Earnings from exports grew by 2.8 per cent (year-on-year) to US dollars 6,998 million during the first seven months of 2019 as a result of higher earnings from exports of textiles and garments of 8.5% of the country’s total revenue,
Other exports with considerable earnings are rubber products (2.9%), coconut (14.5%) and transport equipment (38.9%).
Import expenditure at US dollars 11,312 million during the first seven months of 2019 decreased by 14.3 per cent (year-on-year) largely due to lower imports of gold (-99.6%), personal vehicles (-55.8%), rice (-93.1%) and fuel (-2.3%).
As a result, the deficit in the trade account contracted to US dollars 4,314 million during the first seven months of 2019 from US dollars 6,391 million in the corresponding period of 2018.
The export unit value index decreased marginally by 0.5 per cent (year-on-year) in July 2019 mainly due to lower prices registered in agricultural and mineral exports.
The import unit value index in July 2019 decreased by 4.3 per cent (year-on-year) due to lower prices recorded in imports of intermediate goods.
Accordingly, the terms of trade improved by 3.9 per cent (year on-year) to 111.3 index points in July 2019.
The average price of tea (in the Colombo auction) decreased to US dollars 2.83 per kg in July 2019 from US dollars 3.36 per kg in July 2018.
The import price of sugar increased by 4.8 per cent in July 2019 (year-on-year) while import prices of rice, wheat and crude oil declined.
(LI)