Sri Lanka’s merchandise exports earn USD 1Bn in February 2022

Sri Lanka’s Export Performance in February 2022

Sri Lanka’s merchandise exports increased by 9.91% to US$ 1,046 Million in February 2022 compared to February 2021 as per the data released by the Sri Lanka Customs. Further, it is a 5.8% increase when compared to February 2020.

Export Development Board (EDB) Chairman Suresh D de Mel said; “Sri Lanka’s Merchandize Exports maintained the above $ 1 billion mark continuously from the beginning of this year, recording an increase of 9.91% to US$ 1.05 billion in February 2022 compared to last year. This was also the nineth consecutive month of having over $1 Billion revenue. We hope the same trend will continue”

Monthly Merchandize Export Performance, 2020- February 2022 in Millions of US$

Sources: Central Bank of Sri Lanka, Sri Lanka Customs & Sri Lanka Export Development Board

Major Exports in February 2022

Export earnings from Apparel & Textile have increased by 12.04 % y-o-y to $ 494.82 million in February 2022 with strong performance in exports of Apparel (11.87%) and Woven Fabrics (31.04%). On a year-on-year basis, exports Made-Up Textile Articles declined by 0.26% in February 2022 in comparison to February 2021.

Export earnings from tea in February 2022 which made up 12% of merchandise exports, decreased by 10.38% y-o-y to US$ 100.86 Mn. Export of tea packets & bulk tea decreased by 17.22% & 2.7% respectively in February 2022 compared to February 2021.

Export earnings from Rubber and Rubber Finished products have increased by 11.31 % y-o-y to $ 93.17 million in February 2022, with positive performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (21.22%) and Gaskets, Washers, Seals etc. of Hard Rubber (9.51%). However, export of Industrial & Surgical Gloves decreased by 7.55% y-o-y to US$ 27.19 Mn in February 2022.

On monthly analysis, export earnings of kernel products, fiber products and shell products categorized under the Coconut based increased by 10.72%, 15.47% and 11.71% respectively in February 2022 compared to February 2021.

Year-on- year, export earnings from Desiccated Coconut, Coconut Milk powder, Coconut cream and Liquid Coconut Milk categorized under the Coconut Kernel Products increased by 17.75%, 1.24%, 17.52%, and 16.28% respectively in February 2022.

Being the largest contributor to Coconut based sector, Coco Peat, Fiber Pith & Moulded products which are categorized under the Coconut fibre products, increased by 13.6% to US$ 16.45 Mn in February 2022 in comparison to February 2021. Earnings from Activated Carbon, which is categorised under the Coconut shell products increased by 13.71% to US$ 10.53 Mn in February 2022 compared to February 2021.

Export earnings from the Electrical & Electronics Components increased by 16.92% y-o-y to US$ 37.73 Mn in February 2022 with strong performance in exports of Insulated wires & cables (24.45%), Switches, Boards & Panels (13.28%) and Electrical Transformers (34.38%).

Export earnings from Seafood increased by 50.57% to US$ 21.17 Mn in February 2022 compared to February 2021. This increase was mainly due to the increase in earnings from export of Frozen fish (48.25%), Fish Fresh fish (158.02%) and Shrimps (33.61%).

Further, export earnings from Ornamental fish increased by 40.78% to US$ 1.45 Mn in February 2022 compared to February 2021.

However, export earnings from Spices and Essential Oils decreased by 18.59% to US$ 27.15 Mn in the month of February 2022 compared to month of February 2021 due to the poor performance in Cinnamon (-9.73%) and cloves (-63.41%). Despite the decline in the sector, earnings from pepper increased by 16.6% in February 2022 compared to February 2021.

Major Exports during the period of January -February 2022

For the period of January to February 2022, merchandise exports increased by 11.66 % to US$ 2,108.65 Million compared to the corresponding period of 2021. Major product sectors except Tea & Spices and Concentrates; Apparel & Textiles, Rubber-based products, Coconut based products, Electronics & Electronic Components, Food & Beverages, Seafood and Ornamental fish as shown in the table below, recorded increased exports.

Apparel & Textile exports increased by 19.96% to US$ 1,009.23 Mn during the period of January to February 2022 compared to the same period of 2021, export of apparel and woven fabrics expanded by 17.88% and 40.9% while exports of Made-Up Textile Articles and Yarn and other Textile Articles were down by 14.87% and 9.63%, respectively.

