As per the provisional data released by the Sri Lanka Customs, the merchandise export performance in May 2024 amounted to US$ 960.2 million, recorded an increase of 9.4 % compared to the preceding month, April 2024. Furthermore, export performance in May 2024 decreased by 5.81 % compared to May 2023. Figure 1 shows Monthly Merchandise export performance from the year 2021 to May 2024.
The estimated value of services exports for the month of May 2024 was US$ 327.35 Million, increasing 21.24 % over the corresponding period of 2023.
Consequently, total exports for May 2024, including both merchandise and services, were recorded at US$ 1,287.59 million.
Sources: Central Bank of Sri Lanka, Sri Lanka Customs
Major Exports in May 2024
a) Products & Services with Positive Growth (Increases)
Export earnings from Rubber and Rubber finished products have increased by 5.62 % y-o-y to US$ 81.17 Mn in May 2024, with the strong performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (4.46 %) and Industrial & Surgical Gloves of Rubber (8.15%).
On monthly analysis, export earnings of Coconut based products increased by 2.88 % in May 2024 compared to May 2023. Moreover, export earnings of Coconut kernel products and Coconut fiber products increased by 9.22 % and 0.26 % respectively in May 2024 compared to May 2023.
Moreover, Export earnings from Desiccated Coconut, Coconut milk powder, Coconut Cream and Liquid Coconut Milk which are categorized under the Coconut kernel products increased by 23.18%, 44.08 %, 36.04 % and 6.02 % respectively in May 2024 compared to May 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 4.79 % to US$ 16.19 Mn in May 2024 in comparison to May 2023.
Additionally, the total export earnings from Diamonds, Gems & Jewellery increased by 2.39 % y-o-y to US$ 32.19 million in May 2024. Export earnings from Diamonds experienced a substantial increase of 12.22 % in May 2024.
Furthermore, the estimated value of ICT exports is expected to increase by 67.29% to US$ 164.45 Mn in May 2024 when compared to May 2023.
b) Products & Services with Negative Growth (Decreases)
Export earnings from tea, which made up 12% of merchandise exports, decreased by 1.1 % y-o-y to US$ 115.04 Mn in May 2024 compared to May 2023. This decline is primarily attributed to the poor performance in the export of all tea subcategories except Bulk Tea.
Furthermore, volume of tea exports decreased by 5.35 % in May 2024 compared to May 2023. Additionally, Tea exports to Russia, Iraq and Turkey markets, decreased by 0.84 %, 25.66 % and 19.48 % respectively.
Export earnings from Apparel & Textile decreased by 5.37 % y-o-y to US $ 390.29 Mn in May 2024 compared to May 2023.
Export earnings from Spices and Essential Oils decreased by 6.05 % to US$ 25.48 Mn in the month of May 2024 compared to month of May 2023 mainly due to the poor performance in export of Cinnamon (-36.18%) and Cloves (-52.61%). Clove exports to India decreased by nearly 100% in May 2024 compared to May 2023.
Export earnings from Food & Beverages have decreased by 4.67 % y-o-y to US$ 42.22 Million in May 2024, with the negative performance in exports of Animal feed (-38.82 %). Animal Feed Exports to Japan and India decreased by 83.53% and 19.36% respectively in May 2024 compared to May 2023.
Export earnings from Seafood decreased by 24.24 % to US$ 17.41 Mn in May 2024 compared to May 2023. This decline was mainly due to the negative performance in the export of frozen fish (-25.51%) and shrimp (-80.99%).
In parallel, export earnings from Ornamental fish decreased by 14.04 % to US$ 2.02 Mn in May 2024 compared to May 2023.
Additionally, export earnings from the Electrical & Electronics Components decreased by 29.66 % y-o-y to US$ 30.88 Mn in May 2024 with poor performance in exports Other Electrical & Electronic products (-41.29%).
Moreover, the estimated value of Constructions services exports is expected to decrease by 5.9 % to US$ 18.35 Mn in May 2024 when compared to May 2023.
Exports during the period of January – May 2024
Cumulative merchandise exports during the period of January to May 2024, increased by 3.09 % to US$ 5,016.3 Million compared to the corresponding period in 2023.
The estimated value of services exports is expected to increase by 9.02 % to US$ 1,384.95 Mn during the period of January to May 2024 when compared to the corresponding period of 2023.
Consequently, total exports for the cumulative period of January to May 2024, including both merchandise and services, were recorded at US$ 6,401.25 Million, a 4.32 % 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 7.88 %, 10.72 %, 18.56 % and 15.10 % respectively during the period of January – May 2024 in comparison to the corresponding period of 2023.
Earnings from export of Tea increased y-o-y by 7.88 % to US$ 565.28 Mn in the period of January to May 2024. This increase was mainly due to the strong performance in export of Bulk Tea (20.15 %).
In addition, export earnings from Rubber & Rubber finished products increased by 10.72 % to US$ 416.2 Mn in January – May 2024 compared to the same period in 2023 attributed to increased exports of Industrial & Surgical Gloves of Rubber (8.04 %) and Pneumatic & Retreated Rubber Tyres & Tubes (14.65 %).
