Exporters optimistic of future outlook, reveals bi-annual Export Barometer Survey

• Majority confident in their own growth compared to outlook on economy
• Call for more support from policymakers, trade chambers, and donor agencies 
• Special requests made to improve efficiency in the regulatory process and deploy financial assistance
• Exporters have been successful in finding new opportunities on their own

Sri Lankan exporters are optimistic in their outlook for growth although difficulties were experienced in the first half of 2021, the results of the bi-annual Export Barometer Survey revealed.
According to the latest findings, exporters have expressed that they are more confident in the outlook of their own near-term growth compared to their growth outlook on the economy.
“Most firms are looking to expand their market reach by increasing their presence and interest in at least one to two markets, with some looking to diversify away from traditional markets,” the survey analysis revealed.
The Export Barometer Survey is designed and conducted by the Ceylon Chamber of Commerce (CCC) and the United States Agency for International Development (USAID)’s Partnership for Accelerating Results in Trade, National Expenditure and Revenue (PARTNER) project. 
While exporters are hopeful matters will turn for the better in their own entities, they stressed the need for support from policymakers, trade chambers, and donor agencies to be more export-competitive.
Efforts that require more attention are in improving market access and establishing links with new customers. 
In the survey, exporters had expressed specific requests from the government on improving efficiency in the regulatory process, tax relief/rebate/exemption, assistance in supply chain and export finance, and deploying a financial assistance package. 
As it is well known, more work is needed to diversify Sri Lanka’s export basket and market, it is found that the majority of the exporters are on the lookout for new opportunities on their own and have been successful.

“Despite the challenges faced by exporters, 75 percent of the firms found new export opportunities, with more opportunities prevalent among SME exporters. 
“Exporters are exploring new markets with their current and new products/services while also promoting their new products/services to the same markets they are in,” the survey findings revealed.
 Firms are also found to be generating new business opportunities, mainly by utilising their existing buyers based on their current markets. In an effort to steer through the challenges that are brought about by the pandemic, over 67 percent of the surveyed exporters had increased the usage of digital channels to generate revenue. However, the online channels contributed less than 25 percent to their overall revenue. 
Compared to large firms, both SMEs and women-owned and/or led firms relied more on digital channels (such as social media, online advertising, online marketplace) in generating sales and revenue, the survey findings revealed. 
Exporters were faced with several challenges in sourcing inputs and had to deal with cost escalations in transport and logistics. 
This was the case for all exporters, regardless of their size.
Although the export community has to grapple with uncertainty in 2021 as well, the majority of exporters said they were more confident in managing their existing workforce than they were in June and September 2020. About 29 percent said they hope to recruit for new positions in the next six months.
Overall, the exporters claimed they performed well in the first half of 2021, but they are yet to operate at optimal capacity.
The latest edition of the bi-annual Export Barometer Survey aimed to provide key insights into the impact of Covid-19 on exports and the economy’s transition to the ‘new normal’ and as well as longer-term competitiveness. 
Small and medium enterprises (SMEs) comprised the majority of the 120 respondents, and many hailed from the Western Province. One-quarter of the responding firms were women-owned and/or led.