Sri Lanka’s Merchandise Exports expected to surpass USD12 billion by the end of 2021

* Sri Lanka’s Merchandise Exports expected to surpass USD12 billion by the end of 2021

Thu, Dec 23, 2021, 10:20 am SL Time, ColomboPage News Desk, Sri Lanka.

Dec 23, Colombo: Sri Lanka’s merchandise exports increased by 55.11% to US$ 1,215.6 Million in November 2021 compared to November 2020 as per the data released by the Sri Lanka Customs. Exports maintained above one billion dollars for the fifth consecutive month in November this year.

EDB Chairman & Chief Executive, Suresh D. de Mel said, Sri Lanka’s exports continued its remarkable achievement in November 2021, registering another USD one billion monthly revenue. “The growth in exports was not only due to the effective prevention and control of the pandemic in Sri Lanka, but the commitment of exporter community to support the national economy by bringing in the much-needed foreign currency. I commend the exporters for their resilience and commitment at this time.”

Major Exports in November 2021

Export earnings from Apparel & Textile have increased by 52.8 % y-o-y to $ 496.4 million in November 2021 with strong performance in exports of Apparel (61.9%) and Woven Fabrics (95.9%). On a year-on-year basis, exports Made-Up Textile Articles and Yarn & other Textile Articles declined by 40.2% and 26.5% respectively in November 2021 in comparison to November 2020.

Export earnings from Rubber and Rubber Finished products have increased by 46.9 % y-o-y to $ 102.2 million in November 2021, with strong performance in exports of industrial & surgical gloves (45.2%) and Pneumatic & Retreated Rubber Tires & Tubes (57.2%).

Export earnings from kernel products, fiber products and shell products categorized under the Coconut based products increased by 45.5%, 30.5% and 42.9% respectively in November 2021 compared to November 2020.

Year-on- year, export earnings from Coconut Oil, Desiccated Coconut, Coconut Milk powder, Coconut cream and Liquid Coconut Milk categorized under the Coconut Kernel Products increased by 37.24%, 72.78%, 52.07%, 79.5% and 19.41% respectively in November 2021.

Being the largest contributor to Coconut based sector, Coco Peat, Fiber Pith & Moulded products which are categorized under the Coconut fiber products, increased by 42.4% to US$ 16.7 million in November 2021 in comparison to November 2020. Earnings from Activated Carbon, which is categorized under the Coconut shell products recorded US$ 13.84 million in November 2021 compared to November 2020.

Export earnings from the Electrical & Electronics Components increased by 43.53% y-o-y to US$ 36.47 million in November 2021 with strong performance in exports of Insulated wires & cables (5.89%), Switches, Boards & Panels (31.37%) and Electronic Transformers (156.71%).

Export earnings from Seafood increased by 233.43% to US$ 34.91 million in November 2021 compared to November 2020. This increase was mainly due to the increase in earnings from export of frozen fish, Shrimps and Prawns, Fish Fresh or Chilled and other edible fish.

Major Exports during the period of January – November 2021

For the period of January to November 2021, merchandise exports increased by 22.39 % to US$ 11,116.68 Million compared to the corresponding period of 2020, following increased exports of almost all the major product sectors; Apparel & Textiles, Tea, Rubber-based products, Coconut based products, Electronics & Electronic Components, Spices and Concentrates, Food & Beverages, Seafood and Ornamental fish as shown in the table below.

Earnings from export of Apparel & Textile increased by 23.5% to US% 4,884.86 million during the period of January to November 2021 compared to the same period of 2020, export of apparel and woven fabrics expanded by 26.66% and 101.86% while exports of Made-Up Textile Articles and Yarn and other Textile Articles were down by 45.69% and 9.15%, respectively.

Export earnings from Tea increased by 7.6% to US$ 1,213.75 million during the period of January to November 2021 compared with the corresponding period of 2020. Exports of all the sub categories of tea sector; Tea packets, Bulk Tea, Tea bags, Instant Tea and Green Tea increased by 11.28%, 3.19%, 83.33%, 19.74% and 27.76% respectively during the period of January to November 2021 compared with the same period of 2020.

In parallel, export earnings from Rubber & Rubber finished products increased by 35.62 % to US$ 999.1 million in January – November 2021 compared with the same period of 2020 attributed to higher exports of Industrial & Surgical Gloves of Rubber (53.31%) and Pneumatic & Retreated Rubber Tires & Tubes (40.41%).

