Sri Lanka’s merchandise exports decreased by 8.06 % to US$ 1,005.2 Million in February 2023 compared to February 2022 as per the data released by the Sri Lanka Customs. However, it is a 5.62% increase when compared to February 2021.
Sources: Central Bank of Sri Lanka, Sri Lanka Customs
Major Exports in February 2023
Export earnings from tea which made up 12% of merchandise exports, increased by 9.14% y-o-y to US$ 204.13 Mn in February 2023 compared to February 2022. Earnings from export of Tea packets (21.24%) and Instant Tea (27.52%) increased in February 2023 compared to February 2022. However, earnings from export of Bulk Tea (-15.33%) and Tea Bags (-27.03%) decreased in February 2023.
In addition, export earnings from the Electrical & Electronics Components increased by 13.72% y-o-y to US$ 43.01 Mn in February 2023 with strong performance in exports of Other Electrical & Electronic Products (22.12%).
Moreover, export earnings from Spices and Essential Oils increased by 27.0% to US$ 34.48 Mn in the month of February 2023 compared to month of February 2022 with strong performance in Cinnamon (20.16%) and Cloves (412.82 %). Despite the increase recorded in the sector, earnings from Pepper & Essential Oils decreased by 37.90% and 43.41% respectively in February 2023 compared to February 2022.
However, export earnings from Apparel & Textile have decreased by 2.32 % y-o-y to $ 483.35 million in February 2023 compared to February 2022. Although earnings from exports of Apparel decreased by 14.75%, earnings from export of Textiles increased by 146.67% in February 2023 compared to February 2022.
Also, export earnings from Rubber and Rubber Finished products have decreased by 17.81 % y-o-y to US$ 76.58 million in February 2022, with negative performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (-6.10%) and Industrial & surgical gloves (-45.38%).
On monthly analysis, export earnings of kernel products and fiber products categorized under the Coconut based decreased by 14.65% and 37.63% respectively in February 2023 compared to February 2022. However, earnings from Coconut shell products increased by 28.67% in February 2023 compared to February 2022.
Export earnings from Liquid Coconut Milk which is categorised under the Coconut kernel products decreased by 16.68% to US$ 8.69 Mn in February 2023 compared to February 2022.
Being the largest contributor to Coconut based sector, Coco Peat, Fiber Pith & Moulded products which are categorized under the Coconut fibre products, decreased by 35.87% to US$ 10.55 Mn in February 2023 in comparison to February 2022.
Earnings from Activated Carbon, which is categorised under the Coconut shell products increased by 2.18% to US$ 10.76 Mn in February 2023 compared to February 2022.
Export earnings from Seafood decreased by 5.57% to US$ 19.99 Mn in February 2023 compared to February 2022. This decrease was mainly due to the decline in earnings from export of Frozen fish (-3.72%), Fresh fish (-7.42%) and Shrimps (-38.34%).
However, export earnings from Ornamental fish increased by 37.93% to US$ 2.0 Mn in February 2023 compared to February 2022.
Major Exports during the period of January -February 2023
For the period of January to February 2023, merchandise exports decreased by 9.68 % to US$ 1,983.42 Million compared to the corresponding period of 2021.
Export earnings of Apparel & Textiles, Rubber-based products and Coconut based products decreased by 2.32%, 17.81% and 19.74% respectively during the period of January - February 2023 compared with the corresponding period of 2022.
However, earnings from Spices and Concentrates, Electronics & Electronic Components, Food & Beverages and Seafood increased by 27%, 13.72%, 17.22% and 5.57% respectively during the period of January - February 2023 compared with the corresponding period of 2022.
Apparel & Textile exports decreased by 10.18% to US$ 946.46 Mn during the period of January to February 2023 compared to the same period of 2022, export of Apparel down by 16.82% while export of Textiles expanded by 74.16% in January to February 2023.
