Sri Lanka’s Merchandise Exports Drop 11.88% in Sep 2023, Exports to US Plunge 26% and Apparel & Textile down by 24.6%

Sri Lanka’s merchandise exports decreased by 11.88 % to US$ 951.5 Million in September 2023 compared to September 2022 as per the provisional data released by the Sri Lanka Customs. Also, it is a 14.94% decrease when compared to the value recorded in August 2023.

The decline in merchandise exports is due to decreased demand for export products, particularly in sectors such as Apparel & Textiles, Rubber & Rubber-based products, and Coconut & Coconut-based products.

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

Major Exports in September 2023

• Products & Services with Positive Growth (Increases)

Export earnings from tea which made up 12% of merchandise exports, increased by 1.82 % y-o-y to US$ 119.96 Mn in September 2023 compared to September 2022. This expansion is mainly due to the strong performance in the export of tea packets, which increased by 15.81% to reach US$ 58.08 Mn in September 2023.

In addition, Export earnings from Rubber and Rubber Finished products have increased by 0.86 % y-o-y to US$ 82.89 Mn in September 2023, with the strong performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (13.77 %).

Export earnings from Food & Beverages have increased by 7.42 % y-o-y to US$ 30.54 Million in September 2023, with the strong performance in exports of Cereal products (37.68 %).

Export earnings from Seafood increased by 51.33 % to US$ 25.65 Mn in September 2023 compared to September 2022. This increase was mainly due to the strong performance in export of Frozen fish (51.96 %) and Fresh fish (125 %).

Moreover, export earnings from Ornamental fish increased by 47.09 % to US$ 2.53 Mn in September 2023 compared to September 2022.

Furthermore, the estimated value of ICT exports is expected to increase by 60.26 % to US$ 147.69 Mn in September 2023 when compared to September 2022. Also, the value of Transport & Logistics services exports is expected to increase by 113.60 % in September 2023 compared to the corresponding period in the previous year.

• Products & Services with Negative Growth (Decreases)

Export earnings from Apparel & Textile have decreased by 24.6 % y-o-y to US$ 361.82 Million in September 2023 compared to September 2022.

On monthly analysis, export earnings of Coconut based products decreased by 2.37 % in September 2023 compared to September 2022. Moreover, export earnings of Coconut fiber products and Coconut shell products decreased by 0.06 % and 26.45 % respectively in September 2023 compared to September 2022.

Earnings from Activated Carbon, which is categorized under the Coconut shell products decreased by 27.71 % to US$ 10.88 Mn in September 2023 compared to September 2022.

In addition, export earnings from the Electrical & Electronics Components decreased by 9.46 % y-o-y to US$ 38.87 Mn in September 2023 with poor performance in exports of Electrical Transformers (-20.95 %).

Export earnings from Spices and Essential Oils decreased by 6.93 % to US$ 47.94 Mn in the month of September 2023 compared to month of September 2022. This decrease was primarily driven by a significant decrease in the export of Cinnamon 28.32 %.

Exports during the period of January –September 2023

Cumulative merchandise exports during the period of January to September 2023, decreased by 10.31 % to US$ 8,961.62 Million compared to the corresponding period of 2022.

• Products & Services with Positive Growth (Increases)

Earnings from export of Tea, Spices and Concentrates, Gems & Jewellery and Electronics & Electronic Components increased by 5.67 %, 9.97 % 4.24 % and 6.27 % respectively during the period of January – September 2023 compared with the corresponding period of 2022.

Earnings from export of Tea increased y-o-y by 5.67 % to US$ 990.31 Mn in the period of January to September 2023. This increase was mainly due to the strong performance in export of Tea packets (13.96%).

In addition, export earnings from Spices and Essential Oils increased y-o-y by 9.97 % to US$ 302.68 Mn in the period of January to September 2023. This increase was due to the strong performance in exports of Pepper (23.16 %), Cloves (202.85 %) and Nutmeg & Mace (32.31 %).

Meanwhile earnings from export of Electrical and Electronic Components (EEC) increased by 6.27 % to US$ 376.69 Mn in the period of January to September 2023 compared to the corresponding period of 2022.  Under the EEC sector, earnings from export of Printed Circuits, Boilers/ Piston Engines/ Pumps & Vacuum Pumps and Other Electrical & Electronic Products increased by 54.46 %, 761.82 % and 7.60 % respectively in the period of January to September 2023 compared to the corresponding period of 2022.

The value of ICT exports is estimated to increase by 38.42 % to US$ 1,187.98 Mn in the first nine months of 2023 compared to the corresponding period of 2022. In addition, Construction, Financial and Transport & Logistics services exports are estimated to increase by 787.86 %, 66.53 % and 105.99 % respectively in the period of January to September 2023 compared with the corresponding period of 2022.

