Apparel exports lead decline in July merchandise exports

• July merchandise exports earnings down 12% to US$ 1bn 
• Textile and apparel exports down 22% to US$ 427.5mn
• January-July 2023 merchandise exports down US$ 6.89bn

Continuing the declining trend in exports, Sri Lanka recorded US$ 1.02 billion export earnings for the month of July, down 11.79 percent year-on-year (YoY) as earnings from the country’s top industrial export, apparel, saw lower earnings amid drop in demand in major markets.

However, on a month-on-month basis, July exports recorded a marginal growth of 2.18 percent.
The apparel and textile exports in July fell 22.28 percent YoY to US$ 427.48 million while tea exports edged down 1.97 percent YoY to US$ 115.2 million. 

Sri Lanka earned US$ 79.31 million from the export of rubber-based products, down 11.13 percent YoY. Export earnings from coconut-based products also fell 5.67 percent YoY to US$ 63.34 million.
Diamond, gems and jewellery exports also fell 25.56 percent to US$ 27.09 million.

Seafood exports during July fell 16.46 percent YoY to US$ 17.25. However, ornamental fish exports recorded 32.35 percent YoY growth to US$ 1.8 million.
Spices and concentrates exports rose 10.68 percent YoY to US$ 37.53 million.
Export of petroleum products recorded sharp gain in July 2023 to US$ 52.25 million from just US$ 4.04 million a year ago.

Export Development Board estimates the value of ICT exports in July at US$ 132.25 million, up 45.5 percent YoY. 
Meanwhile, Sri Lanka’s merchandise export earnings in the first seven months of 2023 fell 10.26 percent YoY to US$ 6.89 billion.
The value of ICT exports is estimated to have increased by 17.78  percent YoY to US$ 793.8 million in the first seven months of 2023.

United States, United Kingdom and India remain Sri Lanka’s three largest export markets. Exports to both United States and United Kingdom showed declines in July 2023 and the first seven months of 2023 compared to 2022. 
However, exports to India showed 29 percent YoY growth in July 2023.
Region wise, Sri Lanka’s top three export markets are United States, European Union (excluding UK) and South Asia.