As per the provisional data released by the Sri Lanka Customs, the merchandise export performance in July 2024 amounted to US$ 1,087.6 million, recorded an increase of 6.58 % compared to the month of July 2023. This was mainly due to the increase in earnings from export of Apparel & Textiles, Tea, Coconut based products, Spices & Concentrates and Seafood.
Furthermore, export performance in July 2024 increased by 0.98 % compared to June 2024.
The estimated value of services exports for the month of July 2024 was US$ 293.26 Million, increasing 16.44 % over the corresponding period of 2023.
Consequently, total exports for July 2024, including both merchandise and services, were recorded at US$ 1,380.84 million, increasing 8.53% over the corresponding period of 2023.
Figure I shows Monthly Merchandise export performance from the year 2021 to July 2024.
Sources: Central Bank of Sri Lanka, Sri Lanka Customs
Major Exports in July 2024
a) Products & Services with Positive Growth (Increases)
Export earnings from Apparel & Textile increased by 3.8 % y-o-y to US $ 443.74 Mn in July 2024 compared to July 2023. Additionally, exports of Apparel & Textile to USA increased by 5.37 % in July 2024 compared to July 2023.
Export earnings from tea, which made up 12% of merchandise exports, increased by 8.25 % y-o-y to US$ 124.7 Mn in July 2024 compared to July 2023. This increase is mainly due to the positive performance in the export of Bulk Tea (4.23%) and Tea packets (7.39%).
Additionally, Tea exports to UAE, Saudi Arabia and Iran markets, increased by 38.26 %, 57.73 % and 80.51 % respectively.
On monthly analysis, export earnings of Coconut based products increased by 18.41% in July 2024 compared to July 2023. Moreover, export earnings of Coconut kernel products, Coconut fiber products and Coconut shell products increased by 21.49 %, 7.31% and 28.82 % respectively in July 2024 compared to July 2023.
Moreover, Export earnings from Coconut oil, Desiccated Coconut, Coconut milk powder, Coconut Cream and Liquid Coconut Milk which are categorized under the Coconut kernel products increased by 24.7%, 59.25%, 13.32 %, 31.42 % and 10.41 % respectively in July 2024 compared to July 2023.
Being the largest contributor to Coconut based sector, Coco Peat, Fiber Pith & Moulded products which are categorized under the Coconut fiber products, increased by 13.75 % to US$ 17.46 Mn in July 2024 in comparison to July 2023.
In addition, export of Activated Carbon, which is categorized under Coconut shell products, increased by 26.41 % to US$ 13.45 Mn in July 2024 in comparison to July 2023.
Export earnings from Spices and Concentrates increased by 63.07 % to US$ 61.2 Mn in the month of July 2024 compared to month of July 2023 mainly due to the strong performance in export of Pepper. Pepper exports to India increased by 127 % in July 2024 compared to July 2023.
Export earnings from Food & Beverages have increased by 2.29 % y-o-y to US$ 37.04 Million in July 2024, with the positive performance in exports of Processed food (30.69%).
Export earnings from Seafood increased by 27.71 % to US$ 22.03 Mn in July 2024 compared to July 2023. This increase was mainly due to the positive performance in the export of frozen fish (47.61%) and fresh fish (43.09%).
In parallel, export earnings from Ornamental fish increased by 7.78 % to US$ 1.94 Mn in July 2024 compared to July 2023.
Export earnings from Boat Building recorded US$ 12.22 Mn in July 2024.
Furthermore, the estimated value of ICT exports is expected to increase by 25.91% to US$ 124.96 Mn in July 2024 when compared to July 2023. In addition, the estimated value of Logistics & transport services is expected to increase by 11.16 % to US$ 140.74 Mn respectively in July 2024 when compared to July 2023.
b) Products & Services with Negative Growth (Decreases)
Export earnings from Rubber and Rubber finished products have decreased by 3.16 % y-o-y to US$ 76.8 Mn in July 2024, with the poor performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (-12.09 %).
Export earnings from the Electrical & Electronics Components decreased by 5.83 % y-o-y to US$ 38.44 Mn in July 2024 with poor performance in exports Electrical Transformers (-38.37%) and Switches, Boards & Panels (-31.6 %).
Furthermore, export of Other Export crops and Flowers & Foliage decreased by 59.98 % and 5.77 % in July 2023 compared with July 2024.
Exports during the period of January – July 2024
During the first seven months of 2024, cumulative merchandise exports increased by 4.94 % to US$ 7,231.94 million compared to the same period in 2023.
The estimated value of services exports is expected to increase by 9.52 % to US$ 1,907.56 Mn during the first seven months of 2024 when compared to the corresponding period of 2023.
Consequently, total exports for the first seven months of 2024, including both merchandise and services, were recorded at US$ 9,139.5 Million, an 5.86 % increase over the same period of 2023.
a) Products & Services with Positive Growth (Increases)
Earnings from export of Tea, Rubber products, Coconut products and Food & Beverages increased by 8.12 %, 8.8 %, 18.07 % and 11.92 % respectively during the first seven months of 2024 in comparison to the corresponding period of 2023.
Earnings from export of Tea increased y-o-y by 8.12 % to US$ 811.71 Mn in the period of January to July 2024. This increase was mainly due to the strong performance in export of Bulk Tea (16.67 %) & Tea Packets (1.97 %).
