Sri Lanka records USD 14.94 Bn merchandise exports in 2023

Sri Lanka’s total exports reached US$ 14.94 Bn in 2023 including merchandise exports (US$ 11.85Bn) and estimated service exports (US$ 3.08 Bn).It is  only  a 0.39 % decline when compare to the value recorded in previous year (US$ 14.99 Bn).Estimated increase in service exports is around 63%.

Sri Lanka's Export Performance in December 2023

Sri Lanka’s merchandise exports decreased by 11.25% to US$ 947.5 Million in December 2023 compared to December 2022 as per the provisional data released by the Sri Lanka Customs. Also, it is a 5.16 % decrease when compared to the value recorded in November 2023.

However the exports of Apparel and Textile recorded the highest in the year in December 2023 showing a positive sign of regaining its momentum.

The Figure 1 shows the comparison of Monthly Merchandise Export Performance 2020 –2023.

Major Exports in December 2023

Products & Services with Positive Growth (Increases)

Export earnings from tea which made up 12% of merchandise exports, increased by 3.57 % y-o-y to US$ 111.12 Mn in December 2023 compared to December 2022. This increase is mainly due to the strong performance in the export of Tea packets & Tea bags, increased by 10.95% and 142.37% respectively in December 2023 compared to December 2022.

In addition, Export earnings from Rubber and Rubber Finished products have increased by 6.92 % y-o-y to US$ 79.62 Mn in December 2023, with the strong performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (18.43 %).

On monthly analysis, export earnings of Coconut based products increased by 2.02 % in December 2023 compared to December 2022. Moreover, export earnings of Coconut kernel products and Coconut shell products increased by 9.07 % and 3.53 % respectively in December 2023 compared to December 2022.

Export earnings from Coconut Oil, Coconut Cream and Liquid Coconut Milk which are categorized under the Coconut kernel products increased by 9.17 %, 41.38 % and 22.27 % respectively in December 2023 compared to December 2022.

Earnings from Activated Carbon, which is categorized under the Coconut shell products increased by 4.6 % to US$ 11.5 Mn in December 2023 compared to December 2022.

Export earnings from Spices and Essential Oils increased by 0.1 % to US$ 31.42 Mn in the month of December 2023 compared to month of December 2022. This increase was mainly driven by a significant increase in the export of Cinnamon by 13.75 %.

Export earnings from Seafood increased by 11.64 % to US$ 23.79 Mn in December 2023 compared to December 2022. This increase was mainly due to the strong performance in export of Fresh fish (74.58 %) and Shrimps (49.74 %).

Furthermore, the estimated value of ICT exports is expected to increase by 33.3 % to US$ 112.9 Mn in December 2023 when compared to December 2022. Also, the value of Transport & Logistics services exports is expected to increase by 107.4 % in December 2023 compared to the corresponding period in the previous year.

Products with Negative Growth (Decreases)

Export earnings from Apparel & Textile have decreased by 8.64 % y-o-y to US$ 438.78 Million in December 2023 compared to December 2022.

In addition, export earnings from the Electrical & Electronics Components decreased by 18.56 % y-o-y to US$ 34.97 Mn in December 2023 with poor performance in exports of Insulated Wires and Cables (-17.43%), Electrical Transformers (-34.75 %) and Other Electrical & Electronic products (-22.63%).

Export earnings of Coconut fiber-based products decreased by 14.65% in December 2023 compared to December 2022. Being the largest contributor to Coconut based sector, Coco Peat, Fiber Pith & Moulded products which are categorized under the Coconut fibre products, decreased by 14.94 % to US$ 8.48 Mn in December 2023 in comparison to December 2022.

Export earnings from Food & Beverages have decreased by 16.16 % y-o-y to US$ 29.21 Million in December 2023, with the negative performance in exports of Animal feed (-49.16 %).

Moreover, export earnings from Ornamental fish decreased by 4.69 % to US$ 2.03 Mn in December 2023 compared to December 2022.

Exports during the period of January – December 2023

Cumulative merchandise exports during the period of January to December 2023, decreased by 9.54 % to US$ 11,856.3 Million compared to the corresponding period in 2022.

Products & Services with Positive Growth (Increases)

Earnings from export of Tea, Spices & Concentrates, Electronics & Electronic Components and Food & Beverages increased by 4.06 %, 7.42 %, 0.62 % and 0.37 % respectively during the period of January – December 2023 compared, in comparison to the corresponding period of 2022.

Earnings from export of Tea increased y-o-y by 4.06 % to US$ 1,390.9 Mn in the period of January to December 2023. This increase was mainly due to the strong performance in export of Tea packets (10.95 %).

In addition, export earnings from Spices and Essential Oils increased y-o-y by 7.42 % to US$ 397.78 Mn in the period of January to December 2023. This increase was due to the strong performance in exports of Pepper (18.65 %), Cloves (116.01 %) and Nutmeg & Mace (14.01 %).

