The merchandise export performance in March 2024 amounted to US$ 1,138.9 million, recorded an increase of 9.77 % compared to March 2023. Furthermore, export performance in March 2024 increased by 7.51 % compared to the preceding month, February 2024. Figure 1 shows Monthly Merchandise export performance from the year 2021 to March 2024.
The value of services exports for the month of March 2024 was US$ 275.1 Million, increasing 8.39 % over the corresponding period of 2023.
Subsequently, total exports for the month of March 2024 was recorded as US$ 1.4 Billion including merchandize and services exports.
Sources: Central Bank of Sri Lanka, Sri Lanka Customs
Major Exports in March 2024
a) Products & Services with Positive Growth (Increases)
Export earnings from Apparel & Textile increased by 6.66 % y-o-y to US $ 443.9 Mn in March 2024 compared to March 2023.
Export earnings from tea which made up 12% of merchandise exports, increased by 13.35 % y-o-y to US$ 124.86 Mn in March 2024 compared to March 2023. This increase is mainly due to the strong performance in the export of Bulk Tea and Tea packets, increased by 23.31 % and 6.51% respectively.
Furthermore, volume of tea exports increased by 18.2 % in March 2024 compared to March 2023. Additionally, Tea exports to Iraq, UAE, Russia and Saudi Arabia markets, increased by 202.07 %, 102.46 % and 48.41% respectively..
Moreover, Export earnings from Rubber and Rubber Finished products have increased by 7.45 % y-o-y to US$ 97.98 Mn in March 2024, with the strong performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (7.41 %) and Industrial & Surgical Gloves of Rubber (12.18%). .
On monthly analysis, export earnings of Coconut based products increased by 32.2 % in March 2024 compared to March 2023. Moreover, export earnings of Coconut kernel products, Coconut fiber products and Coconut shell products increased by 41.87 %, 25.53 % and 21.06 % respectively in March 2024 compared to March 2023..
Export earnings from Desiccated Coconut, Coconut Milk powder, Coconut Cream and Liquid Coconut Milk which are categorized under the Coconut kernel products increased by 37.82 %, 87.36 %, 73.0 % and 36.21 % respectively in March 2024 compared to March 2023.
Being the largest contributor to Coconut based sector, Coco Peat, Fiber Pith & Moulded products which are categorized under the Coconut fibre products, increased by 36.95 % to US$ 19.2 Mn in March 2024 in comparison to March 2023.
Earnings from Activated Carbon, which is categorized under the Coconut shell products increased by 19.58 % to US$ 14.78 Mn in March 2024 compared to March 2023.
Export earnings from Food & Beverages have increased by 35.81 % y-o-y to US$ 49.45 Million in March 2024, with the positive performance in exports of Processed food (95.31 %).
In addition, exports of Transport & Logistics services increased by 35.67 % to US$ 144.9 Mn in March 2024 compared to March 2023.
b) Products & Services with Negative Growth (Decreases)
Export earnings from Spices and Essential Oils decreased by 47.5 % to US$ 17.1 Mn in the month of March 2024 compared to month of March 2023 mainly due to the poor performance in export of Cinnamon (-34.15%), Pepper (-78.4%) and Cloves (-85.82%). Clove exports to India decreased by nearly 100% in March 2024 compared to March 2023.
Export earnings from Seafood decreased by 21.35 % to US$ 20.22 Mn in March 2024 compared to March 2023.This decrease was mainly due to the poor performance in export of Frozen fish (-23.55 %).
In parallel, export earnings from Ornamental fish decreased by 19.75 % to US$ 1.91 Mn in March 2024 compared to March 2023.
Furthermore, the total export earnings from Diamonds, Gems & Jewellery decreased by 19.58 % y-o-y to US$ 24.85 million in March 2024. However, Diamonds (9.13 %) and Jewellery (16.28%) shown positive growth, while export earnings from Gems experienced substantial decrease by 58.23 % in March 2024.
Additionally, export earnings from the Electrical & Electronics Components decreased by 10.54 % y-o-y to US$ 40.74 Mn in March 2024 with poor performance in exports of Electrical Transformers (-16.6 %) and Other Electrical & Electronic products (-23.54 %).
Export earnings of Boat building recorded US$ 10.88 Mn in March 2024 compared to March 2023.
In addition, exports of ICT/ BPM, Construction and Financial services decreased by 3.32 %, 48.09% and 6.15 respectively in March 2024 compared to March 2023.
Exports during the period of January – March 2024
Cumulative merchandise exports during the period of January to March 2024, increased by 5.71 % to US$ 3,168.9 Million compared to the corresponding period in 2023.
The value of services exports for the period of January to March 2024 was US$ 788.7 Million, increasing 7.76 % over the corresponding period of 2023.
a) Products & Services with Positive Growth (Increases)
Earnings from export of Tea, Rubber products, Coconut products and Food & Beverages increased by 6.51 %, 10.18 %, 25.24 % and 26.05 % respectively during the period of January – March 2024 compared, in comparison to the corresponding period of 2023.
Earnings from export of Tea increased y-o-y by 12.89 % to US$ 354.78 Mn in the period of January to March 2024. This increase was mainly due to the strong performance in export of Bulk Tea (27.7 %) and Tea Packets (2.58 %).
