Sri Lanka’s merchandise exports in August 2021 recorded an increase of 14.4 % to US$ 1,083.56 mn as compared to US$ 947.2 mn recorded in August 2020 as per the data released by the Sri Lanka Customs.
Export Development Board (EDB) Chairman, Suresh de Mel, commended the exporters and said it is remarkable to see another month of exports of over a billion US$ despite the pandemic. He also said, “Going forward we need to add more value to our exports and explore niche markets, and diversify our product basket and markets.”
Major exports in August 2021
Export earnings from the apparel sector increased by 12.13% y-o-y to $ 491.5 million in August 2021 with strong performance in exports of apparel (12.84%) and woven fabrics (312.9%). On a year-on-year basis, exports of made-up textile articles and yarn and other textile articles declined by 64.31% and 20.88%. Further, export earnings from the apparel sector increased by 8.61% in August 2021 in comparison to July 2021.
Export earnings from tea in August 2021 which made up 12% of merchandise exports increased by 13.41% y-o-y to $ 116.78 million and export volume also increased by 16.1% in August 2021 compared to August 2020. Export earnings from tea recorded a 1.43% increase in August 2021 in comparison to July 2021.
Export earnings from rubber and rubber finished products increased by 27.31% y-o-y to $ 92.34 million in August 2021 with strong performance in exports of pneumatic and retreated rubber tyres and tubes (33.02%) and industrial and surgical gloves (36.89%). However, exports of gaskets, washers and seals of hard rubber have declined by 44.48 % y-o-y to $ 4.93 million in August 2021.
Earnings from all the major categories of Coconut based products increased in August 2021 compared with August 2020. Earnings from desiccated coconut, liquid coconut milk and coconut cream categorised under Coconut Kernel Products increased by 42.82%, 13.8% and 72.94%. Being the largest contributor to the coconut based sector, coco peat, fibre pith and moulded products which are categorised under the Coconut fibre products increased by 28.55% to US$ 17.38 mn in August 2021 in comparison to August 2020. Earnings from activated carbon, which is categorised under the Coconut shell products decreased by 1.72% in August 2021 compared to August last year.
Export earnings from seafood increased by 19.65% to US$ 165.48 mn in August 2021 compared to August 2020. This increase was mainly due to the increase in earnings from export of fresh or chilled fish (29.44%), shrimp and prawns (125%), lobsters (50%) and crabs (27.27%).
Meanwhile, export earnings from electrical and electronic products (11.48%) and food and beverages (30.39%) recorded increases during the month of August 2021 compared with August 2020.
Major exports from January-August 2021
For the period of January to August 2021, merchandise exports increased by 22.36 % to US$ 7,886.1 million compared to the corresponding period of 2020, following increased exports of almost all the major product sectors; apparel and textiles, tea, rubber-based products, coconut based products, electronics and electronic components, spices and concentrates, seafood and ornamental fish as shown in the table below.
Export earnings from Rubber and Rubber finished products increased by 39.9 % to US$ 708.92 mn in Jan-August 2021 due to the better performance of exports of Industrial and Surgical Gloves of Rubber (63.68%) and Pneumatic and Retreated Rubber Tyres and Tubes (43.31%).
Earnings from all the major categories of Coconut based products increased due to the improved performance in export of coconut oil, desiccated coconut, coconut milk powder, liquid coconut milk, coconut cream, cocopeat, mattress fibre, and activated carbon. Meanwhile, earnings from export of electrical and electronic components (EEC) increased by 32.96 % to US$ 278.16 mn in the period of January to August 2021 compared to the corresponding period of 2020. Export of Insulated wires increased by 60.53% during the period of January to August 2021 to US$ 47.18 mn compared with the corresponding period of previous year. In addition, export of other electrical and electronic products increased by 26.03% during the period of January to August 2021 to US$ 143.09 mn compared with the corresponding period of previous year.
Export earnings from Spices and Essential Oils increased significantly in the period of January to August 2021 compared to year 2020 due to the better performance in all the sub categories; Cinnamon, pepper, cloves, nutmeg, essential oils and Oleoresins, etc. The export sectors that show a positive growth at disaggregate level includes export of processed vegetables, fruits and juices, sugars, sugar confectionery and bakery products, processed food, frozen fish, fish fresh or chilled, shrimps and prawns, lobsters, crabs and other edible fish.
Sri Lanka’s performance in major markets
Strong Export Growth recorded for top 10 export markets in the period of January to August 2021. During the first eight months of 2021, exports to the United States of America, Sri Lanka’s single largest export destination, increased by 15.3 % to US$ 1,905.02 mn compared to the same period of 2020. The better performance led by increase in exports of apparel sector, rubber based products (pneumatic and retreated rubber tyres and tubes, industrial and surgical gloves of rubber), motor vehicles parts, activated carbon, tea packets and cinnamon.
Exports to the United Kingdom as the second largest trading partner recorded an increase of 9.43% to US$ 604.54 mn during the period of January to August 2021 compared with the corresponding period of previous year. This performance has resulted in the increased exports recorded in apparel sector and rubber based products sectors (Pneumatic and Retreated Rubber Tyres and Tubes, Industrial and Surgical Gloves of Rubber). Exports to the Netherlands and Canada increased by over 50% from January to August 2021 compared with the corresponding period of 2020. Increased exports to Netherlands led by better performance recorded in apparel sector (79.47%) and liquid coconut milk (57.13%) and increased exports to china led by mineral sands, cocopeat and frozen fish.
On a region wise comparison exports to all other regions increased except CIS regions during the period of January to August 2021 compared with the corresponding period of the previous year.
Breakdown of exports to the top five EU markets which accounted for 80% of Sri Lanka’s total exports to the EU were: Germany US$ 481.41 mn (increased by 29.74%), Italy US$ 373.36 mn (increased by 33.1%), Netherlands US$ 270.14 mn (increased by 56.63%), Belgium US$ 214.91 mn (increased by 17.26%) and France US$ 152.73 mn. (increased by 28.81%).
Services
The services exports estimated by EDB which includes ICT/BPM, construction, financial services and transport and logistics recorded an income of US $ 2,184.5 mn from January to August 2021 compared to US$ 1,640.8 mn recorded in the corresponding period of 2020.
Estimated service exports increased by 33.13% during the period January to August 2021 compared to the corresponding period last year.