Meanwhile earnings from export of Electrical and Electronic Components (EEC) increased by 0.62 % to US$ 486.66 Mn in the period of January to December 2023 compared to the corresponding period of 2022. This increase was due to the strong performance in exports of Printed Circuits (52.37 %), Switches, Boards & Panels (3.78 %) and Boilers/ Piston Engines/ Pumps & Vacuum Pumps (639.88 %) in the period of January to December 2023 compared to the corresponding period of 2022.

The estimated value of ICT exports is expected to increase by 13.2 % to US$ 1,259.6 Mn in the period of January to December of 2023 compared to the corresponding period in 2022. In addition, Construction, and Transport & Logistics services exports are forecasted to increase in the period of January to December 2023 compared with the corresponding period of 2022.

Products with Negative Growth (Decreases)

Earnings from export of Apparel & Textile have decreased by 18.02 % to US$ 4,864.53 Mn during the period of January to December 2023 compared to the same period in 2022. Further, earnings from export of Apparel declined by 19.01 % and export of Textiles declined by 5.9 % in January to December 2023.

In addition, export earnings from Rubber & Rubber finished products decreased by 8.66 % to US$ 930.24 Mn in January – December 2023 compared to the same period in 2022 attributed to declined exports of Industrial & Surgical Gloves of Rubber (-23.67 %) and Pneumatic & Retreated Rubber Tyres & Tubes (-1.1 %).

Export earnings of Coconut & Coconut based products decreased by 13.27 % to US$ 708.7 Mn during January – December 2023 compared to the last year. Earnings from all the major categories of Coconut based products decreased in the period of January – December 2023 compared with the corresponding period of 2022 due to the poor performance in export of Coconut Oil (-10.93 %), Desiccated Coconut (-21.74 %), Coconut Milk Powder (-4.11 %), Coconut Cream (-1.72 %), Liquid Coconut Milk (-1.90 %), Cocopeat (-14.82 %) and Activated Carbon (-15.5 %).

Further, export earnings from Seafood decreased by 2.52 % to US$ 262.24 Mn during the period of January to December 2023 compared to year 2022 due to the poor performance in Frozen Fish (-4.74 %), Shrimps (-21.58 %) and Crabs (-21.22 %).

Table 1 shows the comparison of Merchandise export performance in December 2023 and January to December 2023 in comparison to the corresponding period in 2022.

Sri Lanka’s Export Performance in Major Markets

Among the top 10 export markets of Sri Lanka, France has shown a strong performance in both the month of December 2023 as well as the period of January to December 2023 compared to the corresponding period in 2022. Furthermore, UAE and Italy have shown significant performance during the same period.

United States of America remained a key export destination for Sri Lanka, absorbing 23% of Sri Lanka’s merchandise exports in 2023. Exports to United States of America, Sri Lanka’s single largest export destination, decreased by 0.96 % to US$ 253.74 Mn in December 2023 compared to November 2022. Further, exports to United States of America decreased by 16.91 % to US$ 2,758.57 Mn during the period of January to December 2023 compared to the same period in 2022.

Table 2 shows the comparison of Merchandise export performance of top 15 export markets in November 2023 and January to December 2023 compared to corresponding period in 2022.

Exports to FTA Partners (India & Pakistan)

December 2023

In December 2023, exports to India & Pakistan constituted 6.5% of the total merchandise exports, experienced a notable 19.19 % decrease to reach US$ 57.94 Mn, compared to December 2022. Further, exports to India and Pakistan recorded a decrease of 17.35 % and 36.85 %, respectively, during the month of December 2023 compared to December 2022.

The negative performance of India was driven by lower exports of Animal feed (-43.99%) and Petroleum oil (-76.92%), while Pakistan's negative performance was led by decreased exports of betel leaves.

January - December 2023

Exports to India & Pakistan accounted for 7.2% of total merchandise exports decreased by 3.21 % to US$ 904.39 Mn during the period of January to December 2023 compared to the corresponding period of previous year.

Exports to India and Pakistan decreased by 2.95 % and 6.06 % respectively during the period of January to December 2023 when compared with the corresponding period in 2022.

The negative export performance of India was driven by lower export of Animal feed (12.92 %), while Pakistan's negative performance was led by decreased export of Sheet rubber and Other article of stones.

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region wise exports during the month of December 2023 and during the period of January to December 2023 compared to 2023.

Exports to the European Union (EU) which accounts for 24% of Sri Lanka’s exports during the month of December 2023 decreased by 5.52 % y-o-y to US$ 226.05 Mn. Further, exports to the European Union (EU) decreased by 10.75 % y-o-y to US$ 2,711.93 Mn during the period of January to December 2023 compared to the corresponding period of previous year.

Exports to the top five EU markets were recoded as; Italy US$ 679.05 Mn (increased by 6.07 %), Germany US$ 587.4 Mn (decreased by 21.11 %), Netherlands US$ 343.47 Mn (decreased by 19.8 %), France US$ 304.95 Mn. (increased by 18.42 %) and Belgium US$ 221.45 Mn (decreased by 28.03 %) during the year 2023 in comparison to 2022.

Export of Services

The estimated value of services exports for the period of January to December 2023 was US$ 3,080.9 Mn, increasing 63.1 % over the corresponding period in 2022. The services exports estimated by EDB consists of ICT/BPM, Construction, Financial services and Transport & Logistics.