In addition, export earnings from Rubber & Rubber finished products increased by 10.18 % to US$ 268.44 Mn in January – March 2024 compared to the same period in 2023 attributed to increased exports of Industrial & Surgical Gloves of Rubber (11.55 %) and Pneumatic & Retreated Rubber Tyres & Tubes (13.61 %).
Export earnings of Coconut & Coconut based products increased by 25.24 % to US$ 203.62 Mn during January – March 2024 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January – March 2024 compared with the corresponding period of 2023 due to the strong performance in export of Coconut Oil (23.04 %), Desiccated Coconut (25.23 %), Coconut Milk Powder (53.04 %), Coconut Cream (43.38 %), Liquid Coconut Milk (29.54 %), Cocopeat (30.86 %) and Activated Carbon (23.61 %).
Export earnings from Food & Beverages have increased by 26.05 % y-o-y to US$ 126.33 Million in the period of January to March 2024, with the positive performance in exports of Processed food (77.12 %).
In addition, exports of ICT/ BPM and Transport & Logistics services increased by 4.69 % and 14.06% respectively during January – March 2024 compared to the last year
b) Products & Services with Negative Growth (Decreases)
Earnings from export of Apparel & Textile have decreased by 1.9 % to US$ 1,245.34 Mn during the period of January to March 2024 compared to the same period in 2023. Further, earnings from export of Apparel declined by 1.05 % and export of Textiles declined by 10.66 % in January to March 2024.
In addition, export earnings from Spices and Essential Oils decreased y-o-y by 31.6 % to US$ 69.44 Mn in the period of January to March 2024. This decrease was due to the poor performance in exports of Cloves (88.69 %).
Meanwhile earnings from export of Electrical and Electronic Components (EEC) decreased by 15.51 % to US$ 107.14 Mn in the period of January to March 2024 compared to the corresponding period of 2023. This decrease was due to the poor performance in exports of Other Electrical & Electronic Products (30.08 %).
Further, export earnings from Seafood decreased by 4.1 % to US$ 63.9 Mn during the period of January to March 2024 compared to year 2023 due to the poor performance in Frozen Fish (-15.99 %).
In addition, exports of Construction and Financial services decreased by 6.87 % and 18.89% respectively during the period of January to March 2024 compared to the corresponding period of 2023.
Table 1 shows the comparison of Export performance during the month of March 2024 and the period of January to March 2024 compared to 2023.
Sri Lanka’s Export Performance in Major Markets
Among the top 10 export markets of Sri Lanka, UK, Germany, Netherlands, Canada and China have shown positive growth in both March 2024 and the cumulative period of January to March 2024 compared to the corresponding periods in 2023.
United States of America, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, increased by 2.39 % to US$ 241.5 Mn in March 2024 compared to March 2023. However, exports to America in the cumulative period of January to March 2024 decreased by 1.4 % to US$ 711.57 Mn compared to the corresponding periods in 2023.
Additionally, exports to the United Kingdom increased by 13.48 % to US$ 88.57 Mn in March 2024 compared to the corresponding month in 2023. Meanwhile, exports to the United Kingdom increased by 6.56 % to US$ 239.02 Mn in cumulative period of January to March 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 March 2024 and the period of January to March 2024 compared to 2023.
Exports to FTA Partners (India & Pakistan)
a) March 2024
In March 2024, exports to India & Pakistan constituted 6.5% of the total merchandise exports, experienced a notable 4.11 % increase to reach US$ 77.32 Mn, compared to March 2023. Further, exports to India recorded an increase of 1.41 % whereas exports to Pakistan increased by 38.38 % in March 2024 compared to March 2023.
The positive performance of India was driven by higher exports of Animal Feed and Petroleum oil, while Pakistan's positive performance was led by increased exports of Other Electrical & Electronic Products and Desiccated Coconut.
b) January – March 2024
Exports to India & Pakistan accounted for 7.2% of total merchandise exports decreased by 10.31% to US$ 200.63 Mn during the period of January to March 2024 compared to the corresponding period of previous year.
Exports to India decreased by 12.52 % during the period of January to March 2024 when compared with the corresponding period in 2023 while exports to Pakistan increased by 20.17% y-o-y in the same period.
The negative export performance of India was driven by lower export of Animal feed (-12.52 %), while Pakistan's negative performance was led by decreased export of Beetle leaves.
Sri Lanka’s Export Performance in Regions
Table 3 shows the comparison of region wise exports during the month of March 2024 and the period of January to March 2024 compared to 2023.
Exports to the European Union (EU) which accounts for 24% of Sri Lanka’s exports during both March 2024 and the cumulative period of January to March 2024 increased respectively by 4.79 % and 2.54 %.
Exports to the top five EU markets were recorded as; Germany US$ 163.94 Mn (increased by 6.34 %), Italy US$ 157.82 Mn (decreased by 0.39 %), Netherlands US$ 87.83 Mn (increased by 5.02 %), France US$ 60.62 Mn. (increased by 5.79 %) and Belgium US$ 55.42 Mn (decreased by 0.45%) during the cumulative period of January to March 2024 in comparison to the corresponding period in 2023.
Policy & Strategic Planning Division - 02.05.2024
