Merchandise exports set new April record despite setbacks

• But down for fifth consecutive month on MoM basis
• Also falls below US $ 1bn mark ending a 10-month streak
• Cumulative earnings in four-month period up 9.5% to US $ 4.16bn
• EDB urges govt. to ensure uninterrupted supply of fuel and power to maintain export growth momentum

Despite the multiple challenges from fuel and power shortages to social unrest, Sri Lanka’s merchandise exports set a new record in April, recording the highest ever export value for the month supported by the floating of rupee exchange rate in the previous month.

Merchandise export earnings rose by 11.87 percent year-on-year (YoY) to US $ 915.3 million in April, surpassing the previous high of US $ 799 million achieved in April last year, according to the data released by Sri Lanka Customs.

However, export earnings declined for the fifth straight month in April on a month-on-month (MoM) basis while also falling below the US $ 1 billion mark, ending a 10-month streak.

Export Development Board (EDB) Chairman Suresh de Mel urged the government to ensure uninterrupted supply of fuel and power, in order to maintain the export growth momentum.

“… efficient facilitation of the supply of fuel and energy to our exporters is imperative to keep this momentum going while appealing for an expedited solution to the current crisis,” he said.

Earnings from apparel and textile exports, which nearly accounted for half of the country’s merchandise export earnings in the month, climbed by 22.12 percent YoY to US $ 445.79 million in April. 

Ending the declining trend, tea export revenue edged up by 1.49 percent YoY to US $ 80.44 million, driven by 9.52 percent YoY growth in bulk tea exports.  Similarly, earnings from rubber and rubber finished product exports also increase by 10.09 percent YoY to US $ 71.27 million, recovering from the March fall. This was mainly driven by a 23.21 percent YoY growth in pneumatic and retreated rubber tyre and tube exports.

Export of coconut-based products also rose by 26.85 percent YoY to US $ 70.73 million, with notable increases in earnings from kernel products, fibre products and shell products growing by 19.21 percent YoY, 24.33 YoY and 52.43 YoY, respectively.

Meanwhile, export earnings from the electrical and electronics components continued to grow in April, with a 27.05 percent YoY growth and recording US $ 34.38 million revenue for the month, backed by strong performance in insulated wires and cables and electrical transformers segments.

In addition, earnings from seafood exports increased by 10.58 percent YoY to US $ 21.22 million, contributed mainly by higher exports of fresh fish and shrimps, while ornamental fish exports decreased by 17.6 percent YoY to US $ 1.03 million.

However, export earnings from spices and essential oils extended their declining trend in the month. Spices and essential oil exports fell by 4.05 percent YoY to US $ 23.46 million, due to the poor performance in pepper exports.
Revenue from petroleum product exports also fell by 68.05 percent YoY to US $ 4.30 million.

The United States retained its position as the largest market for Sri Lankan goods, accounting for a quarter of the country’s merchandise export earnings in April, followed by the European Union (EU).  

Exports to the United States rose by 21.35 percent YoY to US $ 249.02 million and exports to the EU (excluding the UK) grew by 20 percent YoY to US $ 230.91 million. Germany, Italy, Belgium and the Netherlands were among the top export markets from Sri Lanka, within the EU. 

Meanwhile, merchandise export earnings from the United Kingdom and India rose by 10.31 percent YoY and 27.25 percent YoY to US $ 84.14 million and US $ 59.47 million, respectively. However, exports to China continued to decline, recording a 21.74 percent YoY decline.  The cumulative merchandise export earnings during the four-month period of the year rose by 9.5 percent to US $ 4.16 billion 

Meanwhile, the estimated value of services exports, consisting of ICT/BPM, construction, financial services and transport and logistics, for the four-month period nearly doubled to US $ 1.18 billion, according to the EDB’s estimates.