Exports decline in September despite apparel, services growth

• Export earnings for September fell by 3.49%  to US$ 937.95 mn
• Services exports expand by 6.08% YoY to an estimated US$ 329.89 mn
• Total exports, including both merchandise and services, reaches US$ 1.27 bn, a 1.17% dip
• Cumulative merchandise and services exports combined amounted to US$ 12.01 billion, reflecting a 7.24% rise YoY

Sri Lanka’s export earnings for September 2024 fell by 3.49 percent to US$ 937.95 million compared to a year earlier, with weaker demand for tea, rubber products, electronics, and seafood weighing on performance, according to data released by Sri Lanka Customs. 

Services exports, however, provided a lift, rising by 6.08 percent year-on-year to an estimated US$ 329.89 million. 
Combined, total exports, including both merchandise and services, reached US$ 1.27 billion for the month, marking a 1.17 percent decline from September 2023.

In the apparel and textile sector, exports showed resilience, with earnings increasing by 15.71 percent to US$ 418.68 million, aided by a notable 36.87 percent rise in shipments to the United States. 

Coconut-based products also performed well, rising by 10.36 percent on the month. Within this category, coconut kernel, fibre, and shell products saw increases of 9.29 percent, 9.39 percent, and 814.8 percent, supported by strong growth in subcategories such as coconut oil, desiccated coconut, and liquid coconut milk.

Spice and concentrate exports contributed positively as well, growing by 26.39 percent to US$ 48.04 million. Key drivers in this segment included pepper and cinnamon, with exports increasing by 43.91 percent and 16.34 percent, respectively. 

The food and beverages sector reported a gain of 8.78 percent, largely bolstered by processed food exports, which surged by 69.41 percent. The information and communication technology (ICT) sector, another area of growth, is estimated to have increased by 28.66 percent to US$ 150.28 million, while logistics and transport services exports rose by 24.94 percent to US$ 158.4 million.

Tea exports, representing 12 percent of total merchandise exports, declined by 2.44 percent to US$ 117.03 million, affected by a 10.26 percent decrease in bulk tea shipments. 

The rubber sector also faced a downturn, with exports of rubber and rubber finished products decreasing by 4.1 percent to US$ 79.5 million. This decline was largely driven by a 12.19 percent drop in pneumatic and retreaded rubber tyres and tubes.

During the January–September period, cumulative merchandise exports rose 5.07 percent to US$ 9.44 billion compared to the same period last year, while services exports increased by an estimated 8.03 percent to US$ 2.58 billion. 

Total exports for the first nine months, combining merchandise and services, amounted to US$ 12.01 billion, reflecting a 7.24 percent rise year-on-year.

Among Sri Lanka’s top export markets, the United States, United Kingdom, Germany, Netherlands, Canada, and China registered positive growth in September and in the cumulative period from January to September.

The United States, Sri Lanka’s largest export destination, recorded a 21.57 percent increase in exports for September, reaching US$ 245.69 million. For the cumulative January–September period, exports to the United States rose 5.33 percent to US$ 2.19 billion.

Exports to the United Kingdom climbed 3.69 percent to US$ 77.75 million in September, while cumulative exports to the UK for the first nine months of 2024 increased by 7.06 percent to US$ 691.31 million.