The Export Development Board (EDB) is cautiously optimistic in moving towards the last quarter, with plans to revise the $ 10.75 billion export target upwards.
“We are cautiously optimistic about the yearend results,” EDB Chairman Prabhash Subasinghe told the Daily FT.
He pointed out that products originating from Sri Lanka gained ‘supply chain credibility’ among global customers, as competitive export markets were severely disrupted due to the COVID-19 pandemic.
Proving the country’s resilience and rebound amidst the COVID-19 impact, merchandise exports in July have crossed the $ 1 billion mark, an achievement last enjoyed in January this year. Sri Lanka witnessed a continuous pick up in exports as against $ 587 million in May and $ 906 million in June. Soon after the pandemic erupted exports in April fell to $ 277.4 million.
“In July, almost all sectors recorded a positive growth,” he said.
Subasinghe was bullish about the food and agriculture exports and expressed confidence that these sectors would help Sri Lanka achieve the $10.5 billion target set for the year.
“We might reassess the revised $ 10.75 billion export target upwards following the steady ‘v shape’ recovery after considering August performance,” he said.
In April, EDB revised its 2020 exports forecast by a hefty 42% to $ 10.75 billion. Originally the EDB set a target of $18.5 billion for 2020, up from $ 16.14 billion achieved in 2019.
Pointing out that there was a correlation between the control over COVID-19 and economic revival, he expressed concerns over any possible resurgence of COVID-19 in the US and European markets.
Sri Lanka’s single largest export market is the US, which accounted for 27% of total merchandise exports last year, while Europe accounted for 30%.
In that context, the EDB Chief commended the Government’s early and strict measures implemented to control the spread of COVID-19 in Sri Lanka as well as for the continued focus, support and strength extended to the export sector.
Subasinghe also said that the EDB was looking at initiating specialised new schemes to support the export community.
“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 customers’ needs. This is the reason for our remarkable recovery in exports, compared to when the crisis hit us.”
(FT)