Sri Lanka’s June 2024 Exports Hit $1.03 Billion, Boosted by Apparel and Tea

As per the provisional data released by the Sri Lanka Customs, the merchandise export performance in June 2024 amounted to US$ 1,031.2 million, recorded an increase of 2.58% compared to the month of June 2023. This was mainly due to the increase in earnings from export of Apparel & Textiles, Tea, Rubber based products, Coconut based products, Food & Beverages and Spices & Concentrates.

Furthermore, export performance in June 2024 increased by 1.97 % compared to May 2024.

Figure I shows Monthly Merchandise export performance from the year 2021 to June 2024.

The estimated value of services exports for the month of June 2024 was US$ 323.13 Million, increasing 39.05 % over the corresponding period of 2023.

Consequently, total exports for June 2024, including both merchandise and services, were recorded at US$ 1,354.32 million, increasing 9.42% over the corresponding period of 2023.

Figure 1: Monthly Merchandise Export Performance 2021-June 2024

Sources: CBSL, Sri Lanka Customs

Major Exports in June 2024

1. Products & Services with Positive Growth (Increases)

Export earnings from Apparel & Textile increased by 4.22 % y-o-y to US $ 446.54 Mn in June 2024 compared to June 2023. Additionally, exports of Apparel & Textile to USA increased by 13.28 % in June 2024 compared to June 2023.

Export earnings from tea, which made up 12% of merchandise exports, increased by 9.18 % y-o-y to US$ 121.76 Mn in June 2024 compared to June 2023. This increase is mainly due to the positive performance in the export of Bulk Tea (14.91%) and Tea packets (4.13%).

Additionally, Tea exports to Russia, UAE and Iran markets, increased by 28.65 %, 42.73 % and 131.36 % respectively.

Export earnings from Rubber and Rubber finished products have increased by 11.8 % y-o-y to US$ 82.63 Mn in June 2024, with the strong performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (3.78 %) and Industrial & Surgical Gloves of Rubber (28.2%).

On monthly analysis, export earnings of Coconut based products increased by 15.54 % in June 2024 compared to June 2023. Moreover, export earnings of Coconut kernel products and Coconut shell products increased by 30.91 % and 18.06 % respectively in June 2024 compared to June 2023.

Moreover, Export earnings from Coconut oil, Desiccated Coconut, Coconut milk powder, Coconut Cream and Liquid Coconut Milk which are categorized under the Coconut kernel products increased by 38.12%, 63.5%, 59.05 %, 42.03% and 9.51 % respectively in June 2024 compared to June 2023.

Export earnings from Spices and Essential Oils increased by 62.63 % to US$ 47.91 Mn in the month of June 2024 compared to month of June 2023 mainly due to the strong performance in export of Pepper. Pepper exports to India increased by 547 % in June 2024 compared to June 2023.

Export earnings from Food & Beverages have increased by 5.9 % y-o-y to US$ 36.96 Million in June 2024, with the positive performance in exports of Processed food (85.42%).

Export earnings from Seafood increased by 14.86 % to US$ 20.56 Mn in June 2024 compared to June 2023. This increase was mainly due to the positive performance in the export of frozen fish (22.91%) and fresh fish (69.59%).

In parallel, export earnings from Ornamental fish increased by 15.69 % to US$ 2.36 Mn in June 2024 compared to June 2023.

Furthermore, the estimated value of ICT exports is expected to increase by 28.25% to US$ 141.64 Mn in June 2024 when compared to June 2023. In addition, the estimated value of Constructions services exports and Logistics & transport services are expected to increase by 4.89 % and 52.96 % respectively in June 2024 when compared to June 2023.

1. Products & Services with Negative Growth (Decreases)

Export earnings from the Electrical & Electronics Components decreased by 19.69 % y-o-y to US$ 36.21 Mn in June 2024 with poor performance in exports Printed circuits (7.41%) and Other Electrical & Electronic products (-17.32 %).

Furthermore, export of Other Export crops and Flowers & Foliage decreased by 22.29 % and 45.83% in June 2023 compared with June 2024.

Exports during the period of January – June 2024

During the first half of 2024, cumulative merchandise exports increased by 3.87% to US$ 6,098.55 million compared to the same period in 2023.

The estimated value of services exports is expected to increase by 12.28 % to US$ 1,671.33 Mn during the first half of 2024 when compared to the corresponding period of 2023.

Consequently, total exports for the first half of 2024, including both merchandise and services, were recorded at US$ 7,769.88 Million, a 5.57 % increase over the same period of 2023.

1. Products & Services with Positive Growth (Increases)

Earnings from export of Tea, Rubber products, Coconut products and Food & Beverages increased by 8.10 %, 10.91 %, 18.02 % and 13.59 % respectively during the first half of 2024 in comparison to the corresponding period of 2023.

Earnings from export of Tea increased y-o-y by 8.1 % to US$ 687.01 Mn in the period of January to June 2024. This increase was mainly due to the strong performance in export of Bulk Tea (19.15 %).

In addition, export earnings from Rubber & Rubber finished products increased by 10.91 % to US$ 498.84 Mn in January – June 2024 compared to the same period in 2023 attributed to increased exports of Industrial & Surgical Gloves of Rubber (11.44 %) and Pneumatic & Retreated Rubber Tyres & Tubes (12.84 %).

