Export sector achieves 70% of 2021 earnings target by September

• September merchandise export earnings at US$ 995.8mn
• Export income rose 19% to US$ 8.8bn in Jan-Sept period
• Cumulative services exports estimated at US$ 2.2bn

Sri Lanka’s export sector has fulfilled 70 percent of its new revenue target for 2021 in the first three quarters of the year with September merchandise exports earnings reaching nearly US$ 1 billion.

Merchandise exports for the month of September reached US$ 995.8 million as per Sri Lanka Customs data, which according to Export Development Board (EDB) Chairman Suresh de Mel is “remarkable” given the limitations faced by the industry due to the COVID-19 situation in the country. “It is remarkable that our exporters performed this well amidst travel restrictions and lockdowns due to the third wave of the COVID-19 pandemic in Sri Lanka. Exports show a strong resilience with both merchandise & services exports performing well,” said de Mel is a statement that shared the export sector performance for 
September.

While expressing confidence in the trend continuing till year-end, de Mel assured the necessary support would be extended to the industry to realize the set targets.

Export earnings for September were led by the apparel & textile sector where the income increased by 5.83 percent year-on-year (YoY) to US$ 457.05 million.

Earnings from rubber and rubber finished products reached US$ 96.09 million with a strong performance in exports of industrial & surgical gloves (up 47.65 percent), pneumatic &retreated rubber tyres & tubes (up 15.31 percent) and gaskets, washers, seals, etc. of hard rubber (up 28.72 percent).

From the coconut-based sector, revenue from the exports of coco peat, fiber pith & moulded products fetched US$ 14.08 million. The EDB said analysis showed that earnings from the export of coconut oil and liquid coconut milk decreased by 31.47 percent and 13.04 percent respectively in September 2021 when compared with the corresponding period in 2020.

The seafood sector recorded revenue of US$ 22.58 million, a 39.21 percent YoY increase. The EDB attributed the expansion to the increase in earnings from the export of shrimps and prawns, fish fresh or chilled, and other edible fish.

Meanwhile, export earnings from other export crops, paper & paper products, non-metallic mineral products, base metal products increased by 58.13 percent, 20.05 percent, 8.98 percent, and 30.05 percent respectively during the month of September 2021 when compared with September 2020.

Cumulative analysis for the January to September 2021 period shows that due to increase in income witnessed in almost all major product sectors, merchandise exports increased by 19.3 percent (YoY) to US$ 8,881.93 million. 
In terms of service exports, consisting of ICT/BPM, construction, financial services, and transport & logistics, Sri Lanka fetched US$ 2, 222.5 million by the end of 3Q21.

Earnings from export of apparel & textile increased by 18.5 percent to US$ 3,879.43 million during the first nine months in 2021 compared to the same period of 2020, whereas export of apparel and woven fabrics expanded by 21.4 percent and 104.62 percent. 

However, exports of made-up textile articles and yarn and other textile articles were down by 51.31 percent and 3.74 percent.

For the first nine months of 2021, export earnings from tea grew by 7.29 percent to US$ 986.56 million.
Similarly, 3Q21 ended with an increase in earnings from the rubber sector (US$ 805.06 million), coconut & coconut based products (US$ 608.76 million), electrical and electronic components (US$ 309.62 million), and spices and essential oils (US$ 320.8 million).

For the January – September 2021 period, strong exports were recorded from the 10 major export markets, which accounted for 63 percent. 

The third quarter saw exports to the United States of America (USA), Sri Lanka’s single largest export destination, increasing by 14.97 percent to US$ 2,175.46 million compared to the corresponding period of 2020. 

Exports to the United Kingdom (UK), as the second-largest trading partner recorded an increase of 2.31 percent to US$ 679.55 million during January to September 2021 period.  India, as the third-largest export market, saw an increase in exports by 24.97 percent to US$ 566.96 million.

Meanwhile, exports to Netherlands witnessed the highest YoY growth with an expansion of 51.13 percent fetching a total revenue of US$ 306 million for the first nine months of 2021.

For the same period, exports to Free Trade Agreement (FTA) partners accounted for 7.2 percent (US$ 635.43 million) of total merchandise exports.

On a region-wise comparison, exports to all other regions increased except the CIS region during the period of January to September 2021 compared with the corresponding period of the previous year.  Exports to the EU (24 percent of the total exports) increased by 27.78 percent (YoY) to US$ 2,122.48 million.