Sri Lanka’s merchandise exports increased by 4.4% to US$ 968.8 Million in November 2023 compared to October 2023 as per the provisional data released by the Sri Lanka Customs. However, it is a 2.67 % decrease when compared to the value recorded in November 2022.
The Figure 1 shows the comparison of Monthly Merchandise Export Performance 2020 –Nov. 2023.
Sources: Central Bank of Sri Lanka, Sri Lanka Customs
Major Exports in November 2023
a) Products & Services with Positive Growth (Increases)
Export earnings from tea which made up 12% of merchandise exports, increased by 6.78 % y-o-y to US$ 112.82 Mn in November 2023 compared to November 2022. This increase is mainly due to the strong performance in the export of Tea packets, Tea bags and Instant Tea, increased by 11.82%, 89.23% and 176.17% respectively in November 2023 compared to November 2022.
In addition, Export earnings from Rubber and Rubber Finished products have increased by 12.87 % y-o-y to US$ 78.74 Mn in November 2023, with the strong performance in exports of Pneumatic & Retreated Rubber Tyres & Tubes (28.32 %).
On monthly analysis, export earnings of Coconut based products increased by 21.05 % in November 2023 compared to November 2022. Moreover, export earnings of Coconut kernel products, Coconut fiber products and Coconut shell products increased by 26.14%, 23.64 % and 6.21 % respectively in November 2023 compared to November 2022.
Export earnings from Coconut Oil, Desiccated Coconut and Liquid Coconut Milk which are categorized under the Coconut kernel products decreased by 47.61 %, 7.99 % and 50.91 % respectively in November 2023 compared to November 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 39.78 % to US$ 11.7 Mn in November 2023 in comparison to November 2022.
Earnings from Activated Carbon, which is categorized under the Coconut shell products decreased by 8.61 % to US$ 11.6 Mn in November 2023 compared to November 2022.
Export earnings from Seafood increased by 10.48 % to US$ 25.2 Mn in November 2023 compared to November 2022. This increase was mainly due to the strong performance in export of Fresh fish (82.35 %) and Shrimps (98.99 %).
Moreover, export earnings from Ornamental fish increased by 9.42 % to US$ 2.44 Mn in November 2023 compared to November 2022.
Furthermore, the estimated value of ICT exports is expected to increase by 96 % to US$ 166.01 Mn in November 2023 when compared to November 2022. Also, the value of Transport & Logistics services exports is expected to increase by 54.7 % in November 2023 compared to the corresponding period in the previous year.
b) Products & Services with Negative Growth (Decreases)
Export earnings from Apparel & Textile have decreased by 11.94 % y-o-y to US$ 395.05 Million in November 2023 compared to November 2022.
Export earnings from Food & Beverages have decreased by 3.34 % y-o-y to US$ 43.75 Million in November 2023, with the negative performance in exports of Alcoholic beverages (-37.61 %).
In addition, export earnings from the Electrical & Electronics Components decreased by 6.55 % y-o-y to US$ 37.39 Mn in November 2023 with poor performance in exports of Switches, Boards & Panels (-14.74%) and Electrical Transformers (-54.88 %).
Export earnings from Spices and Essential Oils decreased by 13.52 % to US$ 30.99 Mn in the month of November 2023 compared to month of November 2022. This decrease was primarily driven by a significant decrease in the export of Cinnamon 21.52 %.
Exports during the period of January – November 2023
Cumulative merchandise exports during the period of January to November 2023, decreased by 9.64 % to US$ 10,878.6 Million compared to the corresponding period of 2022.
a) Products & Services with Positive Growth (Increases)
Earnings from export of Tea, Spices and Concentrates, Gems & Jewellery, Electronics & Electronic Components and Food & Beverages increased by 4.11 %, 8.09 %, 0.34 %, 2.49 % and 1.85 % respectively during the period of January – November 2023 compared with the corresponding period of 2022.
Earnings from export of Tea increased y-o-y by 4.11 % to US$ 1,198.77 Mn in the period of January to November 2023. This increase was mainly due to the strong performance in export of Tea packets (12.23%).
In addition, export earnings from Spices and Essential Oils increased y-o-y by 8.09 % to US$ 366.37 Mn in the period of January to November 2023. This increase was due to the strong performance in exports of Pepper (19.18 %), Cloves (188.25 %) and Nutmeg & Mace (13.29 %).
Meanwhile earnings from export of Electrical and Electronic Components (EEC) increased by 2.49 % to US$ 451.68 Mn in the period of January to November 2023 compared to the corresponding period of 2022. This increase was due to the strong performance in exports of Printed Circuits (58.75 %), Switches, Boards & Panels (4.82 %) and Boilers/ Piston Engines/ Pumps & Vacuum Pumps (719.87 %) in the period of January to November 2023 compared to the corresponding period of 2022.
The value of ICT exports is estimated to increase by 47.91 % to US$ 1,520 Mn in the period of January to November of 2023 compared to the corresponding period of 2022. In addition, Construction, Financial and Transport & Logistics services exports are estimated to increase by 788.1 %, 73.72 % and 93.92 % respectively in the period of January to November 2023 compared with the corresponding period of 2022.
b) Products with Negative Growth (Decreases)
Earnings from export of Apparel & Textile decreased by 18.84 % to US$ 4,425.74 Mn during the period of January to November 2023 compared to the same period of 2022. Further, earnings from export of Apparel declined by 20 % and export of Textiles declined by 4.84 % in January to November 2023.
In addition, export earnings from Rubber & Rubber finished products decreased by 9.89 % to US$ 850.61 Mn in January – November 2023 compared with the same period of 2022 attributed to lower exports of Industrial & Surgical Gloves of Rubber (-25 %) and Pneumatic & Retreated Rubber Tyres & Tubes (-2.6 %).
For the period of January to November 2023, export earnings from Coconut & Coconut based products decreased by 14.37 % to US$ 652.7 Mn from the same period last year. Earnings from all the major categories of Coconut based products decreased in the period of January – November 2023 compared with the corresponding period of 2022 due to the poor performance in export of Coconut Oil (-12.29 %), Desiccated Coconut (-23.3 %), Coconut Milk Powder (-4.93 %), Coconut Cream (-5.02 %), Liquid Coconut Milk (-3.91 %), Cocopeat (-14.81 %) and Activated Carbon (-16.96 %).
Further, export earnings from Seafood decreased by 3.73 % to US$ 238.43 Mn during the period of January to November 2023 compared to year 2022 due to the poor performance in Frozen Fish (-4.69 %), Shrimps (-25.06 %) and Crabs (-19.6 %).
Table 1 shows the comparison of Merchandise export performance in November 2023 and January to November 2023 compared to corresponding periods of previous year.
Sri Lanka’s Export Performance in Major Markets
Among the top 10 export markets, Italy and France have shown a strong performance in both the month of November 2023 and the period of January to November 2023 when compared to the corresponding periods in the previous year. Furthermore, UAE have shown significant performance during the period of January to November 2023 compared to the corresponding period in the previous year.
Exports to United States of America, Sri Lanka’s single largest export destination, decreased 7.27 % to US$ 223.26 Mn in November 2023 compared to November 2022. Further, exports to United States of America decreased by 18.24 % to US$ 2,504.82 Mn in the period of January to November 2023 compared to the same period in 2022.
Table 2 shows the comparison of Merchandise export performance of top 15 export markets in November 2023 and January to November 2023 compared to corresponding periods of previous year.
Exports to FTA Partners
a) November 2023
In November 2023, exports to Free Trade Agreement (FTA) partners constituted 6.5% of the total merchandise exports, experiencing a notable 14.45 % decrease to reach US$ 60.35 Mn, compared to November 2022. Specifically, both exports to India and Pakistan recorded decreases of 13.89 % and 19.78 %, respectively, during the month of November 2023 compared to November 2022.
The negative performance of India was driven by lower exports of Animal feed (-38.62%) and Petroleum oil (-42.15%), while Pakistan's negative performance was led by decreased exports of betel leaves.
b) January - November 2023
Exports to Free Trade Agreement (FTA) partners accounted for 7.2% of total merchandise exports decreased by 1.88 % to US$ 846.45 Mn during the period of January to November 2023 compared with the corresponding period of previous year.
Both exports to India and Pakistan decreased by 1.76 % and 3.22 % respectively during the period of January to November 2023 when compared with the corresponding period of 2022.
The negative export performance of India was driven by lower export of Animal feed (8.67 %), while Pakistan's negative performance was led by decreased export of Sheet rubber and Other article of stones.
Sri Lanka’s Export Performance in Regions
Table 3 shows the comparison of region wise exports during the month of November 2023 and the period of January to November 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 November 2023 decreased by 0.02 % y-o-y to US$ 228.31 Mn. Further, exports to the European Union (EU) decreased by 11.2 % y-o-y to US$ 2,485.88 Mn during the period of January to November 2023 compared to the corresponding period of previous year.
During the period of January to November 2023, breakdown of exports to the top five EU markets which accounted for 78 % of Sri Lanka’s total exports to the EU were; Italy US$ 632.04 Mn (increased by 7.16 %), Germany US$ 529.8 Mn (decreased by 22.63 %), Netherlands US$ 306.46 Mn (decreased by 20.95 %), France US$ 285.45 Mn. (increased by 18.09 %) and Belgium US$ 205.24 Mn (decreased by 213.42 %).
Export of Services
The estimated value of services exports for the period of January to November 2023 was US$ 2,908.61 Mn, increasing 68.72 % 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 - 28.12.2023
