Sri Lanka’s exports have surpassed the $ 1 billion mark in July after six months’ time period where a similar achievement was only recorded in January this year.
Export Development Board (EDB) Chairman Prabhash Subhasinghe said, “We have witnessed a phenomenal increase in exports in July 2020 with a new record for the year. Sri Lanka’s strategic location, its reliable manufacturing and export base and proactive and rapid action by the Sri Lankan Government to control Covid 19 have fulfilled our global customer’s needs. This is the reason for our remarkable recovery in exports, compared to when the crisis hit us. However, we need to be cautiously optimistic as we move towards year end due to the possible resurgence of Covid 19 in the US and European markets.”
As per the Customs statistics, earnings from merchandise exports recorded a double digit growth rate of 11.31% in July 2020 to US$ 1,090 million compared to July 2019. Moreover, earnings from merchandise exports in July 2020 increased by 20.3 % compared with the value recorded in June 2020.
This strong performance is consistent with the gradual lifting of restrictions due to Covid 19 pandemic within the country and globally. Increases in exports were recorded as; Europe Region (21.17%), South Asia (11.47%) and Middle East (8.91%) in July 2020 compared to July 2019.
Being the largest single export destination, the United States of America has absorbed US$ 256.09 million worth of exports in July 2020 recording a 5.67% increase in comparison to US$ 242.36 million absorbed in June 2020 to June 2019. The expansion was mainly due to higher demand for tea from Turkey and Russia.
Earnings from all the major categories of Coconut based products increased in July 2020 compared with July 2019 and a notable performance in export of Coconut Oil, Cocopeat and Activated Carbon.
In addition, export earnings from rubber and rubber finished products have increased by 8.78% y-o-y to US$ 85.08 million in July 2020 with strong performance in exports of gaskets, washers, seals etc of hard rubber. Export earnings from spices and essential oils have increased significantly in July 2020 compared with June 2019 with significant increase in cinnamon (63.6%) & pepper (46.3%). Further export earnings from Spices and Essential Oils were increased by 30 % in July 2020 in comparison to June 2020. Meanwhile, export earnings from electrical & electronic products (-1.47%), seafood (-9.42%) recorded a decline during the month of July 2020 compared with July 2019.
Earnings from exports of apparel & textiles and rubber & rubber-based products grew significantly during the month of July 2020 owing to higher demand for personal protective equipment (PPE).
PPE related exports have recorded US$ 115.1 Mn in July 2020.
Export earnings from Apparel & Textiles increased by16.16 % to US$ 467.04 Mn during the month of July 2020 compared with US$ 402.04 Mn recorded in June 2020.
Total export earning for January to July 2020 was US$ 5,452.53 Mn compared to US $ 6,909.12 Mn recorded in a similar period of the previous year – a decline of 21.08 %. However the gap created due to covid in April 2020 is further decreased.
Major Exports such as Apparel & Textiles (US$ 2403.70 Mn), Tea (US$ 702.59Mn) and Coconut & Coconut Based Products (US$ 356.39Mn) and Rubber & Rubber based products (US$ 434.25Mn) recorded a decrease of 25.49%, 11.76%, 18.88% and 3.77% respectively during Jan-July 2020.
The export sectors that show a positive growth at disaggregate level includes export of Gaskets, Washers, Seals etc. of Hard Rubber, Coconut cream, Coconut Milk, Coconut Vinegar, Coconut Shell Charcoal, Mattress Fiber, Pineapples, Arecanuts, Tamarind, Ginger, Essential oils, lemons, Sweat Potatoes and Lentils etc.
The top five export destinations during the period Jan-July 2020 were United States of America (US$ 1,403.54 Mn), United Kingdom (US$ 461.7 Mn) India (US$ 339.4 Mn), Germany (US$ 312.6 Mn) and Italy (US$ 233.5 Mn). In addition, Exports to EU Region recorded an increase of 21.67% to US$ 356.64 Mn in July 2020 compared with July 2019. Meanwhile, exports to the United Kingdom as the largest trading partner in the EU Region recorded an increase of 18.66 % to US$ 100.1 Mn in July 2020 compared with July 2019. Further, exports to Germany, Italy, Belgium, Netherlands, Canada, China, Japan and Turkey have also shown better performance during this period. The services exports estimated by EDB which includes ICT/BPM, Construction, Financial services, Transport & Logistics and Wellness Tourism show exports of US $ 2,044.6 Mn for the period.