Export earnings cross US $ 1bn for first time in 2023

• Feb. merchandise exports total US $ 1.0052bn
• Feb. export revenue dips 8.06% YoY
• Jan.-Feb. 2023 cumulative export revenue reaches US $ 1.98bn
• Export earnings from apparel, tea, rubber and coconut contract
• Revenue growth seen in electric and electrical components and spices sectors
• Exports to top three markets – US, UK and India, dip while positive performance seen from Italy, Canada, UAE and Bangladesh

Sri Lanka’s export sector saw the earnings cross the US $ 1 billion mark for the year 2023, with the month of February fetching a revenue of US $ 1.0052 billion for 
merchandise exports.

The provisional data released by Sri Lanka Customs shows that when compared with the corresponding month of the previous year, the revenue contracted by 8.06 percent but is a 5.62 percent increase when compared to February 2021.

This brings Sri Lanka’s cumulative export earnings for the first two months of 2023 to US $ 1.98 billion. When compared with January-February 2022, the revenue has contracted by 9.68 percent year-on-year (YoY).
In January 2023, the earnings from merchandise exports declined by 11.3 percent YoY to US $ 978 million.
The apparel sector remains the largest export earnings generator, bringing in US $ 485 million for February 2023. However, its revenue contracted by 2.32 percent YoY when compared with February 2022. 

Although the earnings from the export of apparel decreased by 14.75 percent, the earnings from the exports of textiles increased by 146.67 percent in February 2023 compared to February 2022.

The export earnings from tea, which accounted for 12 percent of the merchandise exports, increased by 9.14 percent YoY to US $ 204.13 million in February 2023. The earnings from the export of tea packets (21.24 percent) and instant tea (27.52 percent) increased in February 2023 from the corresponding month of the previous year, while the earnings from the export of bulk tea (-15.33 percent) and tea bags (-27.03 percent) decreased in February 2023.

The export earnings from the rubber and rubber finished products followed suit, as their revenue contracted by 17.81 percent YoY to US $ 76.58 million in February 2023. According to the Export Development Board, the negative performance was noted in the export of pneumatic and retreated rubber tyres and tubes (-6.10 percent) and industrial and surgical gloves (-45.38 percent). 

The export earnings of kernel products and fibre products, categorised under the coconut-based products, also decreased by 14.65 percent and 37.63 percent YoY but the earnings from the coconut shell products increased by 28.67 percent YoY. The export earnings from liquid coconut milk dipped by 16.68 percent YoY to US $ 8.69 million. Being the largest contributor to the coconut-based sector, the coco peat, fibre pith and moulded products decreased by 35.87 percent YoY to US $ 10.55 million in February 2023. 

Showing an increase in the YoY export earnings performance is the electrical and electronics components (13.72 percent YoY), which fetched US $ 43.01 million in February 2023. A strong performance in export of other electrical and electronic products (22.12 percent) is seen. 

Similarly, the export earnings from spices and essential oils increased by 27.0 percent YoY to US $ 34.48 million in the month of February 2023, with a solid performance seen from cinnamon (20.16 percent) and cloves (412.82 percent). However, despite the increase in the sector, the earnings from pepper and essential oils decreased by 37.90 percent and 43.41 percent YoY in February 2023.

Meanwhile, the US, UK and India emerged as the largest contributors to Sri Lanka’s export revenue, though their performance dipped by 20.94 percent, 15.77 percent and 9.22 percent.

Out of the top 15 export markets, Italy, Canada, the UAE and Bangladesh recorded a positive performance in February 2023.

During the period of January to February 2023, only the UAE recorded a positive performance compared to the corresponding period of the previous year.

For February, the exports to the free trade agreement partners accounted for 6.5 percent of the total merchandise exports, which decreased by 52.01 percent to US $ 128.08 million.

Looking at the region-wise performance, the exports to the European Union (EU), which comprised 21 percent of Sri Lanka’s exports during the month of February 2023, decreased by 14.48 percent YoY to US $ 417.71 million.

During the period of January to February 2023, the top five EU markets that accounted for 80 percent of Sri Lanka’s total exports to the EU were Germany – US $ 98.61 million (-18.44 percent), Italy – US $ 100.28 million (-2.56 percent), the Netherlands – US $ 54.1 million (-24.6 percent), Belgium – US $ 37.36 million (-21.28 percent) and France – US $ 35.22 million (-18.15 percent).