Sri Lanka’s merchandise exports decreased by 16.15 % to US$ 814.1 Million in April 2023 compared to April 2022. Moreover, it is a 0.5 % decrease when compared to April 2021.
Declining trend in merchandise exports further continues due to the negative trends shown in major export products. i.e., Apparel & Textiles, Rubber & Rubber based products and Coconut & Coconut based products.
The Figure 1 shows the comparison of Monthly Merchandise Export Performance 2020- April 2023.
Sources: Central Bank of Sri Lanka, Sri Lanka Customs
Major Exports in April 2023
a) Products & Services with Positive Growth (Increases)
Export earnings from tea which made up 12% of merchandise exports, increased by 16.1 % y-o-y to US$ 93.39 Mn in April 2023 compared to April 2022. Earnings from export of Tea packets increased by 29.1 % to US$ 47.82 Mn.
In addition, export earnings from the Electrical & Electronics Components increased by 16.14 % y-o-y to US$ 40.01 Mn in April 2023 with strong performance in exports of Insulated wire (30.43%) and Other Electrical & Electronic Products (18.74 %).
Export earnings from Seafood increased by 17.1 % to US$ 24.76 Mn in April 2023 compared to April 2022. This increase was mainly due to the strong performance in export of Frozen fish (21.04 %), Fresh fish (47.9 %) and Shrimps (0.34%).
Moreover, export earnings from Ornamental fish increased by 105.83 % to US$ 2.12 Mn in April 2023 compared to April 2022.
Despite the decrease recorded in the Spices & Concentrates sector, earnings from export of Cinnamon increased by 8.41 % in in April 2023 in comparison to April 2022.
The value of ICT exports is estimated to increase by 34.95 % to US$ 529 Mn in April 2023 compared to April 2022. In addition, value of Construction and Financial services exports are estimated to increase by 15.71 % and 3.75 % respectively in April 2023 compared with April 2022.
b) Products & Services with Negative Growth (Decreases)
Export earnings from Apparel & Textile have decreased by 23.1 % y-o-y to US$ 342.81 Million in April 2023 compared to April 2022.
In addition, Export earnings from Rubber and Rubber Finished products have decreased by 22.28 % y-o-y to US$ 55.4 Mn in April 2023, with poor performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (22.09 %) and Industrial & surgical gloves decreased by (24.32 %).
On monthly analysis, export earnings of kernel products ( -31.71 %), fiber products ( -16.18 %) and shell products ( -30.4 %) categorized under the Coconut based products decreased in April 2023 compared to April 2022 due to the poor performance in export of Liquid Coconut Milk (-22.53 %), Coconut Oil (-36.98 %), Desiccated Coconut (-47.17 %), Coco Peat, Fiber Pith & Moulded products (-14.30 % ) and Activated Carbon (- 29.18 % ).
Export earnings from Spices and Essential Oils decreased by 2.04 % to US$ 21.08 Mn in the month of April 2023 compared to month of April 2022. Export earnings from pepper decreased by 41.65% to US$ 2.41 Mn in April 2023 compared to April 2022.
The value of Transport & Logistics exports is estimated to decrease by 9.17 % to US$ 40.25 Mn in April 2023 compared to April 2022.
Major Exports during the period of January - April 2023
For the period of January to April 2023, overall merchandise exports decreased by 9.78 % to US$ 3,811.83 Million compared to the corresponding period of 2022.
a) Products & Services with Positive Growth (Increases)
Earnings from export of Tea, Spices and Concentrates and Electronics & Electronic Components increased by 11.02 %, 14.48 % and 13.68 % respectively during the period of January - April 2023 compared with the corresponding period of 2022.
Earnings from export of Tea increased by 11.02 % to US$ 407.66 Mn was due to the increase of all the sub categories of tea sector except Bulk Tea and Tea Bags (Tea packets (22.41 %), Instant Tea (55.66 %) and Green Tea (20.0%))
Meanwhile earnings from export of Electrical and Electronic Components (EEC) increased by 13.68 % to US$ 166.81 Mn in the period of January to April 2023 compared to the corresponding period of 2022.
Earnings from export of Switches, Boards & Panels and Other Electrical & Electronic Products increased by 36.01 %, and 20.37 % respectively.
Further, export earnings from Seafood increased by 2.87 % to US$ 21.95 Mn during the period of January to April 2023 compared to year 2022 due to the good performance in all the sub categories; Frozen Fish (21.04 %) and Fresh fish (47.9%).