Export earnings of Coconut & Coconut based products increased by 18.02% to US$ 400.6 Mn during January – June 2024 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January – June 2024 compared with the corresponding period of 2023 due to the strong performance in export of Coconut Oil (18.28%), Desiccated Coconut (38.87%), Coconut Milk Powder (41.84 %), Coconut Cream (42.09 %), Liquid Coconut Milk (22.72 %), Cocopeat (17.23 %) and Activated Carbon (12.82 %).

Export earnings from Food & Beverages have increased by 13.59 % y-o-y to US$ 237.95 Million in the period of January to June 2024, with the positive performance in exports of Processed food (62.33 %).

Furthermore, the estimated value of ICT exports is expected to increase by 14.99% to US$ 686.64 Mn during the period of January to June 2024 when compared to the corresponding period of 2023.

1. Products & Services with Negative Growth (Decreases)

Earnings from export of Apparel & Textile have decreased by 2.04 % to US$ 2,403.17 Mn during the period of January to June 2024 compared to the same period in 2023. Further, earnings from export of Apparel declined by 1.35 % and export of Textiles declined by 9.08 % in January to June 2024.

In addition, export earnings from Spices and Essential Oils decreased y-o-y by 10.24 % to US$ 160.85 Mn in the period of January to June 2024. This decrease mainly driven by the poor performance in exports of Cinnamon (-16.63%) and Cloves (-82.0 %). Clove exports to India decreased by nearly 100% and Cinnamon exports to Mexico decreased by 24.6% in the first six months of 2024 compared to the corresponding period of previous year.

Meanwhile earnings from export of Electrical and Electronic Components (EEC) decreased by 19.85 % to US$ 205.02 Mn in the period of January to June 2024 compared to the corresponding period of 2023. This decline was primarily driven by poor performance in exports of Transformers (-29.73%), Insulated wires (-9.05%) and Other Electrical & Electronic Products (-28.67 %).

Further, export earnings from Seafood decreased by 2.83 % to US$ 128.64 Mn during the period of January to June 2024 compared to year 2023 due to the poor performance in Frozen Fish (-7.39 %).

In parallel, export earnings from Ornamental fish decreased by 1.53 % to US$ 12.9 Mn in the first six months of 2024 compared to the same period of 2023.

Table 1 shows the comparison of Export performance during the month of June 2024 and the period of January to June 2024 compared to 2023.

Table 1: Comparison of Sector-wise Export Performance

Sri Lanka’s Export Performance in Major Markets

Among Sri Lanka's top 10 export markets, USA, UK, Netherlands, France, Canada and China markets showed positive growth in the month of June 2024 and the cumulative period from January to June 2024, compared to the corresponding periods in 2023.

Furthermore, United States of America, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, increased by 12.44 % to US$ 254.2 Mn in June 2024 compared to June 2023. In parallel, exports to United States of America in the cumulative period of January to June 2024 increased by 0.36 % to US$ 1,371.76 Mn compared to the corresponding periods in 2023.

Exports to the United Kingdom increased by 3.25 % to US$ 74.88 Mn in June 2024 compared to the corresponding month in 2023. Meanwhile, exports to the United Kingdom increased by 6.54 % to US$ 452.61 Mn in cumulative period of January to June 2024 compared to the corresponding period in 2023.

Table 2 shows the comparison of Merchandise export performance of top 15 export markets during the month of June 2024 and the period of January to June 2024 compared to 2023.

Table 2: Comparison of Merchandise Export Performance of Top 15 Export Destinations

Exports to FTA Partners (India & Pakistan)

1. June 2024

In June 2024, exports to India and Pakistan accounted for 8.4 % of total merchandise exports, experiencing a notable increase of 29.52 % to US$ 95.0 Mn compared to June 2023. Specifically, exports to India and Pakistan increased by 30.92 % and 14.6 % respectively in June 2024 compared to June 2023.

The positive performance of India was driven by higher exports of Pepper and Pakistan's positive performance was led by increased exports of Other Base Metal Products.

1. January – June 2024

Exports to India & Pakistan accounted for 6.8 % of total merchandise exports decreased by 2.04 % to US$ 437.36 Mn during the period of January to June 2024 compared to the corresponding period of previous year.

Exports to India decreased by 3.15 % during the period of January to June 2024 when compared with the corresponding period in 2023 while exports to Pakistan increased by 11.51 % y-o-y in the same period.

The negative export performance of India was driven by lower export of Animal feed (-14.83 %), while Pakistan's positive performance was led by increased exports of Desiccated coconut and Other Textile Articles.

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region wise exports during the month of June 2024 and the period of January to June 2024 compared to 2023.

Exports to the European Union (EU) which accounts for 24% of Sri Lanka’s exports, decreased by 5.28 % y-o-y in June 2024. However, exports to EU increased by 0.02 % during the cumulative period of January to June 2024.

Exports to the top five EU markets were recorded as; Germany US$ 307.71 Mn (increased by 2.76 %), Italy US$ 297.63 Mn (decreased by 7.63 %), Netherlands US$ 181.01 Mn (increased by 6.75 %), France US$ 130.46 Mn. (increased 2.55 %) and Belgium US$ 110.83 Mn (decreased by 0.71 %) during the cumulative period of January to June 2024 in comparison to the corresponding period in 2023.