Export Development Board (EDB) Chairman Prabhash Subasinghe says June data confirmed that exports are bouncing back after initially impacted by the COVID-19 pandemic.
EDB said earnings from merchandise exports rebounded in June to $ 906.02 million as per the Customs statistics, with the export sector progressively commencing actions following the relaxation of lockdown measures and the recovery of both domestic and global supply and demand chains to some extent. “The bounce is certainly back in exports, which has now become the breadwinner for Sri Lanka’s favourable trade balance,” Subasinghe said. “Exports have become a national priority, now more than ever, it is certainly impressive to see a strong V-shaped recovery in the export sector. Compared to the lowest point in April, exports are up 327%.
I thank the entire export community for serving the national economic needs at our most vulnerable time, and we at the EDB stand ready to serve our export community,” he added.
Export earnings from Merchandise in June increased by 50.4% compared with the value recorded in May. However, in comparison to June 2019, earnings from merchandise exports declined by 16.42%.
Export earnings from Apparel and Textiles increased 83.72% to $ 402.04 million during the month of June compared with $ 218.83 million recorded in May. However, a 20.22% decline was recorded in June in comparison to June 2019.
Export earnings from tea increased as both values (6.14%) and volumes (4.52%) increased in June compared with May. In addition, export earnings from tea recorded a 1.55% increase in June in comparison to June 2019.
Earnings from all the major categories of coconut-based products increased in June compared with June 2019 due to the improved performance in export of coconut oil, cocopeat and activated carbon.
In addition, export earnings from Rubber and Rubber finished products increased by 34.58% to $ 68.89 million during the month of June compared with May. With the poor performance recorded in tyre sector, export of Rubber and Rubber-Finished Products decreased by 14.74% during the month of June compared with the same month in the previous year.
Export earnings from Spices and Essential Oils increased significantly in June compared with May as the growth in cinnamon (81.7%), pepper (84.78%), nutmeg and mace (106.67%), and essential oils (22.75%). In parallel export earnings from Spices and Essential Oils increased by 29.96% in June in comparison to June 2019.
Earnings from Seafood increased by 13.7% to $ 24.32 million in June in comparison to $ 21.39 million recorded in June 2019 and also increased by 110.93% in June compared with May 2019 due to the better performance of export of frozen fish.
Meanwhile, export earnings from Food and Beverages (-8.36%) and Electrical and Electronic Products (-6.28%) declined during the month of June compared with June 2019.
Moreover, led by a higher demand for personal protective equipment (PPE) such as face masks, protective suits, surgical gloves, etc., earnings from exports of Apparel and Textiles and Rubber and Rubber-Based Products grew significantly during the month of June. PPE related exports recorded $ 106.46 million in June.
When considering the disaggregated level, exports of rubber gloves (industrial and surgical), liquid coconut milk, cocopeat, made-up textile articles, areca nuts, coconut cream, cinnamon, pepper, essential oils, frozen fish, lentils and plastic gloves recorded positive growth rates, while other sectors such as Rubber Products (-14.74%), Food and Beverages (-8.36%), Electronics and Electronic Components (-6.28%) and Petroleum Products (-7.98%) recorded negative growth rates during the month of June compared with the month of June 2019.
Total export earning for January to June was $ 4,362.34 million compared to $ 5,929.74 million recorded in a similar period of the previous year – a decline of 26.43%. This is a 58% achievement of revised Merchandise Export Target of $ 7,521 million in.
Major Exports such as Apparel and Textiles ($ 1,936.66 million), Tea ($ 571.66 million), and Coconut and Coconut-Based Products ($ 281.59million), and Rubber and Rubber-Based Products ($ 349.17 million) recorded decreases of 29.64%, 16.54%, 10.33%, and 23.62%, respectively, during January-June compared to the similar period of previous year. Petroleum and other export crops recorded positive growth rates during the period.
The export sectors that shows a positive growth at disaggregate level includes export of natural rubber, industrial and surgical gloves, coconut cream, coconut milk, coconut vinegar, coconut shell charcoal, pineapples, areca nuts, tamarind, ginger, essential oils, lemons, sweat potatoes and lentils etc.
The top export destinations during the period January-June were United States of America ($ 1,147.5 million), United Kingdom ($ 361.6 million), India ($ 277.5 million), Germany ($ 250.3 million), and Italy ($ 183 million).
Being the largest single country export destination, United States of America absorbed $ 242.36 million worth of exports in June as 66.56% increase in comparison to $ 145.51 million absorbed in May. However, exports to United States of America decreased by 9.37% in June in comparison to June 2019.
In addition, exports to United Kingdom as the largest trading partner in the EU Region recorded an increase of 53.64% to $ 65.39 million in June compared with May. Meanwhile exports to UK decreased by 30.46% in June in comparison in June 2019.
However, Exports to Italy, France, and Russia showed better performance in comparison to June 2019 in June and May-June.
Exports to India, China, Germany, Belgium and Netherlands increased by 60%, 40%, 42.9%, 80% and 34%, respectively, in June compared with May while exports in June decreased by 15.3%, 20.29%, 12.72%, 15.6% and 10.8%, respectively, in comparison in June 2019.
The EDB estimated services exports, including ICT/BPM, Construction, Financial Services, Transport and Logistics, and Wellness Tourism, at a level of $ 1,780.5 million during the period of January-June compared to $ 2,026.58 million recorded in the corresponding period of previous year. However, estimated service exports declined by 12.14% during the period of January-June compared with the corresponding period of the previous year.
Compared to the overall performance of Merchandise exports, the exports of services performed well during the period of January-June.
(FT)