Merchandise exports up by 4.18% to USD 1.16 Bn in Aug.

Sri Lanka’s merchandise export performance in August 2024 recorded an increase of 4.18 % to US$ 1,165.4 million, compared to the month of August 2023, as per the provisional data released by the Sri Lanka Customs.

This was mainly due to the increase in earnings from export of apparel & textiles, tea, rubber based products and Coconut based products and spices and concentrates. Furthermore, export performance in August 2024 increased by 3.1 % compared to July 2024. The estimated value of services exports for the month of August 2024 was US$ 318.77 million, increasing 6.49 % over the corresponding period of 2023.

Consequently, total exports for August 2024, including both merchandise and services, were recorded at US$ 1,483.13 million, increasing 4.67 % over the corresponding period of 2023. Export earnings from tea, which made up 12% of merchandise exports, increased by 9.11 % y-o-y to US$ 130.54 Mn in August 2024. This increase is mainly due to the positive performance in the export of Bulk Tea (5.78%) and Tea packets (11.43%). Additionally, Tea exports to Iraq and Iran markets increased by 13.35 % and 114.41 % respectively.

Export earnings from Rubber and Rubber finished products have increased by 29.48 % yoy to US$ 103.79 Mn in August 2024.On monthly analysis, export earnings of Coconut based products increased by38.3 % in August 2024. In addition, export of Activated Carbon, which is categorized under Coconut shell products, increased by 27.93 % to US$ 13.74 Mn in August 2024. Export earnings from Spices and Concentrates increased by 8.55 % to US$ 52.04 Mn in the month of August 2024 mainly due to the strong performance in export of Pepper (31.56%).

Furthermore, the estimated value of ICT exports is expected to increase by 35.76 % to US$ 146.26 Mn in August 2024. In addition, the estimated value of Logistics and transport services is expected to increase by 7.01 % to US$ 146.37 Mn respectively in August 2024.

During the first eight months of 2024, cumulative merchandise exports increased by 5.37% to US$ 8,440.02 million compared to the same period in 2023. The estimated value of services exports is expected to increase by 7.58% to US$ 2,246.77 Mn during the first eight months of 2024 when compared to the corresponding period of 2023.

Consequently, total exports for the first eight months of 2024, including both merchandise and services, were recorded at US$ 10,686.79 million, an 5.82 % increase over the same period of 2023. Earnings from export of apparel, tea, rubber products, coconut products and spices & concentrates increased by 1.28 %, 8.26 %, 11.52 %, 20.85 % and 3.56% respectively during the first eight months of 2024.

Earnings from export of Tea increased y-o-y by 8.26 % to US$ 942.26 Mn in the period of January to August 2024. In addition, export earnings from rubber & rubber finished products increased by 11.52 % to US$ 679.43 Mn in January – August 2024. Export earnings of Coconut & Coconut based products increased by 20.85% to US$ 563.99 Mn during January – August 2024. In addition, export earnings from Spices and Concentrates increased by 3.56 % to US$ 274.08 Mn from January to August 2024.

Export earnings from Food & Beverages have increased by 8.2 % y-o-y to US$ 315.69 Million in from January to August 2024. Furthermore, the estimated value of ICT exports is expected to increase by 17.04% to US$ 947.46 Mn during the period of January to August 2024. Meanwhile, earnings from export of Electrical and Electronic Components (EEC) decreased by 16.42 % to US$ 282.37 Mn.

Among Sri Lanka’s top 10 export markets, USA, UK, India, Germany, Netherlands, Canada and China markets showed positive growth in August 2024. In August 2024, exports to India and Pakistan accounted for 8.4 % of total merchandise exports, experiencing a modest increase of 0.13 % to US$ 93.32 Mn compared to August 2023. Specifically, exports to India increased by 4.57 %.

The positive performance of India was driven by higher exports of pepper and animal feed. Exports to India and Pakistan increased by 0.27% and 0.46% respectively during January to August 2024.

The positive export performance of India was driven by higher export of pepper (84.72 %).