Export earnings from Tea increased by 6.27% to US$ 204.13 Mn during the period of January to February 2023 compared with the corresponding period of 2022. Exports of all the sub categories of tea sector except Bulk Tea and Tea Bags; Tea packets (14.74%), Instant Tea (42.78%) and Green Tea (21.82%) increased during the period of January to February 2023 compared with the same period of 2022.
Export earnings from Rubber & Rubber finished products decreased by 15.44 % to US$ 152.45 Mn in January - February 2022 compared with the same period of 2021 attributed to lower exports of Pneumatic & Retreated Rubber Tyres & Tubes (-5.22%) and export of Industrial & Surgical Gloves of Rubber (-35.92%).
For the period of January to February 2023, export earnings from Coconut & Coconut based products decreased by 24.58% to US$ 102.72 Mn from the same period last year. Earnings from all the major categories of Coconut based products decreased in the period of January – February 2023 compared with the corresponding period of 2021 due to the poor performance in export of Liquid Coconut Milk, Coconut cream, Coconut Milk Powder, Cocopeat, Activated Carbon, Coconut Oil and Desiccated Coconut.
Meanwhile earnings from export of Electrical and Electronic Components (EEC) increased by 10.19 % to US$ 81.29 Mn in the period of January to February 2023 compared to the corresponding period of 2022.
Earnings from export of Switches, Boards & Panels and Other Electrical & Electronic Products increased by 37.31%, and 19.03 % respectively during the period of January to February 2023 compared with the corresponding period of previous year.
Export earnings from Seafood decreased by 1.84% to US$ 140.71 Mn in the period of January to February 2023 compared to year 2022 due to the poor performance in all the sub categories; Frozen Fish (-7.5%) and Prawns (-44.03%).
Sri Lanka’s Export Performance in Major Markets
Out of top 15 export markets, Italy, Canada, UAE and Bangladesh were recorded positive performance in February 2023.
During the period of January to February 2023, only UAE has recorded a positive performance compared to the corresponding period of previous year.
Exports to United States of America, Sri Lanka’s single largest export destination, decreased by 20.94 % to US$ 231.06 Mn in February 2023 compared to February 2022. In addition, exports to United States of America decreased by 17.31 % to US$ 485.83 Mn in the period of January to February 2023 compared to January to February 2022.
Exports to FTA Partners
During the month of February 2023, exports to Free Trade Agreement (FTA) partners accounted for 6.5 % of total merchandise exports decreased by 52.01 % to US$ 128.08 Mn.
However, exports to Pakistan increased due to the higher exports of Other Textile Articles in February 2023 compared to February 2022.
In addition, poor performance recorded in India led by lower exports of Pepper.
Moreover, exports to Free Trade Agreement (FTA) partners accounted for 7.2% of total merchandise exports increased by 23.11 % to US$ 202.6 Mn during the period of January to February 2023 compared with the corresponding period of previous year.
Although Exports to Pakistan increased by 303.08 % y-o-y to US$ 62.88 Mn, exports to India decreased by 6.21% to US$ 139.72 Mn during the period of January to February 2023 compared with the corresponding period of 2022.
Increased Exports to Pakistan is mainly supported by exports of Other Textile Articles.
Sri Lanka’s Export Performance in Regions
Following table shows the comparison of region wise exports during the month of February 2023 and the period of January to February 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 February 2023 decreased by 14.48% y-o-y to US$ 417.71 Mn. In addition, exports to the European Union (EU) decreased by 17.31% y-o-y to US$ 485.83 Mn during the period of January to February 2023 compared to the corresponding period of previous year.
During the period of January to February 2023, breakdown of exports to the top five EU markets which accounted for 80% of Sri Lanka’s total exports to the EU were; Germany US$ 98.61 Mn (decreased by 18.44%), Italy US$ 100.28 Mn (decreased by 2.56%), Netherlands US$ 54.1 Mn (decreased by 24.6%), Belgium US$ 37.36 Mn (decreased by 21.28%) and France US$ 35.22 Mn. (decreased by 18.15%).
Policy & Strategic Planning Division - 20.03.2023