Export earnings of Coconut & Coconut based products increased by 18.56 % to US$ 332.94 Mn during January – May 2024 compared to the last year. Earnings from all the major categories of Coconut based products increased in the period of January –May 2024 compared with the corresponding period of 2023 due to the strong performance in export of Coconut Oil (14.18%), Desiccated Coconut (34.02%), Coconut Milk Powder (38.15 %), Coconut Cream (42.18 %), Liquid Coconut Milk (25.4 %), Cocopeat (21.72 %) and Activated Carbon (11.77 %).
Export earnings from Food & Beverages have increased by 15.1 % y-o-y to US$ 200.95 Million in the period of January to May 2024, with the positive performance in exports of Processed food (58.55 %).
Furthermore, the estimated value of ICT exports is expected to increase by 24.93% to US$ 601.15 Mn during the period of January to May 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 3.36 % to US$ 1,956.65 Mn during the period of January to May 2024 compared to the same period in 2023. Further, earnings from export of Apparel declined by 2.5 % and export of Textiles declined by 12.11 % in January to May 2024.
In addition, export earnings from Spices and Essential Oils decreased y-o-y by 24.58 % to US$ 112.93 Mn in the period of January to May 2024. This decrease was due to the poor performance in exports of Cloves (-83.04 %). Clove exports to India decreased by nearly 100% in May 2024 compared to May 2023.
Meanwhile earnings from export of Electrical and Electronic Components (EEC) decreased by 19.88 % to US$ 168.82 Mn in the period of January to May 2024 compared to the corresponding period of 2023. This decrease was due to the poor performance in exports of Transformers (-30.52%), Insulated wires (-8.09%) and Other Electrical & Electronic Products (-30.88 %).
Further, export earnings from Seafood decreased by 5.57 % to US$ 108.09 Mn during the period of January to May 2024 compared to year 2023 due to the poor performance in Frozen Fish (-11.95 %).
Table 1 shows the comparison of Export performance during the month of May 2024 and the period of January to May 2024 compared to 2023.
Sri Lanka’s Export Performance in Major Markets
Among Sri Lanka's top 10 export markets, only the UK market showed positive growth in May 2024 and the cumulative period from January to May 2024, compared to the corresponding periods in 2023. Exports to the United Kingdom increased by 8.98 % to US$ 72.56 Mn in May 2024 compared to the corresponding month in 2023. Meanwhile, exports to the United Kingdom increased by 7.21 % to US$ 377.73 Mn in cumulative period of January to May 2024 compared to the corresponding period in 2023.
Furthermore, United States of America, Sri Lanka’s single largest export destination, which absorbs 23% of Sri Lanka’s merchandise exports, decreased by 1.41 % to US$ 222.62 Mn in May 2024 compared to May 2023. In parallel, exports to United States of America in the cumulative period of January to May 2024 decreased by 2.03 % to US$ 1,117.56 Mn compared to the corresponding periods in 2023.
Table 2 shows the comparison of Merchandise export performance of top 15 export markets during the month of May 2024 and the period of January to May 2024 compared to 2023.
Exports to FTA Partners (India & Pakistan)
a) May 2024
In May 2024, exports to India and Pakistan accounted for 8.4 % of total merchandise exports, experiencing a notable decrease of 6.84% to US$ 80.18 Mn compared to May 2023. Specifically, exports to India and Pakistan decreased by 7.29% and 2.39% respectively in May 2024 compared to May 2023.
The negative performance of India was driven by lower exports of Animal Feed, while Pakistan's negative performance was led by decreased exports of other Electrical & Electronic Products.
b) January - May 2024
Exports to India & Pakistan accounted for 6.8 % of total merchandise exports decreased by 8.25 % to US$ 342.36 Mn during the period of January to May 2024 compared to the corresponding period of previous year.
Exports to India decreased by 9.77 % during the period of January to May 2024 when compared with the corresponding period in 2023 while exports to Pakistan increased by 10.77 % y-o-y in the same period.
The negative export performance of India was driven by lower export of Animal feed (-13.33 %), while Pakistan's positive performance was led by increased exports of Other textile articles, other Electrical & Electronic Products and Desiccated coconut.
Sri Lanka’s Export Performance in Regions
Table 3 shows the comparison of region wise exports during the month of May 2024 and the period of January to May 2024 compared to 2023.
Exports to the European Union (EU) which accounts for 24% of Sri Lanka’s exports, decreased by 7.14% y-o-y in May 2024. However, exports to EU increased by 1.21% during the cumulative period of January to May 2024.
Exports to the top five EU markets were recorded as; Germany US$ 255.04 Mn (increased by 4.35 %), Italy US$ 250.92 Mn (decreased by 3.19 %), Netherlands US$ 144.96 Mn (increased by 5.46 %), France US$ 106.99 Mn. (increased 2.37 %) and Belgium US$ 91.37 Mn (decreased by 0.15 %) during the cumulative period of January to May 2024 in comparison to the corresponding period in 2023.
Policy & Strategic Planning Division - 24.06.2024
