Sri Lanka’s merchandise exports grow in first half of 2024

Sri Lanka’s merchandise exports for the first half of 2024 totaled USD 6.098 billion, marking a 3.87% year-on-year (YoY) growth compared to the same period in 2023. 

Data from the Export Development Board (EDB) highlighted that apart from January and April, monthly export earnings exceeded USD 1 billion for the January-July period.

In June 2024, merchandise exports reached USD 1.031 billion, showing a slight increase from the previous month and a 2.58% YoY growth. The EDB attributed this increase to higher earnings from key sectors such as apparel and textiles, tea, rubber-based products, coconut-based products, food and beverages, and spices and concentrates.

Services exports for June 2024 were estimated at USD 323.13 million, reflecting a substantial 39.05% increase over June 2023. Combined merchandise and services exports for June grew by 9.42% YoY, reaching USD 1.354 billion, while total exports for the first half of 2024 amounted to USD 7.77 billion, a 5.57% YoY increase.

Apparel and textiles, the largest foreign exchange earner, saw a 4.22% YoY increase in June, generating USD 446.54 million. The USA, a major market for Sri Lankan textiles, recorded a 13.28% YoY growth in imports from Sri Lanka.

Tea exports, constituting 12% of merchandise exports, grew by 9.18% YoY to USD 121.76 million, driven by a 14.91% increase in bulk tea and a 4.13% rise in tea packets.

Rubber and rubber-based product exports increased by 11.8% YoY to USD 82.63 million, with notable growth in pneumatic and retreated rubber tires and tubes (3.78%) and industrial and surgical gloves of rubber (28.2%).

Coconut-based products saw a 15.54% YoY increase in June 2024 compared to the same month in 2023. Spices and essential oils exports surged by 62.63% YoY to USD 47.91 million, boosted by strong pepper exports to India.

ICT exports were estimated to grow by 28.25% to USD 141.64 million in June 2024. Construction services exports and logistics and transport services also showed growth, increasing by 4.89% and 52.96% respectively.

However, declines were observed in electrical and electronics components (-19.69% YoY), other export crops (-22.29%), and flowers and foliage (-45.83%). Exports of diamonds, gems, and jewelry fell by 58% YoY to USD 18.6 million.

Among Sri Lanka’s top 10 export markets, the USA, UK, Netherlands, France, Canada, and China all showed positive growth in June 2024 and for the cumulative January-June 2024 period compared to 2023. The USA, the largest export destination for Sri Lankan merchandise, saw a 12.44% YoY increase to USD 254.2 million in June 2024 and a 0.36% rise to USD 1.371.76 million for the January-June period. Exports to the UK increased by 3.25% YoY to USD 74.88 million in June, with a cumulative 6.54% YoY growth to USD 452.61 million.