Merchandise exports gain momentum in November

• Nov. exports earnings up 4.4% compared to Oct.
• However, on a YoY basis exports drop 2.67%
• Garment earnings show recovery; but still down 12%
• Jan.- Nov. exports total US$ 10.87bn, down 9.64% 

Sri Lanka’s merchandise export performance appeared to gain momentum in November compared to the previous month, signaling a potential turnaround, particularly with positive growth seen in the apparel export sector.
Merchandise exports in November reached US$ 968.8 million, up 4.4 percent compared with the previous month’s performance. However, on a year-on-year basis, November exports fell by 2.67 percent.

Sectors that accounted for the highest share of export earnings in November were apparel and textile, tea, and rubber-based goods, bringing in US$ 395 million, US$ 112.82 million, and US$ 78 million, respectively.
Although export earnings from tea and rubber-based goods expanded by 6.78 percent and 12.87 percent, export revenue from the apparel sector contracted by 11.94 percent.

However, compared to the export figures of September (US$ 333.18 million) and October (US$ 330.95 million), the apparel sector demonstrated enhanced earnings in November, possibly signaling a potential turnaround, especially with seasonal demand.

Other positive contributors to November’s export earnings were coconut-based products, recording a revenue growth of 21.05 percent to US$ 62.06 million; spices and concentrates, which grew by 13.52 percent to US$ 30.99 million; and seafood, which saw earnings expand by 10.48 percent to US$ 25.20 million.

In addition to the apparel sector, bringing the overall November export earnings down from last year was the diamond, gem, and jewelry sector, where earnings dipped by 10.50 percent to US$ 27.78 million, and the electronics & electronic components, which saw revenue dampened by 6.55 percent to US$ 37.39 million.
Cumulative analysis of export earnings for the first eleven months ending in November shows that revenue contracted by 9.64 percent YoY to US$ 10,878.6 million.

The United States, United Kingdom, and India remain the largest export markets for November and the first eleven months of the year.

Among the top 10 export markets, Italy and France showed strong performance in both November 2023 and the period of January to November 2023 compared to the corresponding periods in the previous year.
The UAE has shown a significant performance from January to November 2023 compared to the corresponding period in the previous year.

However, exports to the United States of America, Sri Lanka’s single largest export destination, decreased by 7.27 percent YoY to US$ 223.26 million in November 2023. Cumulative exports, ending November, to the United States also contracted by 18.24 percent YoY to US$ 2,504.82 million.

Meanwhile, the Export Development Board (EDB) said the value of ICT exports is estimated to have increased by 47.91 percent YoY to US$ 1,520 million in the January to November 2023 period.

Construction, Financial Transport & Logistics services exports are estimated to have increased by 788.1 percent, 73.72 percent, and 93.92 percent YoY.