• Products & Services with Negative Growth (Decreases)

Earnings from export of Apparel & Textile decreased by 19.4 % to US$ 3,677.38 Mn during the period of January to September 2023 compared to the same period of 2022. Further, earnings from export of Apparel declined by 20.67 % and export of Textiles declined by 4.28 % in January to September 2023.

In addition, export earnings from Rubber & Rubber finished products decreased by 12.15 % to US$ 692.16 Mn in January – September 2023 compared with the same period of 2022 attributed to lower exports of Industrial & Surgical Gloves of Rubber (-26.29 %) and Pneumatic & Retreated Rubber Tyres & Tubes (-5.51 %).

For the period of January to September 2023, export earnings from Coconut & Coconut based products decreased by 16.85 % to US$ 530.99 Mn from the same period last year. Earnings from all the major categories of Coconut based products decreased in the period of January – September 2023 compared with the corresponding period of 2022 due to the poor performance in export of Coconut Oil (-18.55 %), Desiccated Coconut (-29.0 %), Coconut Milk Powder (-6.22 %), Coconut Cream (-13.68 %), Liquid Coconut Milk (-10.39 %), Cocopeat (-13.83 %) and Activated Carbon (-18.18 %).

Further, export earnings from Seafood decreased by 6.02 % to US$ 192.96 Mn during the period of January to September 2023 compared to year 2022 due to the poor performance in Frozen Fish (-5.25 %), Fresh fish (-1.63 %) and Shrimps (-34.7 %).

Table 1 shows the comparison of Merchandise export performance in September 2023 and January to September 2023 compared to corresponding periods of previous year.

Sri Lanka’s Export Performance in Major Markets

Among the top 10 export markets, India has shown a strong performance in both the month of September 2023 and the period of January to September 2023 when compared to the corresponding periods in the previous year. Furthermore, Italy, UAE and France have shown significant performance during the period of January to September 2023 compared to the corresponding period in the previous year.

Exports to United States of America, Sri Lanka’s single largest export destination, decreased 26.28 % to US$ 202.1 Mn in September 2023 compared to September 2022. Further, exports to United States of America decreased by 19.67 % to US$ 2,074.8 Mn in the period of January to September 2023 compared to the same period in 2022.

Table 2 shows the comparison of Merchandise export performance of top 15 export markets in September 2023 and January to September 2023 compared to corresponding periods of previous year.

Exports to FTA Partners

• September 2023

Exports to Free Trade Agreement (FTA) partners accounted for 6.5 % of total merchandise exports has increased by 12.73 % to US$ 87.22 Mn in September 2023 compared to September 2022.

Exports to India increased by 11.33 % and exports to Pakistan increased by 30.0 % in September 2023 compared to September 2022.

Strong performance recorded in India led by increased exports of Pepper (94.25%) and Arecanut (26.12 %) and better performance recorded in Pakistan led by increased exports of Sheet Rubber & Other Textile Articles.

• January – September 2023

Exports to Free Trade Agreement (FTA) partners accounted for 7.2% of total merchandise exports increased by 2.05 % to US$ 714.88 Mn during the period of January to September 2023 compared with the corresponding period of previous year.

Exports to India increased by 2.11% and exports to Pakistan increased by 1.32% during the period of January to September 2023 when compared with the corresponding period of 2022.

Increased exports to India led by good export performance of Cloves (442.46 %) and Other textile articles (76.74 %) and increased exports to Pakistan led by export of Other textile articles (87.56 %).

Sri Lanka’s Export Performance in Regions

Table 3 shows the comparison of region wise exports during the month of September 2023 and the period of January to September 2023 compared to corresponding period of previous year.

Exports to the European Union (EU) which comprised 21% of Sri Lanka’s exports during the month of September 2023 decreased by 12.93 % y-o-y to US$ 215.25 Mn. Further, exports to the European Union (EU) decreased by 10.81 % y-o-y to US$ 2.044.4 Mn during the period of January to September 2023 compared to the corresponding period of previous year.

During the period of January to September 2023, breakdown of exports to the top five EU markets which accounted for 78 % of Sri Lanka’s total exports to the EU were; Germany US$ 438.41 Mn (decreased by 22.81 %), Italy US$ 507.32 Mn (increased by 6.3 %), Netherlands US$ 246.44 Mn (decreased by 19.18 %), Belgium US$ 169.98 Mn (decreased by 29.24 %) and France US$ 248.33 Mn. (increased by 24.24 %).

Export of Services

The estimated value of services exports for the period of January to September 2023 was US$ 2,304.1 Mn, increasing 55.67 % over the corresponding period of 2022. The services exports estimated by EDB consists of ICT/BPM, Construction, Financial services and Transport & Logistics.

 

 

The post Sri Lanka’s Merchandise Exports Drop 11.88% in Sep 2023, Exports to US Plunge 26% and Apparel & Textile down by 24.6% appeared first on Adaderana Biz English | Sri Lanka Business News.