion, up 5.57 percent YoY.

In June, export earnings from Apparel & Textile, the largest foreign exchange generator for the economy, increased by 4.22 percent YoY to US$ 446.54 million with exports to the USA increasing by 13.28 percent YoY.

Earnings from tea, which made up 12 percent of merchandise exports, grew 9.18 percent YoY to US$ 121.76 million. The EDB attributed the increase to the positive performance in the export of bulk tea (14.91 percent) and tea packets (4.13 percent).

Rubber and Rubber finished product exports expanded by 11.8 percent YoY to US$ 82.63 million, with a strong performance in exports of pneumatic & retreated rubber tyres & tubes (3.78 percent) and Industrial & Surgical Gloves of Rubber (28.2 percent).

Similarly, earnings from coconut-based products increased by 15.54 percent YoY in June 2024 compared to June 2023. 

Strong performance in pepper exports, especially to India, led to earnings from spices and essential oils to expand substantially by 62.63 percent YoY to US$ 47.91 million.

Furthermore, the estimated value of ICT exports is expected to increase by 28.25 percent to US$ 141.64 million in June 2024 when compared to June 2023. In addition, the estimated value of construction services exports and Logistics & transport services are expected to increase by 4.89 percent and 52.96 percent respectively in June 2024 compared to June 2023. 

Contractions in earnings were seen from  Electrical & Electronics Components (-19.69 percent YoY), other export crops (-22.29), and flowers & foliage (-45.83). Exports of diamonds, gems, and jewellery plunged 58 percent YoY to US$ 18.6 million.

Among Sri Lanka’s top 10 export markets, USA, UK, Netherlands, France, Canada, and China markets showed positive growth in June 2024 and the cumulative period from January to June 2024, compared to the corresponding periods 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, increased by 12.44 percent YoY to US$ 254.2 million in June 2024 compared to June 2023. In parallel, exports to the United States of America from January to June 2024 increased by 0.36 percent to US$ 1,371.76 million compared to the corresponding periods in 2023. Exports to the United Kingdom increased by 3.25 percent YoY to US$ 74.88 million in June, and on a cumulative basis, exports expanded 6.54 percent YoY to US$ 452.61 million.