The value of ICT exports is estimated to increase by 34.95 % to US$ 529 Mn in the first four months of 2023 compared to the corresponding period of 2022. In addition, Construction and Financial services exports are estimated to increase by 15.71 % and 3.75 % respectively in the period of January to April 2023 compared with the corresponding period of 2022.
b) Products & Services with Negative Growth (Decreases)
Earnings from export of Apparel & Textile decreased by 15.94 % to US$ 1,612.24 Mn during the period of January to April 2023 compared to the same period of 2022. Export of Apparel declined by 17.02 % and export of Textiles declined by 3.01 % in January to April 2023.
In addition, export earnings from Rubber & Rubber finished products decreased by 11.42 % to US$ 299.02 Mn in January - April 2023 compared with the same period of 2022 attributed to lower exports of Industrial & Surgical Gloves of Rubber (-26.14%) and Pneumatic & Retreated Rubber Tyres & Tubes (-3.48%).
For the period of January to April 2023, export earnings from Coconut & Coconut based products decreased by 23.35 % to US$ 214.19 Mn from the same period last year. Earnings from all the major categories of Coconut based products decreased in the period of January – April 2023 compared with the corresponding period of 2022 due to the poor performance in export of Liquid Coconut Milk (-21.03 %), Coconut cream (-36.43 %), Coconut Milk Powder (-22.07 %), Cocopeat (-2623.39 %), Activated Carbon (-12.55 %), Coconut Oil (-22.66 %) and Desiccated Coconut (-41.38 %).
The value of Transport & Logistics exports is estimated to decrease by 31.87 % to US$ 161.0 Mn in the first four months 2023 compared to corresponding period of 2022.
Table 1 shows the comparison of Merchandise export performance in April 2023 and January to April 2023 compared to corresponding periods of previous year.
Sri Lanka’s Export Performance in Major Markets
Out of top 10 export markets, only the UAE market has shown a positive performance both in the month of April 2023 and during the period of January to April 2023.
Further, Italy market has shown a positive performance during the period of January to April 2023 compared to the corresponding period of previous year.
Exports to United States of America, Sri Lanka’s single largest export destination, decreased by 22.42 % to US$ 193.20 Mn in April 2023 compared to April 2022. Further, exports to United States of America decreased by 16.65 % to US$ 914.90 Mn in the period of January to April 2023 compared to the same period in 2022.
Table 2 shows the comparison of Merchandise export performance of top 15 export markets in April 2023 and January to April 2023 compared to corresponding periods of previous year.
Exports to FTA Partners
a) April 2023
Exports to Free Trade Agreement (FTA) partners accounted for 6.5 % of total merchandise exports has decreased by 1.86 % to US$ 63.38 Mn in April 2023 compared to April 2022.
Exports to India and Pakistan decreased by 0.99 % and 11.94 % respectively in April 2023 compared to April 2022.
Poor performance recorded in India led by decreased exports of Animal feed (-2.71%), Pepper (-44.6 %) and Arecanuts (-32.82 %) and poor performance recorded in Pakistan led by decreased exports of Coconut.
b) Jan - April 2023
Exports to Free Trade Agreement (FTA) partners accounted for 7.2% of total merchandise exports decreased by 7.57 % to US$ 287.06 Mn during the period of January to April 2023 compared with the corresponding period of previous year.
Exports to India and Pakistan decreased by 5.32 % and 30.15 % respectively during the period of January to April 2023 when compared with the corresponding period of 2022.
Decreased exports to India led by poor export performance of Pepper (-45.78 %) and decreased exports to Pakistan led by export of sheet rubber and Desiccated Coconut.
Sri Lanka’s Export Performance in Regions
Table 3 shows the comparison of region wise exports during the month of March 2023 and the period of January to April 2023 compared to corresponding period of previous year.
Exports to the European Union (EU) which comprised 21% of Sri Lanka’s exports during the month of April 2023 decreased by 21.94 % y-o-y to US$ 180.24 Mn. Further, exports to the European Union (EU) decreased by 12.74 % y-o-y to US$ 835.07 Mn during the period of January to April 2023 compared to the corresponding period of previous year.
During the period of January to April 2023, breakdown of exports to the top five EU markets which accounted for 78 % of Sri Lanka’s total exports to the EU were; Germany US$ 193.72 Mn (decreased by 21.68 %), Italy US$ 197.35 Mn (increased by 2.56 %), Netherlands US$ 106.2 Mn (decreased by 18.48 %), Belgium US$ 72.65 Mn (decreased by 23.55 %) and France US$ 79.82 Mn. (decreased by 4.68 %).
Export of Services
The estimated value of services exports for the period of January to April 2023 was US$ 723.68 Million, increasing 9.56 % over the corresponding period of 2022. The services exports estimated by EDB consists of ICT/BPM, Construction, Financial services and Transport & Logistics.
Policy & Strategic Planning Division - 26.05.2023
