Jan-Sept. export earnings down 18%

• EDB says remarkable export performance despite COVID-19 crisis
• Total services sector export earnings at US$ 2.29bn, down 21%
• Total merchandise exports earnings at US$ 7.2bn, down 17%
• ICT/BPM- the only services sector to record positive growth 
• Under merchandise, agri and food products record higher earnings 

Sri Lanka’s export earnings—both merchandise and services— fell 17.74 percent year-on-year (YoY) to US$ 9, 693 during January through September period, though the decline initially expected was sharper.

Sri Lanka recorded export earnings of US$ 11, 784 for the Jan-Sept. period in 2019.

Despite the decline in demand and supply chain disruptions, Sri Lanka’s merchandise and services export earnings in Jan-Sept. 2020 ranged between US$ 1, 000 and US$ 1, 300. “Looking at the export figures from Jan through September, it is remarkable to see that our Sri Lankan exporters have performed well during the current global COVID-19 crisis,” Export Development Board (EDB) Chairman Prabhash Subasinghe said. 

He noted that in the service sector, ICT/BMP sector has performed well and in merchandise exports, agri products and food products have done extremely well. 

“We are hopeful that this trend will continue, and we can see a strong recovery through the end of the year. I commend all our exporting companies and their loyal staff for their commitment to support the national economy by bringing in the much-needed foreign currency,” he added. 

As per EDB, total services export earnings stood at US$ 2,292 million during Jan-Sept. 2020 with estimated figures for the last three months, as against US$ 2, 911 million recorded for the similar period in 2019, a decline of 21 percent YoY. 

The service sector exports include sea and air transport, construction, financial services and IT/BPM sector, which covers telecommunication services and computer services. 

The services exports were affected severely due to disruptions caused by COVID-19 and the only sub sector recorded a growth during Jan-Sept. 2020 period was ICT/BPM. EDB said export earnings from ICT/BPM sub sector were estimated to have increased by around 8 percent YoY to US$ 924 million during Jan-Sept. 2020 period amid rising demand for technological solutions due to COVID-19 related consumer product developments. 

The most affected service sectors during the period were: construction (down 47 percent YoY) and transport & logistics (down 36 percent YoY), and the estimated performance of the sectors for the period was US$ 30 million and US$ 1,175 million respectively. Financial services exports also fell 4.3 percent YoY to US$ 162.5 million. 

EDB said the actual statistics were available only up to June 2020 and therefore, comparisons were made with the estimates for the rest of the period. 

Meanwhile, merchandise exports earnings fell 16.85 percent YoY during Jan-Sept. 2020 to US$7, 401 million with major exports of the country such as apparel, tea and rubber-based products reporting reduced earnings.