In addition, export earnings from Rubber & Rubber finished products increased by 8.8 % to US$ 575.65 Mn in January – July 2024 compared to the same period in 2023 attributed to increased exports of Industrial & Surgical Gloves of Rubber (12.81 %) and Pneumatic & Retreated Rubber Tyres & Tubes (9.07 %).
Export earnings of Coconut & Coconut based products increased by 18.07 % to US$ 475.58 Mn during January – July 2024 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January – July 2024 compared with the corresponding period of 2023 due to the strong performance in export of Coconut Oil (19.29 %), Desiccated Coconut (42.26 %), Coconut Milk Powder (36.63 %), Coconut Cream (40.22 %), Liquid Coconut Milk (20.86 %), Cocopeat (16.65 %) and Activated Carbon (14.69 %).
In addition, export earnings from Spices and Concentrates increased y-o-y by 2.45 % to US$ 222.03 Mn in the period of January to July 2024. This increase mainly driven by the strong performance in exports of Pepper (100.91 %). Pepper exports to India increased by above 100% in the first seven months of 2024 compared to the corresponding period of previous year.
Export earnings from Food & Beverages have increased by 11.92 % y-o-y to US$ 274.98 Million in the period of January to July 2024, with the positive performance in exports of Processed food (55.98 %).
Further, export earnings from Seafood increased by 0.7 % to US$ 150.68 Mn during the period of January to July 2024 compared to year 2023 due to the poor performance in Fresh Fish (22.32 %).
Furthermore, the estimated value of ICT exports is expected to increase by 11.95 % to US$ 779.76 Mn during the period of January to July 2024 when compared to the corresponding period of 2023.
b) Products & Services with Negative Growth (Decreases)
Earnings from export of Apparel & Textile have decreased by 1.17 % to US$ 2,846.9 Mn during the period of January to July 2024 compared to the same period in 2023. Further, earnings from export of Apparel declined by 0.67 % and export of Textiles declined by 6.4 % in January to July 2024.
Meanwhile earnings from export of Electrical and Electronic Components (EEC) decreased by 17.9 % to US$ 243.49 Mn in the period of January to July 2024 compared to the corresponding period of 2023. This decline was primarily driven by poor performance in exports of Transformers (-30.88 %), Insulated wires (-10.17 %) and Other Electrical & Electronic Products (-23.73 %).
Export earnings from Ornamental fish decreased by 0.34 % to US$ 14.84 Mn in the first seven months of 2024 compared to the same period of 2023.
Table 1 shows the comparison of Export performance during the month of July 2024 and the period of January to July 2024 compared to 2023.
Sri Lanka’s Export Performance in Major Markets
Among Sri Lanka's top 10 export markets, USA, UK, Germany, Netherlands, France, Canada and China markets showed positive growth in the month of July 2024 and the cumulative period from January to July 2024, compared to the corresponding periods in 2023.
Furthermore, United States of America, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, increased by 5.21 % to US$ 267.02 Mn in July 2024 compared to July 2023. In parallel, exports to United States of America in the cumulative period of January to July 2024 increased by 1.12 % to US$ 1,638.78 Mn compared to the corresponding periods in 2023.
Exports to the United Kingdom increased by 1.33 % to US$ 74.4 Mn in July 2024 compared to the corresponding month in 2023. Meanwhile, exports to the United Kingdom increased by 5.77 % to US$ 527.01 Mn in cumulative period of January to July 2024 compared to the corresponding period in 2023.
Table 2 shows the comparison of Merchandise export performance of top 15 export markets during the month of July 2024 and the period of January to July 2024 compared to 2023.
Exports to FTA Partners (India & Pakistan)
July 2024
In July 2024, exports to India and Pakistan accounted for 8.4 % of total merchandise exports, experiencing a notable increase of 12.26 % to US$ 98.77 Mn compared to July 2023. Specifically, exports to India increased by 13.31 % while exports to Pakistan decreased by 0.45 % in July 2024 compared to July 2023.
The positive performance of India was driven by higher exports of Pepper and Pakistan's negative performance was led by decreased exports of Betel leaves and Other Articles of Stones.
January – July 2024
Exports to India & Pakistan accounted for 6.8 % of total merchandise exports increased by 0.31 % to US$ 536.12 Mn during the period of January to July 2024 compared to the corresponding period of previous year.
Exports to India decreased by 0.44 % during the period of January to July 2024 when compared with the corresponding period in 2023 while exports to Pakistan increased by 9.54 % y-o-y in the same period.
The negative export performance of India was driven by lower export of Animal feed (-14.22 %), while Pakistan's positive performance was led by increased exports of Desiccated coconut and Other Textile Articles.
Sri Lanka’s Export Performance in Regions
Table 3 shows the comparison of region wise exports during the month of July 2024 and the period of January to July 2024 compared to 2023.
Exports to the European Union (EU) which accounts for 24% of Sri Lanka’s exports, decreased by 4.04 % y-o-y in July 2024. In parallel, exports to EU decreased by 0.58 % during the cumulative period of January to July 2024.
Exports to the top five EU markets were recorded as; Germany US$ 360.29 Mn (increased by 2.97 %), Italy US$ 337.89 Mn (decreased by 11.37 %), Netherlands US$ 214.87 Mn (increased by 9.01 %), France US$ 151.15 Mn. (decreased 0.72 %) and Belgium US$ 130.73 Mn (decreased by 1.34%) during the cumulative period of January to July 2024 in comparison to the corresponding period in 2023.
Policy & Strategic Planning Division - 22.08.2024