Export earnings from Tea decreased by 10.04% to US$ 192.09 Mn during the period of January to February 2022 compared with the corresponding period of 2021. Exports of all the sub categories of tea sector except Tea Bags; Tea packets (8.6%), Bulk Tea (11.44%,), Instant Tea (20.7%) and Green Tea (24.66%) decreased during the period of January to February 2022 compared with the same period of 2021.

Export earnings from Rubber & Rubber finished products increased by 7.41 % to US$ 180.28 Mn in January – February 2022 compared with the same period of 2021 attributed to higher exports of Pneumatic & Retreated Rubber Tyres & Tubes (12.55%).

For the period of January to February 2022, export earnings from Coconut & Coconut based products expanded by 18.87% to US$ 136.2 Mn from the same period last year. Earnings from all the major categories of Coconut based products increased in the period of January – February 2022 compared with the corresponding period of 2021 due to the improved performance in export of Liquid Coconut Milk, Coconut cream, Coconut Milk Powder, Cocopeat, Mattress Fiber, & Activated Carbon, Coconut Oil and Desiccated Coconut.

Meanwhile earnings from export of Electrical and Electronic Components (EEC) increased by 14.78 % to US$ 73.6 Mn in the period of January to February 2022 compared to the corresponding period of 2021. Export of Insulated wires increased by 31.29 % in during the period of January to February 2022 to US$ 14.81 Mn compared with the corresponding period of previous year. In addition, export of Electrical Transformers, Switches, Boards & Panels and Other Electrical & Electronic Products increased by 50%, 12.72% and 1.22 % respectively during the period of January to February 2022 compared with the corresponding period of previous year.

Export earnings from Seafood increased by 46.17% to US$ 45.27 Mn in the period of January to February 2022 compared to year 2021 due to the better performance in all the sub categories; Frozen Fish (51.42%), Fresh Fish (135.44%) and Prawns (33.2%).

Table 1: Merchandise Export Performance

Values in US$ Mns

Sri Lanka’s Export Performance in Major Markets

Strong export performance was recorded for the major export markets which accounted for 65% of total merchandise exports during the period of January to February 2022 and the month of February 2022. Eight markets out of top 10 markets were recorded positive performance except Belgium & China.

During the month of February 2022, exports to United States of America, Sri Lanka’s single largest export destination, increased by 22.66% to US$ 295.25 Mn compared to the month of February 2021. The better performance led by increase in exports of Apparel & Textile (19.22%) and Rubber based Products (Pneumatic & Retreated Rubber Tyres & Tubes & Industrial & surgical gloves) (36.12%)

Exports to United Kingdom as the second largest trading partner recorded an increase of 2.32 % to US$ 81.72 Mn in February 2022 compared to February 2021. This performance has resulted in the increased Exports recorded in Apparel & Textile and Rubber based Products.

Table 2: Top 10 Export Destinations

Values in US$ Mns

Exports to FTA Partners

In February 2022, exports to Free Trade Agreement (FTA) partners accounted for 7.2% of total merchandise exports increased by 23.4 % to US$ 84.26 Mn.

Although Exports to India increased by 27.52% y-o-y to US$ 77.25 Mn in February 2022, exports to Pakistan decreased by 8.96% y-o-y to US$ 7.01 Mn.  Increased Exports to India is mainly supported by increased exports of Animal Feed (30%), Pepper (14.74%), Woven fabrics (27.64%) and Apparel (14.93%) in February 2022.

Sri Lanka’s Export Performance in Regions

On a region wise comparison exports to all regions except CIS countries increased during the period of January to February 2022 and the month of February 2022 compared to February 2021.

Table 3: Export Regions

Values in US$ Mns

Exports to the European Union (EU) which comprised 20% of Sri Lanka’s exports during the month of February 2022 increased by 4.83 % y-o-y to US$ 241.68 Mn.

Breakdown of exports to the top five EU markets which accounted for 80% of Sri Lanka’s total exports to the EU were; Germany US$ 60.7 Mn (increased by 2.46 %), Italy US$ 53.21 Mn (increased by 19.84%), Netherlands US$ 33.06 Mn (increased by 9.47 %), Belgium US$ 22.68 Mn (decreased by 21.82%) and France US$ 19.52 Mn. (increased by 14.96%).

Export of Services

The estimated value of services exports for the month of February 2022 was 290 Million dollars, increasing 31.66 % over the corresponding month of 2021. The services exports estimated by EDB consists of ICT/BPM, Construction, Financial services and Transport & Logistics.

The post Sri Lanka’s merchandise exports earn USD 1Bn in February 2022 appeared first on Adaderana Biz English | Sri Lanka Business News.