For the period of January to November 2021, export earnings from Coconut & Coconut based products expanded by 25.77% to US$ 766.81 million from the same period last year. Earnings from all the major categories of Coconut based products increased in the period of January – November 2021 compared with the corresponding period of 2020 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 31.6 % to US$ 384.5 million in the period of January to November 2021 compared to the corresponding period of 2020. Export of Insulated wires increased by 45.35 % in during the period of January to November 2021 to US$ 64.4 million compared with the corresponding period of previous year. In addition, export of Electrical Transformers, Switches, Boards & Panels and Other Electrical & Electronic Products increased by 65.0%, 34.9% and 26.9 % respectively during the period of January to November 2021 compared with the corresponding period of previous year.

Export earnings from Spices and Essential Oils increased by 36.6% to US$ 412.9 million in the period of January to November 2021 compared to year 2020 due to the better performance in all the sub categories; Cinnamon (11.8%), pepper (139.5%), cloves (149.7%), nutmeg & mace (10.6) and Oleoresins (73.3%), etc.

Table 1: Merchandise Export Performance

Sri Lanka’s Export Performance in Major Markets

Strong export performance were recorded for the 10 major export markets, which accounted for 63% of total merchandise exports during the period January to November 2021.

During the period of January to November 2021, exports to United States of America, Sri Lanka’s single largest export destination, increased by 22.1 % to US$ 2,768.67 million compared to the same period of 2020. The better performance led by increase in exports of Apparel & Textile, Rubber based Products (Pneumatic & Retreated Rubber Tyres & Tubes, Industrial & Surgical Gloves of Rubber), Motor Vehicles Parts, Activated Carbon, Tea Packets and Cinnamon.

Exports to United Kingdom as the second largest trading partner recorded an increase of 1.17 % to US$ 852.66 million during the period of January to November 2021 compared with the corresponding period of previous year. This performance has resulted in the increased Exports recorded in Apparel & Textile, Rubber based Products sectors (Pneumatic & Retreated Rubber Tyres & Tubes, Industrial & Surgical Gloves of Rubber) and Other Electrical & Electronic Products.

Table 2: Top 10 Export Destinations

Exports to FTA Partners

During the period of January to November 2021, exports to Free Trade Agreement (FTA) partners accounted for 7.2% of total merchandise exports increased by 31.51% to US$ 807.75 million.

Moreover, Exports to India and Pakistan increased by 32.64% and 22.36% y-o-y to US$ 724.89 million and US$ 82.86 million respectively during the period of January to November 20212021. Increased Exports to India is mainly supported by increased exports of Animal Feed (22.15%), Pepper (170.65%), Woven fabrics 162.32%) and Bicycles Not Motorized (269.81%) in the period of January to November 2021.

In addition, better performance recorded in Pakistan led by Sheet Rubber, Desiccated Coconut, Other Articles of Stones, Woven Fabrics and Perfumes, Cosmetics, Shampoos & Makeup Preparations.

Sri Lanka’s Export Performance in Regions

On a region wise comparison exports to all other regions increased except CIS regions during the period of January to November 2021 compared with the corresponding period of the previous year.

Table 3: Export Regions

Exports to the European Union (EU) which comprised 24% of Sri Lanka’s exports during the period of January to November 2021 increased by 31.46 % y-o-y to US$ 2,680.78 million.

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$ 678.54 million (increased by 30.72%), Italy US$ 533.3 million (increased by 31.09%), Netherlands US$ 388.95 million (increased by 53.68 %), Belgium US$ 302.46 million (increased by 14.53%) and France US$ 225.97 million. (increased by 36.61%).

Export of Services

The estimated value of services exports for the period of January to November 2021 was 2,710.92 Million dollars, increasing 27.6 % over the corresponding period of 2020. The services exports estimated by EDB consists of ICT/BPM, Construction, Financial services and Transport & Logistics.

Revised Export Target & Achievement

The revised export target of the Export Development Board for 2021 is US$ 15.72 billion and of that we expect US$ 12.14 billion from merchandise exports and US$ 3.58 billion from services exports. During the period January to November 2021, earnings from exports recorded US$ 13.8 billion including the estimated services data for July to November and 88 % achieved from the revised export target.

Further, earnings from Merchandise exports and services exports achieved 91.59 % and 75.64% respectively during the period of January to November 2021.

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