SL exports top US$ 1bn in August

Despite surpassing US$ 1 billion in total merchandise export income, Sri Lanka experienced a persistent export lag in August. 

This can be primarily attributed to the underwhelming performance of the country's largest industrial export sector, apparels & textiles. 

According to data released by the Export Development Board, Sri Lanka's export income for August amounted to US$ 1.09 billion, reflecting a 10.91 percent decline compared to the same period last year. 

The apparel & textile exports witnessed a significant drop of 23.06 percent year-on-year (YoY), reaching US$ 434.98 million. This decline can be attributed to a decrease in demand for apparel products, largely influenced by the economic slowdown in major export markets such as the United States, the UK, and the European Union. 

Local apparel exporters predict a potential decrease of US$ 1 billion in apparel exports for this year, compared to the US$ 5.22 billion earned in 2022. In addition, Sri Lanka's main agricultural exports, including tea, rubber, and coconut, experienced declines in August. Tea exports declined by 3.83 percent YoY, amounting to US$ 119.64 million, while rubber-based exports fell by 19.7 percent YoY, reaching US$ 80.16 million. 

Furthermore, coconut-based exports witnessed a drop of 10.3 percent YoY, totaling US$ 63.89 million. The diamond, gems, and jewelry sector also experienced an 11.52 percent YoY decline in exports, amounting to US$ 37.64 million. 

However, spices and concentrates exports saw an increase of 19.52 percent YoY in August, reaching US$ 47.94 million. Both seafood and ornamental fish exports faced declines of 30.83 percent YoY (US$ 17.66 million) and 12.55 percent YoY (US$ 2.02 million), respectively. On the other hand, boat building contributed significantly to export income in August, with Sri Lanka earning US$ 54.4 million compared to just US$ 0.36 million YoY, thanks to the delivery of several vessels by Colombo Dockyard to its clients. 

For the period of January to August 2023, total merchandise exports amounted to US$ 7.98 billion, representing a decline of 10.4 percent YoY. 

According to the Export Development Board, services exports for the same period were estimated to be worth US$ 1.4 billion, reflecting a 12.96 percent YoY increase. The services exports included ICT/BPM, construction, financial services, and